TIAA-CREF Launches iPhone App

TIAA-CREF is the latest financial firm to offer an application for the iPhone.

The provider of retirement services in the academic, research, medical and cultural fields, unveiled The TIAA-CREF Savings Simplifier. The app, available for free through iTunes, gives users interactive tools that provide information about saving for retirement and other goals, according to a press release. It allows users to:

  • test their financial knowledge and learn how to help accelerate future savings with the “Money Smarts” quiz;
  • take a glance at their possible financial future with the “Retirement Projector;”
  • see where their money is going on the little everyday purchases such as coffee or take-out with the “What’s it Worth Calculator;”
  • read news articles and listen to market commentary podcasts by Chief Investment Strategist Brett Hammond;
  • get the latest information about TIAA-CREF fund performance;
  • contact a TIAA-CREF retirement consultant for an advice session; and
  • map the locations of TIAA-CREF offices across the country.

TIAA-CREF also announced other digital initiatives. On www.Facebook.com/tiaa-cref, individuals can plug into news and videos, or take the Nest Egg Challenge. In addition, participants nearing retirement can join an online community of like-minded people sharing their experiences on making the transition to life in retirement at www.myretirement.org. TIAA-CREF is also on Twitter at www.Twitter.com/TC_Talks.

This fall, TIAA-CREF introduced Quick Response Codes (QR Codes) in select TIAA-CREF print ads, providing users with smart phones with a camera to access online content from TIAA-CREF, or connect with a TIAA-CREF retirement consultant, by  taking a picture of the QR code in the ad (see “TIAA-CREF Connects Smartphone Users with Financial Advice”).

TIAA-CREF said it also offers advice by retirement consultants at www.tiaa-cref.org/services/retirement-planning-advice.

Individuals can also sign up to receive Market Insights podcasts at www.tiaa-cref.org.

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Hecker Fee Case Prompts Exelon Suit Dismissal

With one eye cast toward the recent closely watched excessive fee case Hecker v. Deere & Co., a federal judge in Illinois has thrown out a similar participant suit involving the Exelon Corp.

U.S. District Judge John W. Darrah of the U.S. District Court for the Northern District of Illinois said the recent Hecker ruling from the 7th U.S. Circuit Court of Appeals (see “Appellate Court Backs Revenue-Sharing Case Dismissal”) dictated his holding in Loomis v. Exelon Corp. In Loomis, Exelon employees argued that the company breached its fiduciary duties to its 401(k) by providing investment options requiring the payment of excessive fees (see “Exelon Fee Case Receives Class Action Status”).

Darrah compared allegations in the two cases and found they were nearly identical, claiming a fiduciary breach under the Employee Retirement Income Security Act (ERISA) by providing investment options requiring the high fees.

Hecker already resolved the issues in favor of the plan and its fiduciaries, according to Darrah. Quoting Hecker, Darrah said, “nothing in ERISA requires every fiduciary to scour the market to find and offer the cheapest possible fund.”

Finally, Darrah ruled that asset-based fee schedules were permissible under Hecker. The case expressly approved of a plan that calculated fees as a percent of assets the investor placed in it, the court said.

The court rejected plaintiffs’ arguments that the case against Exelon was materially different than in Hecker so the appellate case should not control.

The Exelon suit was one of a handful filed in September 2006 by St. Louis attorney Jerome Schlichter alleging that 401(k) plans fees were excessive.

The ruling is available here.



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