Statement on TIAA-CREF's decision to continue to participate in U.S. Treasury Money Market Guarantee Program

TIAA-CREF has decided to continue participating in the U.S. Treasury Department’s Temporary Guarantee Program for Money Market Funds up until its latest extension date, September 18, 2009.  TIAA-CREF's two eligible funds, the TIAA-CREF Funds Money Market Fund and the TIAA-CREF Life Funds Money Market Fund, will both continue to participate in the program, while the CREF Money Market Account will not participate since it is not eligible. Even though TIAA-CREF believes it is highly unlikely we would need to rely on the program, we will continue to participate in it, as we believe it is in the best interest of our shareholders.

The CREF Money Market Account can not participate because it does not maintain a stable accumulation unit value (AUV), which is part of the federal program's requirements. Thus, the account is not eligible for the Treasury's stable value extension program announced on October 8, 2008. (See answer to Question 4 below.)

TIAA-CREF’s move comes in response to the Treasury's recent announcement that it would extend the program through September 18, 2009. The Treasury program was scheduled to end on April 30, 2009The policies associated with the program have not changed. For example, the cost to participate in the program remains the same, approximately one-third of a basis point per month.  Investors cannot sign up for the guarantee themselves since the Treasury Department’s guarantee arrangement is made with the funds.

Background on the Federal Temporary Money Market Guarantee Program

The U.S. Treasury Department's Temporary Guarantee Program for Money Market Funds guarantees the $1.00 share price of participating money market funds. The guarantee will be triggered only if a participating fund liquidates its assets as a result of its net asset value falling below $.995, commonly referred to as "breaking the buck."

Under the program, coverage is provided to shareholders for amounts that they held in participating money market funds as of the close of business on September 19, 2008. Any increase in the number of shares held in an account after the close of business on September 19, 2008 will not be guaranteed. Please see the bottom of this piece for some examples of how this works in various situations.

Frequently Asked Questions about the Federal Money Market Guarantee Program:

1. Will TIAA-CREF continue to participate in the Treasury's Temporary Guarantee Program for Money Market Funds?
   Yes. All of TIAA-CREF's eligible money market funds will continue to participate in the program to help support investor confidence.
   
   
2. Which TIAA-CREF money market funds and accounts are participating in the program?
   TIAA-CREF Funds Money Market Fund (Retirement Class-TIEXX, Retail Class-TIRXX, and Institutional Class-TCIXX) and TIAA-CREF Life Money Market Fund are participating in the program. The CREF Money Market Account is not eligible to participate in the program.
   
   
3. Is the CREF Money Market Account eligible to participate in the Treasury's stable value extension program announced on October 8, 2008?
   No. The CREF Money Market Account was not eligible for the federal program as originally crafted, nor is it eligible to participate in the federal stable value extension program announced on October 8, 2008. The CREF Account is ineligible because it does not seek to maintain a stable unit value.
   
   
4. Why is the CREF Money Market Account not eligible to participate in the government's money market guarantee program?
   The CREF Money Market Account is not eligible to participate in the program because it does not seek to maintain a stable accumulation unit value (AUV), which is part of the federal program's requirements. The rules governing the federal program state that, in order to be eligible, a money market fund or account must maintain a daily unit value of $1.00 or more, which the CREF account does not.
   
   
5. What investments are eligible for coverage?
   Under the program, coverage is provided to shareholders for amounts that they held in participating money market funds as of the close of business on September 19, 2008. Any increase in the amounts held by a shareholder on September 19, 2008, or any amounts in an account held by a newer shareholder will not be covered by the program. Also, if a client closes his or her money market account by completely liquidating it, any future investment in the fund will not be guaranteed.
   
   
6. If TIAA-CREF has full confidence in its money market portfolios, why participate in the government money market guarantee program?
   TIAA-CREF is participating in the program to help support investor confidence in general during this time of unprecedented market instability. We believe that it is unlikely that we would ever need the guarantee offered by the program; however, we feel this additional protection will be reassuring to our participants.
   
   
7. How much does this program cost and who is covering the cost to participate in the program?
   The cost of participating in this program will be paid by investors in each fund. The Treasury Department is charging 0.015% (or one-and-a-half basis points) of each fund's total assets as of September 19, 2008, for coverage during the renewal period, to participate in the program. That means the cost for insuring a $1,000 investment in a money market fund is 15 cents.
   
   
8. Can I join the federal money market guarantee program on my own?
   Investors cannot sign up individually. Each money market fund decides whether to sign up for the program.
   
   
9. Where can I learn more about the U.S. Treasury Temporary Guarantee Program for Money Market Funds and official program updates?
   For more details on the program, visit the U.S. Treasury site at: http://www.sec.gov/divisions/investment/mmtempguarantee.htm

Examples of how the coverage of the federal guarantee program works

• Say a shareholder owned 200 shares of ABC Money Market Fund on September 19, sold 100 on September 22, and purchased 50 on September 30. If the fund breaks the buck on October 10, all 150 of the shareholder's shares would be covered under the guarantee program — even though some of those shares were purchased after September 19. As long as it remains in effect, the guarantee program will protect investments in the ABC Money Market Fund up to the amount that was held as of September 19.
  
  
• A shareholder who owned 100 shares in ABC Money Market Fund — Institutional Class on September 19, 2008, and subsequently exchanged all of them into ABC Money Market Fund - Retail Class (i.e., made a share class exchange within the Fund) will not lose coverage under the program should ABC break the buck.
  
  
• A shareholder owned 200 shares of ABC Money Market Fund as of September 19. If the fund breaks the buck on October 10 and the shareholder still owns 200 shares, all shares are covered under the program.
  
  
• A shareholder owned 200 shares of ABC Money Market Fund on September 19, and sold 100 on September 22. If the fund breaks the buck on October 10, 100 of the shareholder's shares would be covered.
  
  
• A shareholder owned 200 shares of ABC Money Market Fund on September 19. The shareholder purchases 50 shares on September 22, so the shareholder owns 250 total shares. The fund breaks the buck on October 10. Only the initial 200 shares would be covered under the guarantee program.