The University of Colorado has chosen TIAA-CREF as the sole service provider for its retirement plans.
The plans combined cover over $3.3 billion in assets for more than 12,600 employees.
A committee of CU faculty and staff spent close to a year reviewing available options and best practices before making the decision. The relationship between CU and TIAA-CREF is not new, but has existed since 1924.
The choice of TIAA-CREF as sole service provider means that the existing 800 options provided by eight different vendors will be replaced by a single model that offers 18 funds.
In addition, recordkeeping will also be consolidated from eight vendors down to one, with TIAA-CREF taking over on CU’s 401(a) and 403(b) plans.
The move will come in July. The consolidation of multiple service providers and options into one will allow employees a single view of all of the assets in their retirement plans, giving them what the university system hopes is the ability to make better decisions regarding their investment mix, risk profile and portfolio allocation.
The revamped plan also will include new investment options including an annuity, as well as a brokerage window for employees who wish to make their own choices on investments that are not on the menu. Employees will still have access to personalized retirement advice from TIAA-CREF financial consultants.
In addition, the single service provider model will help university benefits staff members better monitor plan member enrollment, salary deferral agreements, contribution limits and savings rates for plan members.
Contribution rates, eligibility requirements and all other aspects of the plan’s design will remain the same.