TIAA-CREF RETIREMENT CHOICE ANNUITIES PRODUCT COMPARISON

Transcription

1 TIAA-CREF RETIREMENT CHOICE ANNUITIES PRODUCT COMPARISON To help you effectively manage your retirement plan in today s increasingly complex regulatory and compliance environment, TIAA-CREF offers the Retirement Choice and Retirement Choice Plus Annuities. These institutionally owned group contracts provide you with a range of different funding accounts and the control many plan sponsors seek in order to meet their fiduciary responsibilities. The Retirement Choice and Retirement Choice Plus Annuities provide you with a broad range of distinct advantages including increased flexibility and control over your retirement plan, a wide array of funding options, low fees and expenses, and the opportunity for your plan participants to choose guaranteed income in retirement that can t be outlived. 1 ADVANTAGE OF THE TIAA-CREF RETIREMENT CHOICE ANNUITIES Flexibility and Control to select investments that meet your investment policy guidelines, add or eliminate options and direct participant assets to other funds. Low Fees & Expenses for the TIAA-CREF variable annuity accounts and mutual funds compared to the broader market generally half the mutual fund industry average. 2 This helps your participants maximize their retirement dollars and ensure that more of their money is working for them. Guaranteed Income for Life options that provide a complete retirement income plan that can t be outlived. Provided on the following pages is a side-by-side summary comparison chart of the major product features of Retirement Choice and Retirement Choice Plus Annuities. 3 For more information on the Retirement Choice Annuities, please contact your TIAA-CREF Managing Consultant. Wide Variety of Funding Options across major asset classes to select from, including our full suite of fixed and variable annuity products, which can be offered along with mutual funds. FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 1

2 SUMMARY USE RETIREMENT CHOICE (RC) The RC contract is a group contract controlled by the plan sponsor. It is generally used for employer retirement plans. Enables the institution to have full control over the funding options in the plan, add or delete options, and map assets to other funds. RETIREMENT CHOICE PLUS (RCP) The RCP contract is a group contract controlled by the plan sponsor. It is used for supplemental retirement plans. Enables the institution to have full control over the funding options in the plan, add or delete options, and map assets to other funds. AVAILABILITY Existing plans and new business prospects GENERAL PLAN TYPE 4 403(b), 401(a), 401(k), 457(b) Public OVERVIEW PLAN LEVEL EXPENSE Allowed OFFERED SINCE FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 2

3 FUNDING OPTIONS OFFERED RC TIAA Fixed Annuities (TIAA Traditional), TIAA-CREF Variable Annuities, TIAA-CREF Mutual Funds (including the Lifecycle Funds), partner and non-proprietary mutual funds. 5 RCP MINIMUM CREDITING RATE DURING ACCUMULATION Between 1.00% and 3.00%: Rate re-determined annually on January 1. Applies to premiums deposited during the applicable calendar year and is guaranteed for 10 years. Between 1.00% and 3.00%: Rate re-determined annually on March 1. Applies to all accumulations and premiums deposited during the period. FUNDING OPTIONS CREDITING RATE STRUCTURE CREDITING RATE FREQUENCY TIAA Traditional vintage structure for both new money and old money. New money: Generally monthly and guaranteed until the end of the following February. Old money: Reset on March 1 and guaranteed until the end of the following February. PRIMARY COLLATERAL ACCOUNT TIAA General Account CHARGES, EXPENSES, FEES Risk capital amounts and product costs (including amounts associated with managing and maintaining the general account collateral portfolio), liquidity charges and administrative expenses are implicit in the crediting rate spread. LOAN OPTIONS LOANS Not available directly through the contract, but funds can be transferred to mutual funds or other annuities in order to fund the loan amount (separate loan contract agreement required). FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 3

4 RC RCP TRANSFERS/WITHDRAWALS PARTICIPANT-DIRECTED TRANSFERS AND WITHDRAWALS 6 Lump-sum withdrawals from TIAA Traditional allowed within 120 days of termination of employment with 2.50% surrender charge. Otherwise paid in 84 monthly installments. Fully liquid with no restrictions or surrender charges. Transfers into TIAA Traditional that are made within 120 days of a transfer out of TIAA Traditional will receive the same prospective interest rates that would have been applied if the transfer out had not taken place. INCOME OPTIONS RANGE OF DISTRIBUTION OPTIONS (for annuity accounts) FIXED ANNUITY: CONTRACTUAL MINIMUM ANNUITY SETTLEMENT RATES Lifetime income, systematic and lump-sum cash withdrawals (if allowed by the plan), interest only (RC), and required minimum distribution payments. Based on 2.00% guaranteed interest and a mortality table that is updated each year. INSTITUTIONAL CONTROL INSTITUTIONALLY FORCED SMALL BALANCE WITHDRAWALS DISCONTINUANCE/ MAPPING Available if total plan balance is $5,000 or less and participant has terminated employment. TIAA Traditional: Allowed over an 84-month (7 years) period with a 1.5% surrender charge with 30-day advance notice from institution. TIAA Real Estate: no restriction unless contract amount exceeds $10 million TIAA-CREF may defer de-conversion for 6 months. Mutual Funds: no restrictions. FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 4

5 1 Subject to TIAA s claims-paying ability. 2 Morningstar Direct (June 2010) based on Morningstar expense comparisons by category. This applies to variable annuities and mutual fund expense ratios. 3 The summary information detailed above is intended for general comparative purposes and is not intended to replicate or replace the terms of annuity contracts. The annuity contract governs in the event of conflicts between this document and the contract. The information contained herein does not constitute an offer or a solicitation for the purchase of any securities or insurance products. 4 Private non-erisa safe harbor employees elective deferral 403(b) plans may only utilize SRA/GSRA contracts. 5 Offered through a group custodial agreement. 6 Withdrawals prior to age 59 ½ may be subject to a 10% federal tax penalty on earnings. For TIAA Access Annuities, lifetime income is available through the TIAA Access Lifecycle Retirement Income Account, the TIAA Traditional Account, CREF Accounts or the TIAA Real Estate Account, if offered under your plan. You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call , or go to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. The annuity contracts and certificates are issued by Teachers Insurance and Annuity Association (TIAA), and College Retirement Equities Fund (CREF), New York, NY TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products. These guaranteed annuity contracts and accounts are not considered to be investments or securities under Federal Securities laws. Payment obligations and the fulfillment of the guarantees provided for in these annuity accounts and contracts are subject to TIAA s claims-paying ability. Lifetime annuity payments are provided by TIAA, and are subject to TIAA s claims-paying ability. Past interest rates are not indicative of future interest rates. These products are not mutual funds, variable annuities or bank products. The obligations of TIAA are not insured by the FDIC or any other federal governmental agency. As provided for in the annuity contracts or certificates, restrictions may apply to certain plan sponsor and/or participant-initiated transactions. Please refer to these documents for details. Retirement Choice (RC) TIAA Contract form Series - IGRS-01-5-ACC, IGRS ACC, and IGRS ACC/ TIAA Certificate Series - IGRS-CERT1-5-ACC, IGRS-CERT1-60-ACC, IGRS-CERT1-84-ACC/ CREF Contract form series: CIGRS/CREF Certificate series: CIGRS-CERT1; Retirement Choice Plus (RCP) TIAA Contract form Series - IGRSP-01-5-ACC, IGRSP ACC, IGRSP ACC/ TIAA Certificate Series - IGRSP-CERT1-5-ACC, IGRSP-CERT1-60-ACC, IGRSP-CERT1-84-ACC/CREF Contract form series: CIGRSP CREF Certificate series: CIGRSP-CERT Teachers Insurance and Annuity Association-College Retirement Equities Fund (TIAA-CREF), New York, NY rev: 12/10 C48783 FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 5