Simplicity + Oversight = Improved Retirement Outcomes
A new study by expert scholars Robert Clark of North Carolina State University and David Richardson of the TIAA-CREF Institute finds that reasonable provider control and oversight of supplemental retirement plans can significantly improve efficiency for sponsors and outcomes for K-12 public school teachers.
Requiring financial services providers to be transparent about their transaction fees and other costs is a good thing. One model for structuring public school teacher retirement benefits, the controlled access model, utilizes a competitive bidding process in which potential providers submit proposals that include information on the product and investment menu and all associated costs. A new report from the TIAA-CREF Institute has found that this screening process allows school systems to negotiate lower fee structures and enable more effective oversight of providers, services and products.
Download the white paper now to learn about the new study and how lower fees can increase wealth accumulation for public school employees.
The scale and complexity of savings options within the 403(b) market can be challenging. Like all Americans, K-12 employees vary widely in their financial skills and sometimes struggle to find information to help them make sound investment decisions. A new report from the TIAA-CREF Institute has found that school systems that manage retirement provider options through a controlled access model significantly improve plan clarity and equity of retirement outcomes for public K-12 school teachers.
Download the white paper now to learn about the new study and how simplifying investment options can help ease the burden on plan participants.
New 403(b) regulations require administrators to play a larger role in oversight, including fiduciary responsibility, and have caused many to re-evaluate all aspects of plan design and control. A new report from the TIAA-CREF Institute has found that plan sponsors can increase efficiency and ensure effective stewardship, while providing an organization with solid retirement investment options, through a controlled access model of plan management.
Download the white paper now to learn about the new study and how sound plan oversight can improve efficiency and outcomes.
Report Background Information
About The Authors
Long-term system stresses and a challenging economic landscape have had a significant impact on the future retirement security of teachers. And with public school systems across the nation facing these pressures, supplemental employer-sponsored retirement plans are proving integral to ensuring that school employees can achieve guaranteed income for life.
But the marketplace has proliferated rapidly and it can be difficult to navigate for school systems and individual educators alike. In particular:
- New 403(b) regulations require administrators to play a larger role in administrative oversight of plans, in many cases including fiduciary responsibilities. And they have substantial latitude to evaluate and determine all aspects of plan design and management.
- For their part, school employees are confronting an array of confusing disclosures and fees that can substantially reduce their savings.