By Patrick Anderson
PBN Staff Writer
PROVIDENCE â€“ The state is seeking bids from companies interested in running the new defined-contribution retirement plan for public workers established by last monthâ€™s pension system overhaul, General Treasurer Gina M. Raimondo has announced.
In a request for proposals issued Monday, the Treasury said itâ€™s looking for a company to provide solid investment options, recordkeeping, administration and retirement planning services for a bundled defined-contribution plan.
Bidders must already be managing a minimum of $20 billion in defined-contributions, according to the RFP.
"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 in a statement. "Our goal is to find providers whose priorities are low cost and secure investment products, as well as strong and dependable customer service."
Under the terms of the new pension law passed last month - which was opposed by public employee unions - most state employees, teachers and municipal workers covered by the state retirement system will be required to contribute to the new defined-contribution plan by July 1, 2012.
The Treasury estimates the new plan will eventually cover 30,000 government employees with annual contributions of between $100 million and $150 million.
The deadline to submit bids to the treasurerâ€™s office is Jan. 20. The State Investment Commission is expected to approve a final choice by March 1.