ING US wins Calstrs mandate

ING US wins Calstrs mandate

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The board of the California State Teachers’ Retirement System (Calstrs) has chosen ING US as third-party administrator for Pensions2.

Pensions2 is the defined contribution (DC) part of the CalSTRS hybrid retirement system that also includes the traditional defined benefit pension and the defined benefit supplement, which is a cash balance programme.

“California educators have traditionally been under enrolled in low-cost, high-quality supplemental retirement savings options. Our desire is to increase participation by offering a competitive product that will enhance overall retirement security,” said CalSTRS CEO Jack Ehnes.

“In a marketplace that offers CalSTRS members so many varied choices, some of which may not be in their best interest, we want educators to look seriously at the products and services we will be delivering with ING U.S.—soon to be known as Voya Financial—as our partner.” 

ING US, which will rebrand as Voya Financial in 2014, will take on its new role later this summer on an eight-year contract with two one-year extension options. Specific contract terms are now under negotiation. The provider will take over the contract from TIAA-CREF.

ING US was among three bidders for the contract along with TIAA-CREF and JEM Resource Partners.

“We issued the request for proposals in October 2013 with the thought of offering our participants, if necessary, a seamless transition from one provider to the next,” said CalSTRS director of DC solutions Sandy Blair. “With this contract, we plan to deliver on that expectation while expanding our program and offering our participants improved customer service.”

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