December 6, 2012
FOR IMMEDIATE RELEASE
Treasurer's Office Announces Vendor for New 403(b) Program
TIAA-CREF selected to administer new centralized plan for NC schools
RALEIGH - State Treasurer Janet Cowell announced today that Charlotte-based TIAA-CREF, a nationally recognized leader in the 403(b) marketplace, was selected to administer a centralized, statewide 403(b) program for teachers and staff in the North Carolina public school system. A 403(b) is a supplemental retirement savings plan designed specifically for employees of public schools and tax-exempt organizations.
"The NC 403(b) program will give schools another option to help their staff save more effectively for retirement," Cowell said. "By leveraging economies of scale, we will be able to provide savings of up to tens of thousands of dollars for teachers over the course of their careers by offering a plan with lower investment and administrative fees, as well as enhanced services and improved compliance."
Other finalists for the NC 403(b) recordkeeping services contract were Horace Mann Insurance and ING. The Supplemental Retirement Board of Trustees selected TIAA-CREF based on its ability to offer competitive investment vehicles, its exceptional participant education and communication program, and its existing relationships with compliance third-party administrators.
The five-year contract is expected to be executed in the first quarter of 2013. At that time, TIAA-CREF and the N.C. Retirement Systems will contact principals and administrators at all 115 school districts across the state to introduce them to the benefits of the plan and answer any questions they may have.
The NC 403(b) program is expected to be phased in and made available to faculty and staff of participating schools in 2013.
During the 2012 legislative session, the North Carolina General Assembly enacted House Bill 730, which authorized the Department of State Treasurer to establish a centralized 403(b) retirement savings plan as an option for employees of local boards of education.
About the N.C. Supplemental Retirement Plans:
The North Carolina Supplemental Retirement Plans offer state and local employees the NC 401(k) and NC Deferred Compensation (457) plans as a means to save for retirement. The plans contain combined assets of nearly $7 billion for more than 250,000 participants. For more information, visit www.myncretirement.com