Default Investment
Carriers and the New Investment Carrier Contract
The State of New Jersey has awarded
a five-year contract, with subsequent renewals, to five companies to serve as investment
carriers in the Alternate Benefit Program (ABP) and the Additional
Contributions Tax-Sheltered (ACTS) Program. The sixth company,
TIAA/CREF, is designated in statute as an investment provider
for the ABP and the ACTS Program.
Companies serving as investment carriers
in the Alternate Benefit Program (ABP) and the Additional Contributions
Tax-Sheltered (ACTS) Program as of April 1, 2004 include:
- ING Financial Advisers, LLC
- TIAA/CREF
- Met Life (formerly Travelers/CitiStreet)
- VALIC
- AXA Equitable
- The Hartford
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 the Additional Contribution Tax Sheltered Program. As a result,
procedures have been designed to select the default carriers on
a rotating basis, and the Division has determined the following
default carrier arrangement for the duration of contracts awarded
pursuant to Purchase Request #1026854, which took effect on April
1, 2004.