(1) Investment providers offering an
investment product through the primary plan or an alternate plan shall be
selected by the board based on the investment product categories and criteria
established under s.
ETF 70.03(8) and
(9). All contracts with investment providers
of the primary plan or an alternate plan shall be approved by the board and
signed by the board chair or designee.
(2) Investment providers shall not be allowed
to assess any direct or indirect costs to members.
(3) Based on the board's review required
under s.
ETF 70.03(10), the board may determine
that an investment product offered by the primary plan or an alternate plan is
no longer acceptable for inclusion in the program. If the board decides to
remove an investment product from the plan as a result of the product's failure
to meet the criteria as established under s.
ETF 70.03(9), the product shall be phased
out of the primary or alternate plan in a 2-step process over a 90-day period
that shall commence on the first business day of the 3rd month following the
board's decision, as follows:
(a) Phase 1 of
the investment product termination process shall last for 45 days during which
time current members and employees newly enrolling in the primary or alternate
plan shall be informed in writing that the terminating investment product does
not meet board's evaluation criteria and that this investment product is not
open to new enrollments, and all of the following shall occur:
1. Any members already deferring to the
terminating investment product shall be informed in writing that they need to
redirect future deferrals from this product to an alternative investment
product offered by the primary or alternate plan by notifying the administrator
of their new investment choice.
2.
At the end of the 45-day period, the board shall instruct the administrator to
automatically redirect any member's deferrals that have not been redirected to
an alternative investment product from the terminated product into a board
designated alternative investment product offered by the primary or alternate
plan.
3. Existing member account
balances shall be allowed to remain in the terminating investment product
during this period.
(b)
Phase 2 of the investment product termination process immediately follows the
first 45-day period and provides an additional 45-day period during which time
members shall transfer existing balances from the terminating product to
another investment product offered by the primary or alternate plan, and all of
the following shall occur:
1. If at the end
of the additional 45-day period, any member has failed to move a remaining
account balance from the terminated fund, the board shall instruct the
administrator to automatically move that member's account balance into a board
designated alternative investment product offered by the primary or alternate
plan.
2. During the phase out
process and at any time prior to the end of the second phase, the board may
re-examine the performance of the terminating investment product to determine
if continued plan participation is justified.
