- In 1918, the Teacher's Insurance and Annuity Association received a grant of $1 million from Andrew Carnegie and began offering pensions to college professors. TIAA focuses on fixed annuities and payouts. The College Retirement Equity Fund was formed in 1952; it focuses on equity and variable products.
Investors may want to have exposure to both fixed income and equities. Pension plans at TIAA-CREF are made up of assets from TIAA, which are fixed, and from CREF, which are variable. - Retirement plans, such as the 403(b) plan, are governed by the Employees Retirement Income Security Act; the act establishes minimum standards that pension and retirement plans must meet. However, the plans are governed by their own documentation, which will inform the participants of their rights and restrictions. The provisions within the plan documentation will take precedent over ERISA as long as the plan meets the minimum standards.
- People review their account statements and look at the total balance. They assume that it is theirs to do with as the wish. If the balance is fully vested, then they are partly correct, the money is all theirs. However, TIAA documentation has restrictions on the amount of TIAA money that may be withdrawn annually and amount is 10 percent. This means if there is a balance of $100,000 in the account, then it will take nine years for you to remove the money completely.
- If you are moving your funds from a TIAA-CREF employer sponsored plan into an Individual Retirement Account, you may do a partial withdrawal. You may move 100 percent of the CREF money and 10 percent of the TIAA money. The money remaining in the TIAA will still have the same role in your new portfolio as it did when all your money was at TIAA-CREF.
You may be able to establish a 403(b) plan at another financial institution and begin to move your TIAA portion into an investment that may be more appropriate to your needs. You should discuss this with your investment adviser.
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