Selecting the Best: Criteria for the selection of The University of Texas Retirement Providers
In the current economic market, it is important to remember some of the reasons our current retirement providers were selected and some of the standards that must be maintained in order to continue as a retirement provider.
In September 2006, the University of Texas System selected six companies to provide retirement plan services to all UT employees across the state. The selection process was completed with only one goal in mind: to provide the best retirement services and investment options possible to all UT Employees. Fidelity, ING, Lincoln Financial, MetLife Resources, TIAA-CREF and VALIC were selected as the six authorized providers because each met or exceeded the criteria established and continue to meet the criteria today.
- Applying companies had to have an A.M. Best rating of “A” or better
- Ratings from at least two of Moody’s, Standard & Poor’s (S&P) and Fitch Investors
- Moody’s rating is A2 or better.
- S&P Rating is A or better
- Fitch rating is A or better
- Selected providers could not charge front-end or back-end charges, annual, one-time or recurring fixed dollar fees, surrender or withdrawal charges, termination fees, market value adjustments, etc associated with any mutual fund or variable annuity product offered after September 1, 2006. Surrender fees may apply to fixed annuity products.
- The total expense ratio of any fund must be equal to or less than the asset category average as reported by Morningstar.
- Investment advisory fees shall not exceed 2% of the annual value of the participant’s account.
- For self-directed brokerage account options, providers may not charge an account fee greater than $50.00 annually, and SDBA transaction fees may not exceed $30.00 per trade.
- Providers selected had to have a minimum of 10 years of experience in the defined contribution field, specifically in 403(b) plans.
- Additionally, companies had to have a minimum of five current clients with employer-sponsored 403(b) plans with at least 5,000 participants on record and $100 million in assets each. This was to ensure that any companies applying had sufficient resources to service all UT employees.
Every one of the six currently authorized providers has worked in a close partnership with UT to continue to provide outstanding investment opportunities to UT System employees at the lowest cost available. Make sure to take advantage of your UTSaver 403(b) Tax Sheltered Annuity or UTSaver 457(b) Deferred Compensation Plan today.
Annual Eligibility Notice, UTSaver 403(b) and 457(b) Retirement Plans
- Did you know that The University of Texas System sponsors two voluntary retirement savings plans to help you save for your future?
You can enroll in either the UTSaver 403(b) or the UTSaver 457(b) at any time, but now is a great time to start saving a little bit each month or change the amount you currently save.
- Why would you want to participate?
If you participant in either the Teacher Retirement System or, if eligible, the Optional Retirement Program, that participation alone may not be enough to fund your living expenses in retirement.
- How much can you contribute?
As little as $15 a month or as much as $16,500 in 2009, or more if you are age 50 or older or if you meet special catch up qualifications.
- How do you contribute?
The amount is deducted on a pre-tax basis from your paycheck which means the taxable amount of your paycheck decreases. You also have the option in the UTSaver 403(b) to make your contributions on an after-tax basis through the Roth feature. Either way, once you enroll your contribution will automatically be deducted from your paycheck until you decide to change the amount.
- How do you enroll or change your contributions in the UTSaver Retirement Plans?
Enrollment instructions are available with the click of your mouse at http://www.utretirement.utsystem.edu/enroll.htm .
- How do you learn more about the retirement plans and saving for your future?
By visiting http://www.utretirement.utsystem.edu/ or by contacting your local benefits office.
For more information go to UT System Retirement Programs Web site: www.utretirement.utsystem.edu
If you have a Benefits question, submit your question by replying to the “newsletter email” or by sending an email to firstname.lastname@example.org.
UT System Employee Benefits Web site: www.utsystem.edu/benefits/
UT System Retirement Programs Web site: www.utretirement.utsystem.edu
Your Local Benefits Office: www.utsystem.edu/benefits/contacts/#1