Effective January 1, 2012, TIAA-CREF will assume management of plan assets from Emeriti’s current recordkeeper. According to a recent press release, under the new agreement they will offer retiree health care benefit products, savings solutions and services to higher education institutions in the tax-exempt sector. TIAA-CREF and Emeriti will also help nonprofit clients evaluate retirement health plan options and provide assistance in the implementation of a retirement health care plan.
TIAA-CREF is expected to provide accumulation recordkeeping for Emeriti health accounts as well as investment management and trust services. Employee and retiree benefit services provider Savitz will provide disbursement recordkeeping, including administration of retiree group health insurance and processing other out-of-pocket qualifying medical expenses.
This collaboration will give Emeriti’s current member plans access to expanded investment options, the release stated, as well as better retirement plan integration, continuing group retiree health options, a new online health benefit Web site and expanded options for reimbursement of qualifying health expenses, including a debit card.
“Emeriti’s comprehensive approach can help institutions with transition strategies across the full spectrum of defined benefit to defined contribution approaches to retiree health benefits,” said Ken Cool, Emeriti’s President, in the press release. “Emeriti recognizes each institution has its own complex and diverse set of employees and retirees, and there must be an equitable and sustainable solution for the long term.”