THE Retirement Fund board of trustees is looking for a consultant that would help draft legislation on defined contribution.
The board, chaired by Vicente Camacho, is pushing for a defined contribution plan—a new retirement program that aims to “empower” members to decide how to invest their contributions.
This system would allow Retirement Fund members “greater freedom and flexibility when it comes to investment.”
This, in effect, removes the burden to manage the contribution money from the government.
Under this system, the Fund would hire a firm to act as administrator of the members’ investments.
According to Fund legal counsel Kathleen Troy-Rucker, the board needs to consult with an expert before it could submit a draft bill to the Legislature.
Meantime, the board is still studying the international money market to determine where to put its next investment, she said.
The Fund will hire a new international money manager, but it has not decided where to assign him.
“There’s no specific area yet. We don’t know if it’s Asia. The board has yet to decide on that one,” Troy-Rucker said.
The Fund has over $355 million assets. Most of these have been invested on the stock market, primarily in the U.S.
