Springfield, IL – State Representatives Raymond Poe (R-Springfield) and Rich Brauer (R-Petersburg) today sent a letter to State Board of Investment Director Bill Atwood (ISBI) requesting a public hearing in Springfield on proposed policy changes to the ISBI managed deferred-compensation (401(k)) program.
“I am very concerned about what we are hearing,” said Poe. “The mutual funds currently used by State employees to invest their 401 (k) assets are relatively transparent entities with publicly quoted asset prices. Considering the tumultuous times we are facing with the stock market, I think we need to put our highest priority on supporting the existing investment decisions made by Illinois state workers and plan participants. Our state workers’ peace of mind must be our highest priority.”
At JCAR’s September 16, 2008 meeting in Chicago, the ISBI promised to JCAR that a public hearing would be held under CMS’s auspices on this controversial rules change. At last notice, CMS had plans to hold the hearing in Chicago on or around October 7, 2008.
“Illinois state employees have invested somewhere in the neighborhood of $3.0 billion in deferred-compensation 401(k) money in mutual funds supervised by the Illinois State Board of Investment,” said Brauer. “Considering that the majority of those employed by the state live in the Springfield area, we are demanding a hearing be held in Springfield so that our constituents may learn more about this proposal, ask questions and find out how this proposal could affect them and their future.”
A current rule-making proposal before the Joint Committee on Administrative Rules (JCAR), 80 IAC 2700, would change all references within ISBI rules from “investment funds” to “investment options”. Poe and Brauer fear this rule, which is scheduled to be considered by JCAR at their October 16th meeting, could be used as a platform for this policy change.
###
