Illinois State Universities Retirement System, Champaign, is searching for bundled providers for its $1.6 billion 401(a) defined contribution plan.
SURS must hire at least two providers, according to state statute. Fidelity Investments and TIAA-CREF are the incumbents and can rebid, Daniel L. Allen, chief investment officer of SURS, said in an e-mail.
Fidelity oversees $975 million for the plan and offers plan participants 32 investment fund options, including five managed by external money managers. The other 27 fund options, including 12 target-date funds, are managed by Fidelity.
TIAA-CREF oversees $668 million for the plan and offers 22 investment fund options, all TIAA-CREF funds, including 12 target-date funds.
Providers must also provide record-keeping and administrative services for the plan.
SURS issued the RFP because “a search process has not been conducted for several years,” Mr. Allen said. “SURS believes it is prudent to refresh candidates and opportunities in the marketplace to ensure provider services being utilized are in line with market.”
NEPC, investment consultant for SURS, which also oversees $17.5 billion in defined benefit assets, is assisting with the search.
The RFP is available on SURS’ website. Proposals are due May 28. SURS expects to make a decision in September or October and award a contract in October. If any new providers are hired, the transition would take place in April.
