The Teachers' Retirement Board today selected ING U.S. as the new third
party administrator, commonly called the recordkeeper, for the
California State Teachers' Retirement System supplementary savings plan,
known as Pension2®.
Pension2 is the defined contribution part of the CalSTRS hybrid
retirement system that also includes the traditional defined benefit
pension and the defined benefit supplement, which is a cash balance
ING U.S., which will rebrand as Voya Financial in 2014, will take on its
new role effective in the late summer or fall of 2014 on an eight-year
contract with two one-year extension options. Specific contract terms
are now under negotiation. The program's current contract has been with
"California educators have traditionally been under enrolled in
low-cost, high-quality supplemental retirement savings options. Our
desire is to increase participation by offering a competitive product
that will enhance overall retirement security," said CalSTRS Chief
Executive Officer Jack Ehnes. "In a marketplace that offers CalSTRS
members so many varied choices, some of which may not be in their best
interest, we want educators to look seriously at the products and
services we will be delivering with ING U.S.-soon to be known as Voya
Financial-as our partner."
The 2013 CalSTRS "Retirement
Readiness Assessment Report" found that
nearly three-quarters of working members are concerned about being able
to afford medical expenses in retirement, while 40 percent of retired
members reported spending more than expected on health care in
retirement. The report is a comprehensive survey of thefinancial
standing and retirement planning of California's 653,000 active and
retired CalSTRS members.
"Significant costs, such as healthcare, will be a fact of retirement
life for our members. Having options, such as those offered through
Pension2, allow members to prepare for these contingencies while they
have the time to invest and grow their resources," Mr. Ehnes added.
ING U.S. was among three bidders for the contract along with the
incumbent, TIAA-CREF, and JEM Resource Partners. Since 1995, CalSTRS has
offered its members, along with classified employees of CalSTRS-covered
employers, the opportunity to invest through pre- or post-tax payroll
deductions in low cost, flexible 403(b), Roth 403(b) and 457(b) plans
for additional retirement savings. Pension2 currently has more than
11,700 participants and manages assets totaling more than $558.8 million.
"We issued the request for proposals in October, 2013 with the thought
of offering our participants, if necessary, a seamless transition from
one provider to the next," said CalSTRS Director of Defined Contribution
Solutions Sandy Blair. "With this contract, we plan to deliver on that
expectation while expanding our program and offering our participants
improved customer service."
"We're honored that CalSTRS has placed its trust in our business and our
people," said Jamie Ohl, president of Tax-Exempt Markets for ING U.S.
Retirement Solutions. "This is a testament to the strength of our team
and the commitment we have to providing clients-including some of the
largest retirement systems in the country-with the integrated
capabilities and distinctive value they want for the long-term. As an
advocate for greater retirement readiness, ING U.S-soon to be known as
Voya Financial-looks forward to helping guide the members of the CalSTRS
supplemental savings plan on their journey to and through retirement."
State Teachers' Retirement System, with a portfolio valued at $180.8
billion as of February 28, 2014, is the largest educator-only pension
fund in the world. CalSTRS administers a hybrid retirement system,
consisting of traditional defined benefit, cash balance and voluntary
defined contribution plans. CalSTRS also provides disability and
survivor benefits. CalSTRS serves California's 868,000 public school
educators and their families from the state's 1,600 school districts,
county offices of education and community college districts.
About ING U.S.
ING U.S. (NYSE: VOYA), which will rebrand as Voya Financial in 2014, is
a premier retirement, investment and insurance company serving the
financial needs of approximately 13 million individual and institutional
customers in the United States. The company's vision is to be America's
Retirement Company and its guiding principle is centered on solving the
most daunting financial challenge facing Americans today-retirement
readiness. Working directly with clients and through a broad group of
financial intermediaries, independent producers, affiliated advisors and
dedicated sales specialists, ING U.S. provides a comprehensive portfolio
of asset accumulation, asset protection and asset distribution products
and services. With a dedicated workforce of approximately 7,000
employees, ING U.S. is grounded in a clear mission to make a secure
financial future possible-one person, one family, one institution at a
time. For more information, visit http://ing.us.
Follow ING U.S. on Twitter @ING_USA
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