TIAA Traditional Lifetime Annuity Income Steady for 2010
December 10, 2009
In 2010, participants who receive TIAA Traditional lifetime annuity income will receive at least as much total income (guaranteed income plus additional amounts) as in 2009.1
TIAA’s financial strength underpins the company’s claims-paying ability and enables it to maintain lifetime annuity income payments at the same level in 2010 as in 2009 notwithstanding an uncertain economy. Participants who receive lifetime income from the TIAA Traditional Annuity rely on its stability to help protect their finances from financial market volatility.
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 2010.
- If you’re receiving income from the graded payment method, your income will increase modestly in 2010, although the rate of increase will be about 1% less than 2009’s increase rate.
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 2010, and payments for the CREF and TIAA Real Estate Variable Annuity Accounts will be announced in April 2010.
Participants who have annuitized should consult the Outreach newsletter, which will be mailed to you later this month. You can view the newsletter here.
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.
