CalSTRS Chosen to Manage LAUSD 457(b) Plan
CalSTRS to provide record keeping, retirement education for the supplemental retirement plan of the second largest school district in the U.S
WEST SACRAMENTO, CA – The California State Teachers’ Retirement System (CalSTRS) today announced it has been selected to oversee the Los Angeles Unified School District’s 457(b) Defined Contribution Plan.
CalSTRS will partner with TIAA-CREF to keep the LAUSD program’s records. CalSTRS will also assist LAUSD employees in the program with education and counseling services about the role the defined contribution accounts play in a well-rounded retirement security plan.
The LAUSD is the second-largest school district in the U.S. with approximately 110,000 full-time and part-time employees. The district is comprised of approximately 800 schools and an additional 200 locations representing non-school facilities and offices. Its program manages $30.3 million for more than 2,200 participants.
“We are delighted that LAUSD recognizes the expertise CalSTRS brings to helping educators build strong financial futures in retirement,” said Jack Ehnes, CalSTRS chief executive officer. “CalSTRS’ own defined contribution program is part of our hybrid system which provides a comprehensive retirement package for our members. And by leveraging our partnership with TIAA-CREF, we’ll give LAUSD plan participants the opportunity to enhance their own retirement security and set a standard for efficiency and benefits.”
“This agreement benefits our members in the Los Angeles Unified School District by providing access to expertise and information from CalSTRS and TIAA-CREF on how to supplement their retirements to build a secure future,” said Steve Schullo, member of the LAUSD 457(b) Retirement Investment Advisory Committee.
CalSTRS has managed its own defined contribution program since 1994. The CalSTRS Pension2 personal wealth plan consists of a 403(b), a Roth 403(b), and a 457(b) plan, and serves as a voluntary supplemental savings plan for all California school and community college employees. The program currently manages nearly $300 million on behalf of more than 6,000 participants. Financial services provider TIAA-CREF serves as record keeper for the program.
TIAA-CREF is a national financial services organization with approximately $470 billion in assets under management as of June 30, 2011 and is the leading provider of retirement services in the academic, research, medical and cultural fields.
The California State Teachers’ Retirement System, with a portfolio valued at $152.7 billion, is the largest teacher pension and second largest public pension fund in the United States. CalSTRS administers a hybrid retirement system, consisting of a traditional defined benefit, cash balance and defined contribution plans, as well as disability and survivor benefits. CalSTRS serves California’s 852,000 public school educators and their families from the state’s 1,600 school districts, county offices of education and community college districts.