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Every year the board of trustees votes on how much should be added to the guaranteed amount.
If you think this doesn't make sense, well neither do I.
It makes sense. In fact I explained the reason but you seem to want to be indignant rather than understand. Let me time one LAST time.
Look up the TIAA webpage. You will find it as a .ORG, not a .COM. TIAA was founded as a non-profit, coop and it still operates that way. When an insurance company issues an annuity, they need to be sure they can cover the payout and make a profit. TIAA passes those profits on to the annuitant. Since they do not know exactly how much they can pass on, they guarantee a base payment. In addition each year, the board looks at returns and adds on additional payouts, when they can.
I cannot tell you if your quoted payout is the minimum guaranteed amount or this year's rate. It sounds like that is the minimum, guaranteed amount for life. You need to verify that with TIAA. I cannot imagine that it would be difficult to get that information but it does seem like there is some sort of gap in communications.
It makes sense. In fact I explained the reason but you seem to want to be indignant rather than understand. Let me time one LAST time.
Look up the TIAA webpage. You will find it as a .ORG, not a .COM. TIAA was founded as a non-profit, coop and it still operates that way. When an insurance company issues an annuity, they need to be sure they can cover the payout and make a profit. TIAA passes those profits on to the annuitant. Since they do not know exactly how much they can pass on, they guarantee a base payment. In addition each year, the board looks at returns and adds on additional payouts, when they can.
I cannot tell you if your quoted payout is the minimum guaranteed amount or this year's rate. It sounds like that is the minimum, guaranteed amount for life. You need to verify that with TIAA. I cannot imagine that it would be difficult to get that information but it does seem like there is some sort of gap in communications.
You have not explained anything, and you are wrong.
I know TIAA is a non-profit, that has nothing at all to do with this.
The payout rate for me, in BIG letters on the web page, is 6.18%. There is a table with a column called "Fixed" and under that is my monthly payout for each year. It is $572.
But I spoke to several people at TIAA, and all of them said the 6.18% rate, and the $572 monthly payment are NOT guaranteed. A lower percent and a lower amount are guaranteed, but each person told me a different rate and amount.
And you CANNOT find the guaranteed rate and amount on the website!!
You have answered nothing, you have not understood what I am saying.
Apparently neither do the TIAA representatives which includes a couple of phone reps and your advisor. I wonder why that is.
It's probably because they are hiding the truth and hoping no one will notice. The monthly "fixed" payment is not guaranteed for life. The board of trustees can vote to raise, or lower, it each year.
It's probably because they are hiding the truth and hoping no one will notice. The monthly "fixed" payment is not guaranteed for life. The board of trustees can vote to raise, or lower, it each year.
I just check my old, small TIAA Traditional account. The guaranteed accumulation is 2.5% fixed. Each year the trustees can add to that based on returns for the past year and predictions for the future. My plan is increasing at a total of 4.9%. That will be reset again in March 2017. The total of 4.9% is for my mix of vintages and would be different for a different investor. I do not have a payout plan but the basics are described. The calculated payout for a fixed annuity would be based on actuarial tables and a guaranteed 2.5% rate. Again each March the trustees determine any additional payout that might apply.
I just check my old, small TIAA Traditional account. The guaranteed accumulation is 2.5% fixed. Each year the trustees can add to that based on returns for the past year and predictions for the future. My plan is increasing at a total of 4.9%. That will be reset again in March 2017. The total of 4.9% is for my mix of vintages and would be different for a different investor. I do not have a payout plan but the basics are described. The calculated payout for a fixed annuity would be based on actuarial tables and a guaranteed 2.5% rate. Again each March the trustees determine any additional payout that might apply.
That is what I said!! That is NOT what you said before!! They vote on the "added on" amount every year. I would only be able to count on 2.5%. Although actually my adviser said the guaranteed rate is 4.9%. One phone rep said it's 2.5% and another said it's 6.18%.
On my web page there is a BIG 6.18%, and the "fixed" column says $572 for every year.
If you can't admit to seeing anything wrong with that then you are just being stubborn.
That is what I said!! That is NOT what you said before!! They vote on the "added on" amount every year. I would only be able to count on 2.5%. Although actually my adviser said the guaranteed rate is 4.9%. One phone rep said it's 2.5% and another said it's 6.18%.
On my web page there is a BIG 6.18%, and the "fixed" column says $572 for every year.
If you can't admit to seeing anything wrong with that then you are just being stubborn.
Can you get to where you need to be by asking them what is the current monthly payment and what is the least monthly payment I could expect?
Can you get to where you need to be by asking them what is the current monthly payment and what is the least monthly payment I could expect?
That is what I asked at least 4 different TIAA people, trying to get a straight answer. They seem to not know, since each one told me something different.
It really does seem like they hope people won't notice this.
I know that $572 would be the current monthly payment for me. But that could change every year. A couple of them said it has not gone down since 1995. But since everyone has different answers, I can't really trust that.
That is what I asked at least 4 different TIAA people, trying to get a straight answer. They seem to not know, since each one told me something different.
It really does seem like they hope people won't notice this.
I know that $572 would be the current monthly payment for me. But that could change every year. A couple of them said it has not gone down since 1995. But since everyone has different answers, I can't really trust that.
Find the person in charge at whatever office you are dealing with. Show them the different answers you got and tell them you need an answer.
Find the person in charge at whatever office you are dealing with. Show them the different answers you got and tell them you need an answer.
I filled out a survey with the whole story. The person in charge of the phone reps called me. He said the guaranteed rate is 4.9%, and the rest is added on, decided every year. He told my TIAA adviser to call me, and he did. He said the same thing, 4.9%.
Someone here just said it was 2.5%, which is what 2 of the phone reps had said.
Obviously there is no one at TIAA who knows. Should I try calling the CEO?
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