Illinois State Universities Retirement System, Champaign, adopted a new class of TIAA-CREF lifecycle mutual funds for its $890 million 401(a) defined contribution fund, resulting in a 0.10 percentage-point fee reduction across all the funds, according to a SURS statement.
Fees, which range from 0.63% to 0.7% in the funds, will fall to 0.53% to 0.6%. The 10 new lifecycle funds have the same investment strategies as the current 10 funds. Participants’ assets in each of the funds will be moved automatically to the corresponding new funds. The changes are effective Aug. 5.
TIAA-CREF manages $298 million in lifecycle funds for the plan.
In addition to the 401(a) plan, SURS oversees $14.2 billion in defined benefit assets.
Daniel L. Allen, chief investment officer, couldn’t be reached for comment.