Fidelity has $49.8 billion in 403(b) assets under management, less than one-seventh of TIAA-CREF’s $370.8 billion.
But Fidelity plans to change that, taking advantage of new IRS regulations that encourage 403(b) sponsors to consolidate providers, said Fidelity Executive Vice President John Begley. The firm has devised a five-year plan to accomplish this, he added, without providing details.
“Some institutions are looking at vendor reduction. Some want to bring it down to two or three, not necessarily one, but it’s a strong market for us as the sole provider,” Begley said.
But TIAA-CREF believes it will maintain its stronghold on the 403(b) market. “As competition intensifies,” said TIAA-CREF spokesman Chad Peterson, “we believe TIAA-CREF’s combination of choice, long-term approach, dedicated service to the non-profit community, value and staying power surpasses what is available from many other providers, none of whom share our non-profit heritage or unique mission.”
