Los Angeles Unified School District signed a contract with CalSTRS to provide record keeping, education on investment counseling services for the district’s $30.3 million 457(b) plan, representatives of CalSTRS and the district confirmed.
The five-year contract, effective Feb. 1, 2012, was approved by the school district Sept. 1, confirmed Anthony Silo, contract administration analyst for the school district, in an e-mail.
“CalSTRS will begin including information for the (school district’s) 457(b) plan in all retirement planning workshops conducted at the district,” Patrick Hill, a spokesman for the $152.7 billion California State Teachers' Retirement System, West Sacramento, wrote in a separate e-mail. “CalSTRS is administering the investment options selected by the (school district’s) advisory committee.”
CalSTRS has a contract with TIAA-CREF in which “TIAA-CREF is sharing the record-keeping duties” for the school district plan, Mr. Hill added.
“TIAA-CREF will provide call center support and web-based services,” Jeannine Defoe, a TIAA-CREF spokeswoman, wrote in an e-mail. “TIAA-CREF and CalSTRS together will help provide access to participant level advice from registered investment advisers with a fiduciary standard.”
VALIC had been the exclusive 457(b) provider since 2006, and its contract expires Jan. 31, 2012, according to an internal memo provided by the district.
The school district issued an RFP in February and received three applications, Mr. Silo wrote.