NYC Deferred Comp: Copper Rock is Out

It appears, based on the May 12th NYC Deferred Comp Board meeting, Copper Rock will no longer be managing money for NYC Deferred Comp (NYCDCP) participants.  At the 31:25 mark of the 5/12/2020 Board meeting,  the Milliman consultant stated the Copper Rock fund has underperformed, been a disappointment, and are recommending that the assets should be liquidated.  Copper Rock was selected in 2012 by the NYC Deferred Comp Board to manage about 10% of the International Equity Fund and has underperformed over the entire period. This is another example of the NYC Deferred Comp Board not moving quick enough to fire an investment manager that underperforms over an extended period of time.  The same thing happened with the Socially Responsible Fund in 2016, see blog post.  Will the NYCDCP notify participants that Copper Rock has been fired?  Doubtful.  Will the NYCDCP notify participants of where the Copper Rock funds will be invested after liquidation?  Doubtful.

Active and retired NYCDCP participants should be asking themselves; who is making these investment decisions?  Are the NYCDCP Board members qualified to select investment managers?  Do the NYCDCP Board members have any financial qualifications/certifications?

10 replies
  1. Marci
    Marci says:

    Is it safe to have any $ in the def.comp. plan now? Can we roll it into an IRA in a bank instead without having to pay income taxes on the balance? Do we have to wait until we retire to do this? I am still employed.

    • Jimmy H
      Jimmy H says:

      I second this question.. Can active members roll over their funds into Vanguard without penalty?

  2. Jim B
    Jim B says:

    After a 7 week attempt to roll my money out of NYC DCP into a bonafide NYS DCP I finally got the closure I been waiting for this morning when I saw my Voya Balance was ZERO. Just a note to all, I began this journey on March 26 and after NUMEROUS emails and Phone calls my check is in the mail. Yes, they mail you the check (but its made out to your new plan) and then its your job to mail it to your new Plan. I should receive my check in a few days which I will promptly mail to my new plan. Moral of this story, YES you can roll your funds over to a new plan (and you should) but it is an arduous task and requires work on your behalf. VOYA was helpful and walked me through the process but it still took almost 2 months. You CAN and you SHOULD rollover to another plan

    • MARK D.
      MARK D. says:

      @Jim B. Did you mail the forms or email them? I plan on rolling over both my 457 and my 401K to Vanguard in the next few months and just want to know what I am in for.

      • Jim B
        Jim B says:

        Mark,
        Due to the current COVID Situation, NYC DCP is NOT getting USPS Mail
        I printed the forms on line (which are hard to find and must be filled out to their standards), wrote in the my information, Scanned the forms and Emailed to Voya. 3 follow up calls to Voya and 13 days later they told me my funds had a cash out date (May 14) which did occur but I’m still waiting for my check to then send to my new plan to complete the rollover. One helpful piece was VOYA was helpful and walked me through the rollover form and where to find it. Not really a difficult process but lack of direction and initial guidance made it quite frustrating but at least I’m out of NYC DCP

        • MARK D.
          MARK D. says:

          Thanks Jim. Did you get an acceptance letter from the new company and send that with the forms?

          • Jim B
            Jim B says:

            Acceptance letter, No
            Once I established a new account (also a 457 DCP Plan with my new employer) I sent my new plan the paperwork required for a rollover AND sent NYC DCP the paperwork they require for a rollover. Your “new” plan will notify NYC DCP of the request and who to make the check out too. That’s where the fun begins with NYC DCP and their required form(s). I had a 457 AND 401A so its a separate 4 page application for each plan. Form must be perfect or they will reject it. I initially didn’t send anything to NYC DCP because I could not find their rollover forms on line. It was not till I made multiple calls to Voya when someone finally helped me and walked me through the form. The form NYC DCP requires is the ‘DEFFERED COMP 457, 401(K), & 401(A) PARTICIPANT DISTRIBUTION FORM” . It is a 4 page form and can be found on the DCP Website. The form is actually ‘hidden” at the end of this 55+ page booklet ; Its like they don’t want you to find it. Check it out and if you need further help, reach me here and I’ll walk you through it

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