California Secure Choice Retirement Savings Investment Board on Thursday hired Ascensus College Savings Recordkeeping Services for program administration and State Street Global Advisors for investment management, said Katie Selenski, executive director CalSavers, in an email.
The CalSavers program is a new state defined contribution plan for private-sector workers without access to a tax-favored retirement plan. A pilot phase of the program is expected to launch later this year and open statewide next year.
The selection was the result of RFPs posted May 21. The board received 13 total responses, including multiple responses for both program administration and investment management.
The investment manager is expected to provide investment options with attractive investment performance at the lowest possible cost to participants, a report to the board noted. SSGA will offer a capital preservation fund, a series of target-date funds, a high-quality bond fund and an equity option.
Ascensus will charge a 0.75% maintenance fee a year, which will be lowered as plan assets grow, with a floor of 0.15% when assets reach $35 billion.
The board's investment consultant, Meketa Investment Group, and program consultant, AKF Consulting, assisted.