TIAA-CREF has provided investment and administrative services to the plan since its inception in 2010. The plan combines a defined benefit pension with a defined contribution plan, but reduces the requisite contribution for both the county and its employees and redirects a portion of that money into the defined contribution plan with up to 2% of base pay matched by the county.
According to the announcement, participants in the defined contribution part of the plan have a choice of investment options from TIAA-CREF and other financial companies, including deferred annuity options that can deliver income in retirement that compares favorably with what workers can expect from the traditional pension plan alone. Workers who select the hybrid plan also increase their take-home pay because their contributions are lower than in the defined benefit plan.
All county employees hired after May 7, 2010 have the hybrid option. Depending on how the Internal Revenue Service rules on a pending request, employees hired before that day may be able to choose the hybrid plan as well.“TIAA-CREF’s financial strength and leadership in providing tools to defined-contribution plan sponsors persuaded us that they’re the right provider to help meet the needs of the county and its workforce,” said Bill Campbell, chairman of the Board of Supervisors, in the announcement.