Despite a low interest rate environment in the United States, the TIAA Board of Trustees has voted to increase total income (guaranteed income plus additional amounts) in 2013 for participants who receive lifetime annuity income from the TIAA Traditional Annuity.1
Board’s Decision Reflects Strong Capital Position
The TIAA Board of Trustees’ decision reflects the strong capital position of the General Account, which supports the TIAA Traditional guaranteed fixed annuity. Although participants in the TIAA Traditional Annuity do not invest directly in the General Account portfolio, the investment performance of that portfolio supports the annuity’s minimum guaranteed returns, additional amounts and payout obligations. TIAA’s General Account is the source of the earnings, financial strength and stability that back the TIAA Traditional Annuity.
Below are details for those receiving income from the TIAA Traditional lifetime annuity:
For more details, participants who are receiving annuity income from TIAA Traditional should consult the Outreach newsletter here. (PDF)
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 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.
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 you’re receiving under defined benefit pension plans, principal and interest contracts, the TIAA Transfer Payout Annuity or interest-only payments from TIAA Traditional Annuity.
2 Participants who began receiving annuity income during 2012 will receive a proportionally reduced increase in 2013.