Retirement Readiness: How it Can Help You Grow Your Business

Transcription

1 Retirement Readiness: How it Can Help You Grow Your Business Robert Rickey, Head of Advisor Sales

2 The world used to be very simple Richard F. Niebling, Teacher, English Department Phillips Exeter Academy,

3 Then it got complicated Plan Set-up and Design Approved Plan Investment providers Written Plan Document Universal Availability Requirement Administrative Procedures Employer Contributions Loans and Remittance Establish fiduciary process Compliance with Plan Audit Compliance with 5500 filings Investment menu construction Multi-generational workforce with Increasingly complex needs and decisions 3

4 External factors drive an increasingly complex decision tree for Plan Sponsors and Participants. 1. Recordkeeping 3. Plan Selection Who can we trust to administer our plan? Which plan provider do I trust my retirement money with? 2. Investment Selection 4. Investment Selection 5. Awareness and Planning 6. Advisory 7. Income Distribution What investment choices are best for our employees? Which investment choices are best for me? How should I start? Who can I trust to give me advice? What s the best way to receive retirement income? B2B B2C 4

5 Our Co-Operative view enables Outcomes that Matter Plan Provider Consultant Advisor Plan Sponsor 5

6 Our holistic, interdependent Co-Operative model includes employee engagement to achieve customer outcomes A dynamic ecosystem with one goal in mind ensuring the participant retires with sufficient replacement income 6

7 Full Spectrum of Advice Guidance and Guidance and Education Education Personalized Advice and and Counseling Financial Planning for More for More Complex Complex Needs* Needs* Personal TIAA-CREF consultant In person Telephone Independent Financial Advisors 7

8 Independent Advisor Model Expanding access to advice Three levels of service that offer flexibility and choice in how your plan can access local independent Registered Investment Advisors: Level 1 PARTICIPANT CHOICE Participants can work with any Advisor that meets the following requirements: Local Advisor must be affiliated with an SEC or State RIA RIA firm must be operational on TIAA- CREF platform Plan must allow for Advisor fees to be paid directly from retirement accumulations Maximum Advisor fee is 2%, but plan can set a lower limit for all Advisors Only participants working with an Advisor pay for their services Participant-Level Advice Services Level 2 PARTICIPANT CHOICE PLUS NETWORK Participant Choice supplemented with prescreened list of local Advisors Advisors vetted against minimum standards by independent third party Advisor must pay an annual fee of $1,750 to participate in Network Network Advisors receive a Network Profile and are added to web-based search tool Network Advisors are required to limit fees to no more than 1.25% Plan Sponsor can choose to offer plan level C&E through a Network Advisor Plan level fees can be paid to Network Advisor for C&E Participant-Level Advice Services Level 3 NETWORK ONLY All of Level 2 Network applies except Only Network Advisors can deduct fees directly from retirement accumulations Participant-Level Advice Services Plan-Level C&E Services Plan-Level C&E Services 8

9 TIAA-CREF ADVISOR NETWORK: Institutional deployment of RIA Models In-Network Out-of-Network Retirement Advisory Alliance Network Only PC Plus Network Participant Choice All Other Plans Services: Plan / Participant Participant Participant Participant None Exclusivity: Yes No No No N/A Fee Billing: Plan / Participant Participant Participant Participant No Fees Fee Limits: Network:.25 % / 1.25% % % 1 No Fees N/A Non-Network: No Fees 2.00% 1 Network Tools: 2.00% 1 No Fees N/A Profiles: Network Map: Co-Branding: No Yes Yes No N/A No Yes Yes No N/A Yes 2 Limited 2 Limited 2 No N/A 9

10 Independent advisor model Advisor Network Network Strengths Industry leading due diligence process Fiduciary standard of care for advisors Network fee cap Strong legal agreements Network code of business conduct Network Controls Independent vetting process Annual recertification process Automated fee cap at the plan level Multiple layers of disclosure Backend reporting capabilities Internal Oversight Committee Standardized profiles for Network Advisors 10

11 Question & Answer

12 The TIAA-CREF Retirement Advisory Alliance is part of the TIAA-CREF Advisor Network (Network). The Network is a service that provides plan sponsors and retirement plan participants with information to assist them in selecting independent investment advisers (Advisors) to provide communication, education and participant-level advisory services. Participating Advisors are not employees or agents of Teachers Insurance and Annuity Association (TIAA), College Retirement Equities Fund (CREF) or any of their respective affiliates or subsidiaries. TIAA-CREF acts as recordkeeper for institutional plans and is not a fiduciary to any plan or its respective participants. TIAA-CREF is not making a recommendation or acting as a fiduciary when plan sponsors or participants select an Advisor from the Network, nor is it responsible for the investment advice or other services offered by or provided by participating Advisors. Participating Advisors are required to meet certain minimum criteria. However, participation in the Network should not be construed as an endorsement or guarantee by TIAA-CREF of the services provided by any Advisor. Plan sponsors and participants are free to select an Advisor outside of the Network to provide participant advice or other services. Plan sponsors and participants should do their own due diligence before hiring an Advisor or any other financial professional. TIAA-CREF shall have no liability or responsibility for any losses arising out of or relating to a plan sponsor or participant s decision to engage an Advisor. TIAA-CREF does not receive any compensation or referral fees from the Advisors participating in the Network. TIAA-CREF products may be subject to market and other risk factors. See the applicable product literature, or visit tiaa-cref.org for details.tiaa-cref Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products Teachers Insurance and Annuity Association-College Retirement Equities Fund (TIAA-CREF), 730 Third Avenue, New York, NY tiaa-cref.org 2013 Teachers Insurance and Annuity Association-College Retirement Equities Fund (TIAA-CREF), 730 Third Avenue, New York, NY C