TIAA-CREF stumbles on tech glitch
Thousands of pension company's clients report account problems dating back to Thanksgiving.
NEW YORK (CNNMoney.com) - Thousands of customers at TIAA-CREF have been put out following a series of computer problems that resulted in delayed trades and seemingly incorrect account balances, according to a news report published Wednesday.
The Wall Street Journal reported that the pension and insurance company, which manages $360 billion mostly for educators and researchers, began experiencing problems six weeks ago when the company introduced a new IRA software.
Errors with new software, in addition to unrelated problems with the company Web site and a malfunction in the company's older computer systems, resulted in customers missing scheduled payments, uncredited balance transfers and major phone delays for those seeking answers, the newspaper reported.
One customer told the newspaper he was "pretty angry" after the computer glitch prevented him from making changes to his portfolio, although TIAA-CREF said his trade would be backdated.
The company told the Journal that none of their customers have lost money as a result of the computer snafus.
Herb Allison, TIAA-CREF's chief executive officer, notified employees in an e-mail Friday that problems may persist since the company has been working to update its computer infrastructure, according to the newspaper.
"It is reasonable to expect that we will experience unanticipated problems from time to time," Allison said.
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