Case study | recordkeeping
How USF consolidated recordkeeping to drive efficiency and participant engagement
Higher Education | Pacific | University of San Francisco
increase in plan participant contributions in the first year of TIAA being sole recordkeeper1
recipients of a USF-branded transition guide2
website visits in the first two weeks with single sign-on2
Background
The University of San Francisco (USF) was looking to simplify plan administration and boost employee engagement.
USF had already moved from a three-vendor to a two-vendor retirement plan in which Fidelity and TIAA independently oversaw their respective offerings. Fast-forward to 2021 and USF’s consultant, CAPTRUST, convinced USF that adopting a single recordkeeper could accomplish more than just enhancing its 401(a) and 403(b) plans.
Challenge
For employees
Two separate investment plans, with dozens of fund options, made it difficult for employees to make decisions and understand all-in fees. While employees generally liked their investment options, they didn’t like juggling separate logins for separate platforms.
For the plan sponsor
Administration was inefficient and time-consuming. And managing separate recordkeepers increased the potential for litigation risk in the eyes of Ron Chin, USF’s retirement plan manager. At the same time, Chin worried that making changes would pose educational challenges and create the perception he was taking away well-liked investment options from Fidelity.
TIAA solutions
In just four months4, TIAA executed three interrelated projects as part of a sweeping transition to a single recordkeeper plan. TIAA coordinated closely with USF to develop a communications plan, and worked with USF's IT services team to ensure minimal disruption.
Consolidating recordkeeping services
TIAA became the sole recordkeeper to streamline decision-making for employees and build efficiencies. The process simplified the 401(a) and 403(b) plans by introducing a single investment menu. Critically, to ensure that plan participants could still access investment products they knew and liked, TIAA added its brokerage services to the 403(b) plan. This meant that Fidelity funds remained available.
Automating the recordkeeping system
TIAA updated the operating system that runs USF’s recordkeeping system. Functions that were manual for years, such as updating salary deferral elections or uploading payroll files, became fully automated. The system transitioned without disruption.
Deploying single sign-on
Participants no longer had to juggle multiple login screens, usernames, and passwords. Instead, they could use a single sign-on to securely access their consolidated plan accounts and retirement planning tools from the USF Works benefits page.
Coordinating an engagement strategy
TIAA collaborated with USF to develop a comprehensive outreach strategy to prepare current and former employees for changes. TIAA sent postcards to employees’ homes and followed up with emails encouraging action. A USF-branded transition brochure, with full details of what to expect, was sent ahead of the transition. Current and former employees could ask questions online in webinars that were recorded for on-demand viewing. TIAA helped create an enhanced, custom USF website that allowed employees to easily change contributions and seek help. TIAA’s call center handled 366 calls from USF participants between May and August 2021.
I was concerned that employees might think we were taking away their choices of financial institutions, so strong communication was vital. The single recordkeeper transition has saved me a ton of time – not a single piece of paper crosses my desk anymore.
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Results
USF’s multichannel communications campaign immediately boosted employee engagement. Hundreds of employees attended live webinars and took advantage of one-on-one financial counseling sessions. By the end of July 2021, 458 employees had transitioned from Fidelity to TIAA, representing more than $57 million in assets. The pricing structure for plan participants was also simplified—all USF participants paid the same fee, regardless of their investment choices.
Taken together, the three interrelated projects streamlined USF’s plan so that employees could be better prepared to pursue their retirement goals. In the first year after the implantation, total contributions increased 13% from the previous year.
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1 As of August 2022
2 As of August 2021
3 Between May and August 2021
4 Time period was 1/1/2021–7/31/2021. Results experienced by the university may not be typical of all plans. Individual results and investment value will vary.
Contact your TIAA representative to learn more and to understand how your organization can help secure the financial futures of your employees. |
The testimonial was provided by a current client, and no direct or indirect compensation was given in return. No material conflicts of interest exist on the part of the entity giving the testimonial, resulting from their relationship with the adviser. Results experienced by this organization may not be representative of the experience of other clients, and there is no guarantee of future performance or success.
The results experienced by this organization may not be typical of all plans. Individual plan results will vary. Investment products may be subject to market and other risk factors. See the applicable product literature or visit TIAA.org for details.
TIAA Brokerage, a division of TIAA-CREF Individual & Institutional Services, LLC, Member FINRA and SIPC, distributes securities. Brokerage accounts are carried by Pershing, LLC, a subsidiary of The Bank of New York Mellon Corporation, Member FINRA, NYSE, SIPC.
This material is for informational or educational purposes only and is not fiduciary investment advice, or a securities, investment strategy, or insurance product recommendation. This material does not consider an individual’s own objectives or circumstances which should be the basis of any investment decision.