Statement by TIAA-CREF about Reissued TIAA Life Insurance Disbursement Checks

It has come to our attention that a number of customers had their TIAA life insurance disbursement checks returned by their banks for nonpayment as a result of an error in data transmission between TIAA and Citibank.  As soon as we became aware of the issue we assured payment of checks that had not yet been deposited.  To those individuals whose deposited checks were returned for nonpayment, we apologize. We are issuing new checks and will reimburse those individuals for all fees and penalties they incur as a result of the returned check. We are investigating the matter thoroughly, and will work to prevent this problem in the future.

Questions and Answers

What happened?
We were notified that a number of TIAA life insurance disbursement checks were returned for nonpayment.  We determined the problem resulted from an error in transmitting data between TIAA and Citibank.  We notified Citibank upon learning of the problem and assured payment for future deposits.  

Why didn’t Citibank honor the check anyway? TIAA checks are reliable.
Banks often automatically reject a payment if the deposit amount does not match the payment information in the bank’s system, a precaution to avoid possible fraud activities. That is what happened in this case. 

How do customers know if they were affected?
We have notified those impacted customers and are issuing new checks.  We will provide reimbursement for any subsequent bank fees or penalties they incur as a result of this matter.  

What kind of life insurance policy pays dividends?
Certain older term and whole life policies known as “participating policies” issued in the past by TIAA provide a dividend option, and some of these policyholders receive a dividend disbursement check as a result.  These policies are no longer offered to participants.  Newer term and permanent life policies are now issued by TC Life Insurance Company are not participating policies and therefore do not offer a dividend option (and are therefore not affected by this issue). 

How can I verify that my life insurance disbursement check is not affected?
Anyone with questions should contact us at 1 800 223-1200, Monday through Friday, from 8 a.m. - 6 p.m. ET.