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PERS vendors report ORP participation figures; TIAA cites CIT switch that cuts target‑date fees
Summary
TIAA and vendors updated the Public Employees Retirement System of Mississippi board on ORP participation, reporting roughly $56 million in annual contributions for TIAA contracts, about 5,208 TIAA accounts, and a recent move of target‑date funds to a collective investment trust that TIAA said reduces asset‑based fees by about 20% (about $275,000 annually). Staff pledged to reconcile differing enrollment counts with universities and vendors.
Tim O'Donnell, TIAA managing director for the Southeast, and members of TIAA's Mississippi team briefed the PERS defined contribution committee on ORP (optional retirement plan) trends and vendor services, including plan assets, participant engagement and recent cost changes.
TIAA told the committee that as of June 30, 2024 its ORP contracts reported just over $1 billion in assets, roughly $56,000,000 in total contributions for the year (about $21,000,000 employee and $35,000,000 employer), and approximately 5,208 participant accounts on the TIAA platform. "Because you're defaulting enrollment into target date funds, it allows people to be properly diversified and not have to make that overwhelming decision on investments," Austin Morris, TIAA relationship manager, said in the presentation.
Shirley Yang, TIAA senior investment strategist, credited a PERS‑led change that moved the plan's target‑date funds from mutual‑fund vehicles into a collective investment trust (CIT). "Effectively reducing the asset based fee by 20% translates into about $275,000 annually to those participants who are in the target date fund," Yang said. TIAA also reported a $75 per‑participant annual fee for its service, which presenters described as the lowest among vendors on the slate.
Board members pressed TIAA and staff on the difference between total accounts and the number of unique enrolled employees. Presenters said the 5,208 figure reflects account records held at TIAA and that a single employee can have multiple accounts (for example, across institutions or legacy contracts); an "active participant" was defined in materials as someone with a contribution in the prior 12 months. Senator Sparks and others urged a single reconciled enrollment count because state contributions are tied to who is actively enrolled. PERS staff responded that reconciliation is ongoing and committed to provide a one‑page reconciliation of methodology and numbers for board leadership.
The committee heard TIAA explain asset allocation (equity roughly 43% of allocation on their slate) and participant behavior: presenters said target‑date funds capture the majority of contributions and that digital engagement and advice meetings have risen year over year.
No formal action or vote was taken during the TIAA presentation. Staff listed follow‑up tasks to reconcile enrollment counts and clarify counting methodology with institutions and vendors; the committee recessed for lunch and later convened the investment committee.
