Fact-checked by Grok 2 weeks ago

TIAA

Teachers Insurance and Annuity Association of America (TIAA) is a financial services organization founded in 1918 by industrialist Andrew Carnegie to address the lack of retirement security for American educators by providing insurance and annuity products. Headquartered in New York City, TIAA primarily serves employees of higher education, medical, research, cultural, and governmental institutions through retirement plans, annuities, investment management, and wealth advisory services, with a focus on lifetime income solutions like its flagship TIAA Traditional fixed annuity, which guarantees principal protection and provides monthly payouts for life. As of June 30, 2025, TIAA and its affiliates, including Nuveen, manage $1.4 trillion in assets under management, making it one of the largest providers of retirement services in the United States. TIAA pioneered portable pensions and variable annuities through the creation of the College Retirement Equities Fund (CREF) in 1952, expanding options for risk-sharing in savings and influencing the broader defined contribution landscape. The organization maintains a mission-driven approach rooted in its origins, emphasizing equitable access to secure , though it has evolved into a entity with for-profit subsidiaries to support growth and diversification. In recent years, has encountered legal challenges, including multiple lawsuits filed in 2024 and 2025 accusing it of breaches, such as selecting high-cost proprietary funds over lower-fee alternatives, excessive fees, and directing participants toward products that benefit the company at the expense of retirement savers.

Overview

Founding and Mission

The Teachers Insurance and Annuity Association () was incorporated on March 4, 1918, as a non-profit company by the for the Advancement of , with a $1 million endowment provided by . , concerned about the financial vulnerabilities of college professors—who often earned modest salaries, enjoyed long life expectancies, and lacked access to affordable commercial due to insurers' reluctance to underwrite their risks—sought to create a sustainable system tailored to academic workers. Under the direction of Henry S. Pritchett, president of the , commenced operations on May 17, 1918, initially focusing on contributory group and for employees of and research institutions. TIAA's foundational mission was to deliver secure, lifetime income to educators and researchers through low-cost, non-profit annuities that prioritized participant benefits over motives, thereby enabling dignified post-career stability in sectors underserved by for-profit markets. This approach innovated by pooling risks across a defined professional group, guaranteeing fixed payouts backed by reserves and , which contrasted with the speculative nature of emerging commercial products. The organization's charter emphasized serving "those who serve others," particularly in non-profit , by fostering financial independence without the conflicts inherent in shareholder-driven entities. While has broadened its scope over decades, its core mission remains rooted in advancing retirement security for workers in , , cultural, and fields via products emphasizing principal protection, income certainty, and responsibility. This enduring commitment reflects Carnegie's philanthropic intent to institutionalize support for intellectual labor, evolving from exclusive educator focus to a broader yet mission-aligned clientele while upholding non-profit governance principles.

Organizational Structure and Scale

TIAA operates as a non-profit organization structured to prioritize the interests of its participants, primarily those in academic, research, , and cultural sectors. Its governance framework features a Board of Governors, consisting of seven members including the president and CEO, each serving seven-year terms, which serves as the sole stockholder and oversees the organization's mission and strategic direction. The Board of Trustees, comprising 13 independent members plus the CEO, handles the day-to-day management of TIAA's operations and is elected by the Board of Governors, with advisory input from participants but no ownership rights for the latter. TIAA maintains taxable subsidiaries to support its activities, including , a wholly owned arm that handles public and private assets for TIAA and external clients. is headed by President and CEO Thasunda Brown Duckett, supported by executive teams overseeing areas such as risk, compliance, legal, and . This dual-board system ensures alignment with TIAA's founding principles of participant-focused , distinct from for-profit models. In terms of scale, TIAA manages approximately $1.441 trillion in as of June 30, 2025, encompassing affiliates and TIAA's internal teams. It employs around 16,000 individuals and serves more than 5 million active and retired participants across over 15,000 institutions, including non-profits and educational entities. This positions TIAA as a 100 provider with a focus on security for mission-driven sectors.

History

Establishment and Early Expansion (1918–1960)

The Teachers Insurance and Annuity Association (TIAA) was established on October 26, 1918, as a nonprofit life insurance company chartered in New York State, following a $1 million grant from the Carnegie Corporation of New York to the Carnegie Foundation for the Advancement of Teaching (CFAT). This initiative stemmed from Andrew Carnegie's earlier efforts, including a 1905 pension fund for higher education faculty that proved financially unsustainable due to increasing longevity and participation, prompting a shift to a fully funded, contributory model under CFAT president Henry S. Pritchett's oversight. TIAA's core mission focused on providing retirement annuities and life insurance to college professors, who faced low salaries and inadequate savings mechanisms, with initial products offered at rates 10% below commercial market equivalents to leverage nonprofit efficiencies and eliminate sales commissions. In its formative years, emphasized joint employer-employee contributions—typically 5% each of salary—to fund portable, nonforfeitable , fostering adoption among academic institutions without reliance on agents. contracts expanded fourfold between 1925 and 1935, with participation growing to 139 institutions by 1928 and 105 of 117 surveyed colleges mandating joint contributions by 1935, reflecting 's appeal amid the Great Depression's economic pressures. Investments remained conservative, allocated primarily to high-grade bonds (over 80% of portfolio, with 87% rated A or higher by 1943), preferred shares, and mortgages, yielding steady but modest returns—such as 3.3% interest income in 1942 on $4.4 million amid $10.7 million in premiums. By the late 1930s, achieved operational independence when Carnegie Corporation stock ownership transferred to an autonomous board in , enabling self-governance while maintaining nonprofit status. Post-World War II recovery spurred asset accumulation to $299.6 million by 1950, despite wartime stagnation, as institutional participation broadened. To address inflation risks and fixed-income limitations—exacerbated by declining rates from 4% in 1928 to 2.5% in the late 1930s— launched the College Retirement Equities Fund (CREF) in 1952 as the nation's first variable annuity, permitting investments for potential , with reserves of $6.8 million built to cover contingencies by the mid-1940s. Expansion continued in 1956 with a $5 million grant to develop disability and major medical insurance, diversifying beyond pure products while sustaining 's educator-centric focus through 1960.

Mid-Century Growth and Product Innovation (1960–2000)

During the and , TIAA-CREF experienced substantial asset growth driven by expanding institutional participation and , with total assets reaching $1 billion by 1961, followed by CREF assets exceeding $500 million in 1965 and $1 billion in 1968. This expansion continued into the 1980s, as total assets climbed to $10 billion by 1977, $14.7 billion by 1980, $35.1 billion by 1984, and approximately $60–70 billion by 1988, supported by diversification into direct placement loans, public bonds, and investments yielding 9–10% on average. By 1989, TIAA-CREF served nearly all 4,300 participating institutions, with CREF assets at $35 billion and total assets at $83 billion; assets further surpassed $100 billion by 1990 and reached $367 billion by 2000. Product innovation accelerated in response to participant demand for flexibility and diversification, beginning with the removal of CREF participation limits in 1971, enabling unlimited allocations to variable annuities, alongside the Retirement Transition Benefit allowing up to 10% lump-sum withdrawals. The 1973 launch of Supplemental Retirement Annuities provided voluntary tax-deferred savings options under Section 403(b), while 1974 saw CREF introduce one of the first international stock portfolios. In 1981, partial indexing was implemented for CREF equities to address inflation, and began, generating $48 million in income by 1988; international investments targeted 10% of the portfolio by 1984. The late and marked a surge in new offerings, including the 1985 , the April 1988 CREF with daily unit valuation, and the March 1990 launches of the CREF Account and CREF Social Choice Account, which incorporated socially responsible criteria. January 1990 introduced Teachers , following a series of late- enhancements like extended to public school employees in 1989. By 1997, TIAA-CREF offered six mutual funds targeted at the sector, expanding to the general public in 1998 and serving 1.4 million employees across 4,500 nonprofit institutions by the decade's end. These developments, under leaders like William C. Greenough (until 1979) and (CEO from 1987), emphasized low-cost, participant-driven options amid rising competition.

21st-Century Transformations and Challenges

In 2014, TIAA-CREF acquired Investments for $6.25 billion, a move that diversified its offerings beyond traditional annuities into broader , including , equities, and alternative investments, while boosting total to approximately $800 billion. This acquisition enhanced TIAA's global reach and capabilities in serving institutional clients, aligning with the shift toward defined contribution plans dominant in the . In 2016, the organization rebranded as , dropping "CREF" to simplify its identity, update its logo, and launch a modernized , reflecting efforts to appeal to a broader audience amid in . TIAA navigated the 2008 financial crisis with relative resilience due to its conservative strategy, minimal subprime exposure, and strong capital reserves—five times the required risk-based capital—which enabled it to meet obligations without significant distress, unlike many peers. However, prolonged low interest rates following the crisis compressed margins on guaranteed annuity products, raising costs to deliver fixed income streams and prompting TIAA to emphasize higher-yield in-house alternatives amid participant preferences for low-cost index funds. By 2023, TIAA sold its banking subsidiary, TIAA Bank, to private investors, refocusing resources on core retirement and investment services as part of a strategic pivot away from non-core operations. The organization has encountered regulatory and legal scrutiny over disclosure practices and responsibilities. In 2021, the U.S. Securities and Exchange Commission imposed a $97 million penalty on for inaccurate statements about risks and undisclosed conflicts of interest affecting thousands of customers. Multiple class-action lawsuits under the Employee Retirement Income Security Act (ERISA) have alleged breaches of duty, including steering participants toward proprietary funds with elevated fees to offset revenue losses from competitive pressures, though maintains compliance with its obligations. These challenges reflect broader industry tensions between legacy models and demands for transparency and cost efficiency in .

Products and Services

Core Annuity Offerings

TIAA's core annuity offerings center on fixed and variable products tailored for retirement accumulation and lifetime income, primarily serving nonprofit and educational sectors. The TIAA Traditional annuity, introduced as the organization's foundational product, functions as a fixed deferred annuity that credits interest daily while guaranteeing the return of principal plus a minimum interest rate, typically 3% annually for legacy contracts like the Retirement Annuity (RA), though newer Retirement Choice (RC) contracts guarantee rates between 1% and 3% as declared annually by TIAA. This structure supports steady growth insulated from market volatility, with additional interest potential derived from TIAA's broader investment portfolio, including real estate and bonds, while imposing liquidity restrictions—such as 10 annual installments or delayed withdrawals—to prioritize long-term stability. Upon retirement, accumulations can be annuitized into guaranteed lifetime payments, often structured as single-life or joint-and-survivor options, providing fixed monthly income regardless of longevity or market conditions. Complementing the fixed option, CREF variable annuities—established in as the College Retirement Equities Fund—allow participants to allocate contributions across diversified investment accounts, including , global equity, , , and social choice indices, exposing returns to market performance for potential upside while bearing corresponding principal risk. These contracts feature low expense ratios, typically under 0.5%, and enable flexible lifetime income through annuitization, where payout rates are determined by age, account value, and selected options at conversion. Unlike TIAA Traditional, CREF units fluctuate in value, but historical data shows competitive long-term returns, with the CREF account averaging approximately 5-6% annualized over decades, though past performance does not guarantee future results. Additional core variants include the TIAA Access variable , which permits investment in a broader array of mutual funds beyond CREF's proprietary options, maintaining low fees (around 0.25% mortality and expense risk charge) and lifetime income guarantees upon annuitization. These products are predominantly offered through employer-sponsored defined contribution plans, such as s, emphasizing portability and tax-deferred growth, with TIAA reporting over $200 billion in as of recent filings, underscoring their scale in providing . Participants must weigh the trade-offs of guaranteed stability in fixed annuities against growth potential in variables, as and surrender charges can limit early access.

Retirement Plans and Advisory Services

TIAA specializes in retirement plans designed for nonprofit organizations, , and related sectors, offering tax-advantaged vehicles such as plans that permit pretax or Roth after-tax contributions from employees, often supplemented by employer matches. These plans support , with annual contribution limits aligned to IRS regulations—up to $23,000 for individuals under 50 in 2024, plus catch-up contributions for those 50 and older. Investment choices within plans include target-date funds for age-based , variable annuities through CREF accounts, and fixed annuities like TIAA Traditional, which guarantees principal stability and interest credits backed by TIAA's general account. For smaller entities, TIAA provides SEP IRAs and SIMPLE IRAs, enabling simplified employer contributions without complex administration. Complementing these plans, TIAA's advisory services emphasize holistic retirement preparation, including free personalized consultations for participants to assess savings trajectories, optimize withdrawals, and mitigate longevity risk. The TIAA Retirement Advisor tool employs algorithmic projections to recommend asset allocations and contribution levels aimed at sustaining desired post-retirement income, factoring in variables like and market volatility. Wealth management advisors, drawing on TIAA's century-long focus on institutional savers, deliver tailored strategies for income generation, tax efficiency, and , often integrating annuities for lifetime payouts. In 2024, TIAA disbursed over $5.9 billion in such lifetime income payments to retirees, underscoring the scale of its advisory-supported outcomes. These services manage substantial participant assets, contributing to TIAA's overall $1.387 trillion in as of December 31, 2024, predominantly tied to vehicles for mission-driven employers. Advisory engagement has been linked to higher savings persistence, with annual check-ins provided at no extra cost to refine plans amid economic shifts.

Additional Financial Products

TIAA offers brokerage accounts that enable self-directed investing in diverse assets, including , exchange-traded funds (ETFs), bonds, certificates of deposit (), options (for qualified investors), and s traded on U.S. exchanges. These accounts provide access to over 4,000 no-transaction-fee s, supporting strategies across various investment objectives and risk profiles. TIAA's offerings include featured funds focused on , bonds, international markets, and multi-asset classes, managed with an emphasis on long-term growth and diversification. Beyond investment vehicles, provides health savings accounts (HSAs) and retirement healthcare savings options as part of its broader financial services, aimed at addressing post-retirement medical expenses for eligible participants. These products complement core retirement offerings by facilitating tax-advantaged savings for healthcare costs, often integrated with employer-sponsored plans. TIAA also extends products, including term and permanent options, to support financial planning for individuals and families, though these are secondary to its primary focus on security. Executive benefits solutions, such as plans, are available for organizational leaders, providing customized non-qualified and wealth accumulation tools. All products are subject to prospectuses and regulatory oversight, with performance varying based on market conditions and individual allocations.

Investment Approach

Historical Focus on Annuities and Real Assets

was founded in 1918 through a $1 million grant from the , initiated by to address the lack of retirement security for college professors and educators by offering low-cost, contributory plans. The organization's primary mechanism was the fixed , structured to provide guaranteed lifetime income streams, which differentiated it from traditional pensions by emphasizing portability and individual accumulation for a with high job across institutions. This focus stemmed from Carnegie's recognition of inadequate savings mechanisms for academics, positioning as a nonprofit entity dedicated to stable, long-term payouts backed by pooled contributions. To support these annuity guarantees, TIAA adopted a conservative prioritizing capital preservation and steady income over speculative returns, with comprising about 80% of assets in the early . By the end of 1943, 87% of its holdings were rated A or higher, concentrated in bonds, government securities, and high-grade private corporate debt, reflecting a risk-averse approach that contrasted with the higher equity and allocations of commercial life insurers. The remaining assets included preferred shares and mortgages, introducing limited exposure to real assets via real estate lending, which provided yield stability without excessive volatility. Real assets gained prominence as TIAA sought to diversify income sources for annuity backing amid postwar economic shifts, with direct real estate acquisitions totaling $227 million between 1973 and 1980 to capitalize on property appreciation and rental yields. This evolution built on earlier mortgage holdings, leveraging tangible assets' inflation-hedging properties to sustain fixed payout credibility, though real estate remained secondary to fixed-income securities in the overall portfolio. In 1952, TIAA complemented its fixed annuities with the inaugural variable annuity via the College Retirement Equities Fund, allowing participant-driven equity investments while retaining lifetime income options, thus blending annuity security with growth potential. By the 1990s, this culminated in products like the 1995 TIAA Real Estate Account, a variable annuity enabling direct commercial property exposure for participants, aligning real assets more explicitly with retirement accumulation. Throughout, TIAA's strategy subordinated real assets to annuity obligations, prioritizing empirical yield reliability over market timing to ensure intergenerational solvency for educator retirees.

Modern Portfolio Diversification and Risk Management

In the post-2000 era, has broadened its investment framework to embrace principles, shifting from a primary emphasis on and mortgages to a multi-asset class strategy that includes , private markets, , and equities through its investment management arm. This evolution reflects a liability-driven investment (LDI) approach tailored to the long-duration liabilities of , prioritizing predictability over short-term . As of 2024, the General Account—backing traditional contracts—allocates roughly 85% of its to assets, such as corporate bonds, municipals, and structured credit, with the balance in like commercial and to hedge and enhance yield diversification. Risk management at TIAA integrates quantitative scenario analysis and to set dynamic allocation bands for each asset class, evaluating factors like shifts, spreads, and geopolitical events to maintain against . The organization's Committee oversees periodic rebalancing, ensuring alignments with actuarial assumptions for longevity and payout obligations, while global diversification across geographies and sectors mitigates idiosyncratic risks, such as regional economic downturns. For variable products and target-date funds managed via , glide path mechanisms automatically reduce equity exposure over time—typically starting at 90% equities for young investors and shifting to 40-50% bonds and alternatives near —incorporating historical data on sequence-of-returns risk to protect decumulation phases. This diversified mandate has enabled TIAA to navigate challenges like the and 2022 rate hikes with relative stability, as the General Account's emphasis on investment-grade and illiquid alternatives provided ballast against public market drawdowns. However, critics note that heavy reliance on private assets introduces liquidity risks during stressed periods, though TIAA counters this through conservative leverage limits and long-term holding periods aligned with its mission-driven horizon. Overall, these practices underscore a commitment to capital preservation, with total exceeding $1.3 trillion as of late 2024, predominantly in low-volatility strategies.

Controversies and Legal Issues

Fiduciary Duty Allegations and Lawsuits

In May 2025, former TIAA employee Bryan Byrne filed a in the U.S. District Court for the Southern District of , alleging that breached its duties under the Employee Security Act (ERISA) by mismanaging its own employee plans, including selecting high-cost investment share classes and retaining underperforming proprietary funds despite available lower-cost alternatives. The complaint specifically claims improperly kept the CREF Growth Fund—a proprietary fund—in plan lineups for over 16 years, during which it trailed its index by more than 186 basis points annually since 2009, resulting in billions in alleged losses to participants. In September 2025, the Foundation intervened as co-plaintiff, amplifying claims that prioritized its own profits over participant interests by failing to prudently monitor and replace these funds. A separate ERISA , initiated by the Sanford Heisler Sharp McKnight, accuses TIAA of multiple breaches in client retirement plans by retaining eight underperforming funds and selecting higher-fee share classes of investments that offered identical economic exposure at lower costs elsewhere. The suit contends these decisions violated ERISA's duties of loyalty and prudence, leading to excessive fees and suboptimal returns for plan participants, though it remains ongoing without judicial rulings on the merits. In August 2024, participants in TIAA-sponsored plans filed Kelley v. TIAA in federal court, alleging that TIAA and Morningstar colluded through the "Retirement Advice for You" (RAFV) online tool to steer users toward TIAA's high-margin proprietary funds, such as target-date offerings, in breach of ERISA fiduciary standards and New York state law for non-ERISA plans. Plaintiffs claim the tool's algorithms were designed to maximize TIAA's revenue rather than provide impartial advice, constituting prohibited self-dealing and disloyalty. Earlier litigation includes a 2023 federal court revival of an ERISA suit against TIAA-CREF, where dismissed claims of violations in were partially reinstated for further proceedings, though prior rulings had rejected allegations of disloyalty in rollover solicitations. These cases reflect broader scrutiny of TIAA's practices as a provider, with allegations centering on conflicts between proprietary products and participant outcomes, but TIAA has denied wrongdoing, asserting compliance with ERISA through independent oversight and competitive performance.

Investment Practices and ESG Criticisms

TIAA's investment practices emphasize long-term stability and risk-adjusted returns tailored to retirement savers, primarily through its asset management arm Nuveen, which oversees approximately $1.2 trillion in assets as of 2022. The General Account, which backs fixed annuities, allocates about 85% to fixed income strategies, including investment-grade bonds and mortgages, to generate predictable income streams while minimizing volatility. Diversification extends to equities, real estate, private equity, and infrastructure, with a historical emphasis on real assets like timberland and farmland to hedge inflation and provide uncorrelated returns. These approaches prioritize fiduciary obligations to participants over short-term market trends, avoiding speculative bets in favor of conservative, income-oriented portfolios. In parallel, integrates (ESG) factors into its processes, viewing them as tools for risk management and value identification rather than ideological screens. ESG analysis informs issuer evaluations across , with dedicated responsible investing strategies that exclude certain high-risk sectors like or controversial weapons while engaging companies on improvements. claims this integration has supported competitive performance, citing studies where ESG-scrutinized equities outperformed benchmarks during market stress. However, the firm does not fully divest from carbon-intensive industries, arguing that such exclusions could compromise diversification and long-term yields essential for guarantees. ESG criticisms center on allegations of inconsistency between TIAA's responsible investing rhetoric and its portfolio holdings, particularly in fossil fuels. As of 2022, TIAA held an estimated $78 billion in fossil fuel-related assets, including $9.1 billion in bonds, positioning it as one of the world's largest institutional holders of such securities. Activist groups, including the (CIEL) and the (IEEFA), have accused TIAA of greenwashing—exaggerated environmental claims masking harmful practices—citing investments in infrastructure and oil/gas expansion as incompatible with Paris Agreement-aligned goals or TIAA's net-zero by 2050 pledge. In October 2022, nearly 300 academic clients filed a complaint with the UN (PRI), to which TIAA is a signatory, alleging violations of PRI standards through these holdings and insufficient on risks. The PRI dismissed the complaint in December 2022, finding no breach of its principles and affirming TIAA's discretion in balancing with duties. IEEFA's November 2022 report urged to halt new investments and enhance disclosure, arguing that risks threaten participant returns amid energy transitions. Critics from environmental NGOs, such as As You Sow, highlighted over $1 billion in indirect exposure via funds held by university employees as of February 2025, contending it exacerbates climate risks despite 's branding. has defended its stance, emphasizing empirical evidence that remain economically viable and that politicized could elevate costs for retirees without altering emissions, as supply adjustments follow . Additional scrutiny has targeted 's farmland acquisitions, with activists alleging contributions to land grabs in regions like , though maintains these provide inflation protection and sustainable yields. These debates underscore tensions between activist-driven and 's prioritization of prudent, return-focused investing, with PRI's rejection suggesting the criticisms lack enforceable grounding under current standards.

Performance and Impact

Financial Achievements and Retirement Outcomes

TIAA's expanded to $1.441 trillion as of June 30, 2025, encompassing Investments affiliates and TIAA's investment teams, up from $1.387 trillion at December 31, 2024. This growth underscores TIAA's scale in serving over 4.7 million individual customers and more than 12,000 institutional clients, primarily in , , and nonprofits. The organization's general account, a cornerstone of its offerings, held $298.8 billion in invested assets as of the same date, allocated across public equities, , , and private assets for diversification and stability. The TIAA Traditional Retirement Annuity has demonstrated superior consistency in delivering positive returns with minimal volatility and downside risk relative to peer annuities over the four decades from 1978 to 2018, crediting rates that buffered participants during market downturns like the . Specific funds, such as the Equity Index Fund, posted annualized returns of 15.59% over five years ending in recent periods, outperforming broad market benchmarks in risk-adjusted terms. TIAA's real estate investments, managed through vehicles like the TIAA Real Estate Account, have contributed to long-term yield stability via direct property holdings, yielding competitive total returns amid varying economic cycles. Participant retirement outcomes benefit from TIAA's emphasis on guaranteed lifetime income products, with studies showing that target-date funds incorporating reduce sequence-of-returns risk and improve projected replacement income ratios compared to equity-heavy alternatives. The TIAA Plan Outcome Assessment evaluates readiness via metrics like income replacement targets, revealing that plans with strong options correlate with higher participant preparedness and lower default risks in decumulation. Longitudinal data from 2000 to 2018 indicate TIAA participants increasingly opt for annuitized income streams, supporting sustained retirement spending patterns amid shifting defined contribution landscapes, though outcomes vary by contribution levels and market timing.

Criticisms of Fees, Returns, and Participant Guidance

has faced multiple s alleging excessive fees in its retirement plans, including the selection of higher-cost share classes for investments when lower-fee alternatives were available. In a May 2025 class action filed by former employees, plaintiffs claimed breached duties under ERISA by maintaining high-cost options that eroded participant returns, despite cheaper equivalents offering identical exposure. Similar complaints in a Sanford Heisler McKnight accused of failing to monitor and replace underperforming funds while charging elevated fees, resulting in millions in unnecessary costs to participants. In 2023, agreed to a $97 million settlement to resolve allegations of fraudulently steering customers into higher-fee managed accounts from lower-cost options, with reforms mandated to sales practices. Critics have highlighted TIAA's retention of proprietary funds with allegedly subpar returns relative to benchmarks or peer options. A June 2025 ERISA suit contended that TIAA improperly kept the CREF Growth Fund in plans for 16 years despite consistent underperformance against indices, prioritizing in-house products over participant interests. An amended complaint joined by attorneys in September 2025 alleged that high fees combined with poor investment selections in TIAA's own plans cost employees millions in lost value, pointing to failures in oversight. These claims underscore concerns that TIAA's emphasis on annuities and , while stable, may lag broader market returns in equity-heavy periods, though TIAA disputes the assertions and cites its long-term risk-adjusted performance. Participant guidance has drawn scrutiny for allegedly directing savers toward 's high-margin products rather than optimal choices. An August 2024 lawsuit against and Morningstar claimed their joint for You tool steered users into proprietary annuities and funds to boost TIAA profits, with consultants incentivized via bonuses for meeting persuasion targets. A whistleblower complaint reported in detailed TIAA's push for costly in-house rollovers to offset losses elsewhere, offering limited benefits to participants while enhancing firm revenue. Critics argue such practices exploit participants' trust in nonprofit branding, leading to illiquid or fee-heavy allocations that hinder flexibility in .

References

  1. [1]
    About TIAA: Our Story, Mission, & Values
    Since 1918, TIAA has fought to ensure everyone can retire securely. Learn how TIAA's still fighting to make retirement equitable and accessible to all.
  2. [2]
    The Origins of the Carnegie Foundation for the Advancement of ...
    Under an arrangement negotiated by Andrew Carnegie and CFAT, the Corporation gave $1 million to found the Teachers Insurance Annuity Association of America. The ...
  3. [3]
    TIAA: Retirement Income, Planning, Investing, and Advice
    At TIAA, we believe everyone deserves a secure retirement. Explore our annuities, retirement plans, financial planning, investing & wealth management ...Contact us · Retirement plans · Retirement annuities · Corporate Governance...
  4. [4]
    TIAA Traditional
    TIAA Traditional, our flagship fixed annuity, provides guaranteed growth while saving and monthly retirement checks that last for life.
  5. [5]
    The only thing better than retirement is more of it. - TIAA
    $$1.4T in AUM​​ As of June 30, 2025, assets under management (AUM) across Nuveen Investments affiliates and TIAA investment management teams were $1,441 billion.
  6. [6]
    A History of the Teachers Insurance and Annuity Association
    Feb 17, 2025 · Carnegie funded 2,500 libraries, a museum, a concert hall, and an array of other learning institutions. Andrew Carnegie. Teacher's Pensions.Missing: founded | Show results with:founded
  7. [7]
    TIAA Sued Over Alleged Mismanagement of Employee Retirement ...
    May 20, 2025 · Former employees allege the retirement services provider breached its fiduciary duties by opting for high-cost investment options despite better alternatives.
  8. [8]
    Lawsuit Filed Against TIAA Alleging Mismanagement of Employee ...
    May 21, 2025 · The complaint alleges TIAA breached its fiduciary duties and mismanaged billions of dollars in employee retirement savings by opting for high-cost investment ...
  9. [9]
    Class Action Alleges “Scheme” by TIAA and Morningstar to Drive ...
    Sep 4, 2024 · On August 5, three Named Plaintiffs sued TIAA and Morningstar in the S.D.N.Y., claiming Defendants engaged in a “scheme to enhance corporate ...
  10. [10]
    TIAA ACCESS - SEC.gov
    It was founded on March 4, 1918, by the Carnegie Foundation for the Advancement of Teaching. All of the stock of TIAA is held by the TIAA Board of Overseers ...<|control11|><|separator|>
  11. [11]
    [PDF] TIAA GROUP
    Aug 13, 2025 · Date Incorporated: March 04, 1918 | Date Commenced: May 17, 1918 ... established in 1918 as a legal reserve life insurance company under.Missing: exact | Show results with:exact
  12. [12]
    Andrew Carnegie Popularizes Pensions - Philanthropy Roundtable
    The Carnegie Foundation for the Advancement of Teaching researched, planned, and opened for operation a new Teachers Insurance and Annuity Association in 1918.
  13. [13]
    History of Teachers Insurance and Annuity Association-College ...
    1918: Teachers Insurance and Annuity Association (TIAA) is incorporated as a nonprofit life insurance company with a $1 million endowment from the Carnegie ...
  14. [14]
    Who we serve - TIAA
    At TIAA our mission is to serve those who serve others. We honor participants' life and work with a promise: They can get a monthly retirement check and the ...
  15. [15]
    Corporate Governance & Leadership - TIAA
    We got our start in 1918, helping to make a more secure retirement possible for America's educators. ... Founded in 1918. CREF, Founded in 1952. In a nutshell, ...Missing: exact | Show results with:exact
  16. [16]
    Board of Trustees & Governors - TIAA
    The TIAA Board of Trustees is made up of 13 individuals, plus TIAA's CEO and president, who oversee the management of TIAA.
  17. [17]
    Our leadership team - TIAA
    Our Leadership Team ; Claire Borelli. Chief People Officer ; Mike Cowell. Chief Risk and Compliance Officer ; Bret Hester. Chief Legal Officer ; W. Dave Dowrich.Thasunda Brown Duckett · Sastry Durvasula · David Nason · Kourtney Gibson
  18. [18]
    TIAA | Company Overview & News - Forbes
    Founded: 1918 ; Headquarters: New York, New York ; Country/Territory: United States ; President & CEO: Thasunda Brown Duckett ; Employees: 16,070 ...
  19. [19]
    Who we are | TIAA
    At TIAA, we offer more than a plan. We offer a promise. With TIAA, your employees can get monthly retirement paychecks for as long as they live.
  20. [20]
    [PDF] It's My Retirement Money--Take Good Care of It: The TIAA-CREF Story
    CARNEGIE FREE PENSIONS. Andrew Carnegie and Henry Pritchett established a generous free pension system when the Carnegie Foundation was established in. 1905 ...
  21. [21]
    William C. Greenough - Insurance Hall of Fame
    During the 1970s and 1980s TIAA-CREF continued to develop new solutions for building retirement assets. CREF was one of the first companies to add a portfolio ...
  22. [22]
    https://www.wsj.com/articles/SB10001424052702303887804579500624006036220
  23. [23]
    TIAA-CREF in $6.25B deal to buy Nuveen Investments
    TIAA-CREF, the manager of retirement accounts for teachers, has agreed to buy Nuveen Investments for $6.25 billion, including debt.
  24. [24]
    TIAA-CREF Is Changing its Name - Fortune
    Feb 22, 2016 · The giant financial services company announced today it's shortening its name to “TIAA.” The new name takes the nearly 100-year old organization full circle ...
  25. [25]
    TIAA-CREF Chief On Managing A Financial Mess - NPR
    Oct 21, 2008 · He also says TIAA-CREF managed to avoid the subprime crisis because its subprime exposure was "really insignificant and miniscule." That's ...
  26. [26]
    How TIAA-CREF Weathers Recessions - Forbes
    Jul 10, 2009 · We have five times the required risk-based capital available. And that's what's allowed us to pay, to be able to meet our obligations in our ...Missing: response | Show results with:response
  27. [27]
    More on fixing the American retirement crisis | TIAA
    Finke: Market conditions have been a big challenge. In a low-interest-rate environment like we've had for more than a decade, it costs a lot to buy income.
  28. [28]
    Bank Now Doing Business as EverBank - TIAA
    Aug 1, 2023 · TIAA has completed the sale of TIAA Bank to private investors with extensive experience in financial services.
  29. [29]
    SEC Announces $97 Million Enforcement Action Against TIAA ...
    Jul 13, 2021 · TIAA will pay $97 million to settle charges of inaccurate and misleading statements and a failure to adequately disclose conflicts of interest to thousands of ...
  30. [30]
    To cover losses elsewhere, TIAA pushes costly in-house products ...
    Aug 2, 2024 · TIAA has faced financial challenges in recent years as teachers and others have opted for lower-cost retirement investments.
  31. [31]
    AARP Joins Suit Against TIAA Alleging Mismanagement of ...
    Sep 4, 2025 · Two former TIAA employees yesterday filed an amended complaint claiming the company violated the Employee Retirement Income Security Act by ...Missing: controversies | Show results with:controversies
  32. [32]
    TIAA Traditional Annuity - Duke Human Resources
    Guaranteed Minimum Rate - Under the RC contract, the TIAA Traditional Annuity has a guaranteed minimum interest rate of between 1% and 3%, determined annually.
  33. [33]
    TIAA Traditional annuity contract rules & payout options
    TIAA Traditional contracts are designed to support different retirement planning needs and are available with full liquidity or delayed liquidity.
  34. [34]
    What is an Annuity: Types, Retirement Benefits and Uses | TIAA
    Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association of America (TIAA) and College Retirement Equities Fund (CREF) ...
  35. [35]
    CREF Variable Annuities: Secure Employee Retirement - TIAA
    Explore TIAA's CREF variable annuity options, offering competitive returns and low costs for lifetime income. Enhance employee retirement security today.
  36. [36]
    Plan for Retirement with TIAA Access Variable Annuity
    Discover TIAA Access, a variable annuity that lets you invest in mutual funds with lifetime income options. Enjoy low fees and tailored choices for retirement.
  37. [37]
    [PDF] TIAA Product Primer
    Jan 1, 2025 · TIAA's variable annuity offerings include investment accounts across asset classes, and exposure to commercial real estate. TIAA Traditional ...
  38. [38]
    University of Kentucky Voluntary 403(b) Plan - TIAA
    This plan allows only employee contributions. You may contribute the maximum amount permissible to both the 457(b) and Voluntary 403(b) Retirement Plans, ...
  39. [39]
    Choosing between traditional and Roth 403(b) plan options. - TIAA
    The traditional 403(b) plan option can provide you with immediate potential tax savings by lowering your current taxable income while still offering you long- ...Missing: details | Show results with:details
  40. [40]
    403(b) Retirement Plan - Investment Options - TIAA
    Explore different ways to invest your retirement savings. Hands-off approach Try a one-step solution A target-date fund based on when you'd like to retire.Missing: details | Show results with:details
  41. [41]
    Retirement Account and Plan Options - TIAA
    We offer two options, SEP IRAs and SIMPLE IRAs, and both can serve as a way to save for retirement for you and your employees.Employer plans · Small business plans · Enroll in Your Employer's...
  42. [42]
    Personalized Financial Advice Services - TIAA
    TIAA offers personalized financial advice services free for TIAA participants. Learn more about our on-demand financial planning tool and one-on-one advice.
  43. [43]
    Retirement Advisor Tool Helps You Plan for Retirement - TIAA
    The TIAA Retirement Advisor's objective is to help you reach your desired retirement income goal by helping you define a plan based on asset allocation, ...
  44. [44]
    Financial Planning & Wealth Management Services - TIAA
    Get unparalleled service from a dedicated team of specialists to guide you into retirement by creating an income, legacy and tax plan.Do I need a financial advisor... · Investment Products · Learn more
  45. [45]
    Inflows Into TIAA Traditional Hit 5-Year High | PLANSPONSOR
    Apr 22, 2025 · TIAA paid more than $5.9 billion in lifetime income to retired clients in 2024 and had $1.4 trillion in assets under management as of December ...
  46. [46]
    Financial essentials: saving for retirement - TIAA
    Learn the fundamentals of financial planning for retirement, saving strategies, investment growth & budgeting. Explore tips to start maximizing your ...
  47. [47]
    Brokerage Investment Products - TIAA
    Available investments include mutual funds, stocks, exchange-traded funds (ETFs), bonds and CDs, and options (for those who qualify) that trade on US exchanges.
  48. [48]
    Investment Products - Wealth, Retirement & more - TIAA
    TIAA offers self-directed and managed accounts, IRAs, brokerage with various investments, and options for insurance and health savings accounts.Featured Investment Services · We Offer An Array Of Wealth... · Tiaa Iras
  49. [49]
    Featured mutual funds - TIAA
    TIAA has featured mutual funds which allows you to invest in a collection of stocks, bonds, international funds and multi assets. See how to get started.
  50. [50]
    How to Invest in Mutual Funds and Their Advantages - TIAA
    TIAA Brokerage offers an array of mutual funds representing strategies for virtually every investment objective and risk profile. We offer mutual funds from ...
  51. [51]
    Offering Financial Products Beyond Retirement | TIAA
    TIAA offers services beyond retirement including healthcare solutions like HSAs, retirement healthcare savings, and executive benefits solutions.
  52. [52]
    Performance of Mutual Funds and In-Plan Annuities - TIAA
    Find out about TIAA's most recent investment performance for mutual funds, IRAs and retirement annuities. Learn more today.Investment watchlist · TIAA logo · Personal annuities · Life insurance<|separator|>
  53. [53]
    [PDF] MUTUAL FUND FAMILIES AVAILABLE THROUGH TIAA ...
    Mutual funds are sold only by prospectus and all funds may not be available in all jurisdictions. Investment, insurance and annuity products are not FDIC ...
  54. [54]
    TIAA at a Glance: Rates, Products and Reviews - RetireGuide
    Oct 23, 2024 · TIAA offers unique annuity options tailored for non-profit employees, supported by strong financial backing. Learn how their mission-driven ...<|separator|>
  55. [55]
    TIAA - Carnegie Medal of Philanthropy
    Aug 23, 2019 · By creating the Teachers Insurance and Annuity Association in 1918 with a $1 million grant from Carnegie Corporation of New York, you delivered ...
  56. [56]
    How TIAA's General Account invests for the long term
    TIAA's GA invests mainly in fixed income for stable income, with 15% in alternatives, aiming to hold to maturity and maximize risk-adjusted returns.
  57. [57]
    Asset allocation | TIAA General Account - Nuveen
    Dec 13, 2024 · The TIAA General Account uses long-run strategic asset allocation modeling, favoring private markets, infrastructure, municipal debt, and long- ...
  58. [58]
    Asset allocation | TIAA General Account - Nuveen
    Sep 29, 2022 · Our models run multiple scenarios factoring in different risks that lead to optimal allocation ranges for each asset class along with a target ...Missing: techniques | Show results with:techniques
  59. [59]
    How the TIAA General Account invests for the long-term
    Emily - The GA is a global, highly diversified, multi-strategy portfolio of investments. We are a liability-driven investor, so we focus on generating ...
  60. [60]
    [PDF] Methodology and design - TIAA
    TIAA-CREF Lifecycle funds invest in diversified assets, with asset allocation evolving to become more conservative. The Asset Allocation Committee vets changes.
  61. [61]
    [PDF] THE TIAA GENERAL ACCOUNT Where strength and diversification ...
    TIAA invested asset allocation as of June 30, 2025—$298.8 billion. Public ... Total TIAA assets include, in addition to the General Account, separately ...<|separator|>
  62. [62]
    TIAA General Account: Looking at investing in 2025
    The GA primarily does this through its well-diversified fixed income portfolio, which accounts for around 85% of total invested assets.Missing: strategy | Show results with:strategy
  63. [63]
    TIAA sued for proprietary funds | Ary Rosenbaum - JD Supra
    Jun 30, 2025 · The suit claims that TIAA kept a proprietary fund in its lineup that has been trailing its benchmark since 2009—to the tune of more than 186%.Missing: controversies | Show results with:controversies
  64. [64]
    Workers File Excessive Fee ERISA Class Action Suit Against TIAA
    Jun 23, 2025 · The lawsuit alleges TIAA charged higher fees for the same investments and improperly retained the CREF Growth Fund for 16 years.
  65. [65]
    AARP Enters Proprietary Fund Lawsuit Against TIAA
    Sep 11, 2025 · A new suit claims the plan fiduciaries and their advisor breached fiduciary duties in retaining an underperforming target-date fund too long.
  66. [66]
    AARP Joins Lawsuit Against TIAA Over Alleged Fiduciary Violations
    Sep 12, 2025 · The suit was first filed in May by Bryan Byrne, a former TIAA employee and disabled veteran, who argued that the firm violated fiduciary duties ...
  67. [67]
    TIAA ERISA Class Action | Sanford Heisler Sharp McKnight, LLP
    The Complaint seeks to recover the losses to Plaintiffs' retirement savings caused by the TIAA Defendants' alleged ERISA breaches. Procedural History.
  68. [68]
    TIAA, Morningstar Sued Over Retirement Advice Tool - plansponsor
    Aug 7, 2024 · Retirement plan participants have filed a class action lawsuit against TIAA and Morningstar for allegedly breaching their fiduciary duty ...
  69. [69]
    TIAA-CREF ERISA lawsuit gets second life from judge
    Aug 24, 2023 · A federal judge revived part of a lawsuit against TIAA-CREF for which all allegations of ERISA violations had been dismissed 11 months ago.<|control11|><|separator|>
  70. [70]
    Court Holds That TIAA Was Not Acting as a Fiduciary in Soliciting ...
    Oct 5, 2022 · The complaint, the court felt, did not demonstrate disloyal behavior. Finally, the court dismissed plaintiffs' breach of fiduciary duty ...
  71. [71]
    New ERISA Suit Targets TIAA Proprietary Funds
    and an allegedly inappropriate share class — have been targeted in a new lawsuit.Missing: action | Show results with:action
  72. [72]
    How We Invest - TIAA
    An extensive selection of investment capabilities delivering competitive risk-adjusted returns through all kinds of markets.We Constantly Seek New Ways... · An Extensive Selection Of... · Our Industry Reach Means...Missing: practices | Show results with:practices
  73. [73]
    Responsible investing - TIAA
    From shrinking carbon footprints3 to increasing equality,4 TIAA and our investment manager, Nuveen, are dedicated to shaping a brighter future. Read our latest ...
  74. [74]
    [PDF] ESG integration Uncovering new value and managing risk - TIAA
    Investments subject to ESG scrutiny have not only delivered above-average performance in equities,5 but have also done a better job of maintaining credit ...Missing: criticisms | Show results with:criticisms<|separator|>
  75. [75]
    Fossil Fuels And Prudent Fiduciaries: TIAA Invest Vs TIAA-Divest
    Mar 6, 2025 · The Cornell University Board of Trustees voted to halt new fossil fuel investments in 2022, after taking a serious look at the risk climate change.Missing: controversy | Show results with:controversy
  76. [76]
    TIAA/Nuveen Accused of Greenwashing, Violating UN Climate ...
    Nov 10, 2022 · Complaint alleges Principles for Responsible Investment signatory owns at least $78 billion in fossil-fuel investments.
  77. [77]
    TIAA, World's 4th Largest Holder of Coal Bonds, Evades Climate ...
    Dec 13, 2022 · The PRI's refusal to act effectively enables TIAA to continue to “climate-wash,” through its status as a Signatory to the PRI, its $78 billion ...
  78. [78]
    Trillion-Dollar Pension Fund TIAA Faces Climate-Washing ...
    Oct 19, 2022 · Nearly 300 clients of the $1.2 trillion retirement giant TIAA filed a formal complaint today with the UN-sponsored Principles for Responsible Investment (PRI) ...
  79. [79]
    TIAA members call on PRI to investigate trillion-dollar fund over ...
    Oct 19, 2022 · They are urging the PRI to “investigate and address both TIAA/Nuveen's irresponsible investments and systematic greenwashing practices”.Missing: criticisms | Show results with:criticisms
  80. [80]
    Responsible investment group rejects activist complaint over TIAA
    Dec 12, 2022 · Filers said the coal infrastructure and other portfolio holdings of TIAA and Nuveen clashed with the views of TIAA's academic client base as ...
  81. [81]
    University Employees Worsen Climate Crisis by Investing in Fossil ...
    Feb 6, 2025 · A new analysis from shareholder representative As You Sow found over $1 billion in fossil fuel investments by faculty and staff at five high profile ...Missing: controversy | Show results with:controversy
  82. [82]
    The Performance of TIAA's Traditional Retirement | Institute
    The TIAA Traditional RA has returned the most consistent upside with the least amount of volatility or downside risk over the past four decades.
  83. [83]
    Nuveen Equity Index Fund (TEIHX) Performance - US News Money
    The fund has returned 17.25 percent over the past year, 23.93 percent over the past three years, 15.59 percent over the past five years and 14.56 percent over ...
  84. [84]
    TIAA Real Estate Account QREARX Performance - Morningstar
    QREARX Performance - Review the performance history of the TIAA Real Estate Account fund to see it's current status, yearly returns, and dividend history.
  85. [85]
    [PDF] the impact of TIAA Traditional in qualified default target-date ...
    TDFs without guaranteed products expose participants to increasing interest- rate risk as they approach retirement, and TDFs only address the accumulation phase ...Missing: studies | Show results with:studies
  86. [86]
    [PDF] Driving Better Outcomes with the TIAA Plan Outcome Assessment®
    The TIAA Plan Outcome Assessment (POA) measures retirement readiness using the income replacement ratio, focusing on outcomes and linking to employee readiness.
  87. [87]
    Trends in retirement and retirement income choices by TIAA ...
    Between 2000 and 2018, average retirement ages rose from 64.6 to 65.9 for women and from 65.5 to 67.5 for men. Many new retirees delay drawing down assets, with ...Missing: major transformations
  88. [88]
    Trends in Retirement and Retirement Income Choices by TIAA ...
    Apr 18, 2022 · This paper documents trends over the last two decades in retirement behavior and retirement income choices by participants in TIAA.
  89. [89]
    TIAA Will Pay $97M Settlement for Pushing Customers to Pay Fees
    TIAA will pay $97M for fraudulently pushing customers into higher-fee accounts, taking money from retirement funds, and must reform sales practices.
  90. [90]
    AARP Foundation Joins Case Over TIAA's Plan Management
    Sep 10, 2025 · The class-action suit alleges high fees and poor returns from TIAA cost employees of the financial firm millions of dollars.<|separator|>
  91. [91]
    AARP Attorneys Join ERISA Lawsuit Against TIAA | PLANADVISER
    Sep 5, 2025 · Two former TIAA employees have filed an amended complaint claiming the company violated the Employee Retirement Income Security Act by ...
  92. [92]
    Lawsuit Alleges TIAA, Morningstar, Pushed Participants Into ...
    Aug 7, 2024 · A proposed class action complaint filed by law firm Schlichter Bogard claims TIAA's strategy steered participants to its own retirement investment offerings.