November 25, 2005
State’s Deferred Compensation Plan to
Feature Expanded Options, other Enhancements for Participants with
New Third Party Administrator
Trenton -- State Treasurer John E. McCormac and the New Jersey State Employers Deferred Compensation Board announced today the selection of a Prudential Retirement as the third-party administrator for the New Jersey State Employees Deferred Compensation Plan (NJSEDCP). The selection follows a review of the plan by an independent consultant, which recommended changes to enhance the Plan to take full advantage of developments in the marketplace.
“In order to provide our employees with the best tools available to help secure their retirement plans, we took a long, hard look at New Jersey’s deferred compensation plan,” said Treasurer McCormac. “Following our review, we prepared an RFP that challenged bidders to make improvements and enhancements to our plan while keeping administrative costs to a minimum. We are confident that this selection will achieve our goal of bringing New Jersey’s plan into the 21st century, offering employees more choices, enhanced services and improved satisfaction from their sheltered earnings,” he said.
business of New Jersey-based Prudential Financial, Prudential Retirement
was selected after a review of six proposals as part of a competitive
bid process managed by the Purchase Bureau, Division of Purchase and
Property, on behalf of the Division of Pensions and Benefits and the
Division of Investment (DOI).
NJSEDCP has been internally administered by the Division of Pensions and Benefits since 1986, and the plan’s investments have been managed by the Division of Investment since the plan’s inception in 1982. NJSEDCP’s expanded services provide for continuation of the Plan's four options managed by the State for those members who elect to retain their current investment offerings. The investment management of these accounts will remain under the purview of the DOI, while book-keeping functions for these and all other accounts will be transferred to the third-party vendor.
Approximately 30,000 state (or eligible agency, authority, commission or instrumentality) employees currently participate in the plan. There are 146,000 eligible public sector employees. The Deferred Compensation Plan has $1.5 billion in assets.
McCormac said that additional information about the benefits of the
improved program will be provided to State employees over the next several
weeks prior to the plan revision’s effective date of