RFP for Reading Police Pension Fund DROP Accounts

Overview. The Police Pension Fund Board of managers (the “Board”) of the City of Reading Police Pension Fund (the “Plan”) is requesting information from investment management firms regarding the provision of general investment advice and asset management services to the Board with regard to funds deposited in DROP accounts pursuant to Section 1-644 the Plan document. This search was authorized by the Board and seeks to identify potential full-service investment management firms that might assist the Board with (1) identifying and reconciling the DROP accounts’ generalized investment objectives, portfolio constraints, and risk tolerance; (2) developing appropriate investment options for DROP account holders based on estimates of risk and return characteristics of different asset classes and appropriate risk management approaches; (3) developing appropriate asset allocations to produce diversified investment portfolio offerings for DROP account holders (the “DROP Participants”); (4) interacting with the DROP Participants to provide them with sufficient information to make informed decisions regarding investment alternatives available; and (5) interacting with the DROP Participants to initiate investment transactions. Investments. As of April 1, 2024, the Reading Police Pension Fund DROP Accounts has approximately $2.1 million in assets invested in a guarantee fixed investment product. Applicable Legislation. The Plan, including the DROP Accounts, trusts and custodial accounts of the City of Reading are intended to meet the requirements for governmental plans of Sections 401(a) and 501(a) of the Internal Revenue Code of 1986, as amended (the “Code”). Because the Plan is maintained by the Board for the City of Reading’s employees, the Plan is a governmental plan under Section 3(32) of The Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and Section 414(d) of the Code. The Plan is intended to be maintained and operated as necessary to retain its status as a governmental plan. As a governmental plan, the Plan is exempt from Titles I, III and IV of ERISA, certain provisions of Title II of ERISA, and various provisions of the Code.