Withdrawals while the contract is active
Some liquidity guardrails are required in order to provide competitive interest crediting rates. TIAA's standard provisions allow:
- Unrestricted pro-rata withdrawals from the TIAA Guaranteed Interest Account to pay participant benefit payments (transfers and withdrawals) from the fund, assuming the fund’s cash and short-term portfolios provide some buffering.
- Unrestricted withdrawals from the TIAA Guaranteed Interest Account for rebalancing to pre-existing target allocations (as long as TIAA has reviewed and accepted the Fund’s glidepath, target allocations, tolerances for drift around the targets and re-balance frequency).
A 20% per year combined TIAA Guaranteed Interest Account withdrawal threshold for i) rebalancing following ad hoc manager-initiated target allocation changes and ii) plan mappings out of the fund, each with additional liquidity potentially available during the year.