A news release from Wyman said the state’s 44,000 participating employees should save hundreds of dollars in fees annually – a total of about $10 million – by having one third party administrator instead of the current five. The three plans have a combined value of about $2.4 billion, according to Wyman.
In Web materials accompanying the announcement, Wyman said the savings should be realized by reducing asset-based fees now paid to the current TPAs to support their administration and sales forces. She said the current 403(b) monthly administration fee will also be dropped.
ING won the business from among a crowded field that included 10 other bidders that responded to a request for proposal by Wyman’s office, according to the announcement. The Comptroller said ING stood out from the other TPA applicants because of its experience with 457, 403(b), and Alternate Retirement Plans for government and education employers. State officials and an employee review committee also liked ING’s participant education proposal, she said.
Wyman said the change will also bring a broader investment lineup for state participants by adding:
- a family of index funds
- a family of lifestyle funds
- new actively managed funds
- anew fixed account with assets managed and guaranteed by several insurance companies.
While funds managed by two current providers – The Hartford and TIAA-CREF – will continue to be offered by the plans, Wyman said no ING funds will be included as part of what she said was ING’s commitment to provide unbiased fund selection, financial counseling and participant education materials.
The deferred compensation plan will be improved effective July 1, 2005 and the Alternate Retirement Plan and 403(b) plans will be improved effective January 1, 2006, according to the Wyman announcement.
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