1. Rice’s Retirement Plans
Faculty Senate
October 5, 2016

2. Agenda Rice’s current retirement plans
Plan structure and options
Role of Retirement Plan Investment Committee
Claims made about other university retirement plans

3. Rice plan structure and options
Two ERISA plans: 401(a) and 403(b)
Two recordkeepers
Current investment lineup
Rice Retirement Plan Investment Committee is fiduciary for Tier 1 and 2 only
Fees regularly monitored and reasonable
TIAA
Fidelity
Tier 1
Vanguard Target Date Funds (QDIA)
2010 – 2060 (11 funds)
Tier 2
Core Lineup
16 Active & Passive Funds
15 Active & Passive Funds
Tier 3
Brokerage Window

4. TIAA

5. Fidelity

6. Rice Retirement Plan Investment Committee (RPIC)
Established by Rice Board of Trustees, September 2011
Fiduciary for investment options and expenses
RPIC includes faculty and staff, trained in fiduciary responsibilities
Acts solely in interests of plan participants; must be prudent and reasonable (ERISA standard)
Engaged expert advice (CAPTRUST, Inc.) and developed Investment Policy Statement to guide oversight
Developed new plan lineup according to Investment Policy Statement and regularly reviews investments’ performance and expenses; replaces funds when appropriate

7. Claims made about other university retirement plans
Focus has been on multi-billion dollar (“jumbo”) plans
Various claims raised
Too many choices is really no choice
Fees too high
“Class” of funds
Need more low cost funds ( e.g., index funds)
Multiple recordkeepers
Underperforming investment offerings