CU 401(a), 403(b) retirement plan fees lowered by 19%

TIAA’s servicing fee has decreased for university plans

Employee Services has negotiated lower fees in the University of Colorado 401(a) Mandatory Retirement Plan and the 403(b) Voluntary Retirement Plan.

As of Jan. 1, 2019, employees will pay an annual plan servicing fee of just 0.057% or 5.7 basis points. Prior to this change, the fee was 0.07% or 7 basis points. This means plan participants will pay a 57 cent fee per $1,000 invested rather than 70 cents. 

In 2018, CU reached a three-year milestone with TIAA as the Record Keeper for the CU retirement savings plans. Employee Services developed a Request for Information (RFI), in partnership with consultants at Innovest. It sent the RFI to six vendors, including TIAA, for pricing. As a result, TIAA lowered its existing prices for CU plan holders by 19%.

“We monitor our plans closely to be sure our plan participants  pay competitive rates and I am happy to report that CU’s retirement plan fees are, on average, approximately 65 percent lower than other Colorado higher education institutions using TIAA,” said Felicity O’Herron, Chief Human Resources Office at the University of Colorado Employee Services. According to Innovest’s 2017 report, TIAA’s average state universities’ retirement plan fees and record keeping costs are 0.16%. Other Colorado universities average 0.14 – 0.23% for these fees and costs.

The Plan Servicing Fee covers additional services such as recordkeeping, legal, accounting, investment advisory, and other plan and participant services.

When making decisions about a CU retirement plan account, it’s important to know the fees associated with many plan services and investments. Some fees are paid by CU; others may be paid by plan holders based on services and investments chosen.

Learn more about fees associated with CU’s retirement plans with an interactive video.

When making financial decisions, CU faculty and staff can receive guidance with no out-of-pocket cost as part of CU’s administrative contract. Faculty and staff can schedule a one-on-one consultation with a TIAA retirement professional to discuss fees, investments, financial goals and more. An advisor can walk employees through TIAA’s associated fees and help them chart their financial plans. Schedule a meeting today.