January 11, 2013
TIAA-CREF to announce lower costs for remaining retirement investments
Faculty and staff who still have retirement funds with TIAA-CREF should watch for a letter from the company next week. The letter will be sent to the employee's home address and will announce lowered costs for money invested with CREF.
When Fidelity Investments became Purdue's defined contribution retirement plan administrator on Jan. 1, 2011, retirement plan fees were unbundled, allowing for what Purdue believes to be a more transparent, cost-effective and equitable fee structure. Participants generally pay significantly less in administrative fees through the unbundled fee structure in place with Fidelity.
While fees on CREF funds are still bundled, they will now be lower than in the past. "We're very pleased to have worked out this new arrangement that reduces costs for our faculty and staff," says Luis E. Lewin, vice president for human resources.