A TIAA-CREF RETIREMENT PLAN PRESENTATION TO: MARCH 25, 2011 FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC.

Transcription

1 A TIAA-CREF RETIREMENT PLAN PRESENTATION TO: MARCH 25, 2011 FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC.

2 TODAY S DISCUSSION WELCOME / INTRODUCTIONS... PETER HUEBER, Director Individual & Institutional Client Services I. TIAA-CREF OVERVIEW..... PETER HUEBER II. IMPLEMENTATION..... DONNA PELOSI, Senior Institutional Liaison Shared Services III. ASSEMBLY BILL CHRISTOPHER TROMBETTA, Managing Consultant Individual & Institutional Client Services IV. PARTICIPANT SERVICES.. KEVIN MUMFORD, Senior Consultant Field Consultant Group V. INVESTMENTS. CHRISTOPHER TROMBETTA VI. TIAA-CREF DIFFERENCE / FEES.... CHRISTOPHER TROMBETTA FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 1

3 TIAA-CREF OVERVIEW FOR FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR FOR USE USE WITH WITH OR OR DISTRIBUTION TO THE TO PUBLIC. THE PUBLIC. 2

4 OUR MISSION: TO SERVE THOSE WHO SERVE OTHERS At TIAA-CREF, we exist to aid and strengthen the client institutions we serve while seeking to provide retirement security to their employees on the best terms practicable. That mission is founded on our long-held commitment to the highest standards of excellence, integrity and respect from careful stewardship of managed assets to an unwavering focus on corporate governance and social responsibility. FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 3

5 LONG-TERM EXPERIENCE AND FINANCIAL STRENGTH TIAA-CREF IS THE PROVIDER YOU CAN TRUST Long-Term Experience Experience by the Numbers 90+ years serving not-for-profits $453 billion in assets (12/31/10) 15,000 institutional clients 24,000 retirement plans 4 million participants Financial Strength Highest Ratings Available (TIAA)* A.M. Best Company A++ (2/11) Fitch AAA (4/10) Moody s Investors Service Aaa (7/10) Standard & Poor s AAA (8/10) * TIAA, the insurance company affiliate that backs TIAA Traditional and our other guaranteed products, has received the highest ratings for its stability, claims-paying ability and overall financial strength. These ratings do not apply to variable annuities, mutual funds or any other product or service not fully backed by TIAA's claims-paying ability. Ratings may be affirmed or adjusted at any time. There is no guarantee that current ratings will be maintained. FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 4

6 ALTERNATIVE BENEFIT/RETIREMENT PLANS (ABP/ORP) TIAA-CREF STRENGTH BY THE NUMBERS Offers an ABP/ORP Does not offer an ABP/ORP SD WI CA Benefits of an ABP/ORP Attract and retain top-quality faculty and administrators Address needs of an increasingly mobile higher education workforce Improves the stability and predictability of budgetary pension costs TIAA-CREF Experience 47 states plus D.C. have ABPs/ORPs TIAA-CREF has $240 billion in ABP/ORP assets FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 5

7 TIAA-CREF ASSETS NEW JERSEY ALTERNATE BENEFIT PROGRAM (ABP) TIAA-CREF ASSETS 32 campuses in total Plan Name Assets Premiums Transfers In Contributions Paying Participants Rutgers represents 32% of plan assets and contributions NEW JERSEY ALTERNATE BENEFIT PROGRAM 401(A) MANDATORY NEW JERSEY ABP 403(B) VOLUNTARY TAX DEFERRED ANNUITY PLAN NEW JERSEY ADDITIONAL CONTRIBUTIONS TAX SHELTERED PROG NEW JERSEY ABP PRE (B) NON-QUALIFIED PLAN $2.8 B $189.7 M $5.6 M $31.1 M 20,328 $1.0 B $66.1 M $8.2 M $14.1 M 6,319 $113.8 M $9.5 M $1.2 M $1.6 M 1,597 $3.7 B $7.2 M $3.3 M $1.4 M 489 TIAA-CREF market share as of 12/31/10 Assets: 90.07% Contributions: 74.17% TOTAL $7.6 B $272.4 M $18.6 M $48.2 M 28,733 FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 6

8 IMPLEMENTATION FOR FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR FOR USE USE WITH WITH OR OR DISTRIBUTION TO THE TO PUBLIC. THE PUBLIC. 7

9 PROVEN IMPLEMENTATION PROCESS DISCIPLINE AND EXPERIENCE ENSURE OPERATIONAL EFFECTIVENESS Proven Implementation Process Plan and System Setup End-to-End Testing Post-Implementation Monitoring FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 8

10 RUTGERS UNIVERSITY AND TIAA-CREF PROVEN IMPLEMENTATION PROCESS Prior to the implementation of a new plan we need to have several items completed by Rutgers: Endorse the Institutional Setup and Design Document (ISDD) Endorse the Retirement Choice Annuity Employer Applications Agree to the terms of this Statement of Work (SOW) Provide a copy of the Plan Document and/or sample Adoption Agreement Begin the plan setup process issue a plan number, update our systems (OMNI, Siebel, Plan Rules, etc.), once completed documents are received In December we implemented RC Plans for the following campuses: College of New Jersey Montclair State University NJCU Richard Stockton Ramapo Thomas Edison William Paterson Work closely with Rutgers to create a test file once testing is completed and approved we go live FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 9

11 ENSURING A SMOOTH TRANSITION ESTIMATED HIGH-LEVEL MILESTONES Timeline Milestone Who Action Introductions Confirm: TIAA-CREF & Plan design & required documents Rutgers University Statement of Work (SOW) requirements Communication strategy Roles & timelines Upon Selection -8 weeks Kick-off Meeting Communication & Education Plan Rutgers TIAA-CREF Rutgers Final fund lineup confirmed Provide plan document Sign off on SOW Provide IT OPS layout test file Complete appropriate documents: Custodial, recordkeeping agreements Institutional Design & Setup document Retirement Choice (RC) & Retirement Choice Plus (RCP) Employer Applications Begin marketing strategy Draft communications & educational materials Strategy review & approval FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 10

12 ENSURING A SMOOTH TRANSITION ESTIMATED HIGH-LEVEL MILESTONES, continued Timeline Milestone Who Action - 8 weeks, continued Plan / System Setup TIAA-CREF Set up new plans (RC & RCP) Data Request for Conversion File TIAA-CREF IT file testing begins weeks Plan Setup Validation TIAA-CREF & Rutgers University Internal review of RP & RCP setup in preproduction environment Client signs off on Plan Summary Report -5 weeks RA/GSRA to RC/RCP Enrollment Begins TIAA-CREF Enroll employees into RC & RCP contracts from respective DC & TDA plans weeks IT Validation TIAA-CREF Validate negative enrollment scripts Validate & approve OPS file data weeks Marketing Materials Provided TIAA-CREF Communication & education materials provided FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 11

13 ENSURING A SMOOTH TRANSITION ESTIMATED HIGH-LEVEL MILESTONES, continued Timeline Milestone Who Action Implementation: Fund lineup confirmed Day 0 Services TIAA-CREF Negatively enroll DC & TDA participants into RC & RCP Implemented contracts, as determined Marketing materials provided Employer Master contracts provided XX/XX/11 RC & RCP Remittance TIAA-CREF _XX_ remittance received & processed into new RC & RCP plans Post Implementation Service Monitoring TIAA-CREF & Rutgers University Ongoing service monitoring FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 12

14 ASSEMBLY BILL 3694 FOR FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR FOR USE USE WITH WITH OR OR DISTRIBUTION TO THE TO PUBLIC. THE PUBLIC. 13

15 RUTGERS UNIVERSITY AND TIAA-CREF ASSEMBLY 3694 TIAA-CREF cannot predict the outcome or passage of Bill #3694. Our governmental relations team has made the following observations: On February 18, 2011 reviewed by the NJ Pension & Health Benefits Commission and recommended not to enact Currently not scheduled for a vote in the House No one is championing the bill in the Senate TIAA-CREF s contingency plan, should Bill 3694 pass: Source: en.wikipedia.org/wiki/new_jersey_state_house Work with each local plan sponsor to decide a course of action (TIAA-CREF has installed seven similar plans at other NJ APB college campuses) Suspend future contributions to local plan and forward to the ABP plan Decide on moving local plan assets to ABP plan or leaving as is Develop an employee outreach and communication plan based on final decision made by local plan sponsor FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 14

16 PARTICIPANT SERVICES FOR FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR FOR USE USE WITH WITH OR OR DISTRIBUTION TO THE TO PUBLIC. THE PUBLIC. 15

17 THE TIAA-CREF INDIVIDUAL CONSULTANT COMBINING PERSONALIZED ADVICE WITH TARGETED EDUCATION One-On-One Advice Education Group Rutgers University Employees Enrollment Information Telephone Account Help Online Income Strategies FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 16

18 THE TIAA-CREF INDIVIDUAL CONSULTANT OFFERING KNOWLEDGE AND EXPERTISE Experience Distinctive Value Accountability FINRA registered Insurance licensed Extensive training Held to strict client satisfaction criteria On-site presence in 2010: One-on-one counseling sessions: 720+ Advice sessions: 200+ Financial Education Seminars: 3 Across all campuses: Rutgers UHR, Busch, Newark, Camden Held to balanced scorecard People Operations Customer satisfaction Asset growth Service quality monitoring program FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 17

19 TIAA-CREF ADVICE AND PLANNING SERVICES DESIGNED TO ADDRESS THE UNIQUE NEEDS OF EVERY EMPLOYEE Counseling sessions targeted to career and life stages help employees answer three primary questions: Am I saving enough for retirement? How should I allocate and invest to reach my goals? When can I retire? Guidance and Education Personalized Advice and Counseling Financial Planning for More Complex Needs* * May not be available to all participants. FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 18

20 COMMUNICATION, EDUCATION AND ADVICE MAXIMUM ENGAGEMENT DURING THE TRANSITION AND ONGOING Individual Counseling and Group Education Online Planning Tools, Calculators, Resources Social Media and Downloads Plan Change Communications Customized Campaigns, Statement Messaging Enrollment Decision Resources FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 19

21 EMPLOYEE WEBSITE PLANNING TOOLS ACCOUNT AGGREGATION, ADVICE AND ENROLLMENT Aggregated Views and Personalization Self-Help Advice Tools and Calculators FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 20

22 BETTER-INFORMED EMPLOYEES. BETTER INVESTMENT DECISIONS. STRONGER PLAN RESULTS. Only TIAA-CREF offers Rutgers employees a combination of: Customized financial education and communications programs with Nationally recognized* Advice, including objective fund recommendations from Professional consultants and advisors The result? Your employees understand sound principles to make informed decisions as they seek financial security in retirement. * Gold Education Programs award for Advice plan communications; Silver Language and Cultural Diversity award for collaboration with Rice University to provide in-language financial education materials, seminars and consultations for Spanish-speaking employees, The Profit Sharing/401(k) Council of America. Five 2010 STAR Awards for Excellence in education and communications, The Mutual Fund Education Alliance. FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 21

23 INVESTMENTS FOR FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR FOR USE USE WITH WITH OR OR DISTRIBUTION TO THE TO PUBLIC. THE PUBLIC. 22

24 CURRENT INVESTMENT MENU FOR RUTGERS UNIVERSITY LIFETIME INCOME OPTIONS ANNUITIES GUARANTEED* MONEY MARKET FIXED INCOME BALANCED LARGE-CAP BLEND EQUITY GROWTH EQUITY GLOBAL EQUITY REAL ESTATE TIAA Traditional CREF Money Market CREF Bond Market CREF Inflation- Linked Bond CREF Social Choice CREF Equity Index CREF Stock CREF Growth CREF Global Equities TIAA Real Estate * Any guarantees under annuities issued by TIAA are subject to TIAA's claims-paying ability. TIAA Traditional is a guaranteed insurance contract, and not an investment under federal securities laws. FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 23

25 MORNINGSTAR OPEN-END MUTUAL FUND EXPENSE QUARTILES VS. TIAA-CREF VARIABLE ANNUITY EXPENSE RATIOS AS OF 12/31/10 1 st Quartile 2 nd Quartile 3 rd Quartile 4 th Quartile Expense Ratios (%) Inflation Protected Bond Intermediate Bond Moderate Allocation Large Growth Large Blend (CREF Equity Index) Large Blend (CREF Stock) World Stock Money Market Real Estate * Expense ratio information is shown net of any applicable fee waivers as provided in each fund s prospectus. Please note, expense comparisons may mask important differences in performance, portfolio qualities, and access. See accompanying Notes page at the end of this presentation for details regarding expenses for each TIAA-CREF fund. FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 24

26 THE TIAA-CREF DIFFERENCE / FEES FOR FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR FOR USE USE WITH WITH OR OR DISTRIBUTION TO THE TO PUBLIC. THE PUBLIC. 25

27 OUR GOAL IS TO PROVIDE THE HIGHEST OVERALL VALUE TO RUTGERS UNIVERSITY Full Range of Solutions Dedicated Service Teams On-Site Advice and Counseling On-Site Group Meetings Tailored Programs Innovative Planning Tools Outsourced Administration Competitive Fee Structure Pricing same as current Rutgers ABP relationship Fiduciary & Compliance Services Investment Menu Flexibility Customized Employee Website Automated Enrollment Services Local TIAA-CREF Princeton, Hackensack & Roseland Offices FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 26

28 RUTGERS UNIVERSITY AND TIAA-CREF ALIGNED CULTURES. SHARED VALUES. COMMON GOALS. AN IDEAL PARTNERSHIP FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 27

29 RUTGERS UNIVERSITY AND TIAA-CREF Q & A FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 28

30 IMPORTANT INFORMATION TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products. Advisory services offered by Advice and Planning Services, a division of TIAA-CREF Individual & Institutional Services, LLC, a Registered Investment Advisor. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association (TIAA) and College Retirement Equities Fund (CREF), New York, NY. TIAA-CREF products may be subject to market and other risk factors. See the applicable product literature, or visit tiaa-cref.org for details. Investment products, and insurance and annuity products are NOT FDIC insured; are not bank guaranteed; may lose value; are not deposits; are not insured by any federal government agency; are not a condition to any service or activity. You should consider the investment objectives, risks, charges and expenses carefully before investing. Go to tiaa-cref.org for a prospectus that contains this and other information. Please read the prospectus carefully before investing Teachers Insurance and Annuity Association-College Retirement Equities Fund (TIAA-CREF), New York, NY C50588 FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 29

31 APPENDIX FOR FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR FOR USE USE WITH WITH OR OR DISTRIBUTION TO THE TO PUBLIC. THE PUBLIC. 30

32 ASPPA RECORDKEEPER CERTIFICATION FOR ADHERENCE TO EXCELLENCE AND INDUSTRY BEST PRACTICES Centre for Fiduciary Excellence independent certification program ASPPA (American Society of Pension Professionals & Actuaries) Recordkeeper Certificate awarded to firms that successfully satisfy audit criteria and meet best practices Recordkeeping Human resources Financial history Quality management systems FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 31

33 TIAA-CREF ADVICE AND PLANNING SERVICES RECOGNIZED FOR EXCELLENCE Gold: Education Programs for Advice communications Silver: Language and Cultural Diversity for collaboration with Rice University to provide Spanishspeaking employees with in-language financial education materials, seminars and consultations FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 32

34 TARGETED, LIFE-STAGE FINANCIAL EDUCATION SEMINARS ON-SITE & ON DEMAND EARLY CAREER Importance of saving early Tax-smart savings choices Understanding investments MID-CAREER Staying on track Meeting financial challenges Successful investing habits NEARING RETIREMENT Beginning a new journey 5-10 years until retirement One-year countdown Income options OTHER Financial guidance for women Goal setting Staying focused during volatile markets Understanding IRAs How Strength & Stability Can Benefit You Saving with Retirement Roth Web Seminar FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 33

35 PARTICIPANTS PREFER OUR QUARTERLY STATEMENT TIAA-CREF ranked 10th out of 24 providers in DALBAR s 13th Annual Survey based on preferences for participant statement content and design.* * Source: DALBAR, 13h Annual Survey, Trends and Best Practices in Investor Statements, February 2011 We help your employees see their retirement readiness by systematically educating them on how much they should be saving to achieve retirement income goals FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 34