Why are we only allowed to defer money to Hartford, ING, or Advantis Credit Union for our deferred compensation services?
This is a complex question. First, ORS 294.033 and 294.035 limit local governments to offering deferred compensation accounts under an annuity contract or with a credit union. This means that deferred compensation monies may not be invested directly in stocks or mutual funds, but may be invested in similar types of funds if offered by an insurance company. Second, the County has contracted with two insurance annuity providers and one credit union, and established the contracts after conducting a competitive RFP. By limiting the number of investment providers to a small number, the County’s aggregate account value will be high enough that the County will be able to negotiate a broad number of services and lower overall fees. If the County were to contract with more providers, this could result in a decrease in the amounts on deposit with each investment provider, a reduction in services provided, and an increase in fees charged. Through the three investment providers, participants are a
Related Questions
- Can I move money from another retirement plan into my account in the State of Delaware Deferred Compensation Plan and Match Plan?
- Why are we only allowed to defer money to Hartford, ING, or Advantis Credit Union for our deferred compensation services?
- Where can I obtain Plan forms for the BART Deferred Compensation Plan and Money Purchase Pension Plan?
