According to TIAA-CREF, the new tool aims to improve retirement outcomes for participants and help plan sponsors evaluate their DC plans. Plan Outcome Assessment will also generate individual reports if the plan sponsor provides employee salary information.
Plan Outcome Assessment will use plan assets, contribution rates, asset allocation, time until retirement and other metrics and variables to determine what percentage of income the plan will be able to replace when employees reach retirement. The tool factors in projected Social Security payments and includes employee accounts outside of the client’s retirement plan if those accounts are managed by TIAA-CREF.
With these calculations, TIAA-CREF expects that plan sponsors and advisers will be better able to identify shortfalls in their plans and make adjustments to plan design to improve performance—and employee outcomes. Plan Outcome Assessment will benchmark these figures against similar institutions of the same size and operating model to help plan sponsors compare their performance to their peers’.
“Plan Outcome Assessment is designed to help plan sponsors measure whether plans are on track to accomplish their ultimate objective—to help employees save enough for their retirement,” said Edward Moslander, senior managing director and head of institutional client services for TIAA-CREF.
Plan Outcome Assessment will be offered to a limited number of TIAA-CREF customers in 2013, with full availability in 2014.