Chicago Public Schools (“CPS”) is the third-largest school district in the United States, operating approximately 636 schools with more than 40,000 active employees. Like many other K-12 school districts, CPS’ 403(b) and 457(b) plans had historically operated in a multi-vendor environment, although CPS has successfully reduced the number of active vendors over the years. However, the reductions were not an easy task. In 2020, CPS began working on a Request for Proposal (“RFP”) process to explore consolidating to a single provider for recordkeeping and third-party administration services for the Plans. CPS was determined to help participants achieve retirement readiness and financial wellness; provide non-conflicted retirement education; streamline administrative processes; and, ensure transparent and best-value pricing for both investment management fees and recordkeeping and administration fees. At the end of the process, CPS selected a single provider for all future contributions; adopted a new service model designed to provide more effective education; implemented a new investment lineup based on best practices; streamlined administration activities; and, lowered fees. CPS then successfully implemented the new platform while also adopting a new Roth contribution feature. There are many K-12 school districts, as well as some other government entities, still operating in a multi-vendor environment, and CPS’ recordkeeping consolidation project provides a blueprint that other similarly situated plan sponsors can follow.
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- August 1, 2022 Create Date
- August 31, 2023 Last Updated
