TIAA-CREF announces variable annuity income changes

April 18, 2012

If you are receiving retirement annuity income that is revalued annually for the variable annuity accounts (CREF accounts and TIAA Real Estate Account):

- Changes in your monthly income begin on May 1, 2012, when income amounts adjust to reflect the performance of the markets in which each account invests. (See table below.)

- Income will increase for most accounts

- Income going down: CREF Money Market Account, CREF Stock Account and CREF Global Equities Account.

- If your income is changing, a confirmation of annuity income statement will accompany the Outreach newsletter mailed by the end of April to all participants receiving annuity income.

What impact will the change have on my retirement income?

If you are receiving income from CREF variable accounts and the TIAA Real Estate Account, income changes reflect account performance for the period ending March 30, 2012.

Annual percentage changes of variable annuity income (effective May 1, 2012)*

  Equity (Stock) Accounts Real Estate Account Bond, Money Market Accounts
Income Increased CREF Growth: 6.78%
CREF Equity Index: 2.98%
CREF Social Choice: 2.67%
TIAA Real Estate: 8.89% CREF Inflation-Linked Bond: 8.19%
CREF Bond Market: 4.24%
Income Decreased CREF Stock: (-0.33%)
CREF Global Equities: (-3.37%)
  CREF Money Market: (-2.58%)


If you’re receiving lifetime annuity income from the TIAA Traditional Annuity, your income from that account will remain the same through December 2012.

Why did the income decline for the CREF Money Market Account, CREF Stock Account, and CREF Global Equities Account?

With the CREF Money Market Account, as a result of very low rates on short-term securities in which the account invests, it has been experiencing low yields. This reflects prevailing interest rates in the economy and affects money market accounts generally.

With the CREF Stock Account and CREF Global Equities Account, overall performance was limited by the returns of developed and emerging markets' foreign holdings, which realized declines of 5%-10% over the previous year (4/1/2011 – 3/30/2012).

It’s important to point out that the net investment returns were 0% for the CREF Money Market Account and positive for the other two accounts for 4/1/2011 – 3/30/2012: the time period we use to determine annuity income changes. But each account had less than a 4% net return during this time period. When we calculate your annuity income, we assume an interest rate of 4%. A net return above 4%, after adjustments, means your income will increase, but will decrease if the adjusted return is below 4%. Since each of the three accounts' adjusted net investment return was below 4%, the income will decline.

Can I change my annuity income allocation?

Yes. To change the investments from which you receive annuity income, you can:

• Move your investments among the nine variable annuity accounts.
• Transfer from the variable annuity accounts to the TIAA Traditional Annuity (as often as once per calendar quarter).
• Transfer each year up to 20 percent of your TIAA Traditional Annuity to the CREF equity accounts. (Please note: You can’t shift this money back, so it’s important to evaluate the potential risks and rewards of increasing your exposure to equity markets.)

You can connect with one of our financial consultants at 800 842-2252 to:
- Evaluate your retirement income changes and asset allocation
- Help you make any transfers
- Review your sources of income outside of TIAA-CREF to give you a complete picture of your retirement income needs and portfolio allocation
(If you have an assigned Wealth Management Advisor, call your Advisor team directly.)

* Please note the following: If you are receiving income under the monthly revaluation method, the income changes covered in this announcement do not apply to you. In addition, the TIAA Access Account variable payout annuity, which is available to a limited number of retirement plan participants, will increase in income by 1.84%. To learn more, please contact us at 800 842-2252.

All TIAA-CREF investment products are subject to market risk and other risk factors.
For TIAA-CREF investment products' standardized performance, please visit Performance data represents past performance and is no guarantee of future results. Your returns and the principal value of your investment will fluctuate. As a result, your accumulation units, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. For performance current to the most recent month-end, visit, or call 800 842-2252.


TIAA-CREF Individual & Institutional Services, LLC, and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association (TIAA) and College Retirement Equities Fund (CREF), New York, NY.

The CREF Money Market Account is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

Variable annuity account options are available through contracts issued by TIAA or CREF. These contracts are designed for retirement or other long-term goals, and offer a variety of income options, including lifetime income. Payments from the variable annuity accounts [and mutual funds] are not guaranteed and will rise or fall based on investment performance.

© 2012 Teachers Insurance and Annuity Association – College Retirement Equities Fund (TIAA-CREF), 730 Third Avenue, New York, NY 10017


© 2014 and prior years, Teachers Insurance and Annuity Association - College Retirement Equities Fund (TIAA-CREF), New York, NY 10017