Chicago Transit Authority hired MassMutual Financial Group as provider for its 457 and 401(k) plans, said a transition guide obtained by Pensions & Investments.
MassMutual replaces ICMA-RC, effective May 20. A blackout period for participants will start May 12 and end June 1.
An RFP was issued in June. The reason for the search and whether ICMA-RC rebid could not immediately be learned. The 457 and 401(k) plans had about $423 million in combined assets as of March 31, 2015, the most recent data available.
The plans' investment lineups will also change with the switch to MassMutual. Both plans have the same fund lineups.
Starting in late May, the plans will have 27 investment options, nine of which are new, in addition to a series of Vanguard Group target-date funds. The Vanguard target-date funds, an existing investment option, will replace ICMA-RC's managed accounts and its Vantagepoint model portfolios.
The new investment options are:
- Pacific Investment Management Co.'s income fund;
- MassMutual's Diversified SAGIC II;
- American Beacon Advisors' Bridgeway Large-Cap Value;
- Hartford Funds' core equity fund;
- Alger Capital Appreciation, managed by Fred Alger Management;
- Victory Sycamore Established Value, managed by Victory Capital Management;
- Vanguard's strategic equity fund;
- J.P. Morgan Asset Management's small-cap equity fund; and
- PNC Capital Advisors' small-cap equity fund.
Nine options were removed from the plan, in addition to ICMA's managed accounts, model portfolios, trust-plus fund and milestone retirement income fund. The other removed options are Invesco's growth and income fund and select companies fund; Hartford Capital Appreciation HLS; Wells Fargo Growth; Goldman Sachs Asset Management's midcap value equity fund; Weitz Investment Management's Hickory Fund, and AllianceBernstein's small-cap growth equity fund.
Previous investment options that remain available, including some with share class changes, are five Vanguard funds, two MFS Investment Management funds and two Principal Global Investors funds. The other retained options are managed by PIMCO, Oakmark Funds, American Century Investments, T. Rowe Price, Delaware Investments, Northern Trust, American Funds, OppenheimerFunds and Allianz Global Investors.
A spokesman could not immediately provide additional information.