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TIAA-CREF announces variable annuity income changes
April 2, 2015
If you are receiving retirement annuity income that is revalued annually for the variable annuity accounts (CREF accounts and the TIAA Real Estate Account):
- Starting May 1, 2015, your monthly income will adjust to reflect the performance of markets in which each account invests. (See table below.)
- If your income is changing, a confirmation of annuity income statement will accompany the April 2015 issue of the Outreach newsletter mailed by the end of April to all participants receiving annuity income.
What impact will the change have on my retirement income?
If you are receiving income from CREF variable accounts and the TIAA Real Estate Account, income changes reflect account performance for the one-year period ending March 31, 2015. (See tables below.) If you have been receiving variable income for less than one year, your income change will reflect the account performance between your settlement date and March 31, 2015, which may differ from the changes shown in the chart below.
While most accounts will have payment increases, well ahead of the pace of inflation, two accounts will experience a payment decrease.
Annual percentage changes of variable annuity income (effective May 1, 2015)*
|Equity (Stock) Accounts||TIAA Real Estate Account||Bond, Money Market Accounts||CREF Social Choice Account||TIAA Access Lifecycle Retirement Income|
|Income increased||CREF Stock: 6.96% |
CREF Global Equities: 4.15%
CREF Equity Index: 9.39%
CREF Growth: 15.79%
|8.99%||CREF Bond Market: 2.25%||4.06%||1.26%|
|Income decreased||No decreases.||No decreases.|| |
CREF Inflation-Linked Bond:
CREF Money Market:
To find standardized performance data, visit www.tiaa.org/public/investment-performance.
If you’re receiving lifetime annuity income from the TIAA Traditional Annuity, please refer to our income change announcement for 2015.
Can I change my annuity income allocation?
Yes. Here are your options:
- Move your investments among the nine variable annuity accounts.
- Transfer from the variable annuity accounts to the TIAA Traditional Annuity (as often as once per calendar quarter).
- Transfer each year up to 20 percent of your TIAA Traditional Annuity to the CREF equity accounts. (Please note: You can’t shift this money back, so it’s important to evaluate the potential risks and rewards of increasing your exposure to equity markets.)
Need help? Call a TIAA-CREF Financial Consultant at 800-842-2252 to:
- Evaluate your retirement income changes and asset allocation
- Help you process any transfers
- Review your sources of income outside of TIAA-CREF to give you a complete picture of your retirement income needs and portfolio allocation
(If you have an assigned Wealth Management Advisor, call your Advisor team directly.)