Over the weekend, I was reading up on 403(b) plans (yes, I lead a very exciting life) when I ran across an interesting bit of news on TIAA-CREF. It seems that the University of Minnesota has dropped TIAA-CREF as a retirement savings option, saying that:
The University must require that vendors of retirement plan-related recordkeeping services demonstrate acceptable levels of timeliness and accuracy. This decision was made after years of feedback from participants about recordkeeping and customer service problems and reflects the growing concerns of several faculty and staff committees, as well as the administration, that the problems were not being addressed effectively.
I’m not sure what sort of problems they were having, but I know that I’ve had problems with TIAA-CREF in the past when it comes to timeliness.
Regardless of the underlying reasoning, this is a very high profile loss TIAA-CREF. In fact, based on this past year’s enrollment numbers, the University of Minnesota is the 4th largest University in the country. Approximately 3, 000 of their faculty and staff members had selected TIAA-CREF as their retirement vendor, and these individuals had a total of $500 million invested there. While they don’t necessarily have to close their accounts, the University won’t be allowing future contributions to go to TIAA-CREF.