TIAA-CREF will begin rolling out its Open Plan Solutions retirement plan to institutional clients in the next 18 months, Chairman Herbert M. Allison Jr. said today at the firm's annual policyholders meeting in New York. The Open Plan Solutions plan will feature new time-based lifecycle funds, investment advice provided by Ibbotson Associates, a securities brokerage platform, and the opportunity for participants to invest in funds from other companies, said Mr. Allison.
"That's a real departure from the way we've done things in the past," he said.
The plan was launched last July for the firm's own employees, followed by two plan sponsors for testing.
Separately, several policyholders voiced concerns over TIAA-CREF's socially responsible investing criteria, calling for changes in the selection process. A few shareholders asked Mr. Allison to add companies including Wal-Mart Stores Inc., Coca-Cola Co. and Unocal Corp. to its social responsibility screens. Mr. Allison said TIAA-CREF plans to survey policyholders in the fall to see which companies they want to add to the screening list. Social responsibility is "an important issue we wrestled with for a long time," said Mr. Allison, adding the firm has to balance its fiduciary responsibility for good returns with social responsibility.