Default Investment
Carriers and the New Investment Carrier Contract
The State of New Jersey has awarded
a five-year contract, with subsequent renewals, to seven companies to serve as investment
carriers in the Alternate Benefit Program (ABP). Additionally, six of these companies will serve as investment carriers for the Additional
Contributions Tax-Sheltered (ACTS) Program.
Companies serving as investment carriers
in the Alternate Benefit Program (ABP) as of July 1, 2012 include:
- AXA Equitable
- The Hartford
- ING Financial Advisers, LLC
- Met Life (formerly Travelers/CitiStreet)
- TIAA/CREF
- Prudential Retirement
- VALIC
Companies serving as investment carriers in the Additional Contributions Tax-Sheltered (ACTS) Program as of July 1, 2012 include:
- AXA Equitable
- The Hartford
- ING Financial Advisers, LLC
- Met Life (formerly Travelers/CitiStreet)
- TIAA/CREF
- Valic
The Default Carrier
Alternate Benefit Program enrollees
not designating an investment provider for their program contributions
within 45 days of program participation are enrolled with the
investment provider designated by the Division of Pensions and
Benefits as the default investment provider at the time of enrollment.
The default investment provider is authorized to accept employer
and employee mandatory contributions and will invest the funds
in a money market fund. Contributions will continue to be sent
to the default investment provider and invested in that money
market fund until the ABP member designates an investment provider,
completes an application with that investment provider, and notifies
the employer of this action. If the member is subject to delayed
vesting, and is enrolled with the default investment provider,
the member is allowed to choose an alternate investment provider
during the first year and transfer the contributions deposited
to that alternate investment provider.
The Division of Pensions and Benefits
has considered the concerns of members, human resource managers,
and the investment providers for the Alternate Benefit Program
and has developed procedures to periodically select an investment provider to serve as the default provider. As a result, the Division has determined the default provider for the current fiscal year, covering July 1, 2012 thru June 30, 2013, will be The Hartford. The Division of Pensions and Benefits will provide notification of future fiscal year default providers at a future date.