University Adds Roth 403(b) Option, New Fund Lineup and Tools to Simplify Compliance Monitoring
New York, NY, December 16, 2015 —TIAA-CREF today announced that Stetson University in Florida, a TIAA-CREF client since 1946, has retained the financial services provider as the sole recordkeeper of its 403(b) and 457(b) retirement plans. TIAA-CREF will recordkeep approximately $160 million in assets for more than 1,800 employees1.
Under the new arrangement, Stetson is rolling out a Roth 403(b) option to its employees, moving to a new fee structure that will provide its employees with full transparency into the investment costs of the plan, and implementing a set of tools to help meet regulatory compliance standards and handle online salary deferral for employees.
The Roth 403(b) option allows employees to designate some or all of their elective deferrals as designated Roth contributions. Roth contributions are made using after-tax dollars but can be withdrawn in retirement tax-free2, a benefit that can result in significant tax savings for certain participants, depending on their individual financial situation.
Stetson also has updated and simplified its fund lineup to provide a number of low-cost investment options to plan participants. Stetson’s offering includes TIAA-CREF annuities, which can guarantee a stream of lifetime income in retirement, as well as TIAA-CREF lifecycle funds, which offer participants a professionally managed investment fund that is automatically reallocated and rebalanced over time as the participant moves closer to retirement. The principal value in a lifecycle fund is not guaranteed, and the target date of the lifecycle fund is an approximate date when investors may plan to begin withdrawing.
Plan participants also can take advantage of TIAA-CREF’s advice services and meet personally with a financial consultant to discuss their retirement goals and plan for the future.
“Our goal is to provide the best and lowest-cost investment options to our participants and give them the tools they need to make the right decisions for their future,” said Bob Huth, executive vice president and chief financial officer of Stetson University. “These new features streamline administrative management of the plan, provide more options for our employees and help them understand the value they receive for each investment option available to them.”
“At TIAA-CREF we strive to meet individuals where they are right now and give choices in how to plan for the kind of retirement they envision,” said Ed Moslander, senior managing director and head of institutional client services for TIAA-CREF. “Stetson University has gone a long way to help its employees by offering a plan with low costs and an unwavering focus on outcomes.”
Stetson recently conducted a full due diligence review of its retirement plans with the assistance of the Bogdahn Group based in Orlando, Fla.
TIAA-CREF (www.tiaa-cref.org ) is a national financial services organization with $834 billion in assets under management (as of 9.30.2015) and is the leading provider of retirement services in the academic, research, medical and cultural fields.
About Stetson University
Stetson University is a private, nonprofit university with four colleges and schools located across the I-4 corridor in Central Florida, with the primary undergraduate campus located in DeLand. www.stetson.edu