Key Takeaways
- • Northeast State's 457 deferred compensation plan has issued a request for proposal (RFP) seeking up to four fixed-income managers.
- • The mandate is for fixed-income strategies, a core allocation for a public-sector deferred compensation plan.
- • Institutional managers interested in the mandate would need to respond to the RFP through the plan's selection process.
Summary
According to Financial Investment News (FIN), the deferred compensation plan sponsored under Northeast State's Section 457 arrangement has issued a request for proposal for up to four fixed-income managers. The publication's summary of the story is brief, and the primary source does not provide further details on the scope of assets, mandate guidelines, evaluation criteria, or submission deadlines.
Section 457 plans are nonqualified deferred compensation arrangements typically offered to state and local government employees and certain nonprofit workers. Plans of this type commonly hire external investment managers to run diversified menus of options for participants, and fixed-income strategies generally serve as the capital-preservation or stable-value component of such lineups. Selecting up to four managers suggests a multi-manager structure for the fixed-income allocation.
Managers and consultants following public-sector retirement and deferred compensation mandates may wish to review the full RFP documentation directly from the plan for specifics on asset levels, eligibility requirements, and timing. This report is based on the primary source summary alone.
Section 457 plans are nonqualified deferred compensation arrangements typically offered to state and local government employees and certain nonprofit workers. Plans of this type commonly hire external investment managers to run diversified menus of options for participants, and fixed-income strategies generally serve as the capital-preservation or stable-value component of such lineups. Selecting up to four managers suggests a multi-manager structure for the fixed-income allocation.
Managers and consultants following public-sector retirement and deferred compensation mandates may wish to review the full RFP documentation directly from the plan for specifics on asset levels, eligibility requirements, and timing. This report is based on the primary source summary alone.
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