Searches and Hires

California Secure Choice board to search for third-party administrator

The California Secure Choice Retirement Savings Investment Board, Sacramento, on Monday voted to launch an RFP for a third-party administrator and/or investment manager for the new state-run retirement program for private-sector workers.

The board is expected to launch a pilot phase of the program later this year, with the full program scheduled to begin a phased implementation in early 2019.

Plan participants who do not select investment options will see their first $1,000 in contributions invested in the capital preservation investment option, with subsequent contributions into a target-date or risk-based investment option, the RFP states.

The default contribution rate of the plan is 5% of salary, according to regulations also adopted by the board on Monday. Plan participants can elect another rate. Automatic escalation of contributions will be 1% per year up to a maximum of 8%, and there is a Roth IRA default setting.

The regulations will now be submitted to the state Office of Administrative Law for review and a public comment period.

Meketa Investment Group, the plan's investment consultant, and AKF Consulting, the general consultant, are assisting.

The RFP is expected to be posted on the plan's website. Proposals are due by 4 p.m. PDT on April 13, with a selection expected as early as the week of May 28.