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Contributed by Cheryl Thomason on 05/24/2013
You have a credit coming to you!
All retirement plan service providers, such as TIAA-CREF, incur expenses for the record keeping and administrative costs associated with administering a retirement plan. The Ithaca College Retirement Plan Oversight & Investment Committee continuously monitors and evaluates all plan related fees in an effort to keep overall plan related costs as low as possible.
Understandably, some level of plan generated revenue must be retained by services providers, like TIAA-CREF, to cover the costs related to plan administration, compliance services, participant services, etc. However, sometimes the amount of revenue generated by a plan’s investment options exceeds the amount required to provide services and cover plan related expenses. In these instances, where the revenue generated is higher than the revenue required Plan Sponsors are able to recover some or all of the excess amounts.
The good news is that our plan generated excess revenue which TIAA-CREF will be crediting to plan participants. Participants in the Basic Retirement Plan will be receiving a credit of $107.14 and participants in the Tax-Deferred Annuity Plan will be receiving a credit of $71.93. If you are a participant in both plans you will be receiving each credit amount. In addition to receiving a confirmation statement from TIAA-CREF, you will see the credit on your next quarterly statement for the period April 1st, 2013 through June 30th, 2013. The credit will be identified as a “plan servicing credit”. Please note the Committee will continue to work with TIAA-CREF to continue to offer a competitively priced retirement program.