Apparently I was not the only person having problems with TIAA-Cref.
When I contacted the company to report my missing contribution, the customer service representative was very helpful and assured me the account would be adjusted. I had complete confidence, and when I checked my account yesterday, the deposit had been made and backdated. My minor situation was resolved to my satisfaction.
Do you have any thoughts about TIAA-Cref? Read the over 400 comments below and leave your own if you have an experience with TIAA-Cref to share.
Updated March 7, 2011 and originally published January 11, 2006. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @flexo on Twitter and visit our Facebook page for more updates.
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Is there any way former employees can move their money?
My problem with TIAA-CREF was simply that my investments were performing *extremely* poorly, not quite losing money, but not necc. MAKING money. I was told that my institutional agreement forbade me from withdrawing and rolling over my money (for about a decade I have been getting this info). Alas in Dec 07 I called again and asked if there was a way to roll my crappy performing TC funds over to an IRA. I was told I could take the funds out and instantly requested forms to do so. I got my funds out in about two weeks worth of BS back and forth with TC and my institution and rolled then into my Fidelity account where I’ve already seen tangible gains.
The lesson here: Others who are told that they cannot roll over their funds need to get that in writing! TC sucks for investing!
um, i just saw the comment from “another former t-c employee” that “moving your money to fidelity and the like is not necessarily any better.” is completely wrong. I trade with fidelity and LOVE, LLOOVVEE, love them. My account has gained 32% THIS year alone! TC funds made 3% in 12 years. go figure.
A couple of notes from a former employee:
Because of all of the problems that many of you are experiencing, working at TC was a nightmare, but I won’t go into that.
Here are a couple of points to remember:
****Yes, the top management screwed up this company badly. Morale is low and it’s true that the phone consultants (I was one) are almost totally helpless and BLAMELESS for the situation. I’ve submitted requests time and time again, over and over and if it does get done, it takes weeks or months. It’s the computer system, mainly. If you had a problem, file a complaint with the SEC. Complaining to a ‘supervisor’ does no good. They know how bad it is and take complaints all day long. It won’t go anywhere. Send a complaint to the SEC and a copy to TC. They are required to respond and keep the info.
*****DO NOT put money into the TIAA Traditional (Guaranteed) account unless you realize that you cannot take money out or transfer it at any time. It must be done (most commonly) over a 10-annual payment (9 years and a day). That is if the balance is over $2,000.
None of the other funds are like that, just this one. You would be amazed at the people that do not know this. This fund is like a bank CD. The funds are ‘locked’. And it’s true, there is NO WAY to make the $$ transfer faster. NONE. Even employees have to go through the 10-annual payment process.
****There are restrictions on moving your funds from your account at TC. THAT IS NOT TIAA-CREF’s POLICY!!! –> It was set up that way by the institution (your employer or former employer). If you leave that employer, in MOST (not all) cases, you can transfer your funds. It is the EMPLOYER that makes these restrictions.
*****If you still working for the same employer and are having $$ troubles, do not get a hardship withdrawal. It’ll kill you in taxes. Ask & see if you can get a loan. The rates are excellent and there’s NO tax penalty (as long as you pay it back). Here’s a SECRET — your funds are held in the Guaranteed account as collateral. YOU STILL EARN INTEREST ON THE FUNDS YOU BORROWED! So… you may be paying 5% on the loan, but your collateral is still making something, usually about 3-4%.
****If you want more control, TC does have IRAs (if you are available to roll funds).
Even though I hated my time there, TC is the cheapest (in my opinion) of all of the big-guys. Check the fees at Fidelity and others and charges for help/consulting. It’s a huge difference. (TC is for the most part, run as a not-for-profit.)
*****TC offers FREE asset allocation and retirement guidance services!! (If your employer allows them.) Use them! They will also help with investments elsewhere – NOT just the ones at TC! They do not advertise this service, but you can ask about it & see if you are eligible (your employer must approve). Fidelity and others CHARGE BIG $$ for this service and it’s 100% free at TC. The counselors are good.
*****I do not understand the problem with their investments. The TC funds are excellent, if you are in the right fund and know what you want. (Set an appointment with your LOCAL representative) – all free. They also offer mutual funds now, and are adding things all of the time.
*****NOBODY at TIAA-CREF is on commission. NOBODY. You really do get honest advice.
*****Remember, the phone consultants already have heard your same problem 1000 times and it wasn’t their fault. It’s frustrating, for you and them, but they can really only do so much until they finally spend the $$ to fix the systems. The horror stories are just amazing.
*****It’s really sad. I wanted to work for them. Great investments, expanding services, not-for-profit (in finance!) business model, NO commissioned salespersons, all of that… Unfortunately, I hated life taking all of those complaint calls. I was cursed at, you name it… and I understood the frustration. I did. Couldn’t take it anymore.
When they fix their problems, they’ll be #1 again.
Until then, it can be a nightmare dealing with transfers and such. However, the investments are great and the fees are low. If you do not need to take out funds, etc… you should have no problem. When they make a mistake, they fix it… it just takes forever. But, they will “make you whole” and backdate everything. Don’t worry about that… they WILL fix everything, when they cen get to it.
I suggest that everyone check the beneficiaries of their retirement accounts, I just discovered that mine has been somehow changed from my wife to my estate. This was NEVER the case.
I continue to have problems with TIAA-CREF. Last year, 2007, I started my minimum distribution. I sent them the completed forms to begin my one time annual distribution on January 1 of each year. It took TC several months to finally get me my distribution. I complained but nothing happened. In 2008, I received distributions for two accounts: for one it was several days late, and for the second, two weeks. I have not received distributions from three other accounts.
When I called TC, the person said the payments on three accounts were pending, but that I would have to talk to my “wealth manager”. He told me the problem was with the computer problem, the same answer i received a year ago, and one that seems to be given to all people who complain. I received a message from her saying they were having to research the problem, and she would contact me on January 28, 2008. It never happened. I wrote a service representative who assured me that they took complaints seriously, but did nothing to help me. She gave me a number for Resources and Resolution that was not a working number according to the telephone company.I called aother person to ask who I could call to get results, and about the Resources and Resolution department or person. He had never heared of such a person or department, and said the only person that could help me was my “wealth manager”.
I tried another email to the service department, but got the message that my complaint had already been received and there was no need to write again. They take complaints seriously, they told me again. After futile tries, I finally wrote again to my wealth manager–by now, she was probably, or should have been, called my poverty manager.In the interim, I received a message on ‘february 2nd, telling me that the records showed my distributions had been made (they had not).
My wealth manager called me on February 4, but could not give me any information, and said she would give me telephone updates.I said I wanted email updates, but whe refused–I suppose they do not want to put anything in writing they do not have to–and I noticed on my 2007 tax forms that TIAA-CREF says they reserve the right to correct errors. But they seem to have many errors, but not many corrections. It is now February 6, 2008, five weeks after I was supposed to have received my distribution, and I am no closer to receiving it–or being told anything of significance about it–than I WAS WEEKS AGO. My wife, who has her own accounts, had a problem last year, and could not get it resolved, finally gave up even though it probably cost her a $1,000 in doing so.
TIAA-CREF seems to believe it is immune from any type of sanctions or accountability because the same problems continue to show up year after year, and nothing seems to change. Part of the problems come, perhaps, from the fact that TIAA-CREF had a monlpoly over university accounts in the past in that there was no choice when I started teaching except to join TC. After it had to allow for diversification, the bad, incompetent management continued, and the lower level personnel seem to have taken on the same incompetency, aided and abetted no doubt by low morale and incompetency in middle management as well. And now we are stuck with a downward market, and the liklihood that it is impossible to get money out of TIAA-CREF because of incompetency. IT IS A DISMAL SITUATION. I hope the person who wanted more specific information about problems a year or so ago is still reading this website.
I can’t wait to get my money out of TIAA. I was happy with them 7-10 years ago, but they blew a Roth conversion for me last year and turned my life into a nightmare.
Last week I talked with a wonderful rep on the phone to try to fix the problem. Unfortunately, all she could do was put in a “research request” and suggest I call back in 7-10 days to check the status. I asked if I could talk to her specifically again but was told their system doesn’t really work that way and that I’d have to take whoever picks me up in the call queue.
Today I talked with the most insulting rep. I’ve ever experienced. He literally laughed when I said I was told to check in in 7-10 days. “It’s ridiculous to expect us to respond that quickly. We’re a big company with over 3 million clients.”
I’ve got the names of the folks I’ve dealt with, but unfortunately I can’t find anyone higher up to a.) solve my problem, and b.) reward the good reps and punish the bad.
I wanted out over a year ago when I started having problems. With this mess gets cleared, I am *so* done with them.
Does anyone know what’s up with the recent letter from TC dated Jan. 17, 2008 where TC claims that expenses from May 1, 2007 to April 30, 2008 were underestimated compared to the “actual costs”? The letter clearly indicates that a major revenue shortfall of unspecified origin has resulted in “revised estimates [that] reflect higher actual expenses” for many accounts. I spoke with a supervisor who emphatically stated that funds would not be retroactively taken out of my accounts even though I hold those that are on the list. But what he said made no sense, because the whole purpose of the letter was to inform participants that actual expenses were higher than estimated. I felt like he was trying to confuse the issue so that I would just let it die. I am really steamed about this, and it seems like a lot of money is involved in this “adjustment”. What is also annoying is that TIAA-CREF doesn’t think that it is important to clearly state how much “adjustment” was made to my account.
TIAA-CREF built a new data center last year in the Denver area that cost a bundle.
Problem similar to many above. Promises but no action. Can not get first payment of 10 year pay out annuity. Have been trying since Nov. 07, it is now Feb. 08.
Our ongoing problems were taken care of in less than 2 weeks after we emailed the TC Board, trustees@tiaa-cref.org, via their website.
I have been try to get my paper done and every time i call they tell you some then that you have done wrong when it them that have not done any thing at all for you. It make you so angry when the are the one that are doing the wrong thing . I seen in paperwork and they said that it has to be together for them to work on it and then call yesterday and they said that need new paper work.
My husband and I have been trying for the last two weeks to get a mistake by TIAA-Cref straightened out in time to properly file our 2007 taxes. Seven phone calls later, we do not have a resolution of our problem. We are waiting to hear from them again on Tuesday, 3/18. If they haven’t corrected what they all admit was their error (paying taxes on a rollover), we will definitely notify the board of directors and the SEC. If we could withdraw all of our funds now (not the kind of account where we are allowed to do so), we would. It’s been a nightmare and this is the second year in a row they have put us through this. They are incompetent beyond belief!
Planning on moving my Principal Simple IRA into TIAA-Cref account. Is it any worse than any other major investment firm? They are all under-regulated (thanks to Bush) but is there any reason to stay with what I have?
Cheers.
After trying for two months, by certified mail and phone, to get T-C to correct a simple error on their part, I went to a branch office for some face-time. Seven days letter, I received confirmation that the correction had been made. Maybe this is the only way to deal with them.
Let’s hope the new management will be able to clean up Allison’s mess.
What’s wrong with Principal?
TIAA Cref recently began administering the CalSTRS 403(b) accounts. My wife requested to roll over some funds to CalSTRS to purchase service credit. They ignored the instructions in the acceptance letter (and the enclosed envelope) and mailed the check to their own address! They got that address off of their own form! It took one month and about 7 phone calls to get that fixed. In the end, the check was received but they somehow shorted it by 18 cents.
Then we checked the latest quarterly statement on the web site. (We are signed up for email notification but never have received one.) Two of the contributions were not credited. In the previous quarter one was missing. The representative said they were received but reversed, and he could not see why. They are working on that one now. I have CalSTRS involved too.
Their web site is not too hot either. They have the wrong phone number for CalSTRS, their big new client. I wanted to rebalance but the only option is to do it once a year on your birthday. I’m not impressed. Compared to mine, it’s rudimentary.
Everybody seems to want to help solve these problems but it seems so difficult to fix things. The machine makes a mistake. All they can do is send and instruction to make the machine correct itself, in 7-10 business days. But then it doesn’t. Send another instruction and wait 5 business days; rinse and repeat.
Anyone know when the Quarterly statements are to be expected? I was told they had a legal date when they are to be postmarked and mailed? I have yet to receive mine this quarter. Last January mine took about 3 weeks to get to me. There was an article about this in the Denver paper and they blamed it on the snow. However, no one else took 3 weeks to get anything from other companies?
I just read about and saw that Allison is out. So I did some research on the new CEO. Here is some interesting reading from the WSJ.
http://blogs.wsj.com/law/2008/04/03/harvard-jd-roger-ferguson-tapped-as-new-tiaa-cref-head/?mod=WSJBlog
I have never read so much amusing stuff in my life..
TIAA-CREF is one of the oldest, most well respected financial services company in the US. Most of what has been posted here is just simply untrue. The company had a major systems overhaul from 2003 through 2007. Yes, that did cause some problems regrettably with transactional types of business like withdrawals and transfers etc.. The systems needed to be overhauled because the company tried to continue to plug holes in a Legacy system that was 40 years old.. The company wanted to offer a larger menu of products and services and this systems overhaul was a necessary evil. Herb Allison made tough decisions to make TIAA a company that could compete in this market with the Fidelity’s and the Vanguard’s eating away at TIAA-CREF market share every day. TIAA has had some growing pains but there is a light at the end of the tunnel Most of what the folks on here have written about performance is untrue. TIAA CREF has several 4 and 5 star funds with Morningstar and it credit rating through S&P, Moody’s and Fitch are AAA.. Yes people… AAA! The CREF Stock Variable account has average over 11% since its inception in 1952 and has a measly expense ratio of 39 bps a year. We have several great money managers. You know why TIAA wasnt hurt by the sub prime crisis? Because our money mangers saw it coming long before it happened and unloaded. Talk to most people on your campuses and research hospitals or museums who have invested with TIAA for many years and they will tell you how great a company it is and the fortunes TIAA-CREF has helped them realize with investing long term for their retirement.
Ahh.. RUDI..
Do you know what ERISA is? I suggest you look it up.. Your spouse needs to sign the spousal waiver after you sign the withdrawal paperwork for the amount you wish to receive. Your spouse is basically signing off that she is aware that you are withdrawing funds from a ERISA sponsored retirement account and she is waiving her right to any survivor benefits on that withdrawal. It is the law. The reason her signature has to be notarized after you sign, is that she has to agree to the amount your wanting to withdraw and the notary needs to see that.
After my comment posted on November 21, 2007, I decided to stay the course and give TIAA/CREF one more chance, since they had apparently completed their reorganization and made important changes in their leadership. I recently made 2 separate withdrawals; one on line, the other requested by fax. The response time was extremely fast, and the funds deposited/mailed in record times. This was a distinct change and improvement in service from prior experiences. Those of us who have problems should report them to the highest possible level. On the other hand, when we are well served, it seems appropriate to acknowledge it.
Is “CREF for Life” (#70) suggesting that those of us reporting service problems are making them up? I have been a T-C participant for over 30 years and fully agree that it USED TO BE a great company. Maybe, under the new management, it will be again someday. Comment #72 gives me hope.
F ROBERTS:
I am not suggesting that everyone on this thread is making it up at all. TIAA-CREF had a very rough stretch in which we are still going through, although things are certainly better. It was nightmarish at times with all of our systems issues. Like I said, there were a lot of transactional type problems, like withdrawals, rollovers, trades etc. TIAA wound up damaging its reputation a bit, but the technology changes were completely necessary to keep TIAA a strong organization. Some of the posts here are completely untrue. For someone to say that they made 32% at Fidelity and their TIAA funds made 3% in 12 years is complete garbage. They had to have been in a money market account all that time, if that were true and had no idea what they are doing.. Read about how many funds TIAA has that are 4 and 5 star through Morningstar.. TIAA-CREF has the highest credit ratings in the industry! AAA across the board. Every single TIAA consultant has a 4 year degree and many have CFP or CHFC designations, many have MBAs and many are series 7 registered and have the series 65. To say that TIAA consultants and wealth management advisors are idiots and incompetent is just complete rubbish. What a joke. TIAA-CREF is a great organization and is back on track. Are wealth management group has been rated one of teh best in the industry. Dont believe everything you read about in this blog. There are a quite a few bitter people that experienced trouble and the company as a whole regrets all of it. We have 3 million participants and the truth of the matter only a small percentage were affected.
As a former Wealth Management Advisor, I can say with complete confidence that the ” for the greater good” slogan is rubbish. I hate to burst your bubble by Financial Advisors that have quality designations such as CFP’s etc leave the company about two years after joining it. Quality people don’t stay because there is more money to be made outside the company. In return, the advisors that stay are of lessor quality. You don’t need to believe me, it’s not my money there.
Your loyalty to your employer is admirable, but you might want to re-examine your contention about “every single TIAA consultant.” I recently met a very nice young fellow whose title was “Wealth Management Advisor.” When I googled him to find out something about his qualifications, all I could find was that as of the fall semester, 2005 he was attending a community college. Not that there’s anything wrong with that. I’m not suggesting that he is an “idiot” or “incompetent”; in fact he was on the dean’s list. But if I were looking for someone to guide me through the present economic storms…
Since you are apparently an insider, perhaps you can answer a question I have about TIAA’s consultants. They reportedly do not work on commission but on salary plus an “incentive” based on customer service. Just how does that work? What are the metrics?
The metrics are no different then a chop shop brokerage firm. Don’t let them have you believe that your best interests are being served. As a Wealth Management advisor, I was told that “people want to believe in us, just tell them what they want to hear and have them transfer all the outside accounts over.” TIAA-CREF gets paid to move the accounts, and more importantly, the game plan is to bait and switch to a managed product. Seriously, I have been advising for just over 20 years, I’m a CFP and a darn good and ethical advisor. I’m proud of my commitment to my advisors, TIAA-CREF is misleading people that don’t know the depth of good investment options and quality advice makes a difference to the bottom line.
If you honestly believe that TIAA-CREF appreciates your business. Ask yourself why they do all these “Free” services. It’s because they are dying and they need to collect balances to make up for the lost of market share. What happens when companies are stressed? Their clients pay for it through many channels including fees, mistakes and false sense of quality.
I’m happy to see that you believe that T-C is doing well. On the other hand, in April TIAA-CREF posted a service update on its website that indicates that the system change is not complete and that there are still service problems. I’m not sure why you, as an employee, think that the changes are complete.
My contacts indicate that there are still problems but there has been progress.
I am quite aware of the law. It is the process that was SILLY. Trust me. Had you been in my place, you would have been similarly annoyed by the way that was handled.
After reading comments on T-C, I find that my experiences with them are not unique. I withdrew funds in an emergency two years ago and it took a month of calling everyday to finally get them. A three page, single space letter of complaint received a boiler plate response with no mention of possible corrective measures or even acknowledgemnt of the subject of the problems. As the bulk of my investment was with after-tax dollars, I feel I could have made a wiser choice. Now I want all my money out of this organization but like others, I find that a good portion is in a TIAA Traditional account with a 10% disbursemetn over ten years. Moreover, everyone that one speaks to has a different answer for the same questions. In the previous attempts to get a straight answer I asked the person if he was in the continental United States. He was, and was the first person to give me the information that I needed in a straight forward manner and encouraged me to write the complaint letter. This was at the end of a month of calling to find our where my expected funds were. Wish I had read the other complaints first, I would have taken all my funds two years ago. I started making contributions over twenty five years ago and I could not have anticipated this. I do hope that the service is better as noted in a posting, but if my recent inquiry by phone is any indication of improvement I have faint hope. The information given was convoluted, hard to follow and in terms of forms, numbers were either transposed or did not exist.
In retrospect it would seem that it was designed to discourage contributors from accessing funds.
God help those who have to deal with Colorado. They cannot handle the simplest transaction without piling error on top of error. What should have been the simplest of transactions has turned into the biggest mess, and this isn’t the first time. No one tells the same story. Past problems only were addressed after I contacted New York. Thanks for the SEC, Board of Directors, and other links. I plan to use them.
I would love to see these guys get nailed in some sort of class action suit.
Financially educate yourself before doing anything with your money. Just because TIAA offers free advice, that does not mean that it is good (or necessarily bad) for you. As many of the previous posters have experienced, TIAA sells annuities and once you are in, it is very tough to get out and your return on investment depends on what you are invested in. Annuities are not for everyone, but if your company only offers a 403b plan, you need to understand how they work and how you can get the most return on your investment.
As for the comment by “Cref for life”- bravo, that was a nice sales pitch. Firstly, the average stock fund generates a 10% return over the long term and one can get better expense ratios (as well as lower turnover rates with many Vanguard funds). While Morningstar is a good rating company, just because a fund is four or five-star rated, does not mean that it will make you money. Morningstar bases its ratings on past performance and in the investing world; the past doesn’t necessarily dictate the future (e.g. look at 5 star rated PTRAX- one thinks that they are invested in an interm bond fund, when it is just a high priced money market with about 85% cash) . The AAA rating by S&P, Moody’s and Fitch refer to the quality of fixed-income investments within the fund, not about the fund itself. As many smart investors know, you only want to invest in AAA bonds when you are trying to preserve capital (you are retired or will be retired soon) because being that they are the safest, one gets very little ROI. Lastly, are you sure that TIAA was unscathed from the sub-prime problem? The last I checked, the REIT and stock funds were down a lot and many people are hesitant funding their retirement accts- everyone was hurt by the sub-prime crisis-whether directly or indirectly.
As I reiterate, I suggest that anyone coming to this site for information about the problems with TIAA educate yourself before investing. Just a simple understanding for what and how an annuity works will be beneficial. If you are in NY and still feel uncomfortable or hesitant about investing with them, go across the street to the Fidelity branch and listen to what their advisors say before making a decision. For those who are thinking about taking their money out of TIAA, understand what a 90-24 transfer is and how much of your investment you will be surrendering to TIAA-sometimes it may be beneficial to keep some money at TIAA and allocate the rest somewhere else.
As for my personal opinion, I would invest elsewhere- Vanguard, Fidelity, etc because don’t think the new CEO is going to make TIAA any better, especially after his tenure at Swiss Re and one cannot even get through when calling the New York office.
Joe: What is a “90-24 transfer”? I’ve never encountered the term. Thanks for your post.
Froberts,
A 90-24 is a non taxable direct transfer of 403b monies to another 403b carrier. Problem is if you are still employed, your employer will most likely dictate who you can do the 90-24 to.
Joe,
Sales Pitch? I think not. I speak only of fact.
AAA ratings from Moody’s, S&P, et al also are the prime indicator of a company’s financial strength and claims paying ability. We are not talking about funds here, we are talking about financial strength. TIAA-CREF is only 1 of 4 insurance companies in the United States with AAA ratings from all the major ratings comapnies. This is huge, because in the insurance industry there is no FDIC. Remember Conseco? So youre not getting what I am saying..
Secondly, youre wrong about about average rate of return. The average equity fund returns 7.7 percent over a 30 year period. TIAA-CREF’s expense ratios are every bit as good as Vanguards for the most part.
Thirdly, TIAA has one annuity account (Traditional) that is difficult to get out of because of the illiquidity of the long term investments that it invests in such as long term treasury bonds etc. The TIAA Traditional is a guaranteed fixed account. It is only illiquid in a retirement annuity (RA) and (GRA)contract. It requires a 10 payment over 9 year payout. The liquid TIAA Traditional account pays less interest in an IRA or Supplemental TDA account but it is liquid at any time.. All other CREF accounts and T/C mutual funds are fully liquid at anytime, as long as the employer’s cash rules allow for it. Most institutions are fuly cashable.. SO please dont say that TIAA-CREF annuities are hard to get out of.. They are not, and your statement is simply not true. And by the way, TIAA does not have sales or surrender charges on their CREF annuities.
And lastly, yes, TIAA-CREF came out of the sub prime crisis virtually unscathed. We have some of the best money managers in this country.
Please post your questions and concerns on here and I will look at this site from time to time to help you all with questions and concerns.
Hello,
There are a couple thinks I would like to learn about TIAA-CREF and can’t seem to find. I am hoping that TIAA-CREF employees might fill in the gaps.
First…for a new employee, what are the paid time off benefits? Please presume director level.
Second….would anyone know general pay ranges? Or does it depend too much on the job to even guess? I would be interested in manager, director, and VP.
Third…what percent of salary do people get as a bonus? Again, maybe for manager, director, VP if you are able.
Last…would you be able to tell me the 401K match please?
Thank you!
Hi f roberts, as “Cref for Life” stated, a 90-24 transfer is a way of transferring your 403b to another financial institution and your employer will dictate where the funds can go. You should find out about it as it may be a great financial strategy for you.
“Cref for Life”: I do apologize that I misconstrued your statement about the AAA rating, however my conclusion is still the same-it has nothing to do with the performance of the funds and whether I will make money investing in TC funds. The way you are referring to it, the AAA rating has to do with TC’s ability to pay out its’ claims and obligations and is based on the company’s past performance. As I stated in my prior post-smart investors know that the “past doesn’t necessarily dictate the future” in investing and for young teacher, such as myself, who has about 30 years until retirement, this rating is meaningless. When it is coupled with Morningstar ratings it usually is a “sales pitch” (all that is needed is a little disclosure on the bottom of the post to inform the reader to read the prospectus for risks, fees, etc, before investing).
I think that you are mistaken in your ROI rates and are giving me the average for a domestic equity fund, not a global fund (one that invests in the US and foreign countries) as the CREF variable stock fund is. Either way, past performance is no guarantee that the investor will achieve that rate in the future. However, what is guaranteed is that fund fees will erode the gains. TC funds cannot compare to the low fees (or low turnover rates) of Vanguard (I’m referring to actively traded funds and not the ultra low fees/turnover rates of Vanguard’s index funds or admiral shares).
Also, I still stand by my conviction that it is tough to get out of TC. This is because besides the annuity that you outlined in a prior post, the investor has to deal with incompetence-transactions that should take a few business days, take weeks. I also refer to the TC representatives that can’t help you, transfer you to different branches around the US and the rudeness of the people who you are transferred to (like the caller intentionally wanted to be transferred to these people knowingly that they cannot help him/her). I think that this mentality that the client should be thankful that he/she is able to invest in TC stems from the top executives down and needs to be changed. TC should be thankful that the investor is putting his/her money with them.
So as I reiterate from my prior post, I suggest that everyone reading this board educate yourself financially (a little goes a long way) so that you can see through transparent “sales pitches”, understand why the free advice of putting an annuity (a tax deferred product) within a tax deferred account (403b, 401k) is bad advice and how not to let hidden fees (like transaction costs from turnover rate) erode your gains. Also, a little financial knowledge will allow one to make rational grievances to one’s HR department because unfortunately we all don’t have employers that look out for the best interests of their employees, like the University of Minnesota, who dumped TIAA-CREF last year because of “inaccurate record keeping” and poor customer service.
I really need some help here. I worked for a company for over 13 years. I got laid off in 2001. I was told when I signed up for TIAA Cref that if my job terminated I could leave my money in there or take it out completely. Nobody ever told me about the problems with the Traditional. I was never told by my Human Resources Dept or by TIAA Cref that I had 120 days after termination to take my money. In the meantime, in 2002 I contacted them because a young family member died and I thought I could take my money and help with the funeral. Wrong! Then in 2005 we purchased a new home and I asked again, no only annual annuity. Well in 2006 I got diagnosed with some major medical problems and it has been all downhill since then. I have fallen behind in all my bills and really need my money. I want to know if there is anyway possible to get my money. This is my money, and I need it fast. What can I do. They never explained anything about my plan, I have 2 accounts, just found out I had 2 this year. They are terrible to deal with, they give you different information all the time. I went to an accountant today who is going to try and help. What are my chances. My next step if I get nowhere will be to contact my local Senators office. Any advice, I am having a real hardship here. I am seeing an eye specialist montlhly, rheumatologist and now an onocologist. What am I supposed to do.
Jade,
I am really sorry to hear of your health predicament.
There are ways to get your funds out of a Group Retirement Annuity in the TIAA Traditional. Assuming your former employers plan is cashable, you can do a 5 Year fixed period and liquidate the account entirely. You can also get a retirement transition benefit of 10% up front as a lump sum. If you looked at your GRA contract, you would have seen the 120 day after termination lump sum provision. You all need to understand that you need to read the contract before contributing to a plan. Your benefits officer should have explained how the TIAA Traditional investment works or you should have read the prospectuses first. I am sorry about you illness, and I will be more than happy to answer any questions for you. Dont go hiring an accountant.. This isnt rocket science.. Going to a Senator will not help either.. Big Waste of time.. TIAA has been sued hundreds of times regarding the illiquidity of TIAA Traditional. And everytime the state insurance commisioner throws it out..
Let me know if I can help you further.
TC is not the company it use to be. Depending on the manager you have and the HR rep you get, when your laid off or let go you can get a different outcome. For instance. You either get all your accrued vacation. Or they will take out some for the year or carry over from the previous. Or not even pay you whats accrued. I see they are staffing this site now so who knows what will come back.
In May 2007, I submitted forms to have my annual payouts sent directly to my IRA account with Fidelity. I spoke to numerous counselors [over seven] and each provide new and different information. The process required the submission of “six” complete and notarized forms for each of my three accounts. At one point they cut a check payable to me that had to be returned. I was assured the problem was corrected and checks were sent to my IRA.
In May 2008, I thought to check on the payouts for 2008 and learned they were in the process of sending them to me again instead of my IRA. I was told the 2007 paper work only addressed the 2007 payouts. There was nothing in their files that addressed future years. I again submitted new forms, one for each account. On June 9th I received a note from Fidelity that TIAA-CREF put a stop payment on one check without notificationn to me. I learned after repeated calls they had issued the check with the wrong amount [they withheld taxes and did not apply over due interest]. I also learned they, without authorization, re-invested the other two payouts in TIAA. No one could provide a definitive response on how and when these issues would be resolved.
I am wondering why after my mothers passing is it extremely difficult to reach competent employees of TC to check the status of paperwork that was supposed to be mailed out within the month she passed. Its extremely frustrating when we are coping not only with the untimely loss of our mother but mounting funeral, lawyer fees ect. Does anyone have any suggestions of whom we should contact to file a legitimate complaint? I have been bounced from department to department for 2 months now. Thanks
angsyr77,
If you’re within driving distance of a branch office, get some face time. That’s the only thing I’ve found that works.
Please accept my sympathy on the loss of your mother.
This is going to be long and unbelievable, but it may help others.
Right now TIAA/CREF owes me about $30,000 — a whole year’s living expenses. They sent the checks to the wrong address, which they admit was a computer error.
Where all that money is I don’t know; they won’t get back to me on that. All I can find out is that the post office sent them back to them with a “not at this address” notification?
Even though TIAA/CFEF has my telephone number and e-mail address, they never contacted me when the checks were returned. Wouldn’t any responsible agency, knowing that the retired, non-working recipient is counting on the checks to pay bills, at least try to contact the person when a total of about $30,000 in checks were returned?
But that’s only the start.
Not long before that I tried to change a beneficiary. First, they sent me forms that had to be filled out and notarized. It should have been simple.
I did all that and sent them back. Then I was told they were the wrong forms. They sent out some more forms, which, again, I filled out, had notarized, and sent back.
Then they told me that these, too, were the wrong forms. So they sent out another set (the third set, if you are counting) and I had to do it all over again.
Before long the whole process had to start over again. (And, no, nothing was “questionable”; it should have all been simple and straightforward.)
This time it took most of a year of calls and letters — including registered and overnight letters, which they recommended “to speed things up.”
Each time when I would call to check after a few weeks, I would find that nothing had been done. Not only was it all ignored, but they never told me there was a problem.
About that time I read about the man who had died thinking that his retirement funds would go to his intended beneficiary. But the change had not been made and all the money went to his previously listed beneficiary, his ex-wife.
After about a year of telephone calls and letters and getting nowhere, I sat down with a lawyer and asked what I could do. (I had had a massive heart attack and needed to get this cleared up.) Given the beauracy of TIAA/CREF, his only suggeston was that I keep trying, which by then seemed like only a time-consuming, expensive, and hopeless effort.
At one point I totally “lost it” on one phone call, and maybe that caused them to kick upstairs to a level that I was never allowed to get to before. Someone called and apologized. Then after more forms, it appears that this was finally taken care of.
Shortly thereafter I decided that with this level of incompetence I had better pull my money — a sizable sum — out of TIAA/CREF. As you may know, you can’t just get your money; they make you take it out over about nine years. I knew I would take a hit on income tax, but I figured at least I would have my money.
Wrong.
Despite my repeated instructions on the proper address, the checks were sent to the wrong address. Again, I was never told there was a problem. It was up to me to find out what happened. As of now, I‘m still waiting on the money — a year’s living expenses that they admit they owe me.
At one point I thought that maybe direct deposit would solve the address problem so I requested a direct-deposit form at different times from two of their people. So, far, no form. But maybe I need to wait a few more weeks on that.
Any more when I go to McDonalds or Wal-Mart and see the older people working there, I wonder how many of them worked all their lives, or had spouses who worked all their lives paying into a teachers’ retirement fund only to find out that the money they were counting on “got lost somewhere.”
Be kind to those people; one of them may be me.
Duane22,
It took me over 6 weeks to get $26k out for hardship purposes last summer. My only resolution came from sending a polite letter to the board of trustees (trustees@tiaa-cref.org) clearly outlining the situation. I had a phone call within 4 hours of sending that email and had my money 48 hours after that. Good luck!
It must do some good to be “seen” here, or maybe it was just coincidental. After I posted my letter about $30,000 being misdirected (etc., etc.), I got a call early the next morning — even before I was awake — saying “the check is in the mail.” I hope it is and with the right address.
I’ve also learned a couple things that maybe should be passed along. The web site for TIAA/CREF seems to have been vastly improved. (Even my lawyer couldn’t figure out the needed forms in the earlier version to try to help me.) So, if you haven’t registered for on-line service, that might be a way to go. At least all the forms, etc. are there.
I was asked about the man who died thinking that he had changed his beneficiary from his ex-wife to his children. There’s a moral here. Apparently he wasn’t good at keeping records and a photocopy of the request could not be found among his things. (He grew up in a time when if you requested something like that, you could count on it being done.) Of course my experience, and that of many others, proves otherwise. So keep copies of everything you send in and check to see if what you requested has really been done. Even if there’s a computer problem of some sort, your beneficiaries will have something to take to a judge or lawyer. But, of course, they will have to prove the date on the form.
Finally — I hope it is “finally” in my letters here — I need to note that the telephone counselors have all been very friendly and they’ve tried to be helpful. But the problem seems to be that they are sometimes getting conflicting and erroneous information. I also I get the feeling there is a major disconnect between these people and the other departments at TIAA/CREF and they can’t deliver on their promises.
It would be a great help if they got back to people on major requests instead of just leaving them in limbo and putting the responsibility on them to check to see if requested changes have been made. In this e-mail era it would be easy to send a “case closed” note. But we are left to assume “no news is good news,” when too often “no news” means that while have made the request, nothing has been done.
About two years ago, TC failed to deposit my monthly withdrawals for two months. I was told they were transitioning to a new computer system and having trouble. Evidently, they are still using this very lame excuse, because when my monthly withdrawal and directs deposit didn’t happen for July, I called and was told TC is “transitioning to a new computer system”.
Anyone know if there is a statutory time limit on how long a lame excuse like “new computer problem” can be used? I mean, at least you would think TC could come up with a new excuse. I’m thinking about bailing to Vanguard or Fidelity…. I don’t feel TC is reliable in managing even the most routine processes.
In the back of my mind, I wonder just how fast TC wants to get my (and other’s) retirement disbursement out. I mean, is it not to TC’s advantage to hold onto our money just as long as possible (due to computer glitches, of course)?
In 1997 I took a 10 year payout that concluded last year of all TIAA funds in what I had, at that time, as one TIAA account with a former employer. In 2005 TIAA-CREF split that account into several accounts per some federal regulation. They put some of the TIAA funds in that account and did not pay them out as I instructed them to do in 1997. They claim that since they created these new accounts (to serve me better they said in a letter) that I would have to initiate another ten-year payout. I think this is incorrect and illegal. Anyone else had this problem?
I was a long term employee, who began my career with TIAA-CREF in New York back in 1989. I worked for many years in the companies Actuarial department, where we calculated and processed all of the complicated transactions that you read about throughout this forum.
For example, some of you have said that years of your contributions or your employer contributions were somehow “lost” – well I could figure out how much you should have based on when the funds were received, how much, and what fund you were allocated to at the time. This could include transfers, payouts, ect. We were ALL required at the time to learn the MANUAL calculations needed to determine the outcome if the systems/programs were to go down.
At the time, the majority of the employees at T/C were long term and devoted. We loved working for T/C and were very proud to say that we did. The turn-over rate was practically non-existent.
When they opened the Denver service center, a few core employees relocated, but the majority were new hires. As you could imagine, it took a long time to really learn the in’s and out’s of so many plans, calculations, rules, ect. So to replace that type of staff isn’t something that is done easily.
After 8 years in that role, I moved to the IT group as a Financial Ops Analyst. With my background in the legacy applications, I was well suited in my new role. I was part of a relatively new group if IT analysts that came from the Business Side, and could work effectively on both ends of the spectrum. Our group consisted of ALL the Business Analysts, Change Analysts, and Project Managers. We were the only group like this in the organization. We ran all of the IT projects in the company.
The company was in the midst of setting up shop in Charlotte NC, and many hundreds of dedicated staff relocated to the south, but at the same time, they began to hire new staff to the annuitization and payment operations center, at a considerably LOWER SALARY than the folks who had 10 – 15 years experience.
Just prior to this mainframe system overhaul, Mr. Allison took the reigns, and he thought it would be a good idea to not only displace the higher paid, tenured operations staff with new employees, but to also completely eliminate the entire IT Business Analysis Team in one fell swoop.
So hundreds of folks, who had relocated, who had experience with the legacy systems, who were experienced IT analysts, Project Managers, ect were displaced.
Who was going to run the systems conversion now? Well, they turned to the Business Line Managers. People who had absolutely no IT knowledge, no Project Management knowledge, Managers who had experience in managing PEOPLE not complex systems, the systems that hold your money, transfer your funds, send out your annuity payments, calculate your MDO requirements and distribution amounts, ect.
That is where all the horrors began. They eliminated all the folks who HAD THE knowledge and experience to drive this system platform conversion, and then asked the already heavily burdened operations Managers to take on the additional responsibility of leading IT changes.
It has been about 5 years since they displaced all this knowledge, and from what I hear from my friends still in the company, they have been miserable since the day Mr. Allison took over. Gone was the love for the company, gone was the devotion to service and excellence. In it’s place were hundreds of new employees who had no loyality to the OLD WAY of doing things. In it’s place for those who remained, was the constant fear that at any time they could be axed. People who were putting in 20+ hours of overtime a week, forced to do so to keep up with the work load or get fired (this was insinuated, never spoken outright), but also told that there was no money to pay them overtime. While Mr. Allison was paid millions and millions of dollars.
He ruined a once great place to work, completely ruined it. It didnt surprise me as I kept in touch with what was going on there during the platform conversion. How could they have possibly hoped to be successful at this endevor when they fired all of the folks who could have made it successful? We were told with no advance notice, no previous communication, one day as we walked in that after years of faithful service, we were no longer needed. I had fellow associates who had just pulled up into Charlotte, families who didnt even UNPACK the U-Haul yet that they no longer had a job.
It was a disgrace what happened, and 5 years later things dont seem to be any better over there because of that man.
What I will say though is that TIAA-CREF was a great company once. It really was. We were so proud to work there, and like I stated earlier, working in Actuarial, we made sure that all the work was processed within 3-5 days, sometimes sooner. We had no other choice at the time! We made it happen, but the problems you have experienced was due to two things. New employees and the company converting a platform with no experienced people to run it.
I hope with Mr. Allison out the door, that this new CEO can turn things around and make TIAA-CREF the shining star in the industry that it once was.
I’ve posted here before but it has been quite a while. I probably know the other former T-C employee who recently posted. At the risk of sounding just like former employees from many companies who are disgruntled, I echo the sentiments. I stuck around for a while longer than most but eventually Allison’s axe got to me as well. What made T-C different than other companies was the dedication many of us had to the non-profit , pro-education orientation. Yes, it is a Fortune 500 company but it was more than that. Employees really felt that they were helping an important segment of society. Sadly, that has changed. Those longer term employees who are still there feel as if they are simply hanging on to a job…much like the rest of the workforce. Unfortunately, the customers have suffered. Believe me, the former employees know because we are customers as well.
After reading the latest post from another former employee “WAVES HI!” I just wanted to clarify something – and that is the use of the term disgruntled employee. At the risk of sounding like I’m bragging – I will say this. I was far disgruntled when I left. Sad? Yes, Scared? Yes, but not disgruntled in the sense that the term is usually used.
I worked with Senior Management for weeks after I left to help them locate important files, work flow processes, and documentation for all of the 7 projects I was working on so someone wouldn’t have to spend weeks searching for it. I had several very high level SVP’S continue to give me excellent references as I went on my new job search.
Those references helped me to secure the permenant position I have today.
In the end, being let go from TIAA turned out to be the best thing that ever happened to me. I’m in a job that I love, and believe it or not, I make considerably more than I ever thought possible. Much more than I made at TIAA-CREF.
However, since my heart and soul was at TIAA – I was sad and yes angry at the way things were carried out. The way that we were displaced was very undignified considering the loyalty we had displayed during our years and years at the company.
I knew that what occurred was a very bad move, not only for us, but for the policyholders, and I turned out to be right. If Allison had kept the legacy folks around, I can almos guarentee that the platform conversion would not have turned out the way it did.
I also know how the morale of the staff completely changed after that first mass layoff, and yes, like the previous poster said – The folks there were left hanging onto their jobs. Not a good combination by any means.
So, again, I hope that this new CEO can turn things around and help bring back the awesome reputation in the industry that TIAA once had. I really do.
I have read through most of these comments as I am a current TIAA employee and participant. I am one of the newer guard that has recently taken a position here and have been treated fairly by the company thus far. They have recently increased the amount of vacation time for newer staff members… my guess is in hopes of luring young but experienced staff. The one thing that continues to linger at this organization is a dark tone from nearly all traditional staff members (5+ years of service). Rumors of layoffs fly freely at this company. The latest is a rumor of 10% reduction… note I say RUMOR.
With the new CEO here a restructuring is taking place top down. However, this restructure does not seem to be having dramatic shake ups in any part of the organization. As employees we are often emailed by financial officers requesting (almost desperately) emails and suggestions for areas of cost savings within the organization. I sense that these cost saving requests are the last straw before staff/benefit reductions. If enough money cannot be realized in streamlining the operations themselves then staff will have to be let go to bridge the gap.
I have been at many large institutions and corporations and TIAA is the first I have found that offers a competitive (or more so) salary coupled with a vast array of extremely generous benefits. They continue to support a mammoth beast of an employee retirement plan, the last of the great pensions…. and harbor a large amount of expenditures in health care costs. Something will have to give soon, whether it be benefit or staff reduction… I don’t believe enough cost savings can be realized in the operations of the organization alone.
I am of the opinion that one of the greatest hindrances to efficiency within this organization is the attitude of the old guard. If assurances can be made that all options will be exhausted before layoffs occur (cost savings, benefit reductions etc…) and relayed to staff accordingly it may greatly relieve the pressures felt by employees during everyday work. The saddest thing about TIAA is that the much of the employees joined with the thought of doing good and the purpose of the organization itself is centered around this… unfortunately that is not how much of business (and their new competitors) operate now. They are on a sinking ship that is built on the TIAA-CREF creed.
To DT (#99): If 5 years experience makes an employee “old guard”, that confirms the testimony of other employees who claim that T-C has axed people who knew what they were doing and replaced them with rookies who don’t. And that would explain the problems participants are having with your brave new world.
Who are the “they” on the “sinking ship” – the “traditional employees” or participants? Maybe traditional participants like me, who joined on the basis of the old “creed”, should rethink our investment strategy.
If “business is business,” maybe we’d be better off with Vanguard which is still (as far as I know) being run competently.
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