The TIAA RetirePlus Series allows plan sponsors and their consultants to create model portfolios rather than relying on standard, off-the-shelf target date funds. By combining the simple efficiency of a target date structure with the flexibility to select investments from within the existing plan, this can reduce costs and administrative expenses and, if included, TIAA Traditional can serve as a revenue party. fixed portfolio, giving access to guaranteed income for life. And with five generations in the workplace, each at different life stages, the TIAA RetirePlus Series Model Portfolios can be tailored to a plan’s unique preferences and employee diversity.
“Our experience and research shows that personalized defaults in pension plans tend to improve participants’ overall retirement readiness,” said Ben Lewis, Head of Institutional Strategic Sales. “By selecting the TIAA RetirePlus Series model portfolios as the default option, plan sponsors can simplify investment selection, improve plan efficiency, and enhance participants’ retirement security at the same time.”
According to the TIAA Annuity Center of Excellence, participants who contributed to TIAA annuities during their careers received almost 18% more income than participants who did not. Through its unique “profit sharing” approach, TIAA seeks to reward participants with additional income based on the duration of contributions – like a “loyalty bonus”.2,3
A major plan sponsor changed its plan to provide every employee with a more secure retirement for the rest of their life. The plan sponsor replaced their default target date funds with model portfolios tailored to their employee demographics through the TIAA RetirePlus Series. Two years after implementation, the results speak for themselves: the institution has seen an increase in the average projected retirement account balance of $87,000improved risk-adjusted returns and a 24% increase in projected average retirement income.4
Plan sponsors who add RetirePlus series models to their plan can choose between TIAA RetirePlus® and TIAA RetirePlus Pro®, depending on the desired flexibility and level of customization. Each option can include a fully liquid annuity component for lifetime income.
TIAA RetirePlus offers a set of pre-defined asset allocation models used by plan sponsors to create risk-appropriate defaults using the plan’s main menu investment options. TIAA RetirePlus Pro allows plan sponsors to work with guidance from a 3(21) fiduciary advisor or delegate asset allocation to a 3(38) investment manager to customize all aspects of model attributes.
TIAA is a leading provider of secure retirement and results-driven investment solutions for millions of people and thousands of institutions. It is the premier not-for-profit provider in the retirement market5paid more than $4.2 billion to retired customers in 2021 and has nearly $1.4 trillion assets under management (as of 09/30/2021)6.
The TIAA RetirePlus Series model portfolios 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 advisers appointed by the plan sponsor, or (iii) exclusively by consultants and other investment advisers chosen by your plan sponsor, the assets being allocated among mutual funds under Assets and Annuities which are permitted investments under the Plan. Model-based accounts will be managed based on the plan participant’s personal financial situation and investment objectives (for example, taking into account factors such as the participant’s age and risk capacity as determined by a questionnaire on risk tolerance).
No registration under investment company law, securities law, or state securities laws – a model is not a mutual fund or other type of security and does not will not be registered with the Securities and Exchange Commission as an investment company under the Investment Companies Act of 1940, as amended, and no model units or shares will be registered under the Securities Act of 1933, as amended, nor will it be registered with any state securities regulator. Accordingly, the model is not subject to compliance with the requirements of such laws, and plan participants who invest in underlying investments based on the model are not entitled to any protections thereunder, except to the extent where one or more underlying investments or interests therein are registered under such instruments.
TIAA RetirePlus® and TIAA RetirePlus Pro® are administered by the Teachers Insurance and Annuity Association of America (“TIAA”) as the plan registrar. Transactions in the underlying investments invested in, based on the Models, on behalf of Plan Participants are executed through TIAA-CREF Individual & Institutional Services, LLC, Member FINRA.
May not be available in all states.
For more information on the TIAA RetirePlus series, visit tiaa.org/public/plansponsors/investment-solutions/custom-default-options.
TIAA RetirePlus Series® is a registered trademark of Teachers Insurance and Annuity Association of America-College Retirement Equities Fund, 730 Third Avenue, New York, NY 10017.
You should carefully consider the investment objectives, key strategies, key risks, portfolio turnover rate, performance data, and information on charges and expenses of each underlying investment before directing any investment based on the model. To obtain a free copy of the program description and 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 of the underlying investments carefully before investing.
TIAA Traditional is a fixed annuity product issued through these contracts by the Teachers Insurance and Annuity Association of America (TIAA), 730 Third Avenue, New York, NY, 10017: series of forms including, but not limited to: 1000.24; G-1000.4; IGRS-01-84-ACC; IGRSP-01-84-ACC; 6008.8. Not all contracts are available in all states or currently issued.
Annuity contracts may contain conditions to keep them in force. We can provide you with full details and costs.
©2022 Teachers Insurance and Annuity Association of America-College Retirement Equities Fund, 730 Third Avenue, New York, NY 10017
1 “Personal pension” refers to income received from a fixed annuity contract.
2 All warranties are subject to TIAA’s claims ability. TIAA can share profits with TIAA Traditional retirement annuity holders through declared additional interest amounts and increases in annuity income throughout retirement. These additional amounts are only guaranteed for the period for which they were declared. TIAA may offer a loyalty bonus based on the length of time funds are held in TIAA Traditional. The “loyalty bonus” is a return of unused contingency reserves and is only available at the time of the annuity. The Board of Trustees determines this amount on an annual basis. Past performance is no guarantee of future performance.
3 TIAA Annuity Center of Excellence, based on a study that compared the amount of initial lifetime income that would have been received by two hypothetical participants starting lifetime income, for each of the 334 months from January 1, 1994 to October 1, 2021. The two hypothetical participants are the same age (67) and they choose a single life annuity with a guaranteed period of 10 years using TIAA’s standard immediate annuity. The Career Contributor has made level monthly contributions to TIAA Traditional under the Retirement Annuity Contract over a 30-year career prior to his retirement date. The new contributor transferred the same terminal accumulation as the career contributor to TIAA Traditional shortly before selecting lifetime income. Over the study period, the career contributor’s initial lifetime income exceeded that of the new contributor for 324 of the 334 months of retirement, with an average lifetime income advantage of 14.5%. Their biggest advantage was 29.8% and their smallest advantage was -2.9% (i.e. a disadvantage). Over the last decade of the study, the initial lifetime income of the career contributor exceeded that of the new contributor by all 120 months of retirement, with an average lifetime income advantage of 22.4%. Their biggest advantage was 29.8% and their smallest advantage was 12.8%. In the most recent month of the study, the career contributor’s initial lifetime income exceeded that of the new contributor by 17.6%.
4 The results achieved by this plan may not be typical of all plans. Individual results will vary.
5 As of December 31, 2020. Based on data from PLANSPONSOR’s 403(b) market research, published August 2021.
6 As of December 31, 2021, assets under management of Nuveen Investments affiliates and TIAA’s investment management teams were $1.375 billion.