Connecticut Office of the State Comptroller, Hartford, and members of the State Employees Retirement Commission hired Prudential Retirement as third-party administrator for the state’s three defined contribution plans, said Tara Downes, spokeswoman for Comptroller Kevin Lembo’s office.
Beginning July 1, Prudential Retirement will replace Voya Retirement Services as administrator of the state’s $4.5 billion DC plans.
The comptroller’s office issued an RFP in November.
Two of the plans, the 457 Deferred Compensation Plan and the 403(b) plan, are voluntary supplemental plans. The Alternate Retirement Plan, meanwhile, is a core retirement plan offered to certain higher education employees as an alternative to the State Employee Retirement System plan.
All three plans share the same investment options.
Participating employees are not required to take any action as a result of the transition and will retain their current investment options.
The new contract will provide a team of Connecticut-based retirement counselors and the same 26 investment options and managed account program currently offered, along with lower administrative fees.
Prudential will introduce a financial education initiative in coordination with the comptroller’s office designed to help state employees achieve their retirement goals.
Ms. Downes did not have additional information at press time.