 FRS Investment Plan |
The FRS Investment Plan is a defined
contribution plan designed for mobile employees. Employees can
choose the Investment Plan in lieu of the Pension Plan. The Plan does
not require employee contributions
and employer contributions go directly into members' accounts. Rates range from 9% to 20% of salary
depending on membership class. The plan is self-directed and members decide how much risk to take by
allocating their account balance among a set
of 20 institutional and retail investment funds. Vesting in the
plan is one year. Distribution options include lump sums, periodic
distributions and a variety of fixed and
variable annuities.
The SBA selects and monitors the investment funds, subject to the ERISA fiduciary standards of care and
a Trustee-approved Investment
Policy Statement. Within the available investment funds, as of June 30,
2005, nearly 35% of assets are invested in one of three low-cost
balanced funds that are optimized by
Financial Engines. On average, members pay investment management fees of approximately 30 basis
points.
The SBA is also
responsible for day-to-day administration of the FRS plan choice (between
the Pension
Plan and Investment Plan) and recordkeeping for the Investment Plan.
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