Rhode Island State Investment Commission, Providence, hired TIAA-CREF as administrator for the state's new defined contribution program, according to a news release on the state treasurer's website.
Great-West Life & Annuity Insurance was the other finalist.
TIAA-CREF will be setting up the record-keeping and administrative platforms for the plan, providing education to participants and working with the various employers to set up payroll feeds, Dara Chadwick, spokeswoman for state Treasurer Gina M. Raimondo, said in an e-mail.
The State Investment Commission which is responsible for investment of the $7.2 million Employees' Retirement System, Providence, will make all decisions on investment options. Ms. Chadwick said.
“After evaluating the two finalists in the core areas defined in the RFP, I am confident that TIAA-CREF offers the best options, fees and level service for Rhode Island,” said Ms. Raimondo in the news release. “Our goal was to choose a provider whose priorities are low cost and secure investment products, along with robust and dependable customer service.”
The Rhode Island General Assembly in November approved creating a hybrid retirement plan — combining defined contribution features within the defined benefit plan — for members of the $7.2 billion Rhode Island Employees' Retirement System, Providence. Most state and municipal employees will become participants of the new defined contribution program, effective July 1, according to the news release.
Separately, the State Investment Commission approved committing $110 million to two hedge fund strategies for the defined benefit plan, according to recently released minutes of the Jan. 25 meeting. Partner Fund Management received $60 million for a global equity hedge fund strategy, while Brigade Capital Management received a $50 million commitment for a fixed-income hedge fund strategy.
Also, Pension Consulting Alliance was hired as real estate consultant, replacing Townsend Group, which was terminated, according the minutes. Kenneth Goodreau, chief investment officer of the investment commission, said PCA “is best equipped to deal with our portfolio and they have a dedicated staff for real estate,” according to the minutes. PCA is already the fund's general consultant.
Mr. Goodreau and Ms. Chadwick were not available by press time for additional comment.
