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State sets Jan. 20 deadline on request for proposals for defined contribution plan

December 12, 2011

State Treasurer Gina Raimondo and the state Investment Commission have set a January 20 deadline for proposals to create a defined contribution plan as part of the state’s new pension law. Fidelity Investments and TIAA-CREF are among the firms seen as likely entries in the competititon:

“The defined contribution program will be a core part of each employee’s retirement plan and is intended to provide a secure source of retirement benefit, in addition to their pension benefit,” Raimondo said. “Our goal is to find providers whose priorities are low cost and secure investment products, as well as strong and dependable customer service.”

Proposals should include detailed answers in the following areas:
– Robust investment options and management
– Efficient plan administration and record keeping
– Effective member communication and education mechanisms
– Comprehensive retirement planning

Most Rhode Island state employees, teachers and municipal employees participating in the Municipal Employees Retirement System (MERS), will be required to contribute to the defined contribution program effective July 1, 2012.  It is estimated that the plan will initially cover approximately 30,000 government employees and annual contributions will be in the range of $100 million to $150 million.  

“The state is committed to an open and transparent process as selection begins to hire a service provider,” Raimondo continued. “In the coming months, there will be several meetings of the State Investment Commission to analyze and discuss various program proposals.”

Proposals must be submitted to the Treasurer’s office by January 20, 2012 at 5 p.m. The State Investment Commission is expected to approve a final choice by March 1, 2012. The new program will take effect starting on July 1, 2012.

4 Comments leave one →
  1. Jan permalink
    December 12, 2011 8:12 pm

    And now it begins…the ALEC agenda is fullfilled and they have succeeded in increasing private dollars at the public’s expense. If one looks at the ALEC toolkit it is clear that the pension reform was taken from their model legislation. The one thing they forgot to tell the general public is that ALEC is funded by a secretive right wing think tank whose sole purpose is to privatize as much of the government as they can. Oh, did I forget to mention that it has recently been discovered that the money behind the American Legislative Exchange Council comes from the billionaire Koch brothers, as well as oil corporations and Walmart. This is a perfect example of how legislation is being bought. This time EngageRI was the secretive voice of the corporations. No where in this legislation was the voice of the people heard. In fact, the legislators were promised support from Gina if they supported her and her attempt to fatten the wallets of Wall Street. People need to look into ALEC and its misdeeds. It is time to give the government back to the people! Check out Google it, search it on You Tube. You will be shocked at how the power and money of a few people have determined the laws in this state. Our legislators are just their puppets. Read, read, read…

  2. Pension Refrom Lines Pockets of 1% permalink
    December 13, 2011 2:31 pm

    I’m rooting for TIAA-CREF, at least they are non-profit
    It would be nice if when reporting on this issue it was disclosed that the Treasurer’s Chief of Staff, Joe Pratt, was a former Executive at Fidelity. He also is the Chief of Staff and Legal Counsel of the Investment Commission who will pick the 401K vendor according to the Secretary of State’s Website.

    When the Investment Commission awarded Fidelity a lucrative contract in November this was not reported on. Rhode Island’s Fourth Estate needs to step it up!

  3. Mister Guy permalink
    January 2, 2012 7:01 am

    I thought the RI state pension system already had an optional defined contribution plan…why are they getting a new vendor for that kind of system if they already have one?


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