Forms of Payment from TIAA Traditional Annuity

A lifetime annuity may be received from your TIAA Traditional Annuity Account. Lifetime annuity income is the only payment method that ensures you will never outlive your retirement income. It is also a permanent arrangement; once you begin receiving payments, you may not stop them. The actual amount of income you receive at retirement depends primarily on the amount in your TIAA account, your age when payments begin, and the form of payment you choose.

For Group Retirement Annuity (GRA) contracts issued after June 1, 2005, you may also receive a fixed-period annuity of 5 to 30 years (subject to IRS restrictions). At the end of the fixed period chosen, all payments cease.

TIAA cash withdrawals can be taken in 10 substantially equal payments over a period of nine years.

Once the amount of your TIAA annuity payments is determined, it can be increased or decreased by changes in dividends, but cannot fall below the contractually guaranteed level.

The Interest Payment Retirement Option

This option, which applies to your TIAA Traditional Annuity accumulation only, provides monthly payments that consist only of current interest and dividends credited to your TIAA Traditional Annuity Account balance each month. Because only the interest is paid, your principal remains untouched. This option is available to those age 55 or older and does not satisfy the federal minimum distribution requirements.

Installment Refund

This option pays you an income for as long as you live. If you die before the full value of your TIAA account (calculated as of the date your benefit payments began) has been paid out, your beneficiary will receive the same monthly income you were receiving before your death until the remaining value of your account has been paid out. When the plan has paid out the value of your entire TIAA accumulation, all payments stop. This option is not available for CREF funds, and is only available for your TIAA funds if your contract was in effect before February 1, 1985.