Hewitt EnnisKnupp or Russell Stand to Oust Mercer at CT Pension

(May 23, 2011) — The $25.1 billion Connecticut Retirement Plans & Trust Funds has named both Hewitt EnnisKnupp and Russell Investments as semifinalists to replace Mercer as the fund’s consultant.

In October, Mercer announced that it was ending its offering of general consulting services to public defined benefit plans. “After a comprehensive review of our business and in light of changes in the public fund marketplace, Mercer has made a decision to adjust the focus of our public fund investment consulting advisory work,” the consultancy said at the time. “Mercer will no longer provide investment consulting advisory services to public sector defined benefit pension plans. We stand behind the professionalism and integrity of our investment consulting work for the public sector. Having said that, we are always evaluating our business and making prudent business decisions, and risk is certainly one factor that we consider in these decisions.”

Mercer’s relationship with the Connecticut Retirement Plans & Trust Funds expires on June 30.

According to an industry source, the scheme issued a request for proposal (RFP) in December and received responses from 10 firms. Subsequently, five firms were interviewed by Treasury department officials. On May 11, the list of candidates was narrowed down to Hewitt EnnisKnupp and Russell after a presentation to the fund’s investment advisory council.

No decision on the finalist has been made.