Faculty and staff colleagues,

 

Concern has been expressed of late regarding the Request for Proposal
(RFP) the State of Tennessee has recently sent out relating to the
companies serving as investment options for the Optional Retirement Plan
(ORP). The concern expressed by several members of our faculty and staff
relate to the implications of one or more of the current vendors being
replaced (particularly TIAA-CREF).

 

The following is the text of the notice regarding the RFP for the
Optional Retirement Plan vendors on the UT website for UT system Benefit
and Retirement Services:

 

In 1991, the State of Tennessee passed legislation that allowed the
addition of one or two Optional Retirement Plan (ORP) companies.  A
request for proposal (RFP) went out, and the additional companies were
ING (then Aetna) and VALIC.  All three companies signed a five (5) year
contract.

 

In 2006, additional legislation was passed to remove the requirement for
an insurance license for the State of Tennessee.  That means that the
companies no longer need to be insurance companies.  At that time, it
was decided that a new RFP would be developed and released.  The new RFP
opens the window for the possible replacement of one, two, or all three
companies.  This allows the entrance for companies like Vanguard,
Fidelity, or T. Rowe Price.

 

Bids are due in to the Tennessee Consolidated Retirement System (TCRS)
on Friday, April 20.  Cost proposals will be opened on April 30.  The
contracts will be signed on May 11, 2007. Should any one of the three
current companies not receive the bid, any and all participants in that
company must complete new applications to participate in one, two, or
all three of the companies receiving the bid.

 

 

 

In order to respond directly and specifically to questions about this
issue, Dr. Connie Baskette, the Executive Director of the UT system
Office of Benefits and Retirement, will be coming to our campus
tomorrow, Thursday, May 3. Dan Trentham, Assistant Director of the
Office of Benefits and Retirement, will also be coming down with Dr.
Baskette to answer questions.

 

All faculty and staff are encouraged to attend one of two information
and Q/A sessions tomorrow in the Signal Mountain Room of the University
Center. 

The two sessions will be at 9:30 to 10:30 am and 11:00 to noon.

 

Please join us for one of two sessions beginning at 9:30 and 11:00
tomorrow.

 

 

 

Daniel H. Webb, SPHR
Office of Human Resources
University of Tennessee at Chattanooga
Department 3603
Room 208, Race Hall
615 McCallie Ave.
Chattanooga, TN 37403-2598
423-425-4729
Fax: 423-425-4574

"Cognoscetis veritatem et veritas vos liberabit."
  

 


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