Indiana Updated Hoosier START Investment Options
The state pension plan replaced international funds and boosted employer matches to prepare for future growth.
Updated on Sept. 30, 2026 in Investing
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In late July 2026, the Indiana Deferred Compensation Committee transitioned the $2.6 billion Hoosier START plan to a new international fund devoid of exposure to China. The move is part of a broader administrative update that also lowered participant record-keeping costs.
Why it matters
The committee adjusted the portfolio to align with state law while reducing administrative overhead to improve net returns for participants. These changes shift the plan's risk profile and provide a clearer path for long-term retirement savings growth.
The plan manages $2.6 billion in assets and recently secured a 12.5% reduction in participant record-keeping fees. Additionally, the new international fund option carries a 0.52% fee to support the portfolio's updated risk guidelines.
The players
Hoosier START
A state-sponsored deferred compensation plan that provides retirement savings vehicles for public employees.
Fidelity Institutional Asset Management
An investment firm that manages the international fund options and provides retirement account administration services.
Indiana Deferred Compensation Committee
The state body responsible for overseeing investment options, plan rules, and participant costs for public retirement programs.
Nationwide
A financial services company contracted to provide record-keeping and administrative services for the state plan.
The details
The committee replaced the Fidelity Diversified International Pool Class C fund with the Fidelity Institutional Asset Management Diversified International ex-China Class D fund. Furthermore, the committee eliminated the American Funds EUPAC due to its China exposure and ended third-party ESG-driven proxy voting on target date funds. Participants will also benefit from a significant boost in the state match, which is slated to rise from $15 to $28 per paycheck.
Timeline
End of July 2026: Fidelity replaced the previous international fund option.
Week of September 27, 2026: The committee voted to search for a new target date fund suite.
Summer 2027: The increased state match of $28 per paycheck begins.
Money Landscape
This adjustment follows the mandates set by SEA 14, which directs the state to align its investment holdings with specific legislative standards. It reflects a wider trend of state pension plans reassessing foreign market exposure and administrative cost structures.
Participants should review their portfolio allocations to see how the new international fund matches their long-term risk tolerance. You may also want to consult with a qualified financial professional to determine if these changes necessitate adjustments to your broader savings strategy.
The takeaway
The plan has shifted its investment strategy to remove exposure to certain foreign markets while simultaneously lowering record-keeping fees. Participants should check their current statements to ensure their asset allocation remains consistent with their retirement goals.
What happens next
The state match for participants is scheduled to increase from $15 to $28 per paycheck starting in the summer of 2027.
Further reading
For more on managing retirement accounts, visit the Investing section.
More information
Find full details on the plan changes by visiting the Hoosier START plan information page.
Source note: This article includes information reported by Madison Courier.
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