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Deferred compensation report: stable value yields tick up; JPMorgan and Northern Trust selected for large‑cap growth search
Summary
SFDCP reported Q4 2025 growth in participation and assets, a 9‑basis‑point increase in the stable value fund to 3.51%, manager selections (JPMorgan and Northern Trust) for large‑cap growth components with June 2026 onboarding planned, and outreach initiatives including a webinar attended by 52 people.
Steve Moy, the deferred compensation program manager, told the San Francisco Retirement Board that SFDCP closed 2025 strongly and that participation and plan assets increased in the quarter.
"The stable value rate increased 9 basis points quarter over quarter from the Q4 2025 rate of 3.42% to the current Q1 rate of 3.51%," Moy said, noting the change was driven primarily by a higher market‑to‑book ratio. He added that wrap fees for two providers were lowered and that the overall expense ratio declined modestly year over year.
Moy said staff completed searches for the underlying funds of the large‑cap growth product and selected JPMorgan for the active component and Northern Trust for the passive component, with onboarding targeted for June 2026. Staff will use newsletters, direct mail and the SFDCP website to communicate upcoming changes to participants.
On communications and education, Moy said a January webinar reached capacity and had 52 attendees; the department plans additional sessions and will coordinate with the Department of Human Resources on promotion. He also confirmed the Roth catch‑up contribution provision went live at the beginning of the year and automated notices were sent by Voya on Jan. 17 to affected participants.
Commissioners asked clarifying questions about outreach scope (the first mailing targets full‑time employees eligible but not yet participating) and whether webinar recordings would remain available; staff said they will consider leaving recordings up in future pilot runs. No public comment was recorded for this item.
