CalSTRS will partner with TIAA-CREF to keep the LAUSD program’s records. CalSTRS will also assist LAUSD employees in the program with education and counseling services about the role the defined contribution accounts play in a well-rounded retirement security plan.
According to a press release, the LAUSD is the second-largest school district in the U.S. with approximately 110,000 full-time and part-time employees. The district is comprised of approximately 800 schools and an additional 200 locations representing non-school facilities and offices. Its program manages $30.3 million for more than 2,200 participants.
“We are delighted that LAUSD recognizes the expertise CalSTRS brings to helping educators build strong financial futures in retirement,” said Jack Ehnes, CalSTRS chief executive officer, in the announcement. “CalSTRS’ own defined contribution program is part of our hybrid system which provides a comprehensive retirement package for our members. And by leveraging our partnership with TIAA-CREF, we’ll give LAUSD plan participants the opportunity to enhance their own retirement security and set a standard for efficiency and benefits.”CalSTRS has managed its own defined contribution program since 1994. The CalSTRS Pension2 personal wealth plan consists of a 403(b), a Roth 403(b), and a 457(b) plan, and serves as a voluntary supplemental savings plan for all California school and community college employees. The program currently manages nearly $300 million on behalf of more than 6,000 participants. Financial services provider TIAA-CREF serves as recordkeeper for the program.
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