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Retirement committee recommends removing Allspring fund, accepts voluntary TIAA fee cut
Summary
The Board's Retirement Plan Committee reported that the mandatory plan holds about $5.5 billion and the voluntary plan about $1.3 billion in assets; it recommended removing an underperforming Allspring fund and recommended adding a Nuveen option, and accepted a voluntary record‑keeping fee reduction proposed by TIAA.
The Board's Retirement Plan Committee reported to the full Board that it reviewed investment performance and recommended changes to the fund lineup for the mandatory retirement plan.
The report is significant because the state retirement plans hold multi‑billion dollars in assets that are managed for thousands of participants across institutions.
Committee materials presented figures for plan size and recommended two operational actions. First, the committee reported that the mandatory plan has approximately $5.5 billion in assets and the voluntary plan about $1.3 billion. Following an investment review by Advanced Capital, the committee recommended removing an Allspring growth fund that had been on the watch list and replacing it with a Nuveen fund (and to consider the equivalent in the TIAA mandatory plan lineup). Second, the committee said TIAA submitted a voluntary proposal to reduce its record‑keeping fees; the committee accepted the proposal and included the recommended fee change on the day's agenda for final approval.
Committee members noted that the changes will require administrative adjustments to ensure comparable investment options remain available in the mandatory plan. The committee also said it will delay a comprehensive record‑keeping fee review until the bylaw‑required cycle in 2026, given recent voluntary reductions by record keepers.
The committee's recommendations will appear on the board's consent or action agenda for final approval; committee presenters described the changes as routine oversight to protect participants' interests.
No vote on the full board record‑keeping policy was recorded at the time of the report; the committee recommended forwarding the specific fund‑lineup and fee items for board action.
