Is TIAA-CREF a Nonprofit Organization?
TIAA-CREF has a unique structure and heritage that enables us to concentrate on clients' long-term financial needs.
The Teachers Insurance and Annuity Association of America (TIAA), a stock life insurance company, is a wholly owned subsidiary of the TIAA Board of Overseers, a New York not-for-profit corporation.
By the terms of its charter, TIAA exists to help meet the financial needs of the individuals and institutions it serves on the best terms practicable, all without profit to the corporation (TIAA) and its stockholder (the Board of Overseers).
In practice, this means that profits are distributed to policyholders in the form of dividends over the lifetime of their association with TIAA, or remain available for purposes that the Trustees of TIAA determine can help uphold TIAA's mission.
TIAA also does not have to manage the short-term earnings expectations that confront publicly held insurance companies.
The College Retirement Equities Fund (CREF) is a New York not-for-profit corporation. CREF operates at cost (i.e., without profit), with investment returns passed through to participants and reflected in account asset values. CREF funds and accounts are managed by a subsidiary of TIAA.
Since 1998, both TIAA and CREF have been subject to federal income taxation following a decision by Congress to end the organization's tax-exempt status under Section 501(c)(3) the Internal Revenue Code.