Accenture is Selected by TIAA to Handle Recordkeeping and Participant Services

Fresh Day

The collaboration has similarities to a 2020 agreement Vanguard signed with Infosys to transfer management of its bookkeeping services, which resulted in the transfer of 1,300 personnel to Infosys.

But in only the previous few years, the business has seen numerous changes, which is why TIAA made this decision. First and foremost, recordkeepers must continue to adjust to the SECURE 2.0 Act of 2022’s rules, which are still being implemented and necessitate recordkeeper builds that are sometimes difficult to implement and are still awaiting additional clarity from regulators. Massive recordkeeping consolidation has already resulted from plan sponsors’ and advisers’ aim on lowering plan expenses, and more pressure from litigators appears probable.

Schlichter Bogard LLP, an attorney firm, has filed a recent lawsuit against TIAA and Morningstar Inc. Participants in the complaint claim the firms forced them into advisory solutions, which led to relatively more expensive investment options, such as in-plan annuities. The firm “does not put its own interest ahead of our clients,” according to TIAA, which has refuted the accusations and declared them to be without validity.

According to the release on Tuesday, the collaboration with Accenture aims to produce better results for participants as well as enhanced services for plan sponsors.

“Through new digital features—from the moment they enroll, to managing their retirement plans, to when they’re ready to retire, and into retirement—the strategic partnership will develop capabilities that will help individual plan participants create a more secure financial future,” TIAA stated in statement. “Access to cutting-edge retirement planning solutions with straightforward ways to track progress toward their retirement readiness” is one of the planned upgrades.

According to the company, the agreement would also give TIAA relationship managers who collaborate with consultants and plan sponsors new digital capabilities and AI-driven tools. “Improved digital experience and expanded reporting capabilities with access to data and insights that can be used across their practice” are among the changes these clients “will see.”