Government Retirement Plan Looking for New Fund Management

October 17, 2005 (PLANSPONSOR.com) - Officials for Thrift Savings Plan (TSP), the government's 401(k) style retirement plan, have announced that the management of four of its funds will be up for bid early next year.

Govexec.com reports that TSP’s C Fund (common stocks), S Fund (stocks in small and mid-size companies), I Fund (international stocks), and F Fund (fixed income securities) will all be up for competitive bids at the same time.   TSP administrators believe this could save the plan tens of millions of dollars.   The funds are currently managed by Barclays Global Investors.   

TSP Executive Director Gary Amelio said the TSP board could contract the four funds out to a single bidder, four different companies, or even divide it smaller, giving various duties within each fund to different companies.   TSP has hired an outside contractor, Ennis Knupp & Associates of Chicago, to assist in the bidding process, according to govexec.com.

In addition, Ennis Knupp & Associates will consult with the TSP on a possible index switch for some of the funds and possible fund additions.   All TSP funds are passively managed, tracking a major existing investment index and not requiring an investor to choose stocks.  

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