BPAS Launches First Ever Puerto Rico Collective Investment Fund
Jan 07, 2020
San Juan, PR (January 7, 2020) ― BPAS, a leading national provider of retirement plans, benefit plans, fund administration, and collective investment trusts, announced today that the Puerto Rico Pension Board has selected the PR Capital Preservation Fund (Fund) for inclusion in the new PR Act 106 DC Plan for Government employees. It is the first-ever Collective Investment Fund (CIF) created by a PR financial institution. Under Act 106, the new CIF will be the default investment for the plan which covers 110,000 participants. BPAS received a favorable private-letter ruling from the PR Treasury Department approving the Fund as a “Qualified PR Security” which provides for certain tax benefits related to lump-sum distributions.
BPAS Trust Company of Puerto Rico will serve as the Fund trustee and investment manager. Hand Benefits & Trust, a BPAS company, will be the agent for administration. The Fund is also available for non-government plans qualified under PR Code Section 1081.
Barry Kublin, BPAS CEO, credits the private-public partnership in Puerto Rico for the product development. According to Kublin, “40% of the portfolio is allocated amongst the FDIC-insured PR financial institutions in enhanced yield accounts, with the remainder invested in institutional money market and stable value investments.” He added that the Office of the Commissioner of Financial Institutions and Hacienda reviewed and approved the initiative in a thorough and timely manner. “The Pension Board and their consultants embraced a creative solution to the Act’s mandates. Having provided trust and plan administration services in PR for 20 years and given the breadth of our services, we are well positioned to deliver a complete solution to all PR retirement plan constituents,” he added.
About BPAS
BPAS is a national provider of retirement plans, benefit plans, fund administration, and collective investment trusts. We support 3,800 retirement plans, $86 billion in trust assets, $1 trillion in fund administration, and more than 450,000 participants. With our breadth of services, depth of creative talent, and financial resources, we are well positioned to help our clients solve all their benefit plan challenges without the need to engage multiple providers. One company. One call.
The BPAS family of services includes: Plan Administration & Recordkeeping, TPA, Actuarial & Pension, VEBA & HRA/HSA, Fiduciary, AutoRollovers & MyPlanLoan, Healthcare Consulting, Transfer Agency, Fund Administration, Custody, and Collective Investment Trusts.
Specialty practices include: Auto Enrollment Plans, Multiple Employer Trusts/Plans, Plans with Employer Securities, Puerto Rico Section 1081 Plans, VEBA HRA Plans, Cash Balance Plans, Collective Investment Trusts, and Fund Administration.
BPAS subsidiaries include: Hand Benefits & Trust, NRS Trust Product Administration, Global Trust Company, and BPAS Trust Company of Puerto Rico.
As a solutions-oriented national practice, we are committed to “Solving Tomorrow’s Benefit Challenges Today.” Visit bpas.com for more information.
Contact: Alfredo Matheu | President | BPAS Trust Company of Puerto Rico | 787-936-2251 | [email protected]