ICMA-RC announces the restructuring of its proprietary investment options to a collective investment trust (“CIT”)-only structure. To accomplish this, the registered Vantagepoint Funds will be liquidated and assets invested in those funds will be transferred to collective investment trust funds (“CITs”). Like registered mutual funds, CITs combine the assets of multiple investors into a single fund with a specific investment strategy. The change will occur during the fourth quarter of 2016.
The Department of Labor adopted a regulation on April 6, 2016 that defines who is a fiduciary investment adviser and the responsibilities of entities and individuals who serve in that capacity. Broker-dealers who are currently held to a "suitable" investments standard may now be required to meet a higher fiduciary standard, which requires that recommendations be made solely in the interest of the customer.
ICMA-RC, the nation’s only non-profit provider of retirement plans exclusively for public sector employees, working with its local and state government clients, received 35 awards and honorable mentions in 2015.
For public employees with a partial career covered by Social Security who also receive a public pension, Social Security's Windfall Elimination Provision (WEP) serves to reduce the Social Security benefit these employees would otherwise receive.