Charlotte-based financial services firm TIAA-CREF has been named to administer the new centralized, statewide 403 (b) retirement savings plan for teachers and others employed in the state's public schools.
A 403(b) plan is similar to the corporate world's 401(k), but for employees of schools and nonprofits. Earlier this year the state legislature passed a law authorizing the Department of State Treasurer to establish a centralized 403(b) retirement savings plans as an option for the state's public school employes.
"The NC 403(b) program will give schools another option to help their staff save more effectively for retirement," Treasurer Janet Cowell said in a statement.
A five-year contract with TIAA-CREF is expected to be executed in the first quarter of 2013.
Once that is completed, the firm "will contact principals and administrators at all 115 school districts across the state to introduce them to the benefits of the plan," according to the Treasurer's department.
The 403(b) program is expected to be phased in next year.