TIAA Traditional Lifetime Annuity Income Steady for 2011

In 2011, participants who receive lifetime annuity income from TIAA Traditional will receive at least as much total income (guaranteed income plus additional amounts) as in 2010.1

The TIAA Board of Trustees has voted to maintain the level of income paid for 2011, despite the historically low interest rate environment the U.S. is experiencing. This decision reflects the strong capital position of the General Account, which supports the TIAA Traditional guaranteed fixed annuity.

Since 1918 and through periods of great economic volatility, TIAA’s disciplined, long-term investment strategies have enabled us to help meet the financial needs of the individuals and institutions we serve. Our seasoned portfolio management teams carefully balance risk with the potential for high returns and are committed to delivering consistent growth and strong long-term performance.

Below are details for those receiving TIAA Traditional lifetime annuity income:

If you’re receiving income from the standard payment method, your monthly payments will remain unchanged in 2011.

If you’re receiving income from the graded payment method, your income will increase at about the same rate in 2011 as in 2010.

The Principal and Interest rate, which is applicable to beneficiaries who want to receive interest only from TIAA Traditional, will be reduced from 4% in 2010 to 3% in 2011, reflecting the low interest rate environment.

Launched with the founding of TIAA in 1918, the TIAA Traditional Annuity is a guaranteed fixed annuity. TIAA Traditional helps to stabilize the income of annuitants through the guaranteed monthly income it provides. Participants may also receive additional amounts, which are determined annually by the Trustees of TIAA and are not guaranteed for future years. Each December, the Board of Trustees of TIAA sets the rates that determine income levels for the following calendar year.

Please note that these payments apply only to annuitants of TIAA Traditional. Payments for TIAA Transfer Payout Annuity and Interest-Only Income will be announced in March 2011, and payments for the CREF and TIAA Real Estate Variable Annuity Accounts will be announced in April 2011.

Participants who have annuitized should consult the Outreach newsletter, which is available here (PDF).

All guarantees are based on the claims paying ability of TIAA.

Annuity products are issued by TIAA (Teachers Insurance and Annuity Association), New York, NY.

1 This information doesn’t apply to income annuitants are receiving under defined benefit pension plans, principal and interest contracts, or the TIAA Transfer Payout Annuity or interest-only payments from TIAA Traditional.

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