Delaware is looking for one or more record keepers for its three defined contribution plans — a 457(b) deferred compensation plan, a 401(a) match plan and a 403(b) plan.
Fidelity Investments is the current record keeper for the 457(b) plan, which has $561 million in assets, and the 401(a) plan, with $23 million in assets. It could not be learned by press time whether Fidelity can rebid.
Assets in the $378 million 403(b) plan are held with numerous vendors, the RFP said. The names of the vendors could not be learned by press time. The new provider is expected to work with participants “to communicate the benefits of consolidating these assets to a new program,” the RFP said.
The RFP issued by the state treasurer’s office offers two possible scenarios for the new contract. One scenario would have a single provider for all three plans, while the second scenario calls for bidders to provide record-keeping services to the 457(b) and 401(a) plans, and to serve as one of up to three vendors for the 403(b) plan. The “overarching goals” are streamlining administration of the plans, and implementing “client-facing enhancements” to the plans, and to support both goals, the treasurer’s office intends to implement a streamlined investment lineup, the RFP said.
The contract will be for three years, beginning Jan. 1, 2016, with up to two additional one-year extensions possible. The Delaware state treasurer’s office expects a four-month transition period.
Bidders must administer at least $10 billion in defined contribution assets, at least 10 defined contribution accounts each with 5,000 or more participants, and have 10 years’ experience providing defined contribution services.
The RFP is available on the treasurer’s office’s website. Proposals are due at 4 p.m. EDT Oct. 7. A hiring decision is expected during the week of Dec. 14.
Calls to Michael Green, financial investment program manager in the treasurer’s office, were not returned at press time.