TIAA Traditional Annuity Gives Participants Stability
December 8, 2009 (PLANSPONSOR.com) – TIAA-CREF has seen continued participant interest in its flagship product, the TIAA Traditional Annuity.
The TIAA Traditional Annuity guarantees principal and pays a guaranteed minimum interest rate during the accumulation phase with the potential for greater growth through additional amounts, which may be declared on a year-by-year basis by the TIAA Board of Trustees, according to an announcement. In retirement, the TIAA Traditional Annuity provides a guaranteed stream of income.
The TIAA general account backing TIAA Traditional
primarily invests in corporate and government bonds, structured finance
instruments (such as mortgage-backed securities), and real estate.
Accumulations can be converted to a fixed life annuity in retirement, among
other withdrawal options.
“Two-thirds of TIAA-CREF plan participants have
allocated funds to TIAA Traditional, which helped these individuals during the
economic crisis of the past year since a portion of their account was protected
through the guarantees provided by TIAA Traditional,” said Ed Van Dolsen,
head of Product Development and Management, TIAA-CREF, in the announcement.