Oklahoma Public Employees Retirement System, Oklahoma City, will start negotiations with Great-West Retirement Services to provide record-keeping and stable value services for its new defined contribution plan, said Tom Spencer, executive director, in an e-mail.
OPERS staff will bring back any proposal to the board. If the board does not approve the proposal, an RFP for a record keeper and stable value fund provider could be issued, Mr. Spencer wrote.
In May, Gov. Mary Fallin passed a law to shift some new public employees into a new defined contribution plan administered by the $8.5 billion OPERS. Most new public employees hired on or after Nov. 1, 2015, will be shifted into the new DC plan. Under the new plan, employees will contribute a mandatory minimum 3% of their salary and employers will match contributions up to 7%.
All employer contributions and the mandatory 3% minimum employee contributions will be deposited into a new 401(a) plan. Remaining voluntary contributions and deferrals will be placed in a new 457(b) plan, Mr. Spencer wrote.
OPERS currently administers a 401(a) and 457(b) plan with combined assets of about $870 million. Great-West is the current record keeper and stable fund provider for the existing plans.