TIAA CREF Conversion

[MjInvestments]

I have a plan we are taking over (It is a 403b ERISA) for a Jesuit School High school. The plan is currently at TIAA-CREF (I know, hard conversion anyways).

But I was looking at the investments and it looks like the funds are held within CREF Variable Annuities instead of CREF Mutual Funds. (Example: https://www.tiaa.org/public/pdf/ffs/194408407.pdf)  Thus the 6-letter tickers for the funds.

Does anyone have experience pulling a plan out of funds like this and into a regular Vanguard/Fidelity mutual fund lineup?  Any fees associated with exiting these funds like surrender charges?  I would appreciate any insight.  I'm obviously not listed as advisor yet for client.  I cant be an advisor at TIAA.

 

I moved to ERISA space after several years or personal wealth management, I've never seen anything like this before.  Thanks for any help.

 

[WCC]

We have moved a couple plans away from TIAA over the years. There are usually a few issues to watch out for:

1. Money invested in TIAA Traditional generally has a 10 year payout. You may already be aware of that.

2. I have not seen any surrender charges in the share classes you reference - but that may just depend on the contract.

3. Are the assets in individual contracts? Very likely they are if the plan has been with TIAA for a while. If so, each individual will be required to sign a transfer form. Be careful on the transfer forms because they have a bar code unique to each individual (i.e. you can't just copy one form and give it to all the participants to complete). There are ways around the bar code issue. 

[austin3515]

3.  Definitely yes.  Of course ask, because never assume. But I already know the answer you will get.

Best case scenario is new money goes to new vendor and you can politely ask the people at TIAA to transfer their money to your new platform.  And good luck with that.  Our experience is teachers view TIAA-CREF as the benefit itself.  Our clients are extremely frustrated with them but the participants never want to go.  Now granted, most of my clients are less than $50MM in assets.  I have on in the 80 or 90 range, and there is a different level of service up there.  I'm sure if you get into the billions they'll set up an office at your school :).