TCP-1'r In Good Hands, Maybe !

Lawrence Livermore National Security's Benefits and Investment Committee (BIC) has selected a trustee and investment manager to help administer the LLNS Defined Benefit Pension Plan.

Since it was formed this summer, the Bank of New York Mellon (BNY Mellon) has established operating and investment policies for the plan and selected BNY Mellon as the trustee and Watson Wyatt as the investment adviser.

The BIC is made up of various members of the Laboratory and LLNS partner companies.The BNY Mellon is a leading asset management and securities services company that has more than $20 trillion in assets under custody or administration and more than $1 trillion under management.

Watson Wyatt is a global consulting firm focused on human capital and financial management and serves the world’s largest pension plans.

The BIC has been developing the plan document and performing actuarial analysis in coordination with the University of California and NNSA/ DOE to determine the amount of assets and liabilities to be transferred from UC to the LLNS plan (more than $1.7 billion).

The plan document will be completed by the end of the year; the transfer from UCRP is scheduled for April 1, 2008.

During January, the BIC will select investment managers so they will be in place when UC transfers assets to the LLNS plan for TCP1 participants.

The transferred assets will be invested in diversified asset classes to reduce volatility of total investment results.

The BIC will select 8-10 investment managers with expertise managing each asset class (e.g. fixed income, domestic large cap growth equities, international value equities, etc.).

The BIC will report the funded status of the LLNS plan periodically.