a tiaa-cref retirement plan presentation to: january … · for institutional investor use only....

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC.Source: facebook.com/arizonastateuniversity Source: Picasa Web Albums/©Tony Grabenstein

JANUARY 12, 2011

A TIAA-CREF RETIREMENT PLAN PRESENTATION TO:

Source: facebook.com/uarizona

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 1

TODAY’S DISCUSSION

Introductions / Overview……….……………….…………………TERESA HASSARA, Senior Managing DirectorIndividual & Institutional Client Services

I. Understanding ABOR’s Goals …………....………..……… CAROLYN BARBEE, Managing ConsultantInstitutional Relationships

II. Fund Administration……………………………………….… DAVID DUNNE, Senior Vice PresidentShared Services

III. Communication, Education & Advice..………......…………ELENA FRENCH, Vice PresidentMarketing & Communications Strategy

PAUL SOROKA, DirectorField Consulting Group

IV. Investments………………..……….……….....……..……… DAVID WONN, DirectorProducts & Portfolio Management

V. Fees…….…………………………….………………..………CAROLYN BARBEE / TERESA HASSARA

VI. Digital Strategy……..…………………………………………DAVID DUNNE

VII. TIAA-CREF Difference……....……………………………… TERESA HASSARA


ARIZONA BOARD OF REGENTS AND TIAA-CREF FINANCIAL STRENGTH FROM A BRAND YOU CAN TRUST

Brand Strength**Brand Strength**

**TIAA-CREF received the highest numerical trust score among financial services and insurance industry brands included in The Harris Poll® 2010 EquiTrend® Study, which is based on opinions of 19,708 U.S. consumers ages 15 and over surveyed online between 1/12/10 and 1/ 21/10. Your opinion may differ. “Highest Ranked” was determined by a pure ranking of a sample of financial services and insurance industry brands.

Broad Claims-Paying Ability$10 billion+ in retirement income and otherdisbursements paid to over 500,000 participants in 2009 alone

Strong Capital Position$26.3 billion in TIAA Total Statutory Capital (9/30/10) *

Highest Ratings (TIAA)Triple-A or equivalent **

A.M. Best Company A++ (12/09)Fitch AAA (4/10)Moody’s Investors Service Aaa (7/10)Standard & Poor’s AAA (8/10)

Financial StrengthFinancial Strength

* Capital position applies to TIAA, the insurance company affiliate, which backs TIAA Traditional and our other guaranteed products. Total Statutory Capital comprises capital and surplus, and asset valuation reserve for TIAA.

** TIAA has received the highest ratings for its stability, claims-paying ability and overall financial strength. These ratings do not apply to variable annuities, mutual funds or any other product or service not fully backed by TIAA's claims-paying ability. Ratings may be affirmed or adjusted at any time. There is no guarantee that current ratings will be maintained.


MARKET SEGMENT

TIAA-CREF RANKING**

Higher Education 1

K-12 1

Hospital & Healthcare 2

Other 1$8

$12,323

$16,049

$10,900

$16,323

$25,463

$40,381

$20,414

$70,832

$242,194

$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000

Prudential

MetLife

Great West

Diversified

Vanguard

Lincoln Financial

ING

VALIC

Fidelity

TIAA-CREF

Millions

TIAA-CREF IS THE NOT-FOR-PROFIT HIGHER EDUCATION MARKET LEADER

Top 10 403(b) Plan Providers*

* Source: PLANSPONSOR’s 2009 Recordkeeping Survey, based on recordkeeping assets; http://plansponsor.com/2010_Recordkeeping_Survey.aspx** Source: LIMRA, Not-for-Profit Market Survey, September 30, 2010. Based on a survey of 30 companies. TIAA-CREF assets under management by

market segment estimated; segment breakdown based on 20 companies representing 97% of the total reported full service assets. Market share ranking does not reflect current investment performance.

K-12 1

Hospital & Healthcare 2

Other NFP 1

NFP MARKET SEGMENT

TIAA-CREF RANKING**

Higher Education 1

http://plansponsor.com/2010_Recordkeeping_Survey.aspx

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 4FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC.Source: facebook.com/arizonastateuniversity Source: Picasa Web Albums/©Tony GrabensteinSource: facebook.com/uarizona

UNDERSTANDING ABOR’S GOALS

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 5FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 5

ARIZONA BOARD OF REGENTS AND TIAA-CREF UNDERSTANDING YOUR OBJECTIVES

CURRENT RELATIONSHIP

Served by TIAA-CREF since 1943

Four institutions: ABOR, Arizona State University, Northern Arizona University and University of Arizona

Current providers: TIAA-CREF, Fidelity, VALIC

GOALS/ KEY CONSIDERATIONS

Simplify and streamline plan administration

Optimize plan and participant experience

Drive successful participant outcomes

Offer a broader range of investment choices at a competitive price

Enhance technology solutions


FUND ADMINISTRATION


COMPLIANCE DATA, REMITTANCE DATA, TERMINATION DATA FULL DATA COORDINATION CAPABILITIES

TIAA-CREF provides and participates indata coordination services

Inclusive– Supports multiple universities – Open to all vendors

Easy Access – View individual and aggregated data

across all vendor plans– Verify compliance through enhanced

reporting

Assurance of Data Integrity– Vendors have access only to information

they need – Data for appropriate services use

NAU

VendorVALIC

TIAA-CREF

Data Coordination

Fidelity

ASU

UA


COMMITMENT TO INFRASTRUCTURE FOCUSED ON OPERATIONAL AND SERVICE EXCELLENCE

Transaction Processing13.5 million contribution transactions each monthGreater than 99% same-day transaction processing rateQuality program links operational performance and customer satisfaction

Service CapacityThree national counseling centers: Denver, Charlotte, DallasCall-handling and interactive voice recognition technologySingle-source participant statement and web management

Systems Stability and SecurityTwo state-of-the-art data centers; Level 9 classificationFully redundant infrastructure ensures business continuity and technical recovery capabilitiesFacilities fully staffed and monitored 24/7

Data as of December 2010


COMMUNICATION, EDUCATION & ADVICE


ANALYZE

3

Our four-step approach ensures your plan is tailored to meet your business objectives and the diverse needs of your workforce

WORKING WITH THE ARIZONA BOARD OF REGENTS TO BUILD A CUSTOMIZED COMMUNICATION & EDUCATION PLAN

1 2 PLAN

4EXECUTE MEASURE

Understand key driversDemographicsBehaviorEnvironment

Chart the courseTarget audiencesTiming

– Implementation– Ongoing

Deliver via appropriate channelsIn personBy phoneOnlineMail and e-mail

Assess and modifyMetricsSurveysFeedback


ARIZONA BOARD OF REGENTS AND TIAA-CREF TARGETED COMMUNICATION THAT ACHIEVES RESULTS

Transition announcements that generate excitement for change

Employee engagement campaigns that maximize participation

Diversification and asset consolidation campaigns to help employees stay on track

Career Stage campaigns to improve outcomes

Campus-level campaigns; customized university enrollment sites


GoalOptimize participant outcomes through targeted, multi-touch communications using demographic data to create more intelligent messaging and delivery. Use metrics and behavioralchanges to refine campaign strategies as different tactics aredeployed over time.

Targets• Early Career: Under age 35• Mid-Career: Ages 35-54• Pre-Retiree: Over 55 years

Sample Message• What’s your version of a great retirement?• Advice. We promise—it won’t hurt a bit.• Are you ready to make the leap to retirement? Call us. Your

results are in.

Call to ActionSchedule an Advice Session

ARIZONA BOARD OF REGENTS AND TIAA-CREF EXAMPLE: CAREER STAGE CAMPAIGN


TIAA-CREF EN ESPAÑOL A RECOGNIZED INDUSTRY LEADER IN SPANISH LANGUAGE SERVICES

In-language and in-culture educational materials for the US Hispanic/Latino community

Spanish language website www.tiaa-cref.org/espanol

Spanish-speaking customer service representatives

24-hr automated Spanish-language phone services

Spanish-language financial education seminars

On-site one-on-one sessions in Spanish


DEDICATED INDIVIDUAL CONSULTANTS COMBINING PERSONALIZED ADVICE WITH TARGETED EDUCATION

TIAA-CREFIndividual

ConsultantsDONN FITCH

NICK HILEMAN

Advice

Education

Enrollment

Information

Account Help

Retirement IncomeStrategies

GroupGroup

One-On-OneOne-On-One

TelephoneTelephone

OnlineOnline


YOUR DEDICATED INDIVIDUAL CONSULTANTS PUTTING YOUR EMPLOYEES FIRST

The above quotes may not be representative of the experiences of other TIAA-CREF participants, and are not indicative of future performance or success. They stem strictly from participants’ experiences with broker/dealer-related services and not from any investment advisory services offered by a TIAA-CREF affiliate. Survey and data information as of December 31, 2010.

DISTINCTIVE VALUE AFFIRMATION

2010 Participant SurveyResults for IC Donn Fitch

Objective / Integrity: 100% (national goal: 90%)

Distinctiveness: 78% (national goal: 74%)

2010 Participant SurveyResults for IC Nick Hileman

Objective / Integrity: 97% (national goal: 90%)

Distinctiveness: 81% (national goal: 74%)

“The IC is knowledgeable and thorough. The IC doesn’t try to sell me anything. He gave me factual information to compare the different funds.”

– On Donn Fitch, Senior Consultant

“I felt the IC was taking my interests first as his priority. The IC came up with a solution. I never felt pressured for time. Also, I could understand him.”

– On Nick Hileman, Consultant

EXPERIENCE

Donn Fitch

Has Certified Financial Plan® (CFP) designation

6 years at TIAA-CREF, 14 years in the financial services industry

Nick Hileman

Working toward Certified Financial Plan® (CFP) designation

5 years at TIAA-CREF, 9 years in the financial services industry


TIAA-CREF ADVICE AND PLANNING SERVICES TAILORED TO HELP MEET THE NEEDS OF EVERY PARTICIPANT

CUSTOMIZED FINANCIAL

SOLUTIONS *

Holistic PlanningDiscretionary ManagementFiduciary Services

PERSONALIZED ADVICE

& COUNSELING

Advice and PlanningPersonalized Action PlanFund Recommendations

GUIDANCE & EDUCATION

Asset AllocationSavings RateDistribution OptionsRetirement Age

* These services may not be available to all employees.

Counseling sessions targeted to career and life stages help employees answer three primary questions:

“ Am I saving enough for retirement? ”

“ How should I allocate and invest to reach my goals? ”

“ When can I retire?”


TIAA-CREF ADVICE AND PLANNING SERVICES SAMPLE PERSONALIZED ACTION REPORT WITH RECOMMENDATIONS

RECOMMENDED SAVINGS RATE RECOMMENDED ASSET ALLOCATION

RECOMMENDED FUND SELECTION

DESIRED RETIREMENT INCOME


TIAA-CREF ADVICE AND PLANNING SERVICES FOR MORE COMPLEX NEEDS

Dedicated Wealth Management Advisor

Access to an extended team of specialists

Holistic financial planning

Ongoing, proactive relationship managementCHARITABLE

PLANNING

RETIREMENT PLANNING

ASSETPROTECTION

PLANNING

INSURANCEPLANNING

EDUCATIONPLANNING

ESTATE PLANNING

CLIENT ADVISORY SERVICES


INVESTMENTS


OPEN ARCHITECTURE INVESTMENT MENUS

EasyFund menu exchanges

AdvantageousPlan expense reimbursements

FlexibleFull open architecture

Inclusive10,000+ funds


TIERED APPROACH TO BUILDING MENUS ACCOMMODATING ALL EMPLOYEE NEEDS

Tier I Asset Allocation “One Decision” / Target Date Mutual Funds

Tier II Open Architecture Core Options – Mutual Funds / TIAA-CREF Annuities*

Tier III Specialty Options Brokerage Window **

We believe a tiered investment menu offers choice, serves all employees and, ultimately, delivers financial security in retirement

* Guarantees are subject to the issuer’s claims-paying ability.** Individual securities are not allowable investments in 403(b) plans.


PRESCREENED FUNDS FROM WELL KNOWN FAMILIES MORE THAN 200 HIGH-QUALITY, LOW-COST INVESTMENT CHOICES


FEES


DIGITAL STRATEGY


LEADING EDGE DIGITAL STRATEGIES MORE CHOICES FOR STAYING CONNECTED


THE TIAA-CREF DIFFERENCE


ARIZONA BOARD OF REGENTS AND TIAA-CREF

A STRONGPARTNERSHIP+ =

DependabilityLeadershipService


IMPORTANT INFORMATION

TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products. Advisory services offered by Advice and Planning Services, a division of TIAA-CREF Individual & Institutional Services, LLC, a Registered Investment Advisor. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association (TIAA) and College Retirement Equities Fund (CREF), New York, NY.

TIAA-CREF products may be subject to market and other risk factors. See the applicable product literature, or visit tiaa-cref.org for details. Investment products are not FDIC insured, may lose value and are not bank guaranteed.

You should consider the investment objectives, risks, charges and expenses carefully before investing. Go to tiaa-cref.org for a prospectus that contains this and other information. Please read the prospectus carefully before investing.

© 2011 Teachers Insurance and Annuity Association-College Retirement Equities Fund (TIAA-CREF), New York, NY 10017

C49891


APPENDIX


INTEGRATED SERVICE DELIVERY. INDUSTRY DISTINCTIVE VALUE.

Managing ConsultantCAROLYN BARBEE

Comprehensive, holistic advice services for more complex needs

MarketingLiaison

DEREK TYSON

InstitutionalLiaison

ALBERT SPANO

IndividualConsultantsDONN FITCH

NICK HILEMAN

Wealth Management Advisors

MARK LARGENT NESTOR MONTOYA

ADMINISTRATION NEEDS

Assurance of effective plan administration

Support for processing and reporting functions

Communication & education plan development and measurement

One-on-one advice consultations

Group education and enrollment meetings

EMPLOYEE NEEDS

Wealth Management Advisors

ADAM SANDERSSCOTT WUBBENA

Comprehensive, holistic advice services for more complex needs


ASPPA RECORDKEEPER CERTIFICATION FOR ADHERENCE TO EXCELLENCE AND INDUSTRY BEST PRACTICES

Centre for Fiduciary Excellence independent certification program

ASPPA (American Society of Pension Professionals & Actuaries) Recordkeeper Certificate awarded to firms that successfully satisfy audit criteria and meet best practices

– Recordkeeping

– Human resources

– Financial history

– Quality management systems


TIAA-CREF ADVICE AND PLANNING SERVICES RECOGNIZED FOR EXCELLENCE

Gold: Education Programs for Advice communications

Silver: Language and Cultural Diversity for collaboration with Rice University to provide Spanish- speaking employees with in-language financial education materials, seminars and consultations

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 33FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 33

EASY-TO-READ QUARTERLY STATEMENT REINFORCES THE IMPORTANCE OF RETIREMENT READINESS

DALBAR ranked TIAA-CREF 7th out of 25providers based on investor preferences forparticipant statement content and design*

Each quarter, employees can review how much they should be saving to achieve retirement readiness

* Source: 12th Annual Survey, Trends and Best Practices in Investor Statements, December 2009. Based on 300 investor responses.

a tiaa-cref retirement plan presentation to: january … · for institutional investor use only....

Documents