Despite a continued low interest rate environment in the United States, the TIAA Board of Trustees has approved steady total income (guaranteed income plus additional amounts) in 2017 for participants who receive lifetime annuity income from the TIAA Traditional Annuity.1
This decision reflects the relatively strong capital position of the General Account, which supports the TIAA Traditional guaranteed fixed annuity.1 Although participants in the TIAA Traditional Annuity do not invest directly in the General Account portfolio, its investment performance supports the annuity’s minimum guaranteed returns, additional amounts and payout obligations.
The details of the decision
- Standard Payment Method monthly payments will remain unchanged in 2017.
- Income will increase about the same amount it did in 2016.Graded Payment Method annuitants who accepted lower initial payments in exchange for higher annual increase will receive increases for both 2017 and 2018. Your exact increase depends on when your contributions were made to TIAA and when you began to receive income benefits.
- The Principal and Interest rate, which is applicable to beneficiaries who want to receive interest only from TIAA Traditional, is 3% for 2017.
For more details, please read the Outreach newsletter .