Connecticut State Employees Retirement Commission, Hartford, agreed to delay legal action against TIAA-CREF, the former bundled provider of the state's $1 billion 403(b) plan, $1.5 billion 457 plan and $300 million 401(a) plan, said Thomas Woodruff, director of the retirement and benefit services. Mr. Woodruff said the state is trying to resolve the dispute with TIAA-CREF without going to court.
The commission said TIAA-CREF did not map assets to options offered by the plan's new provider, ING U.S. Financial Services, which was hired in January 2006. Instead of a smooth electronic transfer of assets, the state and ING were forced to work with plan participants to make the changes. TIAA-CREF said that because of its contract, it could not map the assets without participant approval.
Mr. Woodruff expects to report back to the commission in June on what progress has been made in the talks with TIAA-CREF.