Represents the real estate aspect of the foundation. (Rough Point)

Transcription

1 A TIAA-CREF RETIREMENT PLAN PRESENTATION TO: DECEMBER 15, 2010 Represents the real estate aspect of the foundation. (Rough Point) FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC.

2 INTRODUCTIONS PETE D ANGIO, Director ORESTES WEST, Director CANDY GROSSMAN, Director Institutional Development & Sales Field Consulting Group Marketing Strategy FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 1

3 TODAY S DISCUSSION I. TIAA-CREF Overview II. III. IV. Richmond Public Schools Service Team / On-site Education The Communication & Education Plan Plan Sponsor Services V. The TIAA-CREF Difference / Pricing FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 2

4 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. 3

5 RICHMOND PUBLIC SCHOOLS AND TIAA-CREF FIVE UNIQUE BENEFITS TIAA-CREF brings to you 1. An organization with a not-for-profit heritage and culture, dedicated to serving educators since A leader in both the Not-for-Profit and K-12 retirement market segments* 3. Good value through TIAA-CREF s low-cost institutional approach to the retirement savings marketplace 4. Simplified fund selection, with a variety of prescreened investment choices Andrew Carnegie, Founder, Fiduciary approach to giving objective investment advice * Source: LIMRA, Not-for-Profit Market Survey, third-quarter 2010 results. Based on a survey of 30 companies and TIAA-CREF estimated K-12 market segment assets under management. TIAA-CREF ranked first in total assets under management. Ranking does not reflect investment performance. FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 4

6 Unique not-for-profit heritage and culture FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 5

7 RICHMOND PUBLIC SCHOOLS AND TIAA-CREF EXTENSIVE EXPERIENCE SERVING EDUCATORS TIAA-CREF by the Numbers 15,000+ retirement plan clients Over 3.7 million participants in more than 27,000 retirement plans 7,592 education clients with 2.3M participants Combined total assets under management of $434 billion (9/30/10) Seek ye first the education of the people and all other... blessings will be added unto you. Andrew Carnegie, Triumphant Democracy 7,000 employees in 60 offices nationwide FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 6

8 TIAA-CREF ORGANIZATION AND HISTORY INNOVATORS AND PIONEERS 1918 TIAA established 1952 CREF launched with world s first variable annuity 1970 Socially responsible investing criteria introduced 2001 Third Service Center opens 2003 Company undergoes strategic transformation with launch of Open Plan Solutions 2009 TIAA-CREF receives 13 best-in-class service awards * TIAA-CREF Retirement Healthcare Program launches 1920 TIAA makes its first annuity income payment: $ Awarded Advice Provider of the Year * Acquires Kaspick & Company, the nation s leading planned giving provider for nonprofits 2010 Retirement 21 initiative commences TIAA-CREF brand ranked highest for trust ** 1990s TIAA-CREF becomes world s largest pension company Second service center opens TIAA Real Estate launches, allowing individuals to invest in commercial properties * The PlanSponsor Best-in-Class awards may not be representative of the experiences of all TIAA-CREF clients, and is not indicative of future performance or success. ** TIAA-CREF received the highest numerical trust score among financial services and insurance industry brands included in The Harris Poll 2010 EquiTrend Study, which is based on opinions of 19,708 U.S. consumers ages 15 and over surveyed online between January 12 and 21, Your opinion may differ. Highest Ranked was determined by a pure ranking of a sample of financial services and insurance industry brands. FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 7

9 RICHMOND PUBLIC SCHOOLS AND TIAA-CREF FINANCIAL STRENGTH FROM A BRAND YOU CAN TRUST Financial Strength Brand Strength** Broad Claims-Paying Ability $10 billion+ in retirement income and other disbursements paid to over 500,000 participants in 2009 alone Strong Capital Position $26.3 billion in TIAA Total Statutory Capital (9/30/10) * Highest Ratings (TIAA) Triple-A or equivalent ** A.M. Best Company A++ (12/09) Fitch AAA (4/10) Moody s Investors Service Aaa (7/10) Standard & Poor s AAA (8/10) * Capital position applies to TIAA, the insurance company affiliate, which backs TIAA Traditional and our other guaranteed products. Total Statutory Capital comprises capital and surplus, and asset valuation reserve for TIAA. ** TIAA 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. **TIAA-CREF received the highest numerical trust score among financial services and insurance industry brands included in The Harris Poll 2010 EquiTrend Study, which is based on opinions of 19,708 U.S. consumers ages 15 and over surveyed online between 1/12/10 and 1/ 21/10. Your opinion may differ. Highest Ranked was determined by a pure ranking of a sample of financial services and insurance industry brands. FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 8

10 Retirement market leadership FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 9

11 TIAA-CREF IS THE 403(b) MARKET LEADER Top (b) Plan Providers* TIAA-CREF $242,194 Fidelity $70,832 VALIC $40,381 ING $25,463 Lincoln Financial Vanguard Diversified $20,414 $16,323 $16,049 MARKET SEGMENT Higher Education TIAA-CREF RANKING** 1 Great West MetLife $12,323 $10,900 K-12 1 Hospital & Healthcare 2 Prudential $8 Other 1 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 Millions * Source: PLANSPONSOR s 2009 Recordkeeping Survey, based on recordkeeping assets; ** Source: LIMRA, Not-for-Profit Market Survey, September 30, Based on a survey of 30 companies. TIAA-CREF assets under management by market segment estimated; segment breakdown based on 20 companies representing 97% of the total reported full service assets. Market share ranking does not reflect current investment performance. FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 10

12 Low-cost investment approach FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 11

13 A TALE OF TWO TEACHERS JOHN 58 YEARS OLD Teaches 4 th grade in the Midwest Wants to spend more time with his grandchildren Has invested with a variety of plan providers over the years MARY 58 YEARS OLD Teaches 10 th grade English in a city school Thinking of expanding her freelance writing business Has her retirement plan with TIAA-CREF FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 12

14 THE EFFECT OF HIGH INVESTMENT COSTS HOW MARY EARNED MORE RETIREMENT INCOME THAN JOHN Teachers John and Mary both had the same starting salary, salary growth rate, contribution rate and investment returns. They experienced one difference: Mary paid lower fees on her investments. $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 Real Lifetime Income and Estate Value at Age 100* $495,415 $182,800 Lifetime Retirement Income Estate $339,152 $110,924 Mary earned $156,263 more than John $0 80 Basis Points 170 Basis Points Asset-based fees * Assumes $35,000 starting salary, 4% salary growth, 5% contribution rate, 7.5% gross investment return, 2.8% inflation rate, distribution rate = maximum of 4% or required minimum distribution, age 65 retirement, 2010 dollars. Source: TIAA-CREF Institute. The is based on hypothetical assumptions and not intended to represent the performance of any specific investment. It cannot be used to predict or project investment returns. Lower fees do not necessarily translate into higher returns FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 13

15 Simplified fund selection FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 14

16 PRESCREENED FUNDS FROM WELL KNOWN FAMILIES MORE THAN 200 HIGH-QUALITY, LOW-COST INVESTMENT CHOICES FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 15

17 Fiduciary approach to investment advice FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 16

18 TIAA-CREF ADVICE AND PLANNING SERVICE RECOGNIZED FOR EXCELLENCE GET ADVICE AT WORK The 3.2 million employees of colleges, hospitals and other not-forprofits whose retirement plans are managed by TIAA-CREF generally have access to the most extensive personal workplace advice. TIAA-CREF, the nation s second largest manager of retirement savings plans, has a staff of 600 planners. Workers can request midcareer, pre-retirement or retiree counseling sessions. The last are multihour meetings that include general tax and estate planning advice plus a specific, written asset-allocation plan that looks at all your assets. Forbes 2009 Retirement Guide, Playing the Numbers (9/08). This claim should not be seen as an endorsement by Forbes. (September 10) The Profit Sharing/401(k) Council of America (PSCA) selected TIAA-CREF for two prestigious awards, including: a Gold Education Programs award for our Advice plan communications, winning top honors in this category; and a Silver Language and Cultural Diversity award for our collaboration with Rice University to provide in-language financial education materials, seminars and consultations for the University s Spanish-speaking employees. FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 17

19 THE RICHMOND PUBLIC SCHOOLS SERVICE TEAM / ON-SITE EDUCATION FOR FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR FOR USE USE WITH WITH OR OR DISTRIBUTION TO THE TO PUBLIC. THE PUBLIC. 18

20 INTEGRATED SERVICE DELIVERY. INDUSTRY DISTINCTIVE VALUE. Managing Consultant ANNE VANI-OBEY COMMUNICATION, EDUCATION & ADVICE IMPLEMENTATION Individual Consultant ROBERT JEAN Individual Consultant GREGORY SWITZER Marketing Director KIM HUGHES Implementation Manager DOUG CALNEK C & E Manager CANDY GROSSMAN FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 19

21 THE COMMUNICATION & EDUCATION PLAN FOR FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR FOR USE USE WITH WITH OR OR DISTRIBUTION TO THE TO PUBLIC. THE PUBLIC. 20

22 WORKING WITH RICHMOND PUBLIC SCHOOLS TO BUILD A CUSTOMIZED COMMUNICATION & EDUCATION PLAN Demographics Behavior Market environment Target audiences Messages Timing Metrics Surveys Feedback In person Phone Mail / FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 21

23 PREPARING RICHMOND PUBLIC SCHOOL EMPLOYEES FOR RETIREMENT PROGRAM CHANGES ANNOUNCE ANNOUNCEMENT MAILING What to expect New funds FAQs, glossary Contact information POSTERS, SCHEDULES, INVITATIONS, POSTCARDS Group meetings 1:1 counseling Help desk CONNECT EMPLOYEE COUNSELING Dedicated Consultant Objective advice, recommendations GROUP SEMINARS What to expect Employee action Q&A ENROLLMENT MATERIALS One Decision or Build Your Own Strategy Profile worksheet Investment menu How to enroll, transfer, change allocations WELCOME KIT Enrollment confirmation & materials SUPPORT ADMINISTRATOR TRAINING, WEBINARS Plan changes Website capabilities EMPLOYEE WEBSITE Enrollment, transactions Plan details Investments, performance Planning tools, resources PHONE CENTER Enrollment Answers & Assistance Counseling Spanish language FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 22

24 PLAN SPONSOR SERVICES FOR FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR FOR USE USE WITH WITH OR OR DISTRIBUTION TO THE TO PUBLIC. THE PUBLIC. 23

25 PROVEN IMPLEMENTATION PROCESS DISCIPLINE AND EXPERIENCE ENSURE OPERATIONAL EFFECTIVENESS DEDICATED PLAN SPONSOR SUPPORT PLAN AND SYSTEM SETUP END-TO-END TESTING POST-IMPLEMENTATION SUPPORT Integrated Implementation FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 24

26 HOW WE DELIVER THE BEST OUTCOMES ANALYZING CURRENT TRENDS TO INFLUENCE FUTURE BEHAVIOR Plan Data / Employee Demographics Peer Benchmarking Investment Gap Analyses / Benchmarking Administrator Feedback Participant Feedback Surveys Seminar Attendance Focus Groups Website Usage FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 25

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

28 RICHMOND PUBLIC SCHOOLS AND TIAA-CREF FIVE UNIQUE BENEFITS TIAA-CREF brings to you 1. An organization with a not-for-profit heritage and culture, dedicated to serving educators since A leader in both the Not-for-Profit and K-12 retirement market segments* 3. Good value through TIAA-CREF s low-cost institutional approach to the retirement savings marketplace 4. Simplified fund selection, with a variety of prescreened investment choices Andrew Carnegie, Founder, Fiduciary approach to giving objective investment advice * Source: LIMRA, Not-for-Profit Market Survey, third-quarter 2010 results. Based on a survey of 30 companies and TIAA-CREF estimated K-12 market segment assets under management. TIAA-CREF ranked first in total assets under management. Ranking does not reflect investment performance. FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 27

29 IMPORTANT INFORMATION TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products. 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 are not FDIC insured, may lose value and are not bank guaranteed. 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 C49728 FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 28

30 APPENDIX FOR FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR FOR USE USE WITH WITH OR OR DISTRIBUTION TO THE TO PUBLIC. THE PUBLIC. 29

31 TIAA-CREF QUALITY RECORDKEEPING RECOGNIZED FOR EXCELLENCE CEFEX, Centre for Fiduciary Excellence, has awarded TIAA-CREF the American Society of Pension Professionals & Actuaries (ASPPA) Recordkeeper Certification for the organization s adherence to excellence in retirement plan recordkeeping. Recordkeeping Services Bookkeeping for retirement plans trading transactions and individuals accounts (the major activity in recordkeeping) Administration Services Administrative functions including compliance testing against relevant pension and tax laws, and filing of government reports such as Form 5500 Factors Recordkeeping practices Human resources Financial history Quality management systems FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 30

32 EASY-TO-READ QUARTERLY STATEMENT REINFORCES THE IMPORTANCE OF RETIREMENT READINESS DALBAR ranked TIAA-CREF 7 th out of 25 providers based on investor preferences for participant statement content and design* * Source: 12 th Annual Survey, Trends and Best Practices in Investor Statements, December Based on 300 investor responses. Each quarter, employees can review how much they should be saving to achieve retirement readiness FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 31