CITY UNIVERSITY OF NEW YORK

Voluntary Savings Program (Tax-Deferred Annuity)

These are important details regarding this plan.

ELIGIBILITY

You are eligible to participate in this Program if you are full-time or part-time Instructional Staff (Teaching and Non-Teaching, Classified Managerial, or Executive Compensation Plan employee).

CONTRIBUTIONS

This plan allows only employee contributions.

EMPLOYER MATCHING

City University of New York does not make matching contributions with this plan.

VESTING

"Vesting" refers to an employee's right, usually earned over time, to receive some retirement benefits regardless of whether or not they remain with the employer. Your contribution to this account will be 100% vested immediately.

INVESTMENTS

Your employer offers you a variety of investment choices from an array of asset classes. You can see a list of the investment choices under this plan on the Investment Choices page.

EXPENSES

Expenses vary from investment to investment. To learn about expenses associated with an investment, see a list of the investment choices under this plan on the Investment Choices page, and read the Fact Sheet or the prospectus for that investment.

DISTRIBUTIONS

When it's time to decide how to take income from your Voluntary Savings Program (Tax-Deferred Annuity), you have a variety of options*:

  • 59½ in Service

     You generally can withdraw funds, attributable to elective deferrals, from your account while still employed once you have reached age 59½. The amount you can withdraw is subject to your plan's rules.
     
  • Fixed Period

     You can choose to receive income for a set period of two to 30 years, depending on the terms of our contract and your plan's rules (and not to exceed your life expectancy).

    • Payments stop at the end of the period, during which you will have received all your principal and earnings.
       
  • Hardship Distribution

     If your plan permits, you can withdraw your elective deferrals (but not earnings) due to financial hardship while still employed.

    • Generally, you must show an immediate, significant need that cannot be met with other resources, including loans from your retirement plan.
       
  • Lifetime Retirement Income
    • One-life annuity — provides income for as long as you live.
       
    • Two-life annuity — provides lifetime income for you and an annuity partner (your spouse or someone else you name) for as long as either of you live.
       
    • One- or two-life annuity with guaranteed period — guarantees income for up to 20 years, as long as the period you choose does not exceed your life expectancy. It ensures that income continues to go to your beneficiaries for the remainder of the guaranteed period if you (one-life annuity) or both you and your annuity partner (two-life annuity) die before the end of that period.
       
  • Lump Sum

     You can withdraw all or part of your account in a single cash payment, depending on your plan rules and the terms of your contracts.

    • Your right to a lump-sum distribution from your TIAA Traditional Account may be restricted to taking 10 annual payments under those terms.
       
  • Other in Service

     If your plan permits, you can withdraw cash from your account while still employed by your institution, but you generally must meet an IRS-defined "triggering event," such as reaching age 59½, to qualify.
     
  • Single-Sum Death Benefit

      A set amount your beneficiary(ies) will receive from your retirement account if you die before taking income.
     
  • Systematic Withdrawals

     If your plan allows, you can choose to receive regular income payments (minimum $100) on a semimonthly, monthly, quarterly, semiannual or annual basis. You can increase, decrease or suspend the payments at any time.

    • These withdrawals are not available from TIAA Traditional Account balances.
       

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TAXATION

Because you make contributions with pretax dollars, federal income taxes are deferred on supplemental plans until you begin taking withdrawals later on.

No taxes are due on contributions and earnings until the money is withdrawn, but because these plans are intended primarily for retirement, you can generally withdraw funds only after termination of employment or age 59½ (subject to plan rules). If you withdraw funds before age 59½, they may be subject to an additional 10% early-withdrawal penalty.

For additional information and guidance, contact your tax advisor.

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LOANS

Loans are available on this plan, subject to limitations. For more information, please contact your Benefits Office.

1 The availability of certain distributions may depend on the type of contract underlying your plan. Also, if you're married, your right to choose an option may be subject to your spouse's right to survivor benefits. Talk to your benefits office for details.

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Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.

TIAA-CREF products may be subject to market and other risk factors. See the applicable product literature, or visit www.tiaa-cref.org for details.

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.

© 2013 and prior years, Teachers Insurance and Annuity Association-College Retirement Equities Fund (TIAA-CREF), 730 Third Avenue, New York, NY 10017.