University of Minnesota, Minneapolis, on July 1 will stop participants contributions into the portion of its $3.1 billion 403(b) plan in which TIAA-CREF is bundled provider, said Daniel Feeney, chair of the universitys retirement committee. Mr. Feeney said the decision was made because of accuracy and service issues with TIAA-CREF, which is a bundled provider for the plan, along with Minnesota Life. TIAA-CREF will continue to oversee the assets in the options it currently provides. After July 1, participants who had selected TIAA-CREF as provider will make their contributions to options provided by Minnesota Life. Mr. Feeney would not say how many options are offered by either provider.
The university will search for a third bundled provider this summer, Mr. Feeney said. He would not elaborate.
TIAA-CREF spokesman Chad Peterson said: "We acknowledge and respect the university's frustration with our service issues, which we are working diligently to resolve."