Austin, Texas, hired Empower Retirement as bundled provider for its $352 million 457 plan, said a letter to participants on the plan's website.
An RFP was issued last year because of the contract expiration this month of Voya Retirement Services, the incumbent provider.
It could not immediately be learned whether Voya rebid.
The plan also will offer a new investment lineup composed of nine core investment options — seven of which are new — and a series of custom target-date funds, which are the plan's first target-date funds.
The new core investment options are:
- three Vanguard Group equity index funds;
- a Dimensional Fund Advisors emerging markets small-cap equity fund and real estate securities fund;
- Metropolitan West Total Return Bond, managed by Metropolitan West Asset Management; and
- BlackRock High Yield Bond.
The Dodge & Cox International Stock Fund, a stable value fund and a self-directed brokerage account will continue to be offered.
More than 25 investment options are being removed.
A blackout period began June 9 and ends June 22.
Elaine Hart, chief financial officer, and Terry V. Nicholson, senior buyer specialist for the city of Austin, could not be reached for additional information by press time.
