In an effort to consolidate its existing retirement plans, Hillsdale College will be working with TDC Investment Advisory Services and Transamerica Retirement Solutions beginning July 1, 2013.
Because of a new government-implemented fee disclosure notice that applies to all colleges and universities, Hillsdale is required to closely monitor the funds that it provides to its employees. Transamerica Retirement Solutions will be acting as a single recordkeeper for the college’s accounts with Fidelity, Vanguard, and TIAA-CREF, alleviating any added pressure on the college.
“Having three separate plans with three separate sets of everything is cost-prohibitive for the college,” said Executive Director of Human Resources Janet Marsh. “It’s also not sustainable over time, because we have over 1,000 participants.”
The college must track both current as well as former employees, she said.
“We wanted to go to one-source solution or a third party administrator that could bring everything together and do those kinds of things that we needed them to do,” Marsh said.
According to a March 6 letter to college employees by Chief Administrative Officer Rich Péwé detailing the new retirement plan, TRS would also offer “new tools to help manage accounts more effectively” and would allow participants to “execute transactions, change contribution levels, and request an on-demand statement.”
TDC will also have a role in simplifying Hillsdale’s retirement plan process, as it will be providing advisers that can consult with Hillsdale employees in managing customized portfolios. These advisers will be available for on-campus services so that employees can have the luxury of discussing their portfolios in a face-to-face setting rather than over the phone.
An important aspect of these advisory services, which particularly grabbed the attention of Professor of English Michael Jordan, is that the portfolios will include investments that take into the account the social or moral obligations of the employee.
“I don’t want to promote abortion, pornography, or even contraception,” Jordan said. “[TDC] will be giving us some financial advice and expertise that will help us to make a morally responsible fund.”
During the next five months, human resources will conduct group and individual meetings in order to address the oncoming changes and answer any questions that employees might have.
