Recordkeeping, Administration, and Investment Options for the State of Tennessee's Optional Retirement Program and Public Higher Education 403(b) Plans

The State of Tennessee, through its Treasury Department, is soliciting competitive proposals for recordkeeping, administration, communication, education, and custodial trustee services for the Optional Retirement Program (ORP) and two public higher education 403(b) Plans administered by the University of Tennessee and Tennessee Board of Regents. The state seeks two service providers to deliver bundled administrative services including recordkeeping and administration, communication and education, in-person and virtual field education, investment advisory services, and broad open-architecture investment platforms for approximately 37,700 total ORP participants (13,553 active) and 5,607 total 403(b) plan participants (1,571 active) with combined assets of approximately $6.2 billion. The RFP process requires written questions and comments by May 26, 2026, with responses provided by June 5, 2026, and technical responses and cost proposals due June 29, 2026. Respondent finalists will present orally on July 27–28, 2026, with cost proposal opening and scoring on July 28, 2026, a Notice of Intent to Award on August 5, 2026, and contract signatures due by August 17, 2026. The contract term is 60 months effective December 1, 2026, through November 30, 2031, with implementation and conversion services completed by September 1, 2027. Evaluation criteria include respondents' demonstrated experience administering at least three public sector defined contribution plans with 5,000+ participants and $500 million in assets, minimum 10 years' experience in public sector defined contribution plans, and maintenance of $10 billion in total public sector plan assets under administration. Eligible respondents must submit asset-based fees as a percentage of assets under administration, with separate fees for managed account services, qualified domestic relations order services, and self-directed brokerage account services, and must place at least 10 percent of annual fees at risk based on performance guarantee standards covering service delivery timelines, system availability, call center response times, and field representative availability.

The state does not identify specific set-aside designations or restrictions on respondent organizational types in the available solicitation materials. Current incumbent vendors for the ORP include TIAA and Voya, with TIAA administering approximately $4.32 billion in combined ORP assets across 28,569 accounts and Voya administering approximately $540 million in assets across 5,136 accounts. For the 403(b) Plans, both TIAA and Voya serve as current vendors, with TIAA managing approximately $776.9 million in 403(b) assets and Voya managing approximately $21.4 million in active 403(b) assets. Successful respondents must interface with payroll systems used by the University of Tennessee System (Oracle), Tennessee Board of Regents and some locally governed institutions (Banner, transitioning to Oracle), and other entities, with respondents bearing all associated interface costs. The investment lineup comprises 32 distinct funds for the ORP and comparable options for the 403(b) Plans, spanning equities, fixed income, real estate, guaranteed products, and lifecycle funds offered through TIAA and Voya platforms. The solicitation indicates that compensation will be provided exclusively through participant account fees rather than direct state payments, with current plan-level administrative fees totaling approximately $1.95 million annually for the ORP. While specific award values or budget ranges are not explicitly stated, the scale of the programs—encompassing $6.2 billion in combined assets and over 43,000 participants—indicates substantial service delivery requirements and corresponding fee structures.