Arkansas State Officials have selected CitiStreet, the joint venture between Citigroup and State Street Corp. and Stephens, a Little Rock-Ark.-based investment banking firm, as the administrators for the states new deferred compensation plan.
The new 457 plan will likely attract many more participants because of enhancements to the plan regarding investment options, retirement planning and advice which will take effect next year, said Arkansas state officials. Only about 7,000 of 30,000 eligible state employees are enrolled in the current plan.
One of the key enhancements to the plan is that it will offer mutual funds, according to CitiStreet. Under the current plan, investors can only invest in annuities.
"This gives Arkansas state employees far more choices and flexibility in maintaining their retirement savings," Arkansas Governor Mike Huckabee.
CitiStreet will administer the program from its offices in Little Rock and Jacksonville, Fl. The firm will provide all record-keeping, plan administration, communications and employee services for the plan.