New York, February 29, 2016 – TIAA today announced that the University of Pittsburgh has selected the financial services provider to become sole recordkeeper of its 403(b) and 401(a) retirement plans, managing the plans’ combined $4.5 billion in retirement plan assets1.
The University of Pittsburgh’s 24,000 faculty and staff now have access to TIAA’s individual advice and guidance services and integrated web planning tools, which can help guide them as they plan for retirement. Personalized investment advice is available across a broad range of investments included in the plan.
Participants can choose among several non-proprietary and TIAA and CREF products, including a guaranteed option and a commercial real estate option. In addition, plan participants have access to a suite of lifetime income options that can help faculty and staff maximize their income without the worry of outliving their savings in retirement. Nearly 2,000 retirees already enjoy these monthly retirement benefits.
In addition, the sole recordkeeping model gives participants a more comprehensive look at all of the assets in their retirement plans, improving their ability to make informed decisions regarding their retirement readiness, risk profile and savings options, such as whether to use an employee pre-tax or Roth after-tax contribution option.
“TIAA’s full range of services will help enhance our participants’ retirement confidence and better prepare them for their lives after they have finished working,” said Ron Frisch, vice chancellor of human resources at the University of Pittsburgh. “These options will help strengthen our benefits package and make the University of Pittsburgh an even better place to work."
The University of Pittsburgh maintains more than 85 percent participation in its retirement plans, and most participants elect the maximum match. By adopting a sole recordkeeping model, the university has streamlined administration of its plan, and added auto-enrollment and auto-save features to enroll new members into the plan and increase their contributions over time.
“For nearly a century, we have had the privilege of working with the University of Pittsburgh to help its faculty and staff build financial security for the future,” said Ed Moslander, senior managing director and head of institutional client services for TIAA. “We look forward to continuing this relationship and to bringing enhancements that will continuously improve retirement outcomes. Having TIAA as the only recordkeeper will streamline administrative and fiduciary obligations for the University, and new features such as auto-enrollment and automatic saving increases will make it even easier for faculty and staff to successfully plan for retirement.”
TIAA and the University of Pittsburgh have a long history of collaboration. Samuel McCormick, the university’s chancellor between 1904 and 1921, was a member of the Carnegie Commission of Insurance and Annuities, which recommended the establishment of TIAA in 1917. Under McCormick, who also was a founding trustee of the Carnegie Foundation for the Advancement of Teaching, the University of Pittsburgh became one of TIAA’s 30 “founding institutions” in 1919 when it adopted its first TIAA plan. McCormick’s successor, John G. Bowman, who served as chancellor between 1921 and 1945, was the Carnegie Foundation’s first secretary and assisted the foundation in creating many early studies on pension and education issues.
TIAA (www.tiaa.org) is a unique financial partner. With an award-winning track record for consistent investment performance, TIAA is the leading provider of financial services in the academic, research, medical, cultural and government fields. TIAA has $854 billion in assets under management (as of 12/31/2015) and offers a wide range of financial solutions, including investing, banking, advice and guidance, and retirement services
About the University of Pittsburgh
The University of Pittsburgh, founded in 1787, is one of the oldest institutions of higher education in the United States. As one of the nation’s distinguished comprehensive universities, the resources of the University constitute an invaluable asset for the intellectual, economic, and social enrichment of Pennsylvania, while the international prestige of the University enhances the image of Pennsylvania throughout the world.