May 30, 2017
PSPRS partners with Public Safety Financial/Galloway
Agreement provides PSPRS members education and financial advice
Pursuant to legislation for the new Public Safety Personnel Defined Contribution (DC) Retirement Plan that goes live July 1, PSPRS is required to engage with a federally registered investment advisor to provide our members with “education, counseling and objective participant-specific plan advice.” As such, through a formal Request for Proposal (RFP) process, PSPRS has partnered with Public Safety Financial/Galloway to help all members of PSPRS-managed plans with retirement planning and overall financial wellness.
While members in the DC plans will find this service most beneficial, it is optional and also available to members who will only receive a defined benefit (DB) pension. The DC benefits, which are 401(a) investment accounts overseen by the PSPRS Defined Contribution Committee through a partnership with Nationwide Retirement Solutions, are (or will be) available to the following:
- Members whose employers have chosen to use the PSPRS Supplemental DC plan;
- Members in the Elected Officials Defined Contribution Retirement System (EODCRS);
- Tier 1 PSPRS members in the DROP program (beginning July 1, 2017, all members exiting DROP will have their DROP money automatically deposited into an account within the DC plan where they can choose to keep it there, withdraw it, or roll it over to another qualified plan);
- Tier 2 public safety members (hired on or after Jan. 1, 2012, and before July 1, 2017) who do not contribute to Social Security through their public safety employer and have not opted-out;
- Tier 3 public safety members who choose the DC only option;
- Tier 3 public safety members who choose the DB plan and do not contribute to Social Security through their public safety employer; and
- Beginning July 1, 2018, all new CORP members who are enrolled in the DC plan.
Of primary concern are the new Tier 3 members (hired on or after July 1, 2017) seeking assistance in deciding whether to choose the DC or DB plan as their irrevocable choice for their public safety career. In addition to providing that guidance, as part of the education, counseling and advisory services being provided, members in the various DC plans can receive help from PSF/Galloway and Nationwide in developing an appropriate investment strategy and choosing investments among the fund options available in the plan.
As a federally registered investment advisor, PSF/Galloway is a fiduciary to the members and is bound by law to act in their best interests.