According to a recent press release, ING, which already serves as recordkeeper for the 401(k) and DC plans, will also take on the 457 plan. The 401(k) and 457 will also be re-branded as PERAPlus programs. The decision follows Colorado PERA’s effort to improve and consolidate the plans – which provide retirement benefits for state, local government and public school employees in Colorado – under one recordkeeper, effective October 1, 2011.
Current assets in the PERA 401(k) Plan are $1.9 billion, with 73,620 participants; assets in the PERA 457 Plan are $473.5 million, with 18,182 participants; and assets in the PERA DC Plan are $53.2 million, with 3,503 participants.
Following the changes, all PERA participants will have access to investment professionals who can help manage their accounts, and the ability to invest in a wider universe of options by using a self-directed brokerage account, the announcement said. Previously, these options were available only to participants of PERA’s 457 Plan. The PERAdvantage investment line-up will also include six primary investment vehicles based on asset classes, 10 target retirement date funds and a balanced fund that screens for various social causes.
“After an exhaustive search process, our Board of Trustees determined that ING offered the best solutions for the needs of our newly-aligned PERAPlus programs and PERA DC Plan,” said Meredith Williams, Colorado PERA’s Executive Director, in the announcement. “Through this consolidation, we expect to realize significant savings and efficiencies by building on the success of our existing relationship with ING. More importantly, we’re pleased to be offering significant plan enhancements to help PERA members achieve their retirement savings goals.”