Florida State Board of Administration, Tallahassee is looking into terror-free investment options for the Florida Retirement Systems $4.1 billion 401(a) plan, to comply with a new state law, said Ron Poppell, the FSBAs senior defined contribution programs officer.
The board asked Wilshire Associates, an FSBA consultant, to find out if any such product is available that could be the basis for creating a new investment option, he said. It also asked BGI, an existing manager, if it can develop such a fund.
Also, the board is looking internally at unitizing any existing terror-free strategies used by itsdefined benefit plan for use in the 401(a) plan.
The board hopes to make a decision in July on which course to pursue, Mr. Poppell said. The board hopes to make a selection in the fall, making it effective Jan. 1, when Hewitt Associates replaces ING as the plans record keeper, Mr. Poppell said.
The law, sponsored by state Sens. Ted Deutch and Carey Baker, requires the plan by March 1 to offer an option free of investments connected with Iran and Sudan. Gov. Charlie Crist signed it into law on Monday.
The board doesnt know of any such investment option now available for DC plans, Mr. Poppell said.
The board plans to retain the plans 21 existing investment options, he said.
A 2007 law already requires divestment of Iran- and Sudan-tied investments by the FSBAs $90.2 billion defined benefit fund.