Administration February 2, 2007

TIAA-CREF DelayingTransfer of CT Pension Assets to ING

February 2, 2007 (PLANSPONSOR.com) - Officials with the Connecticut comptroller's office say they have not been able to completely change over the administration of state employees' retirement plans to ING Group, because one of the fund's old administrators will not arrange for the appropriate asset transfers without individual participant authorizations.
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According to The Hartford Courant, TIAA-CREF has been delaying the transfer of the assets it manages into new investment funds available under the state’s arrangement with ING for more than a year, saying that the movement of funds requires the approval of each of the approximately 8,500 retirement plan participants with 401(a) Alternate Retirement Plans.   

Despite TIAA-CREF’s actions, about $200 million in assets formerly administered by the firm has been transferred to ING, after thousands of meetings with individual account holders, but about $250 million still remains to be transferred, according to the news report.The state says TIAA-CREF is standing in the way of its ability to offer plan participants lower fees and higher returns.   

ING won the contract in 2005 to administer the state’s three employee retirement savings plans (See CT Chooses ING as TPA for Three State Plans ). TIAA-CREF is one of nine firms managing the investment funds offered under the plans.


 

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