STATE OF CONNECTICUT
THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
MEMORANDUM NO. 2005-11
April 19, 2005
TO THE HEADS OF ALL STATE AGENCIES
|ATTENTION:||Personnel and Payroll Officers, Chief Administrative and Fiscal Officers, Business Managers|
|SUBJECT:||State of Connecticut Defined Contribution Plans for State
Deferred Compensation (457) Plan, Alternate Retirement Program and 403(b) Plan
The purpose of this memorandum is to discuss certain significant changes, as announced on March 1, 2005 by State Comptroller Nancy Wyman, which are scheduled to take effect in the State of Connecticut Defined Contribution Plans (Plans). First, there will be a comprehensive restructuring of the plans to provide improved services and lower fees. Improvements will take effect July 1, 2005 for the Deferred Compensation (457) Plan followed by improvements to the Alternate Retirement Program and 403(b) Plan effective January 1, 2006. Second, ING Financial Advisers, LLC of Hartford, Connecticut has been selected to provide administration and record keeping for all three Plans.
The restructuring of the Plans will improve administration and will keep the Plans on the cutting-edge of available products and services by reducing fees, introducing wider investment options, and providing unbiased counseling and financial education to participants through central plan administration. The selection of ING as the third party administrator for the Plans was recommended by the review committee of the Connecticut State Employees Retirement Commission who determined that ING submitted the best proposal and plan to implement the desired restructuring of all three Plans. ING has committed to energize the Plans through a comprehensive education and communication program for participants.
The first plan to be improved will be the Deferred Compensation (457) Plan, with a scheduled start date of July 1, 2005. In an effort to assist employees with understanding the improvements
of the 457 Plan and the new investment choices, each 457 Plan participant will be mailed a State of Connecticut 457 Participant Transition Brochure which will consist of detailed information on how the transition will work and what the participant needs to do. Most importantly, ING will be assisting the Comptroller's Office by scheduling transition meetings throughout the state for current 457 Plan participants to attend in an effort to assist with any questions regarding the transition, such as, fund mapping. Additionally, information regarding transition meetings will be made available on the Comptroller's Web site at: www.osc.state.ct.us
Participant inquiries related to Deferred Compensation (457) Plan information, such as but not limited to, how to enroll, how to change contribution amounts, what are the contribution limits, must be addressed to the plans administrator, by calling 1-800-262-3862. In addition, participants should be directed to the defined contribution plans Web site at www.ctdcp.com which will be available on May 16, 2005.
Subject to operational needs, agencies are encouraged to accommodate the Plan's authorized administrator so they can speak to, meet with, and enroll employees. In an effort to assist agencies with identifying ING representatives, all representatives will carry proper identification as the Plan's servicing agent. With the exception of the following financial service organizations,
Fidelity Investments, Oldham Resource Group, TIAA-CREF, The Hartford and Travelers Life & Annuity who will continue to service either the Alternate Retirement Program or the 403(b) Plan through January 1, 2006, agencies are specifically directed to deny access to any representative after July 1, 2005 who does not carry ING identification as they have not received the Comptroller's authorization to service the 457 Plan.
V. TRANSITION MEETINGS
For the Deferred Compensation (457) Plan transition meetings, a representative of ING will be contacting your agency in the near future regarding the scheduling of a transition meeting for your employees. It is the objective of the Comptroller's Office and ING to assist as many participants as possible with this transition; therefore, your assistance in providing your employees with the opportunity to attend these important meetings is essential to the success of this transition.
The improvements to the Alternate Retirement Program and 403(b) Plan are scheduled to take effect on January 1, 2006. Information regarding these Plans including transition procedures will be communicated by the Retirement & Benefit Service Division at a future date.
Questions related to the management and administration of the Deferred Compensation (457) Plan may be directed to the Retirement & Benefit Services Division, Employee Benefits Unit at (860) 702-3543.
Very truly yours,
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