TIAA RetirePlus® sees rapid growth, surpassing 250,000 participant accounts
July 25, 2023 by TIAA
NEW YORK, July 24, 2023 /PRNewswire/ — TIAA RetirePlus® has recently grown to over 250,000 individual participant accounts. Demand for RetirePlus has been fueled by its ability to provide retirement plans with guaranteed growth during accumulation, asset allocation and guaranteed income in retirement, all at a potentially lower cost.
“Retirement is becoming even more difficult to finance for Americans, and many are rightly worried about running out of money,” said Kourtney Gibson, chief institutional client officer at TIAA. “RetirePlus helps plan sponsors empower their employees to build a better retirement by providing access to a ‘personal pension’ like guaranteed monthly income stream in retirement. This feature is increasingly attractive for employers and employees, especially in an era of economic uncertainty.”
TIAA RetirePlus is eligible to be used as a qualified default investment alternative (QDIA). It gives employees the simplicity of a target-date fund with the opportunity to turn all or part of their savings into guaranteed lifetime income in retirement when TIAA Traditional is included in the portfolio. TIAA RetirePlus can also help lower administrative costs and fees.
“Every American deserves a secure retirement, but most working people trying to save for retirement don’t have the right tools. There are many risks that erode savings that individuals cannot solve for by themselves,” said Colbert Narcisse, chief product and business development officer at TIAA. “RetirePlus is a proven solution that offers our clients the potential for enhanced retirement security.”
TIAA has offered customized defaults since 2014. By early 2022, TIAA RetirePlus had surpassed $10 billion in assets. The 250th institutional client signed up for TIAA RetirePlus in early 2023. Today’s announcement stems from the scalability of the offering and plan sponsors recognizing TIAA RetirePlus’ success in helping to build better retirements.
TIAA also offers a new solution for the 401(k) market – the TIAA Secure Income Account, a fixed annuity similar to the TIAA Traditional annuity. The TIAA Secure Income Account is specifically designed to be used as an allocation within managed accounts or target-date portfolio strategies in 401(k) plans.
TIAA RetirePlus allows plan sponsors to work with advice from a 3(21) fiduciary advisor or a 3(38) investment manager who can customize all aspects of model attributes for the unique needs of their participants.
To learn more about TIAA RetirePlus, visit our website.
About TIAA
TIAA is a leading provider of secure retirements and outcome-focused investment solutions to millions of people and thousands of institutions. It is the #1 not-for-profit retirement market provider2, paid more than $5.6 billion in lifetime income to retired clients in 2022 and has $1.2 trillion in assets under management (as of 3/31/2023)3.
Learn more about TIAA
Read the latest TIAA news
Twitter | LinkedIn | Facebook
You should consider the investment objectives, principal strategies, principal risks, portfolio turnover rate, performance data, and fee and expense information of each underlying investment carefully before directing an investment based on the model. For a free copy of the program description and the prospectus or other offering documents for each of the underlying investments (containing this and other information), call TIAA at 877-518-9161. Please read the program description and the prospectuses or other offering documents for the underlying investments carefully before investing.
This material is for informational, educational or non-fiduciary sales opportunities and/or activities only and does not constitute investment advice (e.g., fiduciary advice under ERISA or otherwise), a securities recommendation under all securities laws, or an insurance product recommendation under state insurance laws or regulations to invest through a model or to purchase any security or advice about investing or managing retirement savings. It does not take into account any specific objectives or circumstances of any particular customer or suggest any specific course of action.
No registration under the Investment Company Act, the Securities Act or state securities laws—the model is not a mutual fund or other type of security and will not be registered with the Securities and Exchange Commission as an investment company under the Investment Company Act of 1940, as amended, and no units or shares of the model will be registered under the Securities Act of 1933, as amended, nor will they be registered with any state securities regulator. Accordingly, the model is not subject to compliance with the requirements of such acts, nor may plan participants investing in underlying investments based on the model avail themselves of the protections thereunder, except to the extent that one or more underlying investments or interests therein are registered under such acts.
No guarantee – Neither the models nor any investment made pursuant to the models are deposits of, or obligations of, or guaranteed or endorsed by TIAA or their affiliates (except with respect to certain annuities sponsored by TIAA or its affiliates), or insured by the Federal Deposit Insurance Corporation, or any other agency. There is no guarantee that the underlying investments will provide adequate income at and through retirement and participants may experience losses. Participants should not allocate their retirement savings to the underlying investments unless they can readily bear the consequences of such loss.
Assets allocated to the underlying investments based on the model will be invested in underlying mutual funds and annuities that are permissible investments under the plan. Some or all of the underlying investments included in the model may be sponsored or managed by TIAA or its affiliates and pay fees to TIAA and its affiliates. In general, the value of a model-based account will fluctuate based on the performance of the underlying investments in which the account invests. For a detailed discussion of the risks applicable to an underlying investment, please see the prospectus or disclosure document for such underlying investment.
TIAA RetirePlus SelectSM and TIAA RetirePlus Pro® are administered by Teachers Insurance and Annuity Association of America (“TIAA”) as plan recordkeeper. TIAA-CREF Individual & Institutional Services, Member FINRA distributes securities products. TIAA and CREF annuity contracts and certificates are issued by Teachers Insurance and Annuity Association of America (TIAA) and College Retirement Equities Fund (CREF), New York, NY, respectively. Each is solely responsible for its own financial condition and contractual obligations. Transactions in the underlying investments invested in based on the models on behalf of the plan participants are executed through TIAA-CREF Individual & Institutional Services, LLC, member FINRA.
TIAA RetirePlus Select
TIAA RetirePlus Select is an asset allocation program that includes asset allocation models that a plan participant may choose to guide the investment of his or her account into underlying investment options selected by the plan sponsor (the “underlying investments”). The plan sponsor selects the specific underlying investments available under its plan to represent the various asset classes in the models. An independent third-party advisor engaged by Teachers Insurance and Annuity Association of America (“TIAA”) developed the target asset class ratios for the models and the TIAA RetirePlus Select is administered by TIAA as plan recordkeeper. In making TIAA RetirePlus Select available to plans, TIAA is not providing investment advice to the plans or plan participants.
The target asset class ratios for a plan participant’s model-based account will become more conservative over time as the plan participant’s years to retirement decreases. For information regarding the changes to the target allocations please contact TIAA. An account’s actual allocation percentage to an underlying investment may vary from the target allocations due to the performance of the underlying investments or other factors. Accounts invested in accordance with the models will be rebalanced to the applicable target allocations periodically. The underlying investments included in a model are subject to change and may not be representative of the current or future underlying investments for the model. Some or all of the underlying investments included in a model may be sponsored or managed by TIAA or its affiliates and pay fees to TIAA and its affiliates.
Mesirow is not affiliated with TIAA. Mesirow Financial refers to Mesirow Financial Holdings, Inc. and its divisions, subsidiaries and affiliates. The Mesirow Financial name and logo are registered service marks of Mesirow Financial Holdings, Inc. ©2019, Mesirow Financial Holdings, Inc. All rights reserved. Advisory services offered through Mesirow Financial Investment Management, Inc. an SEC registered investment advisor.
TIAA RetirePlus Pro
TIAA RetirePlus Pro, a model-based service, is administered by Teachers Insurance and Annuity Association of America (“TIAA”) as plan recordkeeper.
The TIAA RetirePlus Pro Models are asset allocation recommendations developed in one of three ways, depending on your plan structure: i) by your plan sponsor, ii) by your plan sponsor in consultation with consultants and other investment advisors designated by the plan sponsor, or iii) exclusively by consultants and other investment advisors selected by your plan sponsor whereby assets are allocated to underlying mutual funds and annuities that are permissible investments under the plan. Model-based accounts will be managed on the basis of the plan participant’s personal financial situation and investment objectives (for example, taking into account factors such as participant age and risk capacity as determined by a risk tolerance questionnaire).
The plan fiduciary and the plan advisor may determine that an underlying investment(s) is appropriate for a model portfolio, but not appropriate as a stand-alone investment for a participant who is not participating in TIAA RetirePlus Pro. In such case, participants who elect to unsubscribe from the service while holding an underlying investment(s) in their model-based account that has been deemed inappropriate as a stand-alone investment option by the plan fiduciary and/or plan advisor will be prohibited from allocating future contributions to that investment option(s).
Established Restrictions: Each plan participant may, but need not, propose restrictions for his or her model-based account, which will further customize such plan participant’s own portfolio of underlying investments. The plan fiduciary is responsible for considering any restrictions proposed by a plan participant, and for determining (together with plan advisor(s)) whether the proposed restriction is “reasonable” in each case.
TIAA RetirePlus SelectSM is a service mark and TIAA RetirePlus® and TIAA RetirePlus Pro® are registered trademarks of Teachers Insurance and Annuity Association of America.
Annuity contracts may contain terms for keeping them in force. We can provide you with costs and complete details.
TIAA Secure Income Account is a fixed annuity product issued through this contract by Teachers Insurance and Annuity Association of America (TIAA), 730 Third Avenue, New York, NY, 10017: Form series including but not limited to: TIAA-UQDIA-002-K and related state specific versions. Not all contracts are available in all states or currently issued.
- Source: TIAA Actuarial Department, based on TIAA dividend mortality tables as of January 1, 2022.
- As of July 21, 2022. Based on data in PLANSPONSOR’s 403(b) 2022 DC Recordkeeping Survey, combined 457 and 403(b) data.
- As of March 31, 2023 assets under management across Nuveen Investments affiliates and TIAA investment management teams are $1,240 billion.
OPS-3014583CM-O0824W
©2023 Teachers Insurance and Annuity Association of America-College Retirement Equities Fund, 730 Third Avenue, New York, NY 10017
SOURCE TIAA
