Record Keeper Change FROM TIAA

I am looking for guidance on navigating transferring a 401k plan from TIAA. The plan was set to be transferred to another record keeper, however the new record keeper backed out of the process when they learned that the 15 outstanding loans in the plan are collateralized loans with TIAA. They are now saying they will not take the plan until all 15 loans have been retired, which will take 5 years and require shutting of new loans for existing participants. Unfortunately other record keepers have now taken the same stance. 
 

Is there a creative solution to this? Has anybody successfully navigated this hurdle in the past? 
 

Thanks!

This may not be the best solution for you, but as a TPA we stay away from anything having to do with TIAA. We have found them to be less cooperative than the good-ole payroll providers when it comes to transitioning plans to new recordkeepers - and that is saying a lot. The loan issue is a big one for their 401(k) plans but they have flat-out refused to transfer assets in 403(b) plans to new recordkeepers and I have found no way to force them to follow the direction of the plan administrators. I hope someone out here has a good answer for you because I would like to hear it as well.

We do a lot of work with TIAA. (We are an Ascensus FuturePlan TPA in Los Angeles (formerly QBI)) You need a TPA like us that works with them.  I think from your note that you are talking to bundled recordkeepers.  They don't have the capability or the desire to recordkeep split funded plans.  The loans you are talking about are contract loans.   It is not a matter of TIAA cooperating or not.  The procedures and security for such loans are written into the annuity contracts.  TIAA cannot just "decide" to do something that is different than the language in the individual contract.   Most of our TIAA work is 403(b) but I do not think this would be different from a procedural point of view. I am assuming it is permissible on this site to give you our phone number.  It is 949-325-6727 if you wish to discuss.

There are a number of recordkeepers that take business from TIAA with loans (the one I work for, included). We treat the loans as "assets held away" until fully amortized.  It complicates life - for us and the plan sponsor - but it's doable.

One has to think whether it was "prudent" to select such a recordkeeper (TIAA) in the first place knowing that the assets can't be moved when the fiduciary so decides.  By the way, in some situations, TIAA has been known to hold assets in their general account product for 10 years, to secure a 5 year loan.