The new retirement plan offering is similar to OneAmerica’s Index(k)
program, which is designed for for-profit corporations. TIAA-CREF will act as
the investment manager of choice for the Index(b) program.
“The nonprofit sector is a signature market for the
companies of OneAmerica,” says Bill Yoerger, president of retirement business
for the companies of OneAmerica. “We’re excited to be able to offer competitive
pricing, fee transparency and other benefits of indexed investing to our
Yoerger says that both programs were created in response to
an increased focus by the defined contribution retirement plan industry on
management fees, total investment expenses and transparency. He adds that an
index investment option will generally return an investment performance similar
to the index it is based on—such as benchmarks by S&P, Russell or MSCI—and
often requires less time for investment performance attribution, manager
selection and ongoing evaluation.
“Advisers and plan sponsors are being held more accountable
for the value and performance of their retirement plans,” says Yoerger.
“Index(b) helps reduce the overall cost to plan participants and allows nonprofits
to focus more time on achieving their organization’s mission and less time
managing their investments.”
TIAA-CREF will provide 16 of the 20 investment options
available through Index(b), including stock and bond index mutual funds and
investments from its Lifecycle Index target-date investment series. Index(b)
will also include a stable value investment option from the American United
Life Insurance Company (AUL), a OneAmerica company, and three others.
OneAmerica is a provider of retirement plan
products and services, individual life insurance, annuities, long-term care
solutions and employee benefit plan products. TIAA-CREF is a national financial