The TIAA Traditional Annuity is offered within the Retirement Choice (RC) contract effective January 14, 2019. This is the only investment option available for new contributions at TIAA.
How do I select the TIAA Traditional?
You may select the TIAA Traditional account by selecting TIAA in Fidelity’s enrollment tool. The changes will be effective with your next available paycheck. See Pay Schedules & Forms for pay schedule dates.
Do I need to complete a TIAA beneficiary designation form for the TIAA Traditional in the Retirement Choice contract?
Yes, even if you previously participated with TIAA, the beneficiary designations do not transfer from one contract to another. Once contributions are directed to TIAA the new Retirement Choice contract is issued. At that time you will receive an enrollment confirmation from TIAA that will provide additional information about your new account. We encourage you to check your beneficiary election at this time. Please note that if no election is made, your beneficiary will automatically default to “Estate.”
Can I transfer money from Fidelity to TIAA?
Yes. If you transfer money to TIAA, your money will be invested in the TIAA Traditional account under the new Retirement Choice contract. This is the only investment option available at TIAA. All other accounts and contracts are frozen on the TIAA platform and are closed to transfers. Contact TIAA to request forms to transfer funds.
Can I transfer money from TIAA to Fidelity?
Yes. You can transfer money from your Duke Faculty and Staff Retirement Plan 403(b), including any frozen account to your Fidelity account. Please note, some annuity products have transfer restrictions. Contact Fidelity to request transfer forms. Please note, moving money from any existing contract to a new RC contract or an investment option on the Fidelity platform is a permanent decision. Money cannot be moved back into the RA, GRA and/or GSRA contract(s)
Key Issues to Consider
The Retirement Annity (RA), Group Retirement Annuity (GRA) and Group Supplemental Retirement Annuity (GSRA) contracts will be frozen to new contributions as of January 4, 2019. That means, no new contributions can go into these contracts. To accommodate investors in the TIAA Traditional guaranteed annuity account, a new the Retirement Choice (RC) contract will be opened at TIAA with the TIAA Traditional Account as an investment option.
The TIAA Traditional Account under the new Retirement Choice (RC) contract has different interest rate, liquidation and distribution features. This may impact your decision to invest with this account.
- Current crediting rate – As of October 24, 2018, the current crediting rate for new contributions to the TIAA Traditional Account is 4.25%. This rate is higher than the guaranteed rate for the RA, GRA and GSRA contracts. Please visit TIAA.org/duke/investment-performance for additional details on the crediting rates for the TIAA Traditional Account.
- Guaranteed Minimum Rate - Under the new RC contract, the TIAA Traditional Account has a guaranteed minimum interest rate of between 1% and 3%, determined annually. The guaranteed rate in your current RA, GRA and/or GSRA contract(s) is 3%.
- Liquidation features - Please see the Frequently Asked Questions document along with the contract comparison chart to better understand the liquidity features of each contract you may hold with TIAA.
- Please note, moving money from any existing RA/GSRA contract to a new RC contract or an investment option on the Fidelity platform is a permanent decision. Money cannot be moved back into the RA, GRA and/or GSRA contract(s).
For additional information about the new Retirement Choice contract, please contact TIAA.