The new retirement plan offering is similar to OneAmerica’s Index(k) program, which is designed for for-profit corporations. TIAA-CREF will act as the investment manager of choice for the Index(b) program.
“The nonprofit sector is a signature market for the companies of OneAmerica,” says Bill Yoerger, president of retirement business for the companies of OneAmerica. “We’re excited to be able to offer competitive pricing, fee transparency and other benefits of indexed investing to our nonprofit clients.”
Yoerger says that both programs were created in response to an increased focus by the defined contribution retirement plan industry on management fees, total investment expenses and transparency. He adds that an index investment option will generally return an investment performance similar to the index it is based on—such as benchmarks by S&P, Russell or MSCI—and often requires less time for investment performance attribution, manager selection and ongoing evaluation.
“Advisers and plan sponsors are being held more accountable for the value and performance of their retirement plans,” says Yoerger. “Index(b) helps reduce the overall cost to plan participants and allows nonprofits to focus more time on achieving their organization’s mission and less time managing their investments.”
TIAA-CREF will provide 16 of the 20 investment options available through Index(b), including stock and bond index mutual funds and investments from its Lifecycle Index target-date investment series. Index(b) will also include a stable value investment option from the American United Life Insurance Company (AUL), a OneAmerica company, and three others.
OneAmerica is a provider of retirement plan products and services, individual life insurance, annuities, long-term care solutions and employee benefit plan products. TIAA-CREF is a national financial services organization.