EX-4(A)
TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA
000 Xxxxx Xxxxxx, Xxx Xxxx, XX 00000
RETIREMENT SELECT PLUS CONTRACT
RETIREMENT SELECT PLUS
CONTRACT NO.: [xxxxxxxx]
CONTRACTHOLDER: [National Academy of Sciences]
DATE OF ISSUE: [January 1, 2004]
This contract ("the Contract") was made and delivered in the State of
[New York], and is subject to the laws and regulations thereof.
This contract is issued in consideration of the payment of Premiums by
the Contractholder to Teachers Insurance and Annuity Association of America
("TIAA").
The Contract may be amended by agreement of TIAA and the Contractholder
without the consent of any other person, provided that such change does not
reduce the then current Accumulation of any Annuitant, or any benefit purchased
under the Contract up to that time. TIAA may stop accepting Premiums under the
Contract at any time.
The College Retirement Equities Fund (CREF) is a companion organization
to TIAA. If TIAA deletes the Real Estate Account and the Real Estate Account
was, at any time, available under the terms of the employer plan in connection
with which this contract was issued, then a companion CREF Retirement Select
Plus Contract will be issued, without application, as a funding vehicle for that
employer plan, if such companion contract had not been previously issued.
The provisions contained on the following pages (the Certificate) are
part of the Contract.
/s/ X. Xxxxxxx Xxxxx /s/ Xxxxxxx X. Xxxxxxx, Xx.
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VICE PRESIDENT CHAIRMAN, PRESIDENT AND
AND CORPORATE SECRETARY CHIEF EXECUTIVE OFFICER
TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA
000 XXXXX XXXXXX, XXX XXXX, X.X. 10017-3206
TELEPHONE: [000-000-0000]
RETIREMENT SELECT CERTIFICATE
ANNUITANT: [Xxxx X. Xxxxxxxxx]
CERTIFICATE NUMBER: [X-xxxxxx-x]
DATE OF ISSUE: [01 01 2004]
This certificate states the rights that you, the annuitant, have under a
Retirement Select contract (the Contract) issued by Teachers Insurance and
Annuity Association of America (TIAA) to the contractholder. PLEASE READ YOUR
CERTIFICATE. IT IS IMPORTANT.
GENERAL DESCRIPTION
All premiums for this certificate must be remitted under the terms of your
employer plan. You may allocate your TIAA premiums between the Traditional
Annuity and the Real Estate Account. Your rights under this certificate are
subject to the vesting provisions of your employer plan.
TRADITIONAL ANNUITY. Each premium allocated to the Traditional Annuity buys a
definite amount of lifetime income for you, based on the rate schedule in effect
for your certificate at the time the premium is paid. Your Traditional Annuity
accumulation will be credited with a guaranteed interest rate, and may also be
credited with additional amounts declared by TIAA.
REAL ESTATE ACCOUNT. Each premium allocated to the Real Estate Account buys a
number of accumulation units. YOUR REAL ESTATE ACCOUNT ACCUMULATION IS NOT
GUARANTEED, AND MAY INCREASE OR DECREASE DEPENDING ON INVESTMENT RESULTS. The
Real Estate Account separate account charge is guaranteed not to exceed 2.50%
per year of net assets.
In accordance with your employer plan and the restrictions described in section
58, you may be permitted to choose a lump-sum benefit payment from your
accumulation. TIAA reserves the right to limit lump-sum benefits to not more
than one in a calendar quarter.
When you are ready to start receiving your income, you may, in accordance with
the terms of your employer plan, choose an option from among those described in
your certificate. If you die before your certificate's maturity date, your
accumulation will provide a death benefit for your beneficiary.
THIS CERTIFICATE CANNOT BE ASSIGNED AND IT DOES NOT PROVIDE FOR LOANS.
If you have any questions about your certificate or need help to resolve a
problem, you can contact us at the address or phone number above.
/s/ X. Xxxxxxx Xxxxx /s/ Xxxxxxx X. Xxxxxxx, Xx.
-------------------- ---------------------------
VICE PRESIDENT CHAIRMAN, PRESIDENT AND
AND CORPORATE SECRETARY CHIEF EXECUTIVE OFFICER
GROUP FLEXIBLE PREMIUM DEFERRED ANNUITY
FIXED AND VARIABLE ACCUMULATIONS
NONPARTICIPATING
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INDEX OF PROVISIONS
SECTION SECTION
Accumulation Lump-sum Benefit
- Definition....................................1 - Amount.......................................61
- Real Estate Account..........................39 - Availability of..............................58
- Traditional Annuity..........................36 - Definition...................................16
Accumulation Units - Effective Date...............................59
- Definition...................................38 - Payment of...................................60
- Number of....................................42 - Systematic Withdrawals from
Additional Amounts.................................37 the Real Estate Account............62
Annuity Starting Date Maturity Date......................................17
- Definition....................................2 Net Investment Factor..............................40
- Required Beginning...........................20 Payee..............................................18
Assignment - Void and of no effect.................73 Payment to an Estate, Trustee, etc.................79
Benefits Premiums
- Based on Incorrect Data......................81 - Allocation of................................33
- Requests for.................................85 - Overpayment of...............................84
Business Day........................................4 - Payment of...................................32
Cash Surrender - Taxes........................................34
- Limitations..................................74 Proof of Survival..................................82
Certificate........................................29 Rate Schedule
Claims of Creditors - Change of....................................86
- Protection Against...........................75 - Definition...................................19
Commuted Value......................................5 Real Estate Account
Companion CREF Certificate.........................31 - Deletion of...................................70
Contestability.....................................30 Report of Accumulation.............................71
Contract Restrictions on Distributions
- Consists of..................................28 - IRC Section 401(k)...........................66
Contractholder......................................6 - IRC Section 403(b)...........................67
Correspondence with us.............................85 Second Annuitant...................................21
Death Benefit Separate Account
- Amount of Payments...........................50 - Charge........................................41
- Beneficiary...................................3 - Definition....................................22
- Definition....................................7 - Insulation of.................................69
- Methods of Payment...........................49 Service of Process upon TIAA.......................80
- Naming Your Beneficiary......................48 Spouse's Rights
- Payment of...................................47 - Definition....................................23
- Payments after Death of Beneficiary..........51 - Rights to Benefits............................63
Elections and Changes - Procedure for..............77 - Waiver of Rights..............................64
Employer Plan.......................................8 Surrender Charge...................................24
Employer Plan Fee Withdrawals......................68 Tax-Free Rollover
- Definition....................................9 - Right to......................................78
ERISA..............................................10 Termination of Employment..........................25
Funding Vehicle....................................11 Traditional Annuity................................26
General Account....................................12 Transfers
Income Benefit - Crediting Internal Transfers..................56
- Amount of Payments...........................46 - Definition of Internal Transfer...............14
- Definition...................................13 - Effective Date of Transfers...................55
- Options......................................44 - Internal Transfers from CREF..................54
- Payments during a Guaranteed Period..........45 - Internal Transfers from
- Starting Payments............................43 the Real Estate Account..............52
IRC................................................15 - Systematic Transfers from
Lapse the Real Estate Account..............57
- Protection Against...........................35 - Transfers from the Traditional Annuity........53
Laws and Regulations Valuation Day and Valuation Period.................27
- Compliance with..............................83 Vesting............................................76
Liability of TIAA..................................65
Loans - No provision for...........................72
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PART A: ANNUITANT DATA
Annuitant: [Xxxx X. Xxxxxxxxx]
Social Security Number: [xxx-xx-xxxx]
Date of Birth: [03 17 1963]
Issue Date: [01 01 2004]
Annuity Starting Date: [04 01 2028]
Certificate Number: [X-xxxxxx-x]
Companion CREF Certificate Number: [X-xxxxxx-x/NONE]
Retirement Select Contract Number: [xxxxxxxx]
Contractholder: [National Academy of Sciences]
Employer: [ABC University]
The contract under which this certificate is issued is made and delivered in
[the State of state], and is subject to the laws and regulations thereof.
The minimum Traditional Annuity accumulation interest rate is specified in the
rate schedule. The initial Traditional Annuity accumulation interest rate is [2]
%.
[The only variable account currently available under this certificate is the
Real Estate Account.]
VARIABLE TEXT ENTRIES
[The [beneficiary designation / premium allocation / beneficiary designation and
the premium allocation] in effect for your TIAA [RA, SRA, GRA, GSRA, (or other
product name)] annuity [number xxxxxxxx (if applicable)] as of this
certificate's date of issue is now also in effect for this certificate. [You can
change your premium allocation at any time, as explained in the Allocation of
Premiums section.]
You also have the right to change beneficiaries as explained in your
certificate. [However, any spousal beneficiary waiver currently in effect for
your TIAA [RA, SRA, GRA, GSRA, (or other product name)] annuity [number xxxxxxxx
(if applicable)] cannot be carried over to this certificate, and your spouse
will retain his/her survivor rights required under federal law. In order to
waive your spouse's rights to survivor benefits under your annuity, you must
complete a new waiver and return it to us.]]
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PART B: TERMS USED IN THIS CERTIFICATE
1. Your ACCUMULATION is equal to the sum of your Traditional Annuity
accumulation as described in Part D and your Real Estate Account
accumulation as described in Part E. Your accumulation will provide the
benefits described in your certificate.
2. Your ANNUITY STARTING DATE is the date as of which you first begin to
receive income benefits from your accumulation under this certificate.
Your scheduled annuity starting date is shown on page 3. You may change
your annuity starting date provided that it not be earlier than the
earliest date allowed under your employer plan, nor later than your
required beginning date, as described in section 20.
3. BENEFICIARIES are persons you name, in a form satisfactory to TIAA as
explained in section 48, to receive the death benefit if you die before
your certificate's maturity date.
4. A BUSINESS DAY is any day that the New York Stock Exchange is open for
trading. A business day ends at 4:00 P.M. Eastern time, or when trading
closes on the New York Stock Exchange, if earlier.
5. The COMMUTED (discounted) VALUE is a one-sum amount paid in lieu of a
series of payments that are not contingent upon the survival of an
annuitant. It is less than the total of those payments, because future
interest, included when computing the series of payments, will not be
earned if payment is to be made in one sum. The commuted value of future
payments is therefore the sum of those payments less the interest from the
date of commutation to the date each payment would have been made. The
same interest rate or rates used in computing the benefit payments will be
used to determine the commuted value.
6. The CONTRACTHOLDER is the organization that remits premiums to this
certificate. In accordance with the terms of your employer plan, the
contractholder may exercise certain rights under this certificate.
7. The DEATH BENEFIT is the current value of your accumulation under this
certificate at your death. It will be paid to your beneficiary under one
of the methods set forth in Part G if you die before your certificate's
maturity date.
8. An EMPLOYER PLAN is a plan satisfying the requirements of IRC Section
401(a), 401(k), 403(a), 403(b), 415(m), 457, or any other section
providing similar benefits for employees.
9. EMPLOYER PLAN FEE WITHDRAWALS are amounts deducted from your accumulation
in accordance with the terms of your employer plan to pay fees associated
with the administration of the plan.
10. ERISA is the Employee Retirement Income Security Act of 1974, as amended.
11. A FUNDING VEHICLE is an annuity contract, custodial account, or trust
designated to receive contributions under an employer plan.
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12. The GENERAL ACCOUNT consists of all of TIAA's assets other than those in
separate accounts.
13. An INCOME BENEFIT is a periodic amount payable to you under one of the
income options set forth in Part F.
14. An INTERNAL TRANSFER is the movement of accumulations between your
Traditional Annuity accumulation and your Real Estate Account
accumulation, or between this certificate and a companion CREF
certificate, if any. The provisions concerning internal transfers are set
forth in Part H.
15. The IRC is the Internal Revenue Code of 1986, as amended. All references
to any section of the IRC shall be deemed to refer not only to such
section but also to any amendment thereof and any successor statutory
provisions.
16. A LUMP-SUM BENEFIT is a withdrawal in a single sum of all or part of your
accumulation. The provisions concerning lump-sum benefits are set forth in
Part I.
17. Your certificate's MATURITY DATE is the date as of which all accumulations
under the certificate have been distributed or used to provide annuity
benefits. As of the maturity date all of TIAA's obligations under this
certificate will have been satisfied.
18. The PAYEE is a person named to receive any periodic payments or amounts
due under an income option or method of payment of the death benefit as
explained in sections 45 and 51.
19. The RATE SCHEDULE sets forth the bases for computing the Traditional
Annuity accumulation and any benefits and distributions arising from it.
To the extent permitted by law, TIAA may change the rate schedule for
amounts remitted after the change, as explained in section 86.
20. Your REQUIRED BEGINNING DATE is the latest date on which you can begin to
receive your accumulation in accordance with the rules of the IRC and the
terms of your employer plan. Generally, it is the April 1 following the
calendar year in which you attain age [70 1/2 ] or, if later, the April 1
following the calendar year in which you retire.
21. The SECOND ANNUITANT is the person you name, if you choose to receive
income under a two-life annuity, to receive an income for life if he or
she survives you. You may name any person eligible under TIAA's practices
then in effect to be a second annuitant, subject to the rights of your
spouse as described in Part J.
22. SEPARATE ACCOUNT. All premiums and internal transfers credited to the Real
Estate Account become part of a separate account. The Real Estate Account
is designated as "VA-2" and was established by TIAA in accordance with New
York law to provide benefits under this certificate and other contracts.
The assets and liabilities of separate account VA-2 are segregated from
the assets and liabilities of the general account, and from the assets and
liabilities of any other TIAA separate account.
23. SPOUSE'S RIGHTS. If you are married, your spouse may be entitled to
benefits as described in Part J.
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24. A SURRENDER CHARGE will be assessed against the portion of your
Traditional Annuity accumulation withdrawn to provide any lump-sum
benefit, as shown in the rate schedule.
25. TERMINATION OF EMPLOYMENT for the purpose of determining the availability
of the lump-sum benefit is a bona fide cessation of an employment
relationship with your employer. Dissolution or modification of the
employer plan; changes in the name or affiliation of your employer; leaves
of absence, with or without pay; vacations; or other events not in fact a
termination of employment will not be considered a termination of
employment.
26. The TRADITIONAL ANNUITY refers to the guaranteed annuity benefits under
your certificate. Each premium and internal transfer allocated to the
Traditional Annuity under your certificate buys a definite amount of
lifetime income for you, based on the rate schedule in effect for your
certificate at the time the premium is paid.
27. A VALUATION DAY is any business day, as well as the last calendar day of
each month. Valuation days end as of the close of all U.S. national
exchanges where securities or other investments of the Real Estate Account
are principally traded. Valuation days that aren't business days end at
4:00 p.m. Eastern Time. A VALUATION PERIOD is the time from the end of a
valuation day to the end of the next valuation day.
PART C: CONTRACT AND PREMIUMS
28. The CONTRACT constitutes the entire contract between TIAA and the
contractholder, and the provisions therein alone will govern with respect
to the rights and obligations of TIAA, the contractholder, and you. The
payment of premiums is the consideration for the contract.
The contract may be amended by agreement of TIAA and the
contractholder without the consent of any other person, provided that such
change does not reduce any benefit purchased under the contract up to that
time. Any endorsement or amendment of this certificate, waiver of any of
its provisions, or change in rate schedule will be valid only if in
writing and signed by an executive officer of TIAA.
29. This CERTIFICATE states the rights that you, the annuitant, have under the
contract. It is issued in return for premiums remitted on your behalf.
30. CONTESTABILITY. The contract is incontestable.
31. COMPANION CREF CERTIFICATE. The College Retirement Equities Fund (CREF) is
a companion organization to TIAA. A companion CREF Retirement Select
certificate was issued to you when you received this certificate if
provided for under the terms of your employer plan. The certificate number
for any such companion CREF certificate is shown on page 3. A companion
CREF certificate may be issued to you at a later date in accordance with
section 70.
32. PREMIUMS for this certificate must be remitted under the terms of your
employer plan. Premiums include any transfers, other than internal
transfers, to this certificate from other
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funding vehicles. Premiums may be stopped at any time without notice to
TIAA and then resumed without payment of any past due premium or penalty
of any kind.
TIAA reserves the right to limit to $300,000 the total premiums paid
on this certificate and any other TIAA annuity contract on your life in
any twelve-month period. TIAA reserves the right to stop accepting
premiums under the contract at any time. TIAA will not accept premiums
paid on your behalf after your certificate's maturity date or prior death.
Premiums will be credited to your certificate as of the end of the
business day in which they are received by TIAA at the location that TIAA
will designate by prior written notice.
Elective deferral contributions made to your TIAA or CREF contracts
or certificates may not exceed the annual limits on elective deferrals
described in section 402(g) of the IRC, or as otherwise permitted by law.
TIAA will refund the accumulated value of all excess premiums made to this
certificate, as required by law.
33. ALLOCATION OF PREMIUMS. You allocate premiums between the Traditional
Annuity and the Real Estate Account. If you allocate premiums to the
Traditional Annuity they increase your Traditional Annuity accumulation.
If you allocate premiums to the Real Estate Account, they purchase
accumulation units in the Real Estate Account. You may change your
allocation for future premiums at any time. We will allocate your premiums
according to the most recent valid instructions we have received from you
in a form acceptable to TIAA. If we have not received valid instructions
from you, we will allocate your premiums in accordance with the terms of
your employer plan. Your employer plan may limit your right to allocate
premiums to the Traditional Annuity and/or to the Real Estate Account.
TIAA may stop accepting premiums to the Traditional Annuity or the
Real Estate Account at any time.
34. PREMIUM TAXES. If state or local government premium taxes are incurred,
they will be deducted from your certificate accumulation, to the extent
permitted by law.
35. UNCONDITIONAL PROTECTION AGAINST LAPSE. Your certificate will not lapse
after the first premium has been paid. No additional premiums are
required.
PART D: TRADITIONAL ANNUITY ACCUMULATION
36. Your TRADITIONAL ANNUITY ACCUMULATION is equal to:
A) all premiums allocated to the Traditional Annuity under your
certificate; plus
B) interest credited at the guaranteed interest rate set forth in
the rate schedule; plus
C) any additional amounts credited to the Traditional Annuity
under your certificate; plus
D) any internal transfers to the Traditional Annuity under your
certificate; less
E) any premium taxes incurred by TIAA for your Traditional
Annuity accumulation; less
F) the amount of any lump-sum benefits, employer plan fee
withdrawals, rollovers, transfers, interest payments, and any
required minimum distributions paid from the Traditional
Annuity; less
G) any charges for expenses and contingencies set forth in the
rate schedule; less
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H) any amount applied to provide annuity income or death
benefits; less
I) any surrender charge assessed.
37. ADDITIONAL AMOUNTS. TIAA may credit additional amounts to your Traditional
Annuity accumulation. TIAA does not guarantee that there will be
additional amounts. TIAA will determine at least annually if additional
amounts will be credited.
Any additional amounts credited to your Traditional Annuity
accumulation will buy benefits for you based on the rate schedule
applicable to the premiums or internal transfers that gave rise to such
additional amounts. Additional amounts may also be paid with any
Traditional Annuity benefits payable to you or your beneficiary.
Any additional amounts credited to your Traditional Annuity
accumulation will be credited under a schedule of additional amount rates
declared by TIAA. For a Traditional Annuity accumulation in force as of
the effective date of such a schedule, the additional amount rates will
not be modified for a period of twelve months following the schedule's
effective date. For any premiums and internal transfers applied to the
Traditional Annuity during the twelve-month period described in the
preceding sentence, TIAA may declare additional amounts at rates which
remain in effect through the end of such twelve-month period. Thereafter,
any additional amount rates declared for such premiums and internal
transfers will remain in effect for periods of twelve months or more.
PART E: REAL ESTATE ACCOUNT ACCUMULATION AND UNITS
38. ACCUMULATION UNIT. The value of one accumulation unit is calculated at the
end of each valuation day. The value of an accumulation unit is equal to
the previous day's value multiplied by the net investment factor for the
Real Estate Account.
39. Your REAL ESTATE ACCOUNT ACCUMULATION is equal to the number of
accumulation units you own multiplied by the value of one accumulation
unit. Real Estate Account accumulations are variable and are not
guaranteed; they may increase or decrease depending on investment results.
40. The NET INVESTMENT FACTOR for the Real Estate Account for a valuation
period is based on the amount of accrued real estate net operating income,
dividends, interest and other income during the current period, a
deduction of the separate account charge, both realized and unrealized
capital gains and losses incurred, and other accounting adjustments during
the current period. The precise formula for the net investment factor is A
divided by B, as follows:
A) The value of the Real Estate Account's net assets at the end
of the current valuation period, less any premiums received
during the current period.
B) The value of the Real Estate Account's net assets at the end
of the previous valuation period, plus the net effect of
transactions (e.g. internal transfers, benefit payments) made
at the start of the current valuation period.
41. The SEPARATE ACCOUNT CHARGE covers mortality and expense risk, liquidity
risk, and administrative and investment advisory services. TIAA, at its
discretion, can increase or
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decrease the separate account charge. The separate account charge is
guaranteed not to exceed 2.50% per year of net assets.
42. NUMBER OF ACCUMULATION UNITS. Each premium and each internal transfer
applied to the Real Estate Account on your behalf buys a number of
accumulation units equal to the amount of the premium or internal transfer
divided by the value of one accumulation unit as of the end of the
business day in which the premium or internal transfer is credited. The
number of accumulation units under your certificate will be decreased by
any premium taxes incurred by TIAA for your Real Estate Account
accumulation and by the application of any accumulation units to any
benefits, employer plan fee withdrawals, internal transfers, or any
required minimum distributions paid from the Real Estate Account
accumulation under your certificate. Such transactions will decrease the
number of accumulation units under your certificate by an amount equal to
the dollar value of the transaction divided by the value of one
accumulation unit as of the end of the valuation day on which the
transaction becomes effective.
PART F: INCOME BENEFITS
43. STARTING INCOME BENEFITS. An income benefit will be effective and payment
will begin as of the date you have chosen, if you are then living and:
A) you have chosen one of the income options set forth in section
44;
B) if you choose a one-life annuity, we have received proof of
your age;
C) if you choose a two-life annuity, we have received proof of
your age and the age of your second annuitant; and
D) if your accumulation is subject to the spousal rights
described in Part J, we have received any required waiver of
spouse's rights or proof that you are not married.
You may not begin a one-life annuity after you attain age 90, nor
may you begin a two-life annuity after you or your second annuitant attain
age 90. If your accumulation is less than $5,000 on the effective date of
an income benefit, TIAA may choose instead to pay your accumulation to you
in a single sum.
At any time before you start to receive an income benefit, you may
change the effective date for that income benefit to a date after the
change, by written notice to TIAA as explained in section 77.
44. INCOME OPTIONS are the ways in which you may have income benefits paid to
you. The income options are available from your Traditional Annuity
accumulation only. You can transfer some or all of your Real Estate
Account accumulation to your Traditional Annuity accumulation to receive
benefits under an income option available from the Traditional Annuity.
Also, you may transfer some or all of your Real Estate Account
accumulation to your companion CREF certificate, if any, as described in
section 52, to receive benefits under an income option available under
that certificate.
You may change your choice of income option any time before payments
begin, but once they have begun under an income option, the election to
begin receiving benefits is irrevocable and no change can be made. Any
choice of option or change of such choice must be made by written notice
to TIAA as explained in section 77.
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Your right to elect an option or change such election may be limited
in accordance with section 83 and Part K. If your accumulation is subject
to spousal rights, your choice of an income option is subject to the
rights of your spouse to benefits as explained in Part J. The availability
of certain income options may be restricted by the IRC and by the terms of
your employer plan.
If the plan administrator for your employer plan or his or her
designee notifies us that distribution from your certificate must begin
under the minimum distribution rules of federal tax law, we will begin
distributions satisfying such requirements.
The following are the income options from which you may choose. All
of them provide an income for you, some provide that payments will
continue for the lifetime of a second annuitant and some provide that
payments will continue in any event during a guaranteed period as
explained in section 45. The periodic amount paid to you or a surviving
second annuitant depends on which of these options you choose.
ONE-LIFE ANNUITY. A payment will be made to you each month for as
long as you live. You may include a guaranteed period of 10 or 20
years. If you do not include a guaranteed period, all payments will
cease at your death. If you include a guaranteed period and you die
before the end of that period, monthly payments will continue until
the end of that period and then cease.
TWO-LIFE ANNUITY. A payment will be made to you each month for as
long as you live. After your death, a payment will be made each
month to the second annuitant you have named, for as long as he or
she survives you. You cannot change your choice of second annuitant
after your payments begin. You may include a guaranteed period of 10
or 20 years. If you do not include a guaranteed period, all payments
will cease when you and your second annuitant have both died. You
may choose from among the following forms of two-life annuity.
FULL BENEFIT TO SURVIVOR. At the death of either you or your
second annuitant, the full amount of the monthly payments that
would have been paid if you both had lived will continue to be
paid to the survivor. If you include a guaranteed period and
you and your second annuitant both die before the end of the
period chosen, the full amount of the monthly payments that
would have been paid if you both had lived will continue to be
paid until the end of that period and then cease.
TWO-THIRDS BENEFIT TO SURVIVOR. At the death of either you or
your second annuitant, two-thirds of the monthly payments that
would have been paid if you both had lived will continue to be
paid to the survivor. If you include a guaranteed period and
you and your second annuitant both die before the end of the
period chosen, two-thirds of the monthly payments that would
have been paid if you both had lived will continue to be paid
until the end of that period and then cease.
HALF BENEFIT TO SECOND ANNUITANT. The full monthly income will
continue to be paid as long as you live. After your death, if
your second annuitant survives you, one-half of the monthly
payments that would have been paid if you had lived will
continue to be paid to your second annuitant. If you include a
guaranteed period and you and your second annuitant both die
before the end of the period chosen,
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one-half of the monthly payments that would have been paid if
you had lived will continue to be paid until the end of that
period and then cease.
INTEREST PAYMENTS OPTION. The value of the Traditional Annuity
accumulation placed under this option must be at least $10,000. This
option is only available if you are at least age 55 and it is more
than one year prior to your required beginning date. A payment will
be made to you each month until you die or convert to another income
option. The amount of the payment will be based on the interest
rates that TIAA would otherwise credit to your Traditional Annuity
accumulation. You may not convert to a one-life annuity after you
attain age 90, nor may you convert to a two-life annuity after you
or your second annuitant attain age 90.
If you die before converting, the interest payments option
will be cancelled and no future interest payments will be made.
AUTOMATIC ELECTION PROVISION. If on your required beginning date,
you have not met the requirements for starting income benefits as
described in section 43, you will be deemed to have chosen the form of
benefit distribution, if any, specified by the terms of your employer
plan, if such form of benefit is available under this certificate.
Otherwise, you will be deemed to have chosen a one-life annuity if you are
then single, or the "half benefit to second annuitant" form of the
two-life annuity if you are then married, each with a 10-year guaranteed
period, if allowed under federal tax law.
45. POST-MORTEM PAYMENTS DURING A GUARANTEED PERIOD. Any periodic payments or
other amounts remaining due after your death and the death of your second
annuitant, if any, during a guaranteed period will be paid to the payee
named to receive them. You name the payee at the time you choose the
income option, as described in section 77. You may later change the named
payee. If you choose a two-life annuity, your surviving second annuitant
may change the named payees after your death, unless you direct otherwise.
A payee may choose to receive in one sum the commuted value of any
remaining periodic payments that do not involve life contingencies, unless
you direct otherwise. If no payee was named to receive these payments, or
if no one so named is then living, we will pay the remaining payments due
or the commuted value of the remaining periodic payments in one sum to
your estate, or to the estate of the last survivor of you and your second
annuitant if you chose a two-life annuity.
If a payee receiving payments during a guaranteed period option dies
while payments remain due, the commuted value of any remaining payments
due to that person will be paid to any other surviving payee that you (or
your second annuitant) had named to receive them. If no payee so named is
then living, the commuted value will be paid to the estate of the last
payee who was receiving these benefit payments.
46. The AMOUNT OF PERIODIC INCOME BENEFIT will be determined as of the
effective date for the income benefit by:
A) the amount of your Traditional Annuity accumulation applied to
provide the income benefit;
B) the rate schedule or schedules under which any premiums and
internal transfers were applied to your Traditional Annuity
accumulation;
C) the income option you choose;
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D) if you choose a one-life annuity, your age; and
E) if you choose a two-life annuity, your age and your second
annuitant's age.
If your income benefit would be less than $100 a month, TIAA will
have the right to change to quarterly, semi-annual or annual payments,
whichever will result in payments of $100 or more and the shortest
interval between payments. If different rate schedules apply to different
parts of your Traditional Annuity accumulation, the portion applied to
provide the income benefit chosen will be allocated among the parts on a
pro-rata basis.
PART G: DEATH BENEFIT
47. PAYMENT OF THE DEATH BENEFIT. If you die before your certificate's
maturity date, the death benefit will be payable to your beneficiary. We
must receive the following in a form acceptable to TIAA before any death
benefit will be paid:
A) proof of your death;
B) the choice of a method of payment as provided in section 49;
and
C) proof of the beneficiary's age if the method of payment chosen
is the one-life annuity.
Payment under the single-sum payment method will be made effective
as of the date we receive these items; payment under the one-life annuity
method of payment will be effective and begin no later than the first day
of the month after we have received these items.
Upon receipt of proof of your death, we will divide your
accumulation into as many portions as there are validly designated
beneficiaries for your certificate. If different rate schedules apply to
different parts of your Traditional Annuity accumulation, the resulting
portions will be allocated among the parts on a pro-rata basis. Each
validly designated beneficiary will then have the right to make elections
available under this certificate in connection with his or her portion of
the accumulation.
48. NAMING YOUR BENEFICIARY. Beneficiaries are persons you name to receive the
death benefit if you die before your certificate's maturity date. At any
time before your certificate's maturity date, you may, subject to the
terms of your employer plan, name, change, add or delete your
beneficiaries by written notice to TIAA, as explained in section 77. If
your accumulation is subject to spousal rights, then your right to name a
beneficiary for the death benefit is subject to the rights of your spouse
as described in Part J.
You can name two classes of beneficiaries, primary and contingent,
which set the order of payment. At your death, your beneficiaries are the
surviving primary beneficiary or beneficiaries you named. If no primary
beneficiary survives you, your beneficiaries are the surviving contingent
beneficiary or beneficiaries you named. The share of any named beneficiary
in a class who does not survive will be allocated in equal shares to the
beneficiaries in such class who do survive, even if you've provided for
these beneficiaries to receive unequal shares.
The death benefit will be paid to your estate in one sum if: you
name your estate as beneficiary; or none of the beneficiaries you have
named is alive at the time of your death; or
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at your death you had never named a beneficiary. If distributions to a
named beneficiary are barred by operation of law, the death benefit will
be paid to your estate.
If at your death any distribution of the death benefit would be in
conflict with any rights of your spouse under law that were not previously
waived, TIAA will pay the death benefit in accordance with your spouse's
rights, as described in section 63.
49. METHODS OF PAYMENT are the ways in which your beneficiary may receive the
death benefit. The single-sum payment method is available from your
Traditional Annuity and Real Estate Account accumulations. The other
methods are available from the Traditional Annuity only. Your beneficiary
can, however, transfer some or all of your Real Estate Account
accumulation to the Traditional Annuity in order to receive that portion
of the death benefit under a method of payment available from the
Traditional Annuity. Your beneficiary can also transfer some or all of
your accumulation to CREF in order to receive that portion of the death
benefit under a method of payment offered by CREF. Such transfer can be
for all of your accumulation, or for any part thereof not less than
$1,000.
You may choose the method of payment and change your choice at any
time before payments begin. After your death, your beneficiary may change
the method chosen by you, if you so provide. If you do not choose a method
of payment, your beneficiary will make the choice when he or she becomes
entitled to payments. If the amount of the death benefit due to any one
beneficiary is less than $5,000, TIAA may change the method of payment for
the portion of the death benefit payable to that beneficiary to the
single-sum payment method. The right to elect a method or change such
election may be limited in accordance with section 83.
A beneficiary may not begin to receive the death benefit under the
one-life annuity method after he or she attains age 90. If you die before
your certificate's maturity date and have chosen the one-life annuity
method for a beneficiary who has attained age 90, he or she must choose
another method. Any choice of method or change of such choice must be made
by written notice to TIAA, as explained in section 77.
Generally, the distribution of the death benefit under any method of
payment must be made over the lifetime of your beneficiary or over a
period not to exceed your beneficiary's life expectancy.
If the plan administrator for your employer plan or his or her
designee notifies us that distribution from your certificate must begin
under the minimum distribution rules of federal tax law, we will begin
distributions satisfying such requirements.
The distribution of the death benefit under a method of payment must
be made in such a form and begin at such date as meets the requirements of
the IRC and the regulations thereunder. If such method of payment has not
been chosen to begin by that date, we will elect a method of payment in
accordance with the requirements of the IRC and any regulations
thereunder. The following are the methods of payment:
SINGLE-SUM PAYMENT. The death benefit will be paid to your
beneficiary in one sum.
ONE-LIFE ANNUITY. A payment will be made to your beneficiary each
month for life. A guaranteed period of 10 or 20 years may be
included. If a guaranteed period isn't included, all payments will
cease at the death of your beneficiary. If a guaranteed period is
included and your beneficiary dies before the end of that period,
monthly payments will continue until the end of that period and then
cease, as explained in section 51.
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50. The AMOUNT OF DEATH BENEFIT PAYMENTS will be determined as of the date
payments are to begin by:
A) the amount of your Traditional Annuity accumulation applied to
the method of payment;
B) the rate schedule or schedules under which any premiums and
internal transfers were applied to your Traditional Annuity
accumulation;
C) the method of payment chosen for the death benefit; and
D) if the method chosen is the one-life annuity, the age of your
beneficiary.
If any method chosen would result in payments of less than $100 a
month, TIAA will have the right to require a change in choice that will
result in payments of at least $100 a month. If different rate schedules
apply to different parts of your Traditional Annuity accumulation, the
portion applied to provide the death benefit chosen will be allocated
among the parts on a pro-rata basis.
51. PAYMENTS AFTER THE DEATH OF A BENEFICIARY. Any periodic payments or other
amounts remaining due after the death of your beneficiary during a
guaranteed period will be paid to the payee named by you or your
beneficiary to receive them, by written notice to TIAA as explained in
section 77. The commuted value of these payments may be paid in one sum
unless we are directed otherwise.
If no payee has been named to receive these payments, or if no one
so named is living at the death of your beneficiary, the commuted value
will be paid in one sum to your beneficiary's estate.
If a payee receiving these payments dies before the end of the
guaranteed period, the commuted value of any payments still due that
person will be paid to any other payee named to receive it. If no one has
been so named, the commuted value will be paid to the estate of the last
payee who was receiving these payments.
PART H: TRANSFERS
52. INTERNAL TRANSFERS FROM THE REAL ESTATE ACCOUNT. You may transfer all of
your Real Estate Account accumulation, or any part thereof not less than
$1,000, to your TIAA Traditional Annuity accumulation or your companion
CREF certificate, if any. Any internal transfer to CREF is subject to the
terms of your companion CREF certificate and CREF's Rules of the Fund.
TIAA reserves the right to limit internal transfers from the Real Estate
Account to not more than one in a calendar quarter. TIAA reserves the
right to stop accepting internal transfers to the Traditional Annuity at
any time. Your employer plan may limit your right to transfer to the
Traditional Annuity and/or to a CREF account.
53. TRANSFERS FROM THE TRADITIONAL ANNUITY. You may apply all of your
Traditional Annuity accumulation, or any part thereof not less than
$10,000, to a Transfer Payout Annuity (TPA) to provide:
A) internal transfers to your companion CREF certificate, if any;
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B) internal transfers to the Real Estate Account;
C) cash withdrawals;
D) direct transfers to another funding vehicle under federal tax
law; or
E) tax-free rollovers to a TIAA IRA contract, a CREF IRA
certificate, or to a funding vehicle whether or not it is
offered by TIAA or CREF, as described in section 78.
If different rate schedules apply to different parts of your Traditional
Annuity accumulation, the portion applied to the TPA will be deducted from
among the parts on a pro-rata basis.
TPA payments will be made monthly over an 84-month period. The
amount of each TPA payment will be equal to the total remaining amount to
be transferred divided by the number of remaining TPA payments.
After TPA payments have commenced, you may elect to have the
remaining amount to be transferred, converted to a one-life annuity or
two-life annuity as described in section 44. The amount of income benefit
provided by such a conversion will be in accordance with section 46. While
TPA payments are being made, you may elect to change the destination for
future TPA payments in accordance with A) through E) above.
If you die before all TPA payments have been made, the TPA will be
cancelled and no future TPA payments will be made.
Your request for a TPA must be made by written notice to TIAA as
described in section 77. Each TPA payment to CREF is subject to the terms
of your companion CREF certificate and CREF's Rules of the Fund. Your
employer plan may limit your right to transfer to the Real Estate Account,
or to transfer out of this contract. TIAA reserves the right to stop
accepting TPA payments to the Real Estate Account at any time.
54. INTERNAL TRANSFERS FROM CREF. If you have an accumulation in a companion
CREF certificate, you may transfer from that certificate to this
certificate. Any internal transfer from CREF is subject to the terms of
your companion CREF certificate and CREF's Rules of the Fund. Your
employer plan may limit your right to transfer to the Traditional Annuity
and/or to the Real Estate Account. TIAA reserves the right to stop
accepting internal transfers to the Traditional Annuity and/or internal
transfers to the Real Estate Account at any time.
55. EFFECTIVE DATE OF TRANSFERS. An internal transfer from the Real Estate
Account will be effective as of the end of the business day in which we
receive your written request for an internal transfer. For TPAs, the first
TPA payment will be effective as of the end of the business day in which
we receive your written request to begin the TPA payment stream. You may
defer the effective date of the internal transfer from the Real Estate
Account or the date of the first TPA payment until any business day
following the date on which we receive your written request. TIAA will
determine all values as of the end of the effective date. You can't revoke
a request for an internal transfer after its effective date. The election
to begin TPA payments cannot be revoked after the effective date of the
first TPA payment.
56. CREDITING INTERNAL TRANSFERS. Internal transfers to your Traditional
Annuity accumulation are credited to the Traditional Annuity as of the end
of the effective date of the internal transfer and begin participation in
the Traditional Annuity as of the following day. Internal transfers to
your Real Estate Account accumulation purchase accumulation units as of
the end of the effective date of the internal transfer.
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57. SYSTEMATIC TRANSFERS FROM THE REAL ESTATE ACCOUNT. You may elect to have
transfers made on a systematic basis. Systematic transfers may be made
semi-monthly, monthly, quarterly, semi-annually or annually. Semi-monthly
transfers are made twice a month, with the second payment scheduled 14
days after the first payment. You choose which day the transfer will be
made, except that if the date of a scheduled transfer is not a business
day, the transfer will be made on the following business day. Transfers
will continue until you tell us to stop or your Real Estate Account
accumulation is insufficient to support the transfer. Systematic transfers
are subject to all the provisions described above for transfers, except
that a reduced minimum amount of $100 applies to such transfers.
PART I: LUMP-SUM BENEFITS
58. AVAILABILITY OF THE LUMP-SUM BENEFIT. You may withdraw all of your
Traditional Annuity accumulation, or any part thereof not less than $1,000
as a lump-sum benefit. Such withdrawals can only be made before your
certificate's maturity date and within 120 days after:
A) the date you terminate employment or, if later;
B) the specific date stipulated in your employer plan.
After the 120-day period expires the election of a lump-sum benefit
from your Traditional Annuity accumulation will never again be available.
Lump-sum benefits paid from the Traditional Annuity accumulation will be
reduced by any surrender charge in accordance with the applicable rate
schedule or schedules. At any time you may, subject to the limits
described below, withdraw as a lump-sum benefit all of your Real Estate
Account accumulation, or any part thereof not less than $1,000. TIAA
reserves the right to limit lump-sum benefits from each of your
Traditional Annuity accumulation and your Real Estate Account accumulation
to not more than one in a calendar quarter.
A lump-sum benefit will not be available before the earliest date
permitted under your employer plan. For both the Traditional Annuity and
the Real Estate Account, the availability of a lump-sum benefit may be
limited by your employer plan.
If you have a severance of employment with your employer, we may
choose to distribute your accumulation to you as a lump-sum benefit
(without surrender charge) in accordance with the terms of your employer
plan subject to the restrictions on mandatory distributions under the IRC.
If you are married, your right to receive a lump-sum benefit may be
subject to the rights of your spouse as described in Part J.
Federal tax law may restrict distributions, as described in Part K.
59. EFFECTIVE DATE OF A LUMP-SUM BENEFIT. Any choice of lump-sum benefit must
be made by written notice to TIAA on or before your certificate's maturity
date, as explained in section 77. A lump-sum benefit will be effective as
of the business day on which we receive, in a form acceptable to TIAA:
A) your request for a lump-sum benefit;
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B) verification from your employer of your eligibility for a
lump-sum benefit, and certification of termination of
employment if the lump-sum benefit is requested from the
Traditional Annuity accumulation; and
C) if your accumulation is subject to the spousal rights
described in Part J, a waiver of spouse's rights or proof that
you are not married.
You may choose to defer the effective date of the lump-sum benefit
until any business day following the date on which we receive the above
requirements. In no event, however, can a lump-sum benefit from the
Traditional Annuity accumulation be effective before the date that you
terminate employment or after the 120 day period described in section 58.
TIAA will determine all values as of the end of the effective date.
You can't revoke a request for a lump-sum benefit after its effective
date.
TIAA may defer the payment of a Traditional Annuity lump-sum benefit
for up to six months.
60. PAYMENT OF A LUMP-SUM BENEFIT. A lump-sum benefit may be paid:
A) to you as a cash withdrawal;
B) to another funding vehicle as a direct transfer under federal
tax law; or
C) to a TIAA IRA contract, a CREF IRA certificate, or to a
funding vehicle whether or not it is offered by TIAA or CREF,
as a tax-free rollover as permitted in section 78.
61. AMOUNT OF A LUMP-SUM BENEFIT. If you choose a lump-sum benefit from your
Traditional Annuity accumulation, we will pay the portion of your
Traditional Annuity accumulation you choose, less any surrender charge in
accordance with the applicable rate schedule or schedules. If you choose a
lump-sum benefit from your Real Estate Account accumulation, we will pay
the portion of your Real Estate Account accumulation you choose.
Payment of a lump-sum benefit reduces the accumulation from which it
is paid by the amount chosen, including any surrender charge. If you
choose a lump-sum benefit from your Traditional Annuity accumulation and
different rate schedules apply to different parts of your accumulation,
the reduction will be allocated among the parts on a pro-rata basis.
62. SYSTEMATIC WITHDRAWALS FROM THE REAL ESTATE ACCOUNT. You may elect to have
lump-sum benefits from the Real Estate Account made on a systematic basis.
Systematic withdrawals may be made semi-monthly, monthly, quarterly,
semi-annually or annually. Semi-monthly withdrawals are made twice a
month, with the second payment scheduled 14 days after the first payment.
You choose which day the lump-sum benefit will be paid, except that if the
date of a scheduled lump-sum benefit is not a business day, it will be
paid on the following business day. Withdrawals will continue until you
tell us to stop or until your Real Estate Account accumulation is
insufficient to support the withdrawal. Systematic withdrawals are subject
to all the provisions described above for lump-sum benefits, except that a
reduced minimum amount of $100 applies.
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PART J: SPOUSE'S RIGHTS TO BENEFITS
63. SPOUSE'S RIGHTS TO BENEFITS. If you are married, and all or part of your
accumulation is attributable to contributions made under:
A) an employer plan subject to ERISA; or
B) an employer plan that provides for spousal rights to benefits;
then, only to the extent required by the IRC, ERISA or the terms of your
employer plan, your rights to choose certain benefits are restricted by
the rights of your spouse to benefits as follows:
XXXXXX'S SURVIVOR RETIREMENT BENEFIT. If you are married on the
effective date of an income benefit, the income benefits must be
paid under a two-life annuity with your spouse as second annuitant.
SPOUSE'S SURVIVOR DEATH BENEFIT. If you die before your
certificate's maturity date and your spouse survives you, the
payment of the death benefit to your named beneficiary may be
subject to your spouse's right to receive a death benefit. Under an
employer plan subject to ERISA, your spouse has the right to a death
benefit of at least 50% of any part of your accumulation
attributable to contributions made under such plan. Under an
employer plan not subject to ERISA, your spouse may have the right
to a death benefit in the amount stipulated in the plan.
Your spouse may consent to a waiver of his or her rights to these
benefits, as explained in section 64.
64. WAIVER OF SPOUSE'S RIGHTS. If you are married, your spouse must consent to
a waiver of his or her rights to survivor benefits before you can choose:
A) an income option other than a two-life annuity with your
spouse as second annuitant; or
B) beneficiaries who are not your spouse for more than the
percentage of the death benefit allowed by your employer plan;
or
C) a lump-sum benefit.
D) a cash withdrawal under a transfer payout annuity.
In order to waive the rights to spousal survivor benefits, we must
receive, in a form satisfactory to TIAA, your spouse's consent, or
satisfactory verification that your spouse cannot be located. A waiver of
rights with respect to an income option or a lump-sum benefit must be made
in accordance with the IRC, ERISA, or the applicable provisions of your
employer plan. A waiver of the survivor death benefit may not be effective
if it is made prior to the earlier of the plan year in which you reach age
35 or the severance of your employment with your employer.
Verification of your marital status may be required, in a form
satisfactory to TIAA, for purposes of establishing your spouse's rights to
benefits or a waiver of these rights. You may
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revoke a waiver of your spouse's rights to a survivor death benefit, a
lump-sum benefit or cash withdrawal at any time during your lifetime. You
may revoke a waiver of your spouse's right to a survivor retirement
benefit, for income benefits that have not yet begun, at any time during
your lifetime and before the effective date of the income benefit. Your
spouse may not revoke a consent after the consent has been given.
65. LIABILITY OF TIAA. Any action taken by TIAA in good faith before receiving
written notice of a waiver of rights included in this certificate, or of
revocation of such waiver, will not subject TIAA to liability because our
acts were contrary to what was stated in such waiver or revocation.
PART K: RESTRICTIONS ON DISTRIBUTIONS AND INCOME BENEFITS
66. IRC SECTION 401(k) PLANS. IRC Section 401(k) prohibits the distribution of
the portion of your accumulation attributable to premiums paid as elective
deferrals, except as a tax-free transfer to another funding vehicle, until
you:
A) attain age 59 1/2, in the case of a profit-sharing plan;
B) have a severance from employment with respect to the employer
under whose plan the aforementioned portion is attributable;
C) die;
D) become disabled within the meaning of IRC Section 72(m)(7);
E) encounter financial "hardship" within the meaning of IRC
Section 401(k);
or, if earlier, upon the occurrence of any of the events described in IRC
Section 401(k)(10).
In the case of hardship, IRC Section 401(k) requires that any
earnings credited after December 31, 1988 be unavailable for distribution.
Any request for an early withdrawal due to disability, hardship, or
severance from employment must be submitted with evidence of the
disability, hardship, or severance from employment on forms satisfactory
to TIAA and not inconsistent with applicable law.
67. IRC SECTION 403(b) PLANS. IRC Section 403(b) limits distributions from
your certificate. In general, IRC Section 403(b) prohibits the
distribution to you of the portion of your accumulation equal to:
A) amounts attributable to funds transferred to this certificate
from a custodial account established under IRC Section
403(b)(7); plus
B) amounts attributable to premiums paid to an IRC Section
403(b)(1) annuity contract as elective deferrals under a
salary reduction agreement (within the meaning of IRC Section
403(b)(11)); less
C) the value, if any, of the amounts described in B) determined
as of December 31, 1988.
until you:
(1) reach age 59 1/2;
(2) have a severance from employment with respect to the employer
under whose plan the aforementioned portion is attributable;
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(3) die;
(4) become disabled within the meaning of IRC Section 72(m)(7); or
(5) encounter financial "hardship" within the meaning of IRC
Section 403(b).
In the case of hardship, IRC Section 403(b) generally requires that
any earnings credited after December 31, 1988 and any contributions paid
after December 31, 1988 to a custodial account established under IRC
Section 403(b)(7) that are not elective deferrals under a salary reduction
agreement, will not be available for distribution.
Any request for an early withdrawal due to disability, hardship, or
severance from employment must be submitted with evidence of the
disability, hardship, or severance from employment on forms satisfactory
to TIAA and must not be inconsistent with applicable law.
PART L: GENERAL PROVISIONS
68. EMPLOYER PLAN FEE WITHDRAWALS. The contractholder may, in accordance with
the terms of your employer plan, and with TIAA's approval, instruct TIAA
to withdraw amounts from your accumulation under this certificate, to pay
fees associated with the administration of the plan.
TIAA reserves the right to suspend or reinstate its approval for a
plan to make such withdrawals from your certificate.
The amount and the effective date of an employer plan fee withdrawal
will be in accordance with the terms of your employer plan. TIAA will
determine all values as of the end of the effective date. An employer plan
fee withdrawal cannot be revoked after it has been applied.
An employer plan fee withdrawal reduces the accumulation from which
it is paid by the amount withdrawn.
No surrender charge applies to employer plan fee withdrawals.
If a portion of an employer plan fee withdrawal is paid from your
TIAA Traditional Annuity accumulation and different rate schedules apply
to different parts of your accumulation, such portion of the withdrawal
will be deducted from among the parts on a pro-rata basis.
69. INSULATION OF THE SEPARATE ACCOUNT. TIAA owns the assets in separate
account VA-2. To the extent permitted by law, the assets of the separate
account will not be charged with liabilities arising out of any other
business TIAA may conduct. All income, investment gains and investment
losses of the separate account, whether or not realized, will be credited
to or charged against only that account without regard to TIAA's other
income, gains or losses.
70. DELETION OF THE REAL ESTATE ACCOUNT. TIAA may delete the Real Estate
Account. If the Real Estate Account is deleted and was, at any time,
available under the terms of your employer plan, then a companion CREF
certificate will be issued to you at the time of the deletion, if one had
not been previously issued to you. If you own accumulation units in the
Real Estate Account and it is deleted, you must transfer them to your
Traditional Annuity accumulation or to your companion CREF certificate. If
you don't tell us where to transfer your accumulation units, we'll
transfer them in accordance with the terms of your employer plan.
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71. REPORT OF ACCUMULATION. At least once each year, we will provide you with
a report for your certificate showing the value of your accumulation
(death benefit) as of a date specified in the report.
72. NO LOANS. This certificate does not provide for loans.
73. NO ASSIGNMENT OR TRANSFER. Neither you nor any other person may assign,
pledge, or transfer ownership of this certificate or any benefits under
its terms. Any such action will be void and of no effect.
74. LIMITED CASH SURRENDER BENEFIT. The only provisions for cash surrender
under this certificate are the Lump-Sum Benefits described in Part I and
the Transfer Payout Annuity described in section 53.
75. PROTECTION AGAINST CLAIMS OF CREDITORS. The benefits and rights accruing
to you or any other person under this certificate are exempt from the
claims of creditors or legal process to the fullest extent permitted by
law.
76. VESTING. Subject to your employer plan, the right to receive and exercise
every benefit, option, right and privilege conferred by this certificate
may not be immediately vested in you. In that case, your right to receive
and exercise such benefits, options, rights and privileges will commence
on your vesting date as determined in accordance with your employer plan.
77. PROCEDURE FOR ELECTIONS AND CHANGES. You (or your beneficiaries after your
death) have to make any choice or changes available under your certificate
in a form acceptable to TIAA at our home office in New York, NY, or at
another location that we designate. If you (or your beneficiaries after
your death) send us a notice changing your beneficiaries or other persons
named to receive payments, it will take effect as of the date it was
signed even if you (or any other signer) then die before the notice
actually reaches TIAA. Any other notice will take effect as of the date
TIAA receives it. If TIAA takes any action in good faith before receiving
the notice, we won't be subject to liability even if our acts were
contrary to what was stated in the notice.
For purposes of determining the effective dates of any transactions,
transaction requests will only be deemed to have been received when they
are received by TIAA, or its appropriately designated agent, in good
order, in accordance with procedures established by TIAA or as required by
law. TIAA reserves the right to limit the number of transactions that you
may make effective on a single business day.
78. RIGHT TO A TAX-FREE ROLLOVER. If you or your surviving spouse (or your
spouse or former spouse as an alternate payee under a "qualified domestic
relations order," as defined in the IRC) receive a distribution from your
certificate which qualifies as an eligible rollover distribution under IRC
Section 402(c)(4), any portion of it may be paid as a direct rollover to
an eligible retirement plan. An eligible retirement plan is, to the extent
permitted by law, a plan satisfying the requirements of IRC Section
401(a), 403(a), 403(b), 408 or to the extent that the plan sponsor is a
state or local government, Section 457(b).
Retirement plans eligible for such rollovers may, in the future, be
changed by law. If such changes become effective, your certificate will be
governed by the laws and regulations then applicable.
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YOUR TIAA RETIREMENT SELECT CERTIFICATE
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79. PAYMENT TO AN ESTATE, TRUSTEE, ETC. TIAA reserves the right to pay in one
sum the commuted value of any benefits due an estate, corporation,
partnership, trustee or other entity that isn't a natural person. TIAA
won't be responsible for the acts or neglects of any executor, trustee,
guardian, or other third party receiving payments under this certificate.
If you designate a trustee of a trust as beneficiary, TIAA is not
obliged to inquire into the terms of the underlying trust or any will.
If death benefits become payable to the designated trustee of a
testamentary trust, but:
A) no qualified trustee makes claim for the benefits within nine
months after your death; or
B) evidence satisfactory to TIAA is presented at any time within
such nine-month period that no trustee can qualify to receive
the benefits due,
payment will be made to the successor beneficiaries, if any are designated
and survive you; otherwise payment will be made to the executors or
administrators of your estate.
If benefits become payable to an INTER-VIVOS trustee (the person
appointed to execute a trust created during an individual's lifetime), but
the trust is not in effect or there is no qualified trustee, payment will
be made to the successor beneficiaries, if any are designated and survive
you; otherwise payment will be made to the executors or administrators of
your estate.
Payment to any trustee, successor beneficiary, executor, or
administrator, as provided for above, shall fully satisfy TIAA's payment
obligations under this certificate to the extent of such payment.
80. SERVICE OF PROCESS UPON TIAA. We will accept service of process in any
action or suit against us on this certificate in any court of competent
jurisdiction in the United States or Puerto Rico provided such process is
properly made. We will also accept such process sent to us by registered
mail if the plaintiff is a resident of the jurisdiction in which the
action or suit is brought. This section does not waive any of our rights,
including the right to remove such action or suit to another court.
81. BENEFITS BASED ON INCORRECT DATA. If the amount of benefits is determined
by data as to a person's age or sex that is incorrect, the benefits
payable will be such as the premium paid would have purchased based on the
correct data. Any amounts underpaid by TIAA on the basis of the incorrect
data will be paid at the time the correction is made. Any amounts overpaid
by TIAA on the basis of the incorrect data will be charged against the
payments due after the correction is made. Any amounts so paid or charged
will include compound interest at the effective annual rate of 6% per
year.
82. PROOF OF SURVIVAL. TIAA reserves the right to require satisfactory proof
that anyone named to receive benefits under the terms of your certificate
is alive on the date any benefit payment is due. If this proof is not
received after it has been requested in writing, TIAA will have the right
to make reduced payments or to withhold payments entirely until such proof
is received. If under a two-life annuity TIAA has overpaid benefits
because of a death of which we were not notified, subsequent payments will
be reduced or withheld until the amount of the overpayment, plus compound
interest at the effective annual rate of 6% per year, has been recovered.
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YOUR TIAA RETIREMENT SELECT CERTIFICATE
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83. COMPLIANCE WITH LAWS AND REGULATIONS. TIAA will administer your
certificate to comply with the restrictions of all laws and regulations
pertaining to the terms and conditions of your certificate. You cannot
elect any benefit or exercise any right under your certificate if the
election of that benefit or exercise of that right is prohibited under an
applicable state or federal law or regulation.
The choice of income options and effective dates, annuity starting
date, beneficiary or second annuitant, method of payment of the death
benefit and effective date, and the availability of transfers and lump-sum
benefits as set forth in this certificate are subject to the applicable
restrictions, distribution requirements, and incidental benefit
requirements of ERISA and the IRC, and any rulings and regulations issued
under ERISA and the IRC.
84. OVERPAYMENT OF PREMIUMS. Any payments of premiums made in error by the
contractholder in excess of those required by the employer plan will be
refunded to the contractholder if requested in writing by the
contractholder prior to the certificate's maturity date subject, however,
to prior transfers or lump-sum benefits made from such funds. TIAA is
entitled to rely on information provided by the contractholder. The
contractholder shall indemnify TIAA and hold TIAA harmless for any action
taken in reliance on such request.
85. CORRESPONDENCE AND REQUESTS FOR BENEFITS. No notice, application, form, or
request for benefits will be deemed to be received by us unless it is
received at our home office in New York, NY, or at another location that
we designate. All benefits are payable at our home office or at another
location that we designate. If you have any questions about the contract,
your certificate, or inquiries about our service, or if you need help to
resolve a problem, you can contact us at the address or phone number
below.
[TIAA
000 Xxxxx Xxxxxx
Xxx Xxxx, XX 00000-0000
Telephone: 000 000-0000]
86. CHANGE OF RATE SCHEDULE. We may, at any time and from time to time,
substitute a new rate schedule for the one currently effective in your
certificate. A new rate schedule will apply only to benefits arising from
any premiums and internal transfers applied to the Traditional Annuity
while such rate schedule is in effect. Any change in the rate schedule
will not affect the amount of benefits purchased prior to the change by
any premiums and internal transfers applied to the Traditional Annuity. A
change in the rate schedule will be made only after we have given you and
the contractholder three months' written notice of the change. Any new
rate schedule will specify:
A) the charges for expenses and contingencies;
B) the interest rates and the mortality bases used for
determining benefits arising from amounts applied to the
Traditional Annuity; and
C) any applicable surrender charges on lump-sum benefits arising
from amounts applied to the Traditional Annuity.
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TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA
YOUR TIAA RETIREMENT SELECT CERTIFICATE
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RATE SCHEDULE
RATE SCHEDULE. The benefits bought by any premiums and internal transfers
applied to the Traditional Annuity while this rate schedule is in effect
will be computed on this basis:
(1) no deduction for expenses or contingencies, except for any
premium taxes incurred by TIAA for your certificate and except
for any employer plan fee withdrawals in accordance with the
terms of your employer plan;
(2) interest from the end of the day on which the premium or
internal transfer is credited, to the date that such amount is
deducted from the Traditional Annuity accumulation, in
accordance with section 36, as follows:
For premiums and internal transfers applied to the Traditional
Annuity in any calendar year, the minimum effective annual
interest rate, to be credited will be set equal to the CMT
less 0.0125, rounded to the nearest 0.0005, provided however
that the minimum rate will never be less than 1.5% nor greater
than 3%. For each calendar year, the CMT is the average
five-year Constant Maturity Treasury Rate reported by the
Federal Reserve for the calendar month of [November],
preceding that year.
We may make future changes to the choice of calendar month for
which the average five-year Constant Maturity Treasury Rate
will be used to set the CMT. Any such change will be effected
only after obtaining any approvals required by the insurance
regulatory authority of the jurisdiction shown on page 3, and
will also be made to all other certificates written on this
form and delivered in that jurisdiction. Any such change will
be made only after we have given you three months' written
notice.
(3) interest at the effective annual rate of 2% after the date
that payments begin under a one-life or two-life annuity; and
(4) mortality according to the Annuity 2000 Mortality Table
(Merged Gender Mod A), with ages set back three months for
each completed year between December 31, 2000 and the date
that payments begin under a one-life or two-life annuity.
A SURRENDER CHARGE of 2.5% will be deducted from any lump-sum benefit from
the Traditional Annuity arising from amounts applied to the Traditional
Annuity while this rate schedule is in effect.
These rate guarantees cease to apply to any Traditional Annuity
accumulations that you transfer to the Real Estate Account or to your
companion CREF certificate, if any.
BETTERMENT OF RATES. When you or your beneficiary begin benefits under a
one-life or two-life annuity, we will compute any benefits provided by the
portion of your Traditional Annuity accumulation resulting from amounts
applied to the Traditional Annuity while this rate schedule is in effect
on the basis stated above, or, if it produces a larger guaranteed benefit,
on the basis then in use for any single premium immediate annuities
offered by TIAA to contracts of the same class as the contract under which
this certificate is issued.
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TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA
YOUR TIAA RETIREMENT SELECT CERTIFICATE
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============================================================================================================
GUARANTEED ANNUAL AMOUNT OF INCOME BENEFITS UNDER THE ONE-LIFE
ANNUITY WITH 10-YEAR GUARANTEED PERIOD OPTION
PROVIDED BY $10,000 FROM YOUR ACCUMULATION
(ASSUMING A PREMIUM TAX RATE OF 0%)
One-twelfth of the amount shown is payable each month
------------------------------------------------------------------------------------------------------------
Adjusted Age Annual Amount of Adjusted Age Annual Amount of Adjusted Age Annual Amount of
When Payments Monthly Benefit When Payments Monthly Benefit When Payments Monthly Benefit
Begin Payments Begin Payments Begin Payments
------------------------------------------------------------------------------------------------------------
40 $309.20 57 $390.38 74 $568.43
41 $312.54 58 $397.25 75 $584.44
42 $316.02 59 $404.44 76 $601.22
43 $319.65 60 $411.96 77 $618.78
44 $323.43 61 $419.85 78 $637.13
45 $327.38 62 $428.13 79 $656.25
46 $331.50 63 $436.82 80 $676.14
47 $335.79 64 $445.95 81 $696.74
48 $340.27 65 $455.55 82 $718.03
49 $344.94 66 $465.65 83 $739.91
50 $349.82 67 $476.29 84 $762.31
51 $354.90 68 $487.50 85 $785.11
52 $360.20 69 $499.31 86 $808.15
53 $365.73 70 $511.75 87 $831.28
54 $371.50 71 $524.86 88 $854.30
55 $377.52 72 $538.66 89 $877.00
56 $383.81 73 $553.18 90 $899.17
------------------------------------------------------------------------------------------------------------
The yearly payments shown above are those that result from the application
of an accumulation of $10,000 (assuming a premium tax rate of 0%) in the
Traditional Annuity to the specified income option when the annuitant has
attained an adjusted age as shown, but has not passed the date on which
that adjusted age was attained by as much as one month.
The annuitant's adjusted age equals the annuitant's actual age minus
three months for each completed year between December 31, 2000 and the
date that payments begin under a one-life or two-life annuity. All ages
used in computing benefits are calculated in completed years and months.
Payments beginning at ages other than those shown, and under other income
options, are computed on the basis stated in the rate schedule. For
accumulations other than $10,000, payments will be proportionate.
================================================================================
GROUP FLEXIBLE PREMIUM DEFERRED ANNUITY
FIXED AND VARIABLE ACCUMULATIONS
NONPARTICIPATING
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Page RS2
TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA
000 Xxxxx Xxxxxx, Xxx Xxxx, XX 00000
RETIREMENT SELECT PLUS CONTRACT
RETIREMENT SELECT PLUS
CONTRACT NO.: [xxxxxxxx]
CONTRACTHOLDER: [National Academy of Sciences]
DATE OF ISSUE: [January 1, 2004]
This contract ("the Contract") was made and delivered in the State of
[New York], and is subject to the laws and regulations thereof.
This contract is issued in consideration of the payment of Premiums by
the Contractholder to Teachers Insurance and Annuity Association of America
("TIAA").
The Contract may be amended by agreement of TIAA and the Contractholder
without the consent of any other person, provided that such change does not
reduce the then current Accumulation of any Annuitant, or any benefit purchased
under the Contract up to that time. TIAA may stop accepting Premiums under the
Contract at any time.
The College Retirement Equities Fund (CREF) is a companion organization
to TIAA. If TIAA deletes the Real Estate Account and the Real Estate Account
was, at any time, available under the terms of the employer plan in connection
with which this contract was issued, then a companion CREF Retirement Select
Plus Contract will be issued, without application, as a funding vehicle for that
employer plan, if such companion contract had not been previously issued.
The provisions contained on the following pages (the Certificate) are
part of the Contract.
/s/ X. Xxxxxxx Xxxxx /s/ Xxxxxxx X. Xxxxxxx, Xx.
-------------------- ---------------------------
VICE PRESIDENT CHAIRMAN, PRESIDENT AND
AND CORPORATE SECRETARY CHIEF EXECUTIVE OFFICER
TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA
000 XXXXX XXXXXX, XXX XXXX, X.X. 10017-3206
TELEPHONE: [000-000-0000]
RETIREMENT SELECT PLUS CERTIFICATE
ANNUITANT: [Xxxx X. Xxxxxxxxx]
CERTIFICATE NUMBER: [X-xxxxxx-x]
DATE OF ISSUE: [01 01 2004]
This certificate states the rights that you, the annuitant, have under a
Retirement Select Plus contract (the Contract) issued by Teachers Insurance and
Annuity Association of America (TIAA) to the contractholder. PLEASE READ YOUR
CERTIFICATE. IT IS IMPORTANT.
GENERAL DESCRIPTION
All premiums for this certificate must be remitted under the terms of your
employer plan. You may allocate your TIAA premiums between the Traditional
Annuity and the Real Estate Account. Your rights under this certificate are
subject to the vesting provisions of your employer plan.
TRADITIONAL ANNUITY. Each premium allocated to the Traditional Annuity buys a
definite amount of lifetime income for you, based on the rate schedule in effect
for your certificate at the time the premium is paid. Your Traditional Annuity
accumulation will be credited with a guaranteed interest rate, and may also be
credited with additional amounts declared by TIAA.
REAL ESTATE ACCOUNT. Each premium allocated to the Real Estate Account buys a
number of accumulation units. YOUR REAL ESTATE ACCOUNT ACCUMULATION IS NOT
GUARANTEED, AND MAY INCREASE OR DECREASE DEPENDING ON INVESTMENT RESULTS. The
Real Estate Account separate account charge is guaranteed not to exceed 2.50%
per year of net assets.
Subject to the terms of your employer plan, you may withdraw all or part of your
accumulation before your certificate's maturity date. You may transfer between
your Traditional Annuity accumulation and your Real Estate Account accumulation,
or from either of those accumulations to a companion CREF certificate, if any.
Withdrawals and transfers from the Traditional Annuity are subject to the
surrender charges, if any, specified in your certificate's rate schedule. TIAA
can establish new rate schedules in the future, but any such changes would not
affect benefits purchased before the change.
When you are ready to start receiving your income, you may, in accordance with
the terms of your employer plan, choose an option from among those described in
your certificate. If you die before your certificate's maturity date, your
accumulation will provide a death benefit for your beneficiary.
THIS CERTIFICATE CANNOT BE ASSIGNED AND IT DOES NOT PROVIDE FOR LOANS.
If you have any questions about your certificate or need help to resolve a
problem, you can contact us at the address or phone number above.
/s/ X. Xxxxxxx Xxxxx /s/ Xxxxxxx X. Xxxxxxx, Xx.
-------------------- ---------------------------
VICE PRESIDENT CHAIRMAN, PRESIDENT AND
AND CORPORATE SECRETARY CHIEF EXECUTIVE OFFICER
GROUP FLEXIBLE PREMIUM DEFERRED ANNUITY
FIXED AND VARIABLE ACCUMULATIONS
NONPARTICIPATING
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YOUR TIAA RETIREMENT SELECT PLUS CERTIFICATE
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INDEX OF PROVISIONS
SECTION SECTION
Accumulation IRC................................................15
- Definition....................................1 Lapse
- Real Estate Account..........................38 - Protection Against...........................34
- Traditional Annuity..........................35 Laws and Regulations
Accumulation Units - Compliance with..............................80
- Definition...................................37 Liability of TIAA..................................63
- Number of....................................41 Loans - No provision for...........................70
Additional Amounts.................................36 Lump-sum Benefit
Annuity Starting Date - Amount.......................................59
- Definition....................................2 - Availability of..............................56
- Required Beginning...........................20 - Definition...................................16
Assignment - Void and of no effect.................71 - Effective Date...............................57
Benefits - Payment of...................................58
- Based on Incorrect Data......................78 - Systematic Withdrawals.......................60
- Requests for.................................82 Maturity Date......................................17
Business Day........................................4 Net Investment Factor..............................39
Certificate........................................28 Payee..............................................18
Claims of Creditors Payment to an Estate, Trustee, etc.................76
- Protection Against...........................72 Premiums
Commuted Value......................................5 - Allocation of................................32
Companion CREF Certificate.........................30 - Overpayment of...............................81
Contestability.....................................29 - Payment of...................................31
Contract - Taxes........................................33
- Consists of..................................27 Proof of Survival..................................79
Contractholder......................................6 Rate Schedule
Correspondence with us.............................82 - Change of....................................83
Death Benefit - Definition...................................19
- Amount of Payments...........................49 Real Estate Account
- Beneficiary...................................3 - Deletion of..................................68
- Definition....................................7 Report of Accumulation.............................69
- Methods of Payment...........................48 Restrictions on Distributions
- Naming Your Beneficiary......................47 - IRC Section 401(k)...........................64
- Payment of...................................46 - IRC Section 403(b)...........................65
- Payments after Death of Beneficiary..........50 Second Annuitant...................................21
Elections and Changes - Procedure for..............74 Separate Account
Employer Plan.......................................8 - Charge.......................................40
Employer Plan Fee Withdrawals......................66 - Definition...................................22
- Definition....................................9 - Insulation of................................67
ERISA..............................................10 Service of Process upon TIAA.......................77
Funding Vehicle....................................11 Spouse's Rights
General Account....................................12 - Definition...................................23
Income Benefit - Rights to Benefits...........................61
- Amount of Payments...........................45 - Waiver of Rights.............................62
- Definition...................................13 Surrender Charge...................................24
- Options......................................43 Tax-Free Rollover
- Payments during a Guaranteed Period..........44 - Right to.....................................75
- Starting Payments............................42 Traditional Annuity................................25
Internal Transfers Valuation Day and Valuation Period.................26
- Amount.......................................52 Vesting............................................73
- Availability.................................51
- Crediting....................................55
- Definition...................................14
- Effective Date...............................53
- Systematic...................................54
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YOUR TIAA RETIREMENT SELECT PLUS CERTIFICATE
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PART A: ANNUITANT DATA
Annuitant: [Xxxx X. Xxxxxxxxx]
Social Security Number: [xxx-xx-xxxx]
Date of Birth: [03 17 1963]
Issue Date: [01 01 2004]
Annuity Starting Date: [04 01 2028]
Certificate Number: [X-xxxxxx-x]
Companion CREF Certificate Number: [X-xxxxxx-x / NONE]
Retirement Select Plus
Contract Number: [xxxxxxxx]
Contractholder: [National Academy of Sciences]
Employer: [ABC University]
The contract under which this certificate is issued is made and delivered in
[the State of state], and is subject to the laws and regulations thereof.
The minimum Traditional Annuity accumulation interest rate is specified in the
rate schedule. The initial Traditional Annuity accumulation interest rate is [2]
%.
[The only variable account currently available under this certificate is the
Real Estate Account.]
VARIABLE TEXT ENTRIES
[The [beneficiary designation / premium allocation / beneficiary designation and
the premium allocation] in effect for your TIAA [RA, SRA, GRA, GSRA, (or other
product name)] annuity [number xxxxxxxx (if applicable)] as of this
certificate's date of issue is now also in effect for this certificate. [You can
change your premium allocation at any time, as explained in the Allocation of
Premiums section.]
You also have the right to change beneficiaries as explained in your
certificate. [However, any spousal beneficiary waiver currently in effect for
your TIAA [RA, SRA, GRA, GSRA, (or other product name)] annuity [number xxxxxxxx
(if applicable)] cannot be carried over to this certificate, and your spouse
will retain his/her survivor rights required under federal law. In order to
waive your spouse's rights to survivor benefits under your annuity, you must
complete a new waiver and return it to us.]]
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PART B: TERMS USED IN THIS CERTIFICATE
1. Your ACCUMULATION is equal to the sum of your Traditional Annuity
accumulation as described in Part D and your Real Estate Account
accumulation as described in Part E. Your accumulation will provide the
benefits described in your certificate.
2. Your ANNUITY STARTING DATE is the date as of which you first begin to
receive income benefits from your accumulation under this certificate.
Your scheduled annuity starting date is shown on page 3. You may change
your annuity starting date provided that it not be earlier than the
earliest date allowed under your employer plan, nor later than your
required beginning date, as described in section 20.
3. BENEFICIARIES are persons you name, in a form satisfactory to TIAA as
explained in section 47, to receive the death benefit if you die before
your certificate's maturity date.
4. A BUSINESS DAY is any day that the New York Stock Exchange is open for
trading. A business day ends at 4:00 P.M. Eastern time, or when trading
closes on the New York Stock Exchange, if earlier.
5. The COMMUTED (discounted) VALUE is a one-sum amount paid in lieu of a
series of payments that are not contingent upon the survival of an
annuitant. It is less than the total of those payments, because future
interest, included when computing the series of payments, will not be
earned if payment is to be made in one sum. The commuted value of future
payments is therefore the sum of those payments less the interest from the
date of commutation to the date each payment would have been made. The
same interest rate or rates used in computing the benefit payments will be
used to determine the commuted value.
6. The CONTRACTHOLDER is the organization that remits premiums to this
certificate. In accordance with the terms of your employer plan, the
contractholder may exercise certain rights under this certificate.
7. The DEATH BENEFIT is the current value of your accumulation under this
certificate at your death. It will be paid to your beneficiary under one
of the methods set forth in Part G if you die before your certificate's
maturity date.
8. An EMPLOYER PLAN is a plan satisfying the requirements of IRC Section
401(a), 401(k), 403(a), 403(b), 415(m), 457, or any other section
providing similar benefits for employees.
9. EMPLOYER PLAN FEE WITHDRAWALS are amounts deducted from your accumulation
in accordance with the terms of your employer plan to pay fees associated
with the administration of the plan.
10. ERISA is the Employee Retirement Income Security Act of 1974, as amended.
11. A FUNDING VEHICLE is an annuity contract, custodial account, or trust
designated to receive contributions under an employer plan.
12. The GENERAL ACCOUNT consists of all of TIAA's assets other than those in
separate accounts.
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YOUR TIAA RETIREMENT SELECT PLUS CERTIFICATE
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13. An INCOME BENEFIT is a periodic amount payable to you under one of the
income options set forth in Part F.
14. An INTERNAL TRANSFER is the movement of accumulations between your
Traditional Annuity accumulation and your Real Estate Account
accumulation, or between this certificate and a companion CREF
certificate, if any. The provisions concerning internal transfers are set
forth in Part H.
15. The IRC is the Internal Revenue Code of 1986, as amended. All references
to any section of the IRC shall be deemed to refer not only to such
section but also to any amendment thereof and any successor statutory
provisions.
16. A LUMP-SUM BENEFIT is a withdrawal in a single sum of all or part of your
accumulation. The provisions concerning lump-sum benefits are set forth in
Part I.
17. Your certificate's MATURITY DATE is the date as of which all accumulations
under the certificate have been distributed or used to provide annuity
benefits. As of the maturity date all of TIAA's obligations under this
certificate will have been satisfied.
18. The PAYEE is a person named to receive any periodic payments or amounts
due under an income option or method of payment of the death benefit as
explained in sections 44 and 50.
19. The RATE SCHEDULE sets forth the bases for computing the Traditional
Annuity accumulation and any benefits and distributions arising from it.
To the extent permitted by law, TIAA may change the rate schedule for
amounts remitted after the change, as explained in section 83.
20. Your REQUIRED BEGINNING DATE is the latest date on which you can begin to
receive your accumulation in accordance with the rules of the IRC and the
terms of your employer plan. Generally, it is the April 1 following the
calendar year in which you attain age [70 1/2 ] or, if later, the April 1
following the calendar year in which you retire.
21. The SECOND ANNUITANT is the person you name, if you choose to receive
income under a two-life annuity, to receive an income for life if he or
she survives you. You may name any person eligible under TIAA's practices
then in effect to be a second annuitant, subject to the rights of your
spouse as described in Part J.
22. SEPARATE ACCOUNT. All premiums and internal transfers credited to the Real
Estate Account become part of a separate account. The Real Estate Account
is designated as "VA-2" and was established by TIAA in accordance with New
York law to provide benefits under this certificate and other contracts.
The assets and liabilities of separate account VA-2 are segregated from
the assets and liabilities of the general account, and from the assets and
liabilities of any other TIAA separate account.
23. SPOUSE'S RIGHTS. If you are married, your spouse may be entitled to
benefits as described in Part J.
24. A SURRENDER CHARGE will be assessed against the portion of your
Traditional Annuity accumulation withdrawn or transferred to provide any
lump-sum benefit, internal transfer, or rollover as shown in the rate
schedule.
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25. The TRADITIONAL ANNUITY refers to the guaranteed annuity benefits under
your certificate. Each premium and internal transfer allocated to the
Traditional Annuity under your certificate buys a definite amount of
lifetime income for you, based on the rate schedule in effect for your
certificate at the time the premium is paid.
26. A VALUATION DAY is any business day, as well as the last calendar day of
each month. Valuation days end as of the close of all U.S. national
exchanges where securities or other investments of the Real Estate Account
are principally traded. Valuation days that aren't business days end at
4:00 p.m. Eastern Time. A VALUATION PERIOD is the time from the end of a
valuation day to the end of the next valuation day.
PART C: CONTRACT AND PREMIUMS
27. The CONTRACT constitutes the entire contract between TIAA and the
contractholder, and the provisions therein alone will govern with respect
to the rights and obligations of TIAA, the contractholder, and you. The
payment of premiums is the consideration for the contract.
The contract may be amended by agreement of TIAA and the
contractholder without the consent of any other person, provided that such
change does not reduce any benefit purchased under the contract up to that
time. Any endorsement or amendment of this certificate, waiver of any of
its provisions, or change in rate schedule will be valid only if in
writing and signed by an executive officer of TIAA.
28. This CERTIFICATE states the rights that you, the annuitant, have under the
contract. It is issued in return for premiums remitted on your behalf.
29. CONTESTABILITY. The contract is incontestable.
30. COMPANION CREF CERTIFICATE. The College Retirement Equities Fund (CREF) is
a companion organization to TIAA. A companion CREF Retirement Select Plus
certificate was issued to you when you received this certificate if
provided for under the terms of your employer plan. The certificate number
for any such companion CREF certificate is shown on page 3. A companion
CREF certificate may be issued to you at a later date in accordance with
section 68.
31. PREMIUMS for this certificate must be remitted under the terms of your
employer plan. Premiums include any transfers, other than internal
transfers, to this certificate from other funding vehicles. Premiums may
be stopped at any time without notice to TIAA and then resumed without
payment of any past due premium or penalty of any kind.
TIAA reserves the right to limit to $300,000 the total premiums paid
on this certificate and any other TIAA annuity contract on your life in
any twelve-month period. TIAA reserves the right to stop accepting
premiums under the contract at any time. TIAA will not accept premiums
paid on your behalf after your certificate's maturity date or prior death.
Premiums will be credited to your certificate as of the end of the
business day in which they are received by TIAA at the location that TIAA
will designate by prior written notice.
Elective deferral contributions made to your TIAA or CREF contracts
or certificates may not exceed the annual limits on elective deferrals
described in section 402(g) of the IRC, or as otherwise permitted by law.
TIAA will refund the accumulated value of all excess premiums made to this
certificate, as required by law.
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32. ALLOCATION OF PREMIUMS. You allocate premiums between the Traditional
Annuity and the Real Estate Account. If you allocate premiums to the
Traditional Annuity they increase your Traditional Annuity accumulation.
If you allocate premiums to the Real Estate Account, they purchase
accumulation units in the Real Estate Account. You may change your
allocation for future premiums at any time. We will allocate your premiums
according to the most recent valid instructions we have received from you
in a form acceptable to TIAA. If we have not received valid instructions
from you, we will allocate your premiums in accordance with the terms of
your employer plan. Your employer plan may limit your right to allocate
premiums to the Traditional Annuity and/or to the Real Estate Account.
TIAA may stop accepting premiums to the Traditional Annuity or the Real
Estate Account at any time.
33. PREMIUM TAXES. If state or local government premium taxes are incurred,
they will be deducted from your certificate accumulation, to the extent
permitted by law.
34. UNCONDITIONAL PROTECTION AGAINST LAPSE. Your certificate will not lapse
after the first premium has been paid. No additional premiums are
required.
PART D: TRADITIONAL ANNUITY ACCUMULATION
35. Your TRADITIONAL ANNUITY ACCUMULATION is equal to:
A) all premiums allocated to the Traditional Annuity under your
certificate; plus
B) interest credited at the guaranteed interest rate set forth in
the rate schedule; plus
C) any additional amounts credited to the Traditional Annuity
under your certificate; plus
D) any internal transfers to the Traditional Annuity under your
certificate; less
E) any premium taxes incurred by TIAA for your Traditional
Annuity accumulation; less
F) the amount of any lump-sum benefits, employer plan fee
withdrawals, rollovers, internal transfers and any required
minimum distributions paid from the Traditional Annuity; less
G) any charges for expenses and contingencies set forth in the
rate schedule; less
H) any amount applied to provide annuity income or death
benefits; less
I) any surrender charge assessed.
36. ADDITIONAL AMOUNTS. TIAA may credit additional amounts to your Traditional
Annuity accumulation. TIAA does not guarantee that there will be
additional amounts. TIAA will determine at least annually if additional
amounts will be credited.
Any additional amounts credited to your Traditional Annuity
accumulation will buy benefits for you based on the rate schedule
applicable to the premiums or internal transfers that gave rise to such
additional amounts. Additional amounts may also be paid with any
Traditional Annuity benefits payable to you or your beneficiary.
Any additional amounts credited to your Traditional Annuity
accumulation will be credited under a schedule of additional amount rates
declared by TIAA. For a Traditional Annuity accumulation in force as of
the effective date of such a schedule, the additional
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amount rates will not be modified for a period of twelve months following
the schedule's effective date. For any premiums and internal transfers
applied to the Traditional Annuity during the twelve-month period
described in the preceding sentence, TIAA may declare additional amounts
at rates which remain in effect through the end of such twelve-month
period. Thereafter, any additional amount rates declared for such premiums
and internal transfers will remain in effect for periods of twelve months
or more.
PART E: REAL ESTATE ACCOUNT ACCUMULATION AND UNITS
37. ACCUMULATION UNIT. The value of one accumulation unit is calculated at the
end of each valuation day. The value of an accumulation unit is equal to
the previous day's value multiplied by the net investment factor for the
Real Estate Account.
38. Your REAL ESTATE ACCOUNT ACCUMULATION is equal to the number of
accumulation units you own multiplied by the value of one accumulation
unit. Real Estate Account accumulations are variable and are not
guaranteed; they may increase or decrease depending on investment results.
39. The NET INVESTMENT FACTOR for the Real Estate Account for a valuation
period is based on the amount of accrued real estate net operating income,
dividends, interest and other income during the current period, a
deduction of the separate account charge, both realized and unrealized
capital gains and losses incurred, and other accounting adjustments during
the current period. The precise formula for the net investment factor is A
divided by B, as follows:
A) The value of the Real Estate Account's net assets at the end
of the current valuation period, less any premiums received
during the current period.
B) The value of the Real Estate Account's net assets at the end
of the previous valuation period, plus the net effect of
transactions (e.g. internal transfers, benefit payments) made
at the start of the current valuation period.
40. The SEPARATE ACCOUNT CHARGE covers mortality and expense risk, liquidity
risk, and administrative and investment advisory services. TIAA, at its
discretion, can increase or decrease the separate account charge. The
separate account charge is guaranteed not to exceed 2.50% per year of net
assets.
41. NUMBER OF ACCUMULATION UNITS. Each premium and each internal transfer
applied to the Real Estate Account on your behalf buys a number of
accumulation units equal to the amount of the premium or internal transfer
divided by the value of one accumulation unit as of the end of the
business day in which the premium or internal transfer is credited. The
number of accumulation units under your certificate will be decreased by
any premium taxes incurred by TIAA for your Real Estate Account
accumulation and by the application of any accumulation units to any
benefits, employer plan fee withdrawals, internal transfers, or any
required minimum distributions paid from the Real Estate Account
accumulation under your certificate. Such transactions will decrease the
number of accumulation units under your certificate by an amount equal to
the dollar value of the transaction divided by the value of
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one accumulation unit as of the end of the valuation day on which the
transaction becomes effective.
PART F: INCOME BENEFITS
42. STARTING INCOME BENEFITS. An income benefit will be effective and payment
will begin as of the date you have chosen, if you are then living and:
A) you have chosen one of the income options set forth in section
43;
B) if you choose a one-life annuity, we have received proof of
your age;
C) if you choose a two-life annuity, we have received proof of
your age and the age of your second annuitant; and
D) if your accumulation is subject to the spousal rights
described in Part J, we have received any required waiver of
spouse's rights or proof that you are not married.
You may not begin a one-life annuity after you attain age 90, nor
may you begin a two-life annuity after you or your second annuitant attain
age 90. If your accumulation is less than $5,000 on the effective date of
an income benefit, TIAA may choose instead to pay your accumulation to you
in a single sum.
At any time before you start to receive an income benefit, you may
change the effective date for that income benefit to a date after the
change, by written notice to TIAA as explained in section 74.
43. INCOME OPTIONS are the ways in which you may have income benefits paid to
you. The income options are available from your Traditional Annuity
accumulation only. You can transfer some or all of your Real Estate
Account accumulation to your Traditional Annuity accumulation to receive
benefits under an income option available from the Traditional Annuity.
Also, you may transfer some or all of your Real Estate Account
accumulation to your companion CREF certificate, if any, as described in
section 51, to receive benefits under an income option available under
that certificate.
You may change your choice of income option any time before payments
begin, but once they have begun under an income option, the election to
begin receiving benefits is irrevocable and no change can be made. Any
choice of option or change of such choice must be made by written notice
to TIAA as explained in section 74.
Your right to elect an option or change such election may be limited
in accordance with section 80 and Part K. If your accumulation is subject
to spousal rights, your choice of an income option is subject to the
rights of your spouse to benefits as explained in Part J. The availability
of certain income options may be restricted by the IRC and by the terms of
your employer plan.
If the plan administrator for your employer plan or his or her
designee notifies us that distribution from your certificate must begin
under the minimum distribution rules of federal tax law, we will begin
distributions satisfying such requirements.
The following are the income options from which you may choose. All
of them provide an income for you, some provide that payments will
continue for the lifetime of a second annuitant and some provide that
payments will continue in any event during a guaranteed
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period as explained in section 44. The periodic amount paid to you or a
surviving second annuitant depends on which of these options you choose.
ONE-LIFE ANNUITY. A payment will be made to you each month for as
long as you live. You may include a guaranteed period of 10 or 20
years. If you do not include a guaranteed period, all payments will
cease at your death. If you include a guaranteed period and you die
before the end of that period, monthly payments will continue until
the end of that period and then cease.
TWO-LIFE ANNUITY. A payment will be made to you each month for as
long as you live. After your death, a payment will be made each
month to the second annuitant you have named, for as long as he or
she survives you. You cannot change your choice of second annuitant
after your payments begin. You may include a guaranteed period of 10
or 20 years. If you do not include a guaranteed period, all payments
will cease when you and your second annuitant have both died. You
may choose from among the following forms of two-life annuity.
FULL BENEFIT TO SURVIVOR. At the death of either you or your
second annuitant, the full amount of the monthly payments that
would have been paid if you both had lived will continue to be
paid to the survivor. If you include a guaranteed period and
you and your second annuitant both die before the end of the
period chosen, the full amount of the monthly payments that
would have been paid if you both had lived will continue to be
paid until the end of that period and then cease.
TWO-THIRDS BENEFIT TO SURVIVOR. At the death of either you or
your second annuitant, two-thirds of the monthly payments that
would have been paid if you both had lived will continue to be
paid to the survivor. If you include a guaranteed period and
you and your second annuitant both die before the end of the
period chosen, two-thirds of the monthly payments that would
have been paid if you both had lived will continue to be paid
until the end of that period and then cease.
HALF BENEFIT TO SECOND ANNUITANT. The full monthly income will
continue to be paid as long as you live. After your death, if
your second annuitant survives you, one-half of the monthly
payments that would have been paid if you had lived will
continue to be paid to your second annuitant. If you include a
guaranteed period and you and your second annuitant both die
before the end of the period chosen, one-half of the monthly
payments that would have been paid if you had lived will
continue to be paid until the end of that period and then
cease.
AUTOMATIC ELECTION PROVISION. If on your required beginning date,
you have not met the requirements for starting income benefits as
described in section 42, you will be deemed to have chosen the form of
benefit distribution, if any, specified by the terms of your employer
plan, if such form of benefit is available under this certificate.
Otherwise, you will be deemed to have chosen a one-life annuity if you are
then single, or the "half benefit to second annuitant" form of the
two-life annuity if you are then married, each with a 10-year guaranteed
period, if allowed under federal tax law.
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44. POST-MORTEM PAYMENTS DURING A GUARANTEED PERIOD. Any periodic payments or
other amounts remaining due after your death and the death of your second
annuitant, if any, during a guaranteed period will be paid to the payee
named to receive them. You name the payee at the time you choose the
income option, as described in section 74. You may later change the named
payee. If you choose a two-life annuity, your surviving second annuitant
may change the named payees after your death, unless you direct otherwise.
A payee may choose to receive in one sum the commuted value of any
remaining periodic payments that do not involve life contingencies, unless
you direct otherwise. If no payee was named to receive these payments, or
if no one so named is then living, we will pay the remaining payments due
or the commuted value of the remaining periodic payments in one sum to
your estate, or to the estate of the last survivor of you and your second
annuitant if you chose a two-life annuity.
If a payee receiving payments during a guaranteed period option dies
while payments remain due, the commuted value of any remaining payments
due to that person will be paid to any other surviving payee that you (or
your second annuitant) had named to receive them. If no payee so named is
then living, the commuted value will be paid to the estate of the last
payee who was receiving these benefit payments.
45. The AMOUNT OF PERIODIC INCOME BENEFIT will be determined as of the
effective date for the income benefit by:
A) the amount of your Traditional Annuity accumulation applied to
provide the income benefit;
B) the rate schedule or schedules under which any premiums and
internal transfers were applied
to your Traditional Annuity accumulation;
C) the income option you choose;
D) if you choose a one-life annuity, your age; and
E) if you choose a two-life annuity, your age and your second
annuitant's age.
If your income benefit would be less than $100 a month, TIAA will
have the right to change to quarterly, semi-annual or annual payments,
whichever will result in payments of $100 or more and the shortest
interval between payments. If different rate schedules apply to different
parts of your Traditional Annuity accumulation, the portion applied to
provide the income benefit chosen will be allocated among the parts on a
pro-rata basis.
PART G: DEATH BENEFIT
46. PAYMENT OF THE DEATH BENEFIT. If you die before your certificate's
maturity date, the death benefit will be payable to your beneficiary. We
must receive the following in a form acceptable to TIAA before any death
benefit will be paid:
A) proof of your death;
B) the choice of a method of payment as provided in section 48;
and
C) proof of the beneficiary's age if the method of payment chosen
is the one-life annuity.
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Payment under the single-sum payment method will be made effective
as of the date we receive these items; payment under the one-life annuity
method of payment will be effective and begin no later than the first day
of the month after we have received these items.
Upon receipt of proof of your death, we will divide your
accumulation into as many portions as there are validly designated
beneficiaries for your certificate. If different rate schedules apply to
different parts of your Traditional Annuity accumulation, the resulting
portions will be allocated among the parts on a pro-rata basis. Each
validly designated beneficiary will then have the right to make elections
available under this certificate in connection with his or her portion of
the accumulation.
47. NAMING YOUR BENEFICIARY. Beneficiaries are persons you name to receive the
death benefit if you die before your certificate's maturity date. At any
time before your certificate's maturity date, you may, subject to the
terms of your employer plan, name, change, add or delete your
beneficiaries by written notice to TIAA, as explained in section 74. If
your accumulation is subject to spousal rights, then your right to name a
beneficiary for the death benefit is subject to the rights of your spouse
as described in Part J.
You can name two classes of beneficiaries, primary and contingent,
which set the order of payment. At your death, your beneficiaries are the
surviving primary beneficiary or beneficiaries you named. If no primary
beneficiary survives you, your beneficiaries are the surviving contingent
beneficiary or beneficiaries you named. The share of any named beneficiary
in a class who does not survive will be allocated in equal shares to the
beneficiaries in such class who do survive, even if you've provided for
these beneficiaries to receive unequal shares.
The death benefit will be paid to your estate in one sum if: you
name your estate as beneficiary; or none of the beneficiaries you have
named is alive at the time of your death; or at your death you had never
named a beneficiary. If distributions to a named beneficiary are barred by
operation of law, the death benefit will be paid to your estate.
If at your death any distribution of the death benefit would be in
conflict with any rights of your spouse under law that were not previously
waived, TIAA will pay the death benefit in accordance with your spouse's
rights, as described in section 61.
48. METHODS OF PAYMENT are the ways in which your beneficiary may receive the
death benefit. The single-sum payment method is available from your
Traditional Annuity and Real Estate Account accumulations. The other
methods are available from the Traditional Annuity only. Your beneficiary
can, however, transfer some or all of your Real Estate Account
accumulation to the Traditional Annuity in order to receive that portion
of the death benefit under a method of payment available from the
Traditional Annuity. Your beneficiary can also transfer some or all of
your accumulation to CREF in order to receive that portion of the death
benefit under a method of payment offered by CREF. Such transfer can be
for all of your accumulation, or for any part thereof not less than
$1,000.
You may choose the method of payment and change your choice at any
time before payments begin. After your death, your beneficiary may change
the method chosen by you, if you so provide. If you do not choose a method
of payment, your beneficiary will make the choice when he or she becomes
entitled to payments. If the amount of the death benefit due to any one
beneficiary is less than $5,000, TIAA may change the method of payment for
the portion of the death benefit payable to that beneficiary to the
single-sum payment method. The right to elect a method or change such
election may be limited in accordance with section 80.
A beneficiary may not begin to receive the death benefit under the
one-life annuity method after he or she attains age 90. If you die before
your certificate's maturity date and
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have chosen the one-life annuity method for a beneficiary who has attained
age 90, he or she must choose another method. Any choice of method or
change of such choice must be made by written notice to TIAA, as explained
in section 74.
Generally, the distribution of the death benefit under any method of
payment must be made over the lifetime of your beneficiary or over a
period not to exceed your beneficiary's life expectancy.
If the plan administrator for your employer plan or his or her
designee notifies us that distribution from your certificate must begin
under the minimum distribution rules of federal tax law, we will begin
distributions satisfying such requirements.
The distribution of the death benefit under a method of payment must
be made in such a form and begin at such date as meets the requirements of
the IRC and the regulations thereunder. If such method of payment has not
been chosen to begin by that date, we will elect a method of payment in
accordance with the requirements of the IRC and any regulations
thereunder. The following are the methods of payment:
SINGLE-SUM PAYMENT. The death benefit will be paid to your
beneficiary in one sum.
ONE-LIFE ANNUITY. A payment will be made to your beneficiary each
month for life. A guaranteed period of 10 or 20 years may be
included. If a guaranteed period isn't included, all payments will
cease at the death of your beneficiary. If a guaranteed period is
included and your beneficiary dies before the end of that period,
monthly payments will continue until the end of that period and then
cease, as explained in section 50.
49. The AMOUNT OF DEATH BENEFIT PAYMENTS will be determined as of the date
payments are to begin by:
A) the amount of your Traditional Annuity accumulation applied to
the method of payment;
B) the rate schedule or schedules under which any premiums and
internal transfers were applied to your Traditional Annuity
accumulation;
C) the method of payment chosen for the death benefit; and
D) if the method chosen is the one-life annuity, the age of your
beneficiary.
If any method chosen would result in payments of less than $100 a
month, TIAA will have the right to require a change in choice that will
result in payments of at least $100 a month. If different rate schedules
apply to different parts of your Traditional Annuity accumulation, the
portion applied to provide the death benefit chosen will be allocated
among the parts on a pro-rata basis.
50. PAYMENTS AFTER THE DEATH OF A BENEFICIARY. Any periodic payments or other
amounts remaining due after the death of your beneficiary during a
guaranteed period will be paid to the payee named by you or your
beneficiary to receive them, by written notice to TIAA as explained in
section 74. The commuted value of these payments may be paid in one sum
unless we are directed otherwise.
If no payee has been named to receive these payments, or if no one
so named is living at the death of your beneficiary, the commuted value
will be paid in one sum to your beneficiary's estate.
If a payee receiving these payments dies before the end of the
guaranteed period, the commuted value of any payments still due that
person will be paid to any other payee named
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to receive it. If no one has been so named, the commuted value will be
paid to the estate of the last payee who was receiving these payments.
PART H: INTERNAL TRANSFERS
51. AVAILABILITY OF INTERNAL TRANSFERS. You may transfer between your
Traditional Annuity accumulation and your Real Estate Account
accumulation. In addition, you may transfer all or part of your
Traditional Annuity accumulation or your Real Estate Account accumulation
to your companion CREF certificate, if any. If you have an accumulation in
a companion CREF certificate, you may transfer from that certificate to
this certificate. TIAA reserves the right to limit internal transfers from
each of your Traditional Annuity accumulation and your Real Estate Account
accumulation to not more than one in a calendar quarter. TIAA reserves the
right to stop accepting internal transfers to the Traditional Annuity
and/or internal transfers to the Real Estate Account at any time. Any
internal transfer to or from CREF is subject to the terms of the companion
CREF certificate and XXXX's Rules of the Fund. Your employer plan may
limit your right to transfer to the Traditional Annuity, Real Estate
Account and/or to a CREF account.
52. AMOUNT OF INTERNAL TRANSFER. You can transfer all of your Traditional
Annuity accumulation or your Real Estate Account accumulation, or any part
of either account not less than $1,000. If you choose to transfer from
your Traditional Annuity accumulation, the amount to be transferred will
be reduced by any surrender charge in accordance with the applicable rate
schedule or schedules.
An internal transfer reduces the accumulation from which it is paid
by the amount transferred, including any surrender charge. If you transfer
from your Traditional Annuity accumulation and different rate schedules
apply to different parts of the accumulation, the reduction will be
allocated among the parts on a pro rata basis.
53. EFFECTIVE DATE OF INTERNAL TRANSFER. An internal transfer will be
effective as of the end of the business day in which we receive your
written request for an internal transfer. You may defer the effective date
of the internal transfer until any business day following the date on
which we receive your written request. TIAA will determine all values as
of the end of the effective date. You can't revoke a request for an
internal transfer after its effective date.
54. SYSTEMATIC TRANSFERS. You may elect to have transfers made on a systematic
basis. Systematic transfers may be made semi-monthly, monthly, quarterly,
semi-annually or annually. Semi-monthly transfers are made twice a month,
with the second payment scheduled 14 days after the first payment. You
choose which day the transfer will be made, except that if the date of a
scheduled transfer is not a business day, the transfer will be made on the
following business day. Transfers will continue until you tell us to stop
or your Traditional Annuity accumulation or Real Estate Account
accumulation is insufficient to support the transfer. Systematic transfers
are subject to all the provisions described above for transfers, except
that a reduced minimum amount of $100 applies to such transfers.
55. CREDITING INTERNAL TRANSFERS. Internal transfers to your Traditional
Annuity accumulation are credited to the Traditional Annuity as of the end
of the effective date of the internal transfer and begin participation in
the Traditional Annuity as of the following day. Internal
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transfers to your Real Estate Account accumulation purchase accumulation
units as of the end of the effective date of the internal transfer.
PART I: LUMP-SUM BENEFITS
56. AVAILABILITY OF THE LUMP-SUM BENEFIT. You may, subject to the limits
described below, withdraw as a lump-sum benefit all of your Traditional
Annuity accumulation or Real Estate Account accumulation, or any part
thereof not less than $1,000. TIAA reserves the right to limit lump-sum
benefits from each of your Traditional Annuity accumulation and your Real
Estate Account accumulation to not more than one in a calendar quarter. A
lump-sum benefit will not be available before the earliest date permitted
under your employer plan. The availability of a lump-sum benefit may be
limited by your employer plan. If you have a severance of employment with
your employer, we may choose to distribute your accumulation to you as a
lump-sum benefit (without surrender charge) in accordance with the terms
of your employer plan subject to the restrictions on mandatory
distributions under the IRC.
If you are married, your right to receive a lump-sum benefit may be
subject to the rights of your spouse as described in Part J.
Federal tax law may restrict distributions, as described in Part K.
57. EFFECTIVE DATE OF A LUMP-SUM BENEFIT. Any choice of lump-sum benefit must
be made by written notice to TIAA on or before your certificate's maturity
date, as explained in section 74. A lump-sum benefit will be effective as
of the business day on which we receive, in a form acceptable to TIAA:
A) your request for a lump-sum benefit; and
B) if your accumulation is subject to the spousal rights
described in Part J, a waiver of spouse's rights or proof that
you are not married.
You may choose to defer the effective date of the lump-sum benefit
until any business day following the date on which we receive the above
requirements. TIAA will determine all values as of the end of the
effective date. You can't revoke a request for a lump-sum benefit after
its effective date.
TIAA may defer the payment of a Traditional Annuity lump-sum benefit
for up to six months.
58. PAYMENT OF A LUMP-SUM BENEFIT. A lump-sum benefit may be paid:
A) to you as a cash withdrawal;
B) to another funding vehicle as a direct transfer under federal
tax law; or
C) to a TIAA IRA contract, a CREF IRA certificate, or to a
funding vehicle whether or not it is offered by TIAA or CREF,
as a tax-free rollover as permitted in section 75.
59. AMOUNT OF A LUMP-SUM BENEFIT. If you choose a lump-sum benefit from your
Traditional Annuity accumulation, we will pay the portion of your
Traditional Annuity accumulation you choose, less any surrender charge in
accordance with the applicable rate schedule or
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schedules. If you choose a lump-sum benefit from your Real Estate Account
accumulation, we will pay the portion of your Real Estate Account
accumulation you choose.
Payment of a lump-sum benefit reduces the accumulation from which it
is paid by the amount chosen, including any surrender charge. If you
choose a lump-sum benefit from your Traditional Annuity accumulation and
different rate schedules apply to different parts of your accumulation,
the reduction will be allocated among the parts on a pro-rata basis.
60. SYSTEMATIC WITHDRAWALS. You may elect to have lump-sum benefits made on a
systematic basis. Systematic withdrawals may be made semi-monthly,
monthly, quarterly, semi-annually or annually. Semi-monthly withdrawals
are made twice a month, with the second payment scheduled 14 days after
the first payment. You choose which day the lump-sum benefit will be paid,
except that if the date of a scheduled lump-sum benefit is not a business
day, it will be paid on the following business day. Withdrawals will
continue until you tell us to stop or until the portion of your
Traditional Annuity accumulation or your Real Estate Account accumulation
is insufficient to support the withdrawal. Systematic withdrawals are
subject to all the provisions described above for lump-sum benefits,
except that a reduced minimum amount of $100 applies.
PART J: SPOUSE'S RIGHTS TO BENEFITS
61. SPOUSE'S RIGHTS TO BENEFITS. If you are married, and all or part of your
accumulation is attributable to contributions made under:
A) an employer plan subject to ERISA; or
B) an employer plan that provides for spousal rights to benefits;
then, only to the extent required by the IRC, ERISA or the terms of your
employer plan, your rights to choose certain benefits are restricted by
the rights of your spouse to benefits as follows:
XXXXXX'S SURVIVOR RETIREMENT BENEFIT. If you are married on the
effective date of an income benefit, the income benefits must be
paid under a two-life annuity with your spouse as second annuitant.
SPOUSE'S SURVIVOR DEATH BENEFIT. If you die before your
certificate's maturity date and your spouse survives you, the
payment of the death benefit to your named beneficiary may be
subject to your spouse's right to receive a death benefit. Under an
employer plan subject to ERISA, your spouse has the right to a death
benefit of at least 50% of any part of your accumulation
attributable to contributions made under such plan. Under an
employer plan not subject to ERISA, your spouse may have the right
to a death benefit in the amount stipulated in the plan.
Your spouse may consent to a waiver of his or her rights to these
benefits, as explained in section 62.
62. WAIVER OF SPOUSE'S RIGHTS. If you are married, your spouse must consent to
a waiver of his or her rights to survivor benefits before you can choose:
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A) an income option other than a two-life annuity with your
spouse as second annuitant; or
B) beneficiaries who are not your spouse for more than the
percentage of the death benefit allowed by your employer plan;
or
C) a lump-sum benefit.
In order to waive the rights to spousal survivor benefits, we must
receive, in a form satisfactory to TIAA, your spouse's consent, or
satisfactory verification that your spouse cannot be located. A waiver of
rights with respect to an income option or a lump-sum benefit must be made
in accordance with the IRC, ERISA, or the applicable provisions of your
employer plan. A waiver of the survivor death benefit may not be effective
if it is made prior to the earlier of the plan year in which you reach age
35 or the severance of your employment with your employer.
Verification of your marital status may be required, in a form
satisfactory to TIAA, for purposes of establishing your spouse's rights to
benefits or a waiver of these rights. You may revoke a waiver of your
spouse's rights to a survivor death benefit or a lump-sum benefit at any
time during your lifetime. You may revoke a waiver of your spouse's right
to a survivor retirement benefit, for income benefits that have not yet
begun, at any time during your lifetime and before the effective date of
the income benefit. Your spouse may not revoke a consent after the consent
has been given.
63. LIABILITY OF TIAA. Any action taken by TIAA in good faith before receiving
written notice of a waiver of rights included in this certificate, or of
revocation of such waiver, will not subject TIAA to liability because our
acts were contrary to what was stated in such waiver or revocation.
PART K: RESTRICTIONS ON DISTRIBUTIONS AND INCOME BENEFITS
64. IRC SECTION 401(k) PLANS. IRC Section 401(k) prohibits the distribution of
the portion of your accumulation attributable to premiums paid as elective
deferrals, except as a tax-free transfer to another funding vehicle, until
you:
A) attain age 59 1/2, in the case of a profit-sharing plan;
B) have a severance from employment with respect to the employer
under whose plan the aforementioned portion is attributable;
C) die;
D) become disabled within the meaning of IRC Section 72(m)(7);
E) encounter financial "hardship" within the meaning of IRC
Section 401(k);
or, if earlier, upon the occurrence of any of the events described in IRC
Section 401(k)(10).
In the case of hardship, IRC Section 401(k) requires that any
earnings credited after December 31, 1988 be unavailable for distribution.
Any request for an early withdrawal due to disability, hardship, or
severance from employment must be submitted with evidence of the
disability, hardship, or severance from employment on forms satisfactory
to TIAA and not inconsistent with applicable law.
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YOUR TIAA RETIREMENT SELECT PLUS CERTIFICATE
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65. IRC SECTION 403(b) PLANS. IRC Section 403(b) limits distributions from
your certificate. In general, IRC Section 403(b) prohibits the
distribution to you of the portion of your accumulation equal to:
A) amounts attributable to funds transferred to this certificate
from a custodial account established under IRC Section
403(b)(7); plus
B) amounts attributable to premiums paid to an IRC Section
403(b)(1) annuity contract as elective deferrals under a
salary reduction agreement (within the meaning of IRC Section
403(b)(11)); less
C) the value, if any, of the amounts described in B) determined
as of December 31, 1988.
until you:
(1) reach age 59 1/2;
(2) have a severance from employment with respect to the employer
under whose plan the aforementioned portion is attributable;
(3) die;
(4) become disabled within the meaning of IRC Section 72(m)(7); or
(5) encounter financial "hardship" within the meaning of IRC
Section 403(b).
In the case of hardship, IRC Section 403(b) generally requires that
any earnings credited after December 31, 1988 and any contributions paid
after December 31, 1988 to a custodial account established under IRC
Section 403(b)(7) that are not elective deferrals under a salary reduction
agreement, will not be available for distribution.
Any request for an early withdrawal due to disability, hardship, or
severance from employment must be submitted with evidence of the
disability, hardship, or severance from employment on forms satisfactory
to TIAA and must not be inconsistent with applicable law.
PART L: GENERAL PROVISIONS
66. EMPLOYER PLAN FEE WITHDRAWALS. The contractholder may, in accordance with
the terms of your employer plan, and with TIAA's approval, instruct TIAA
to withdraw amounts from your accumulation under this certificate, to pay
fees associated with the administration of the plan.
TIAA reserves the right to suspend or reinstate its approval for a
plan to make such withdrawals from your certificate.
The amount and the effective date of an employer plan fee withdrawal
will be in accordance with the terms of your employer plan. TIAA will
determine all values as of the end of the effective date. An employer plan
fee withdrawal cannot be revoked after it has been applied.
An employer plan fee withdrawal reduces the accumulation from which
it is paid by the amount withdrawn.
No surrender charge applies to employer plan fee withdrawals.
If a portion of an employer plan fee withdrawal is paid from your
TIAA Traditional Annuity accumulation and different rate schedules apply
to different parts of your accumulation, such portion of the withdrawal
will be deducted from among the parts on
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YOUR TIAA RETIREMENT SELECT PLUS CERTIFICATE
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a pro-rata basis.
67. INSULATION OF THE SEPARATE ACCOUNT. TIAA owns the assets in separate
account VA-2. To the extent permitted by law, the assets of the separate
account will not be charged with liabilities arising out of any other
business TIAA may conduct. All income, investment gains and investment
losses of the separate account, whether or not realized, will be credited
to or charged against only that account without regard to TIAA's other
income, gains or losses.
68. DELETION OF THE REAL ESTATE ACCOUNT. TIAA may delete the Real Estate
Account. If the Real Estate Account is deleted and was, at any time,
available under the terms of your employer plan, then a companion CREF
certificate will be issued to you at the time of the deletion, if one had
not been previously issued to you. If you own accumulation units in the
Real Estate Account and it is deleted, you must transfer them to your
Traditional Annuity accumulation or to your companion CREF certificate. If
you don't tell us where to transfer your accumulation units, we'll
transfer them in accordance with the terms of your employer plan.
69. REPORT OF ACCUMULATION. At least once each year, we will provide you with
a report for your certificate showing the value of your accumulation
(death benefit) as of a date specified in the report.
70. NO LOANS. This certificate does not provide for loans.
71. NO ASSIGNMENT OR TRANSFER. Neither you nor any other person may assign,
pledge, or transfer ownership of this certificate or any benefits under
its terms. Any such action will be void and of no effect.
72. PROTECTION AGAINST CLAIMS OF CREDITORS. The benefits and rights accruing
to you or any other person under this certificate are exempt from the
claims of creditors or legal process to the fullest extent permitted by
law.
73. VESTING. Subject to your employer plan, the right to receive and exercise
every benefit, option, right and privilege conferred by this certificate
may not be immediately vested in you. In that case, your right to receive
and exercise such benefits, options, rights and privileges will commence
on your vesting date as determined in accordance with your employer plan.
74. PROCEDURE FOR ELECTIONS AND CHANGES. You (or your beneficiaries after your
death) have to make any choice or changes available under your certificate
in a form acceptable to TIAA at our home office in New York, NY, or at
another location that we designate. If you (or your beneficiaries after
your death) send us a notice changing your beneficiaries or other persons
named to receive payments, it will take effect as of the date it was
signed even if you (or any other signer) then die before the notice
actually reaches TIAA. Any other notice will take effect as of the date
TIAA receives it. If TIAA takes any action in good faith before receiving
the notice, we won't be subject to liability even if our acts were
contrary to what was stated in the notice.
For purposes of determining the effective dates of any transactions,
transaction requests will only be deemed to have been received when they
are received by TIAA, or its appropriately designated agent, in good
order, in accordance with procedures established by
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YOUR TIAA RETIREMENT SELECT PLUS CERTIFICATE
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TIAA or as required by law. TIAA reserves the right to limit the number of
transactions that you may make effective on a single business day.
75. RIGHT TO A TAX-FREE ROLLOVER. If you or your surviving spouse (or your
spouse or former spouse as an alternate payee under a "qualified domestic
relations order," as defined in the IRC) receive a distribution from your
certificate which qualifies as an eligible rollover distribution under IRC
Section 402(c)(4), any portion of it may be paid as a direct rollover to
an eligible retirement plan. An eligible retirement plan is, to the extent
permitted by law, a plan satisfying the requirements of IRC Section
401(a), 403(a), 403(b), 408 or to the extent that the plan sponsor is a
state or local government, Section 457(b).
Retirement plans eligible for such rollovers may, in the future, be
changed by law. If such changes become effective, your certificate will be
governed by the laws and regulations then applicable.
76. PAYMENT TO AN ESTATE, TRUSTEE, ETC. TIAA reserves the right to pay in one
sum the commuted value of any benefits due an estate, corporation,
partnership, trustee or other entity that isn't a natural person. TIAA
won't be responsible for the acts or neglects of any executor, trustee,
guardian, or other third party receiving payments under this certificate.
If you designate a trustee of a trust as beneficiary, TIAA is not
obliged to inquire into the terms of the underlying trust or any will.
If death benefits become payable to the designated trustee of a
testamentary trust, but:
A) no qualified trustee makes claim for the benefits within nine
months after your death; or
B) evidence satisfactory to TIAA is presented at any time within
such nine-month period that no trustee can qualify to receive
the benefits due,
payment will be made to the successor beneficiaries, if any are designated
and survive you; otherwise payment will be made to the executors or
administrators of your estate.
If benefits become payable to an INTER-VIVOS trustee (the person
appointed to execute a trust created during an individual's lifetime), but
the trust is not in effect or there is no qualified trustee, payment will
be made to the successor beneficiaries, if any are designated and survive
you; otherwise payment will be made to the executors or administrators of
your estate.
Payment to any trustee, successor beneficiary, executor, or
administrator, as provided for above, shall fully satisfy TIAA's payment
obligations under this certificate to the extent of such payment.
77. SERVICE OF PROCESS UPON TIAA. We will accept service of process in any
action or suit against us on this certificate in any court of competent
jurisdiction in the United States or Puerto Rico provided such process is
properly made. We will also accept such process sent to us by registered
mail if the plaintiff is a resident of the jurisdiction in which the
action or suit is brought. This section does not waive any of our rights,
including the right to remove such action or suit to another court.
78. BENEFITS BASED ON INCORRECT DATA. If the amount of benefits is determined
by data as to a person's age or sex that is incorrect, the benefits
payable will be such as the premium paid would have purchased based on the
correct data. Any amounts underpaid by TIAA on the basis of the incorrect
data will be paid at the time the correction is made. Any amounts overpaid
by TIAA on the basis of the incorrect data will be charged against the
payments
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YOUR TIAA RETIREMENT SELECT PLUS CERTIFICATE
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due after the correction is made. Any amounts so paid or charged will
include compound interest at the effective annual rate of 6% per year.
79. PROOF OF SURVIVAL. TIAA reserves the right to require satisfactory proof
that anyone named to receive benefits under the terms of your certificate
is alive on the date any benefit payment is due. If this proof is not
received after it has been requested in writing, TIAA will have the right
to make reduced payments or to withhold payments entirely until such proof
is received. If under a two-life annuity TIAA has overpaid benefits
because of a death of which we were not notified, subsequent payments will
be reduced or withheld until the amount of the overpayment, plus compound
interest at the effective annual rate of 6% per year, has been recovered.
80. COMPLIANCE WITH LAWS AND REGULATIONS. TIAA will administer your
certificate to comply with the restrictions of all laws and regulations
pertaining to the terms and conditions of your certificate. You cannot
elect any benefit or exercise any right under your certificate if the
election of that benefit or exercise of that right is prohibited under an
applicable state or federal law or regulation.
The choice of income options and effective dates, annuity starting
date, beneficiary or second annuitant, method of payment of the death
benefit and effective date, and the availability of internal transfers and
lump-sum benefits as set forth in this certificate are subject to the
applicable restrictions, distribution requirements, and incidental benefit
requirements of ERISA and the IRC, and any rulings and regulations issued
under ERISA and the IRC.
81. OVERPAYMENT OF PREMIUMS. Any payments of premiums made in error by the
contractholder in excess of those required by the employer plan will be
refunded to the contractholder if requested in writing by the
contractholder prior to the certificate's maturity date subject, however,
to prior transfers or lump-sum benefits made from such funds. TIAA is
entitled to rely on information provided by the contractholder. The
contractholder shall indemnify TIAA and hold TIAA harmless for any action
taken in reliance on such request.
82. CORRESPONDENCE AND REQUESTS FOR BENEFITS. No notice, application, form, or
request for benefits will be deemed to be received by us unless it is
received at our home office in New York, NY, or at another location that
we designate. All benefits are payable at our home office or at another
location that we designate. If you have any questions about the contract,
your certificate, or inquiries about our service, or if you need help to
resolve a problem, you can contact us at the address or phone number
below.
TIAA
[000 Xxxxx Xxxxxx
Xxx Xxxx, XX 00000-0000
Telephone: 000 000-0000]
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83. CHANGE OF RATE SCHEDULE. We may, at any time and from time to time,
substitute a new rate schedule for the one currently effective in your
certificate. A new rate schedule will apply only to benefits arising from
any premiums and internal transfers applied to the Traditional Annuity
while such rate schedule is in effect. Any change in the rate schedule
will not affect the amount of benefits purchased prior to the change by
any premiums and internal transfers applied to the Traditional Annuity. A
change in the rate schedule will be made only after we have given you and
the contractholder three months' written notice of the change. Any new
rate schedule will specify:
A) the charges for expenses and contingencies;
B) the interest rates and the mortality bases used for
determining benefits arising from amounts applied to the
Traditional Annuity; and
C) any applicable surrender charges on lump-sum benefits and
internal transfers arising from amounts applied to the
Traditional Annuity.
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RATE SCHEDULE
RATE SCHEDULE. The benefits bought by any premiums and internal transfers
applied to the Traditional Annuity while this rate schedule is in effect
will be computed on this basis:
(1) no deduction for expenses or contingencies, except for any
premium taxes incurred by TIAA for your certificate and except
for any employer plan fee withdrawals in accordance with the
terms of your employer plan;
(2) interest from the end of the day on which the premium or
internal transfer is credited, to the date that such amount is
deducted from the Traditional Annuity accumulation, in
accordance with section 35, as follows:
For premiums and internal transfers applied to the Traditional
Annuity in any calendar year, the minimum effective annual
interest rate, to be credited will be set equal to the CMT
less 0.0125, rounded to the nearest 0.0005, provided however
that the minimum rate will never be less than 1.5% nor greater
than 3%. For each calendar year, the CMT is the average
five-year Constant Maturity Treasury Rate reported by the
Federal Reserve for the calendar month of [November],
preceding that year.
We may make future changes to the choice of calendar month for
which the average five-year Constant Maturity Treasury Rate
will be used to set the CMT. Any such change will be effected
only after obtaining any approvals required by the insurance
regulatory authority of the jurisdiction shown on page 3, and
will also be made to all other certificates written on this
form and delivered in that jurisdiction. Any such change will
be made only after we have given you three months' written
notice.
(3) interest at the effective annual rate of 2% after the date
that payments begin under a one-life or two-life annuity; and
(4) mortality according to the Annuity 2000 Mortality Table
(Merged Gender Mod C), with ages set back three months for
each completed year between December 31, 2000 and the date
that payments begin under a one-life or two-life annuity.
A SURRENDER CHARGE of 0% will be assessed against any of the following
paid from the portion of your Traditional Annuity accumulation arising
from premiums and internal transfers applied to the Traditional Annuity
while this rate schedule is in effect:
A) lump-sum benefits paid to you as a cash withdrawal;
B) lump-sum benefits paid to another funding vehicle as a direct
transfer under federal tax law;
C) internal transfers; and
D) rollovers.
These rate guarantees cease to apply to any Traditional Annuity
accumulations that you transfer to the Real Estate Account or to your
companion CREF certificate, if any.
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TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA
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BETTERMENT OF RATES. When you or your beneficiary begin benefits under a
one-life or two-life annuity, we will compute any benefits provided by the
portion of your Traditional Annuity accumulation resulting from amounts
applied to the Traditional Annuity while this rate schedule is in effect
on the basis stated above, or, if it produces a larger guaranteed benefit,
on the basis then in use for any single premium immediate annuities
offered by TIAA to contracts of the same class as the contract under which
this certificate is issued.
============================================================================================================
GUARANTEED ANNUAL AMOUNT OF INCOME BENEFITS UNDER THE ONE-LIFE
ANNUITY WITH 10-YEAR GUARANTEED PERIOD OPTION
PROVIDED BY $10,000 FROM YOUR ACCUMULATION
(ASSUMING A PREMIUM TAX RATE OF 0%)
One-twelfth of the amount shown is payable each month
------------------------------------------------------------------------------------------------------------
Adjusted Age Annual Amount of Adjusted Age Annual Amount of Adjusted Age Annual Amount of
When Payments Monthly Benefit When Payments Monthly Benefit When Payments Monthly Benefit
Begin Payments Begin Payments Begin Payments
------------------------------------------------------------------------------------------------------------
40 $305.99 57 $383.81 74 $553.18
41 $309.20 58 $390.38 75 $568.43
42 $312.54 59 $397.25 76 $584.44
43 $316.02 60 $404.44 77 $601.22
44 $319.65 61 $411.96 78 $618.78
45 $323.43 62 $419.85 79 $637.13
46 $327.38 63 $428.13 80 $656.25
47 $331.50 64 $436.82 81 $676.14
48 $335.79 65 $445.95 82 $696.74
49 $340.27 66 $455.55 83 $718.03
50 $344.94 67 $465.65 84 $739.91
51 $349.82 68 $476.29 85 $762.31
52 $354.90 69 $487.50 86 $785.11
53 $360.20 70 $499.31 87 $808.15
54 $365.73 71 $511.75 88 $831.28
55 $371.50 72 $524.86 89 $854.30
56 $377.52 73 $538.66 90 $877.00
------------------------------------------------------------------------------------------------------------
The yearly payments shown above are those that result from the application of an
accumulation of $10,000 (assuming a premium tax rate of 0%) in the Traditional
Annuity to the specified income option when the annuitant has attained an
adjusted age as shown, but has not passed the date on which that adjusted age
was attained by as much as one month.
The annuitant's adjusted age equals the annuitant's actual age minus
three months for each completed year between December 31, 2000 and the date that
payments begin under a one-life or two-life annuity. All ages used in computing
benefits are calculated in completed years and months. Payments beginning at
ages other than those shown, and under other income options, are computed on the
basis stated in the rate schedule. For accumulations other than $10,000,
payments will be proportionate.
================================================================================
GROUP FLEXIBLE PREMIUM DEFERRED ANNUITY
FIXED AND VARIABLE ACCUMULATIONS
NONPARTICIPATING
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Page RS2
TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA
(TIAA)
000 XXXXX XXXXXX, XXX XXXX, XX 00000-0000
TELEPHONE: [0-000-000-0000]
ENDORSEMENT TO TIAA RETIREMENT SELECT PLUS CERTIFICATE
This endorsement is part of your agreement with TIAA. The purpose of an
endorsement is to make changes to the provisions of your Certificate. Please
read this endorsement in conjunction with your Certificate.
THE PORTION OF THE PREMIUMS PROVISION PERTAINING TO THE LIMITS OF IRC SECTION
402(g) IS DELETED.
THE PROVISIONS ENTITLED STARTING INCOME BENEFITS AND EFFECTIVE DATE OF A
LUMP-SUM BENEFIT ARE MODIFIED BY THE ADDITION OF THE FOLLOWING PROVISIONS:
IRC Section 457(b) prohibits distributions or the payment of benefits from
your accumulation under the plan, except as a tax-free transfer to another
funding vehicle, until:
A) the calendar year in which you attain age 70 1/2;
B) you have a severance from employment with respect to the
employer under whose plan the aforementioned portion is
attributable; or
C) you encounter an "unforeseeable emergency" within the meaning
of IRC Section 457(d).
THE LAST SENTENCE OF THE AUTOMATIC ELECTION PROVISION IS REPLACED WITH THE
FOLLOWING:
Otherwise, you will be deemed to have chosen the "One-Life Annuity with
10-Year Guaranteed Period" Option.
/s/ Xxxxxxx X. Xxxxxxx, Xx.
---------------------------
CHAIRMAN, PRESIDENT AND
CHIEF EXECUTIVE OFFICER
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Page E1
TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA
000 Xxxxx Xxxxxx, Xxx Xxxx, XX 00000
RETIREMENT SELECT PLUS (II) CONTRACT
RETIREMENT SELECT PLUS (II)
CONTRACT NO.: [xxxxxxxx]
CONTRACTHOLDER: [National Academy of Sciences]
DATE OF ISSUE: [January 1, 2004]
This contract ("the Contract") was made and delivered in the State of
[New York], and is subject to the laws and regulations thereof.
This contract is issued in consideration of the payment of Premiums by
the Contractholder to Teachers Insurance and Annuity Association of America
("TIAA").
The Contract may be amended by agreement of TIAA and the Contractholder
without the consent of any other person, provided that such change does not
reduce the then current Accumulation of any Annuitant, or any benefit purchased
under the Contract up to that time. TIAA may stop accepting Premiums under the
Contract at any time.
The provisions contained on the following pages (the Certificate) are
part of the Contract.
/s/ X. Xxxxxxx Xxxxx /s/ Xxxxxxx X. Xxxxxxx, Xx.
-------------------- ---------------------------
VICE PRESIDENT CHAIRMAN, PRESIDENT AND
AND CORPORATE SECRETARY CHIEF EXECUTIVE OFFICER
TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA
000 XXXXX XXXXXX, XXX XXXX, X.X. 10017-3206
TELEPHONE: [000-000-0000]
RETIREMENT SELECT PLUS (II) CERTIFICATE
ANNUITANT: [Xxxx X. Xxxxxxxxx]
CERTIFICATE NUMBER: [X-xxxxxx-x]
DATE OF ISSUE: [01 01 2004]
This certificate states the rights that you, the annuitant, have under a
Retirement Select Plus (II) contract (the Contract) issued by Teachers Insurance
and Annuity Association of America (TIAA) to the contractholder. PLEASE READ
YOUR CERTIFICATE. IT IS IMPORTANT.
GENERAL DESCRIPTION
All premiums for this certificate must be remitted under the terms of your
employer program. You may allocate your TIAA premiums between the Traditional
Annuity and the Real Estate Account.
TRADITIONAL ANNUITY. Each premium allocated to the Traditional Annuity buys a
definite amount of lifetime income for you, based on the rate schedule in effect
for your certificate at the time the premium is paid. Your Traditional Annuity
accumulation will be credited with a guaranteed interest rate, and may also be
credited with additional amounts declared by TIAA.
REAL ESTATE ACCOUNT. Each premium allocated to the Real Estate Account buys a
number of accumulation units. YOUR REAL ESTATE ACCOUNT ACCUMULATION IS NOT
GUARANTEED, AND MAY INCREASE OR DECREASE DEPENDING ON INVESTMENT RESULTS. The
Real Estate Account separate account charge is guaranteed not to exceed 2.50%
per year of net assets.
You may withdraw all or part of your accumulation before your certificate's
maturity date. You may transfer between your Traditional Annuity accumulation
and your Real Estate Account accumulation, or from either of those accumulations
to your companion CREF certificate. Withdrawals and transfers from the
Traditional Annuity are subject to the surrender charges, if any, specified in
your certificate's rate schedule. TIAA can establish new rate schedules in the
future, but any such changes would not affect benefits purchased before the
change.
When you are ready to start receiving your income, you may choose an option from
among those described in your certificate. If you die before your certificate's
maturity date, your accumulation will provide a death benefit for your
beneficiary.
THIS CERTIFICATE CANNOT BE ASSIGNED AND IT DOES NOT PROVIDE FOR LOANS.
If you have any questions about your certificate or need help to resolve a
problem, you can contact us at the address or phone number above.
/s/ X. Xxxxxxx Xxxxx /s/ Xxxxxxx X. Xxxxxxx, Xx.
-------------------- ---------------------------
VICE PRESIDENT CHAIRMAN, PRESIDENT AND
AND CORPORATE SECRETARY CHIEF EXECUTIVE OFFICER
GROUP FLEXIBLE PREMIUM DEFERRED ANNUITY
FIXED AND VARIABLE ACCUMULATIONS
NONPARTICIPATING
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YOUR TIAA RETIREMENT SELECT PLUS (II) CERTIFICATE
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INDEX OF PROVISIONS
SECTION SECTION
Accumulation
- Definition....................................1 IRC................................................13
- Real Estate Account..........................35 Lapse
- Traditional Annuity..........................32 - Protection Against...........................31
Accumulation Units Laws and Regulations
- Definition...................................34 - Compliance with..............................70
- Number of....................................38 Loans - No provision for...........................61
Additional Amounts.................................33 Lump-sum Benefit
Annuity Starting Date - Amount.......................................56
- Definition....................................2 - Availability of..............................53
- Required Beginning...........................18 - Definition...................................14
Assignment - Void and of no effect.................62 - Effective Date...............................54
Benefits - Payment of...................................55
- Based on Incorrect Data......................68 - Systematic Withdrawals.......................57
- Requests for.................................73 Maturity Date......................................15
Business Day........................................4 Net Investment Factor..............................36
Certificate........................................25 Payee..............................................16
Claims of Creditors Payment to an Estate, Trustee, etc.................66
- Protection Against...........................63 Premiums
Commuted Value......................................5 - Allocation of................................29
Companion CREF Certificate.........................27 - Overpayment of...............................71
Contestability.....................................26 - Payment of...................................28
Contract - Taxes........................................30
- Consists of..................................24 Proof of Survival..................................69
Contractholder......................................6 Rate Schedule
Correspondence with us.............................73 - Change of....................................74
Death Benefit - Definition...................................17
- Amount of Payments...........................46 Real Estate Account
- Beneficiary...................................3 - Deletion of..................................59
- Definition....................................7 Report of Accumulation.............................60
- Methods of Payment...........................45 Restrictions on Distributions
- Naming Your Beneficiary......................44 - IRC Section 403(b)...........................72
- Payment of...................................43 Second Annuitant...................................19
- Payments after Death of Beneficiary..........47 Separate Account
Elections and Changes - Procedure for..............64 - Charge.......................................37
Employer Program...................................8 - Definition...................................20
Funding Vehicle.....................................9 - Insulation of................................58
General Account....................................10 Service of Process upon TIAA.......................67
Income Benefit Surrender Charge...................................21
- Amount of Payments...........................42 Tax-Free Rollover
- Definition...................................11 - Right to.....................................65
- Options......................................40 Traditional Annuity................................22
- Payments during a Guaranteed Period..........41 Valuation Day and Valuation Period.................23
- Starting Payments............................39
Internal Transfers
- Amount.......................................49
- Availability.................................48
- Crediting....................................52
- Definition...................................12
- Effective Date...............................50
- Systematic...................................51
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YOUR TIAA RETIREMENT SELECT PLUS (II) CERTIFICATE
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PART A: ANNUITANT DATA
Annuitant: [Xxxx X. Xxxxxxxxx]
Social Security Number: [xxx-xx-xxxx]
Date of Birth: [03 17 1963]
Issue Date: [01 01 2004]
Annuity Starting Date: [04 01 2028]
Certificate Number: [X-xxxxxx-x]
Companion CREF Certificate Number: [X-xxxxxx-x ]
Retirement Select Plus (II)
Contract Number: [xxxxxxxx]
Contractholder: [National Academy of Sciences]
Employer: [ABC University]
The contract under which this certificate is issued is made and delivered in
[the State of state], and is subject to the laws and regulations thereof.
The minimum Traditional Annuity accumulation interest rate is specified in the
rate schedule. The initial Traditional Annuity accumulation interest rate is [2]
%.
[The only variable account currently available under this certificate is the
Real Estate Account.]
VARIABLE TEXT ENTRIES
[The [beneficiary designation / premium allocation / beneficiary designation and
the premium allocation] in effect for your TIAA [RA, SRA, GRA, GSRA, (or other
product name)] annuity [number xxxxxxxx (if applicable)] as of this
certificate's date of issue is now also in effect for this certificate. [You can
change your premium allocation at any time, as explained in the Allocation of
Premiums section.]
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PART B: TERMS USED IN THIS CERTIFICATE
1. Your ACCUMULATION is equal to the sum of your Traditional Annuity
accumulation as described in Part D and your Real Estate Account
accumulation as described in Part E. Your accumulation will provide the
benefits described in your certificate.
2. Your ANNUITY STARTING DATE is the date as of which you first begin to
receive income benefits from your accumulation under this certificate.
Your scheduled annuity starting date is shown on page 3. You may change
your annuity starting date provided that it not be later than your
required beginning date, as described in section 18.
3. BENEFICIARIES are persons you name, in a form satisfactory to TIAA as
explained in section 44, to receive the death benefit if you die before
your certificate's maturity date.
4. A BUSINESS DAY is any day that the New York Stock Exchange is open for
trading. A business day ends at 4:00 P.M. Eastern time, or when trading
closes on the New York Stock Exchange, if earlier.
5. The COMMUTED (discounted) VALUE is a one-sum amount paid in lieu of a
series of payments that are not contingent upon the survival of an
annuitant. It is less than the total of those payments, because future
interest, included when computing the series of payments, will not be
earned if payment is to be made in one sum. The commuted value of future
payments is therefore the sum of those payments less the interest from the
date of commutation to the date each payment would have been made. The
same interest rate or rates used in computing the benefit payments will be
used to determine the commuted value.
6. The CONTRACTHOLDER is the organization that remits premiums to this
certificate.
7. The DEATH BENEFIT is the current value of your accumulation under this
certificate at your death. It will be paid to your beneficiary under one
of the methods set forth in Part G if you die before your certificate's
maturity date.
8. An EMPLOYER PROGRAM is a program satisfying the requirements of IRC
Section 403(b), or any other section providing similar benefits for
employees.
9. A FUNDING VEHICLE is an annuity contract, custodial account, or trust
designated to receive contributions under an employer program.
10. The GENERAL ACCOUNT consists of all of TIAA's assets other than those in
separate accounts.
11. An INCOME BENEFIT is a periodic amount payable to you under one of the
income options set forth in Part F.
12. An INTERNAL TRANSFER is the movement of accumulations between your
Traditional Annuity accumulation and your Real Estate Account
accumulation, or between this certificate and your companion CREF
certificate. The provisions concerning internal transfers are set forth in
Part H.
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13. The IRC is the Internal Revenue Code of 1986, as amended. All references
to any section of the IRC shall be deemed to refer not only to such
section but also to any amendment thereof and any successor statutory
provisions.
14. A LUMP-SUM BENEFIT is a withdrawal in a single sum of all or part of your
accumulation. The provisions concerning lump-sum benefits are set forth in
Part I.
15. Your certificate's MATURITY DATE is the date as of which all accumulations
under the certificate have been distributed or used to provide annuity
benefits. As of the maturity date all of TIAA's obligations under this
certificate will have been satisfied.
16. The PAYEE is a person named to receive any periodic payments or amounts
due under an income option or method of payment of the death benefit as
explained in sections 41 and 47.
17. The RATE SCHEDULE sets forth the bases for computing the Traditional
Annuity accumulation and any benefits and distributions arising from it.
To the extent permitted by law, TIAA may change the rate schedule for
amounts remitted after the change, as explained in section 74.
18. Your REQUIRED BEGINNING DATE is the latest date on which you can begin to
receive your accumulation in accordance with the rules of the IRC.
Generally, it is the April 1 following the calendar year in which you
attain age [70 1/2] or, if later, the April 1 following the calendar year
in which you retire.
19. The SECOND ANNUITANT is the person you name, if you choose to receive
income under a two-life annuity, to receive an income for life if he or
she survives you. You may name any person eligible under TIAA's practices
then in effect to be a second annuitant.
20. SEPARATE ACCOUNT. All premiums and internal transfers credited to the Real
Estate Account become part of a separate account. The Real Estate Account
is designated as "VA-2" and was established by TIAA in accordance with New
York law to provide benefits under this certificate and other contracts.
The assets and liabilities of separate account VA-2 are segregated from
the assets and liabilities of the general account, and from the assets and
liabilities of any other TIAA separate account.
21. A SURRENDER CHARGE will be assessed against the portion of your
Traditional Annuity accumulation withdrawn or transferred to provide any
lump-sum benefit, internal transfer, or rollover as shown in the rate
schedule.
22. The TRADITIONAL ANNUITY refers to the guaranteed annuity benefits under
your certificate. Each premium and internal transfer allocated to the
Traditional Annuity under your certificate buys a definite amount of
lifetime income for you, based on the rate schedule in effect for your
certificate at the time the premium is paid.
23. A VALUATION DAY is any business day, as well as the last calendar day of
each month. Valuation days end as of the close of all U.S. national
exchanges where securities or other investments of the Real Estate Account
are principally traded. Valuation days that aren't business days end at
4:00 p.m. Eastern Time. A VALUATION PERIOD is the time from the end of a
valuation day to the end of the next valuation day.
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PART C: CONTRACT AND PREMIUMS
24. The CONTRACT constitutes the entire contract between TIAA and the
contractholder, and the provisions therein alone will govern with respect
to the rights and obligations of TIAA, the contractholder, and you. The
payment of premiums is the consideration for the contract.
The contract may be amended by agreement of TIAA and the
contractholder without the consent of any other person, provided that such
change does not reduce any benefit purchased under the contract up to that
time. Any endorsement or amendment of this certificate, waiver of any of
its provisions, or change in rate schedule will be valid only if in
writing and signed by an executive officer of TIAA.
25. This CERTIFICATE states the rights that you, the annuitant, have under the
contract. It is issued in return for premiums remitted on your behalf.
26. CONTESTABILITY. The contract is incontestable.
27. COMPANION CREF CERTIFICATE. The College Retirement Equities Fund (CREF) is
a companion organization to TIAA. CREF issued a companion CREF Retirement
Select Plus (II) certificate to you when you received this certificate.
The certificate number is shown on page 3.
28. PREMIUMS for this certificate must be remitted under the terms of your
employer program. Premiums include any transfers, other than internal
transfers, to this certificate from other funding vehicles. Premiums may
be stopped at any time without notice to TIAA and then resumed without
payment of any past due premium or penalty of any kind.
TIAA reserves the right to limit to $300,000 the total premiums paid
on this certificate and any other TIAA annuity contract on your life in
any twelve-month period. TIAA reserves the right to stop accepting
premiums under the contract at any time. TIAA will not accept premiums
paid on your behalf after your certificate's maturity date or prior death.
Premiums will be credited to your certificate as of the end of the
business day in which they are received by TIAA at the location that TIAA
will designate by prior written notice.
Elective deferral contributions made to your TIAA or CREF contracts
or certificates may not exceed the annual limits on elective deferrals
described in section 402(g) of the IRC, or as otherwise permitted by law.
TIAA will refund the accumulated value of all excess premiums made to this
certificate, as required by law.
29. ALLOCATION OF PREMIUMS. You allocate premiums between the Traditional
Annuity and the Real Estate Account. If you allocate premiums to the
Traditional Annuity they increase your Traditional Annuity accumulation.
If you allocate premiums to the Real Estate Account, they purchase
accumulation units in the Real Estate Account. You may change your
allocation for future premiums at any time. We will allocate your premiums
according to the most recent valid instructions we have received from you
in a form acceptable to TIAA. If we have not received valid instructions
from you, all premiums will be allocated to the CREF Money Market Account
under your companion CREF certificate.
TIAA may stop accepting premiums to the Traditional Annuity or the
Real Estate Account at any time.
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30. PREMIUM TAXES. If state or local government premium taxes are incurred,
they will be deducted from your certificate accumulation, to the extent
permitted by law.
31. UNCONDITIONAL PROTECTION AGAINST LAPSE. Your certificate will not lapse
after the first premium has been paid. No additional premiums are
required.
PART D: TRADITIONAL ANNUITY ACCUMULATION
32. Your TRADITIONAL ANNUITY ACCUMULATION is equal to:
A) all premiums allocated to the Traditional Annuity under your
certificate; plus
B) interest credited at the guaranteed interest rate set forth in
the rate schedule; plus
C) any additional amounts credited to the Traditional Annuity
under your certificate; plus
D) any internal transfers to the Traditional Annuity under your
certificate; less
E) any premium taxes incurred by TIAA for your Traditional
Annuity accumulation; less
F) the amount of any lump-sum benefits, rollovers, internal
transfers and any required minimum distributions paid from the
Traditional Annuity; less
G) any charges for expenses and contingencies set forth in the
rate schedule; less H) any amount applied to provide annuity
income or death benefits; less I) any surrender charge
assessed.
33. ADDITIONAL AMOUNTS. TIAA may credit additional amounts to your Traditional
Annuity accumulation. TIAA does not guarantee that there will be
additional amounts. TIAA will determine at least annually if additional
amounts will be credited.
Any additional amounts credited to your Traditional Annuity
accumulation will buy benefits for you based on the rate schedule
applicable to the premiums or internal transfers that gave rise to such
additional amounts. Additional amounts may also be paid with any
Traditional Annuity benefits payable to you or your beneficiary.
Any additional amounts credited to your Traditional Annuity
accumulation will be credited under a schedule of additional amount rates
declared by TIAA. For a Traditional Annuity accumulation in force as of
the effective date of such a schedule, the additional amount rates will
not be modified for a period of twelve months following the schedule's
effective date. For any premiums and internal transfers applied to the
Traditional Annuity during the twelve-month period described in the
preceding sentence, TIAA may declare additional amounts at rates which
remain in effect through the end of such twelve-month period. Thereafter,
any additional amount rates declared for such premiums and internal
transfers will remain in effect for periods of twelve months or more.
PART E: REAL ESTATE ACCOUNT ACCUMULATION AND UNITS
34. ACCUMULATION UNIT. The value of one accumulation unit is calculated at the
end of each valuation day. The value of an accumulation unit is equal to
the previous day's value multiplied by the net investment factor for the
Real Estate Account.
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35. Your REAL ESTATE ACCOUNT ACCUMULATION is equal to the number of
accumulation units you own multiplied by the value of one accumulation
unit. Real Estate Account accumulations are variable and are not
guaranteed; they may increase or decrease depending on investment results.
36. The NET INVESTMENT FACTOR for the Real Estate Account for a valuation
period is based on the amount of accrued real estate net operating income,
dividends, interest and other income during the current period, a
deduction of the separate account charge, both realized and unrealized
capital gains and losses incurred, and other accounting adjustments during
the current period. The precise formula for the net investment factor is A
divided by B, as follows:
A) The value of the Real Estate Account's net assets at the end
of the current valuation period, less any premiums received
during the current period.
B) The value of the Real Estate Account's net assets at the end
of the previous valuation period, plus the net effect of
transactions (e.g. internal transfers, benefit payments) made
at the start of the current valuation period.
37. The SEPARATE ACCOUNT CHARGE covers mortality and expense risk, liquidity
risk, and administrative and investment advisory services. TIAA, at its
discretion, can increase or decrease the separate account charge. The
separate account charge is guaranteed not to exceed 2.50% per year of net
assets.
38. NUMBER OF ACCUMULATION UNITS. Each premium and each internal transfer
applied to the Real Estate Account on your behalf buys a number of
accumulation units equal to the amount of the premium or internal transfer
divided by the value of one accumulation unit as of the end of the
business day in which the premium or internal transfer is credited. The
number of accumulation units under your certificate will be decreased by
any premium taxes incurred by TIAA for your Real Estate Account
accumulation and by the application of any accumulation units to any
benefits, internal transfers, or any required minimum distributions paid
from the Real Estate Account accumulation under your certificate. Such
transactions will decrease the number of accumulation units under your
certificate by an amount equal to the dollar value of the transaction
divided by the value of one accumulation unit as of the end of the
valuation day on which the transaction becomes effective.
PART F: INCOME BENEFITS
39. STARTING INCOME BENEFITS. An income benefit will be effective and payment
will begin as of the date you have chosen, if you are then living and:
A) you have chosen one of the income options set forth in section
40;
B) if you choose a one-life annuity, we have received proof of
your age; and
C) if you choose a two-life annuity, we have received proof of
your age and the age of your second annuitant.
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You may not begin a one-life annuity after you attain age 90, nor
may you begin a two-life annuity after you or your second annuitant attain
age 90. If your accumulation is less than $5,000 on the effective date of
an income benefit, TIAA may choose instead to pay your accumulation to you
in a single sum.
At any time before you start to receive an income benefit, you may
change the effective date for that income benefit to a date after the
change, by written notice to TIAA as explained in section 64.
40. INCOME OPTIONS are the ways in which you may have income benefits paid to
you. The income options are available from your Traditional Annuity
accumulation only. You can transfer some or all of your Real Estate
Account accumulation to your Traditional Annuity accumulation to receive
benefits under an income option available from the Traditional Annuity.
Also, you may transfer some or all of your Real Estate Account
accumulation to your companion CREF certificate, as described in section
48, to receive benefits under an income option available under that
certificate.
You may change your choice of income option any time before payments
begin, but once they have begun under an income option, the election to
begin receiving benefits is irrevocable and no change can be made. Any
choice of option or change of such choice must be made by written notice
to TIAA as explained in section 64.
Your right to elect an option or change such election may be limited
in accordance with sections 70 and 72. The availability of certain income
options may be restricted by the IRC.
As of the April 1 following the calendar year in which you attain
age [70 1/2], we will begiN distributions satisfying the minimum
distribution rules of federal tax law unless you instruct us otherwise.
The following are the income options from which you may choose. All
of them provide an income for you, some provide that payments will
continue for the lifetime of a second annuitant and some provide that
payments will continue in any event during a guaranteed period as
explained in section 41. The periodic amount paid to you or a surviving
second annuitant depends on which of these options you choose.
ONE-LIFE ANNUITY. A payment will be made to you each month for as
long as you live. You may include a guaranteed period of 10 or 20
years. If you do not include a guaranteed period, all payments will
cease at your death. If you include a guaranteed period and you die
before the end of that period, monthly payments will continue until
the end of that period and then cease.
TWO-LIFE ANNUITY. A payment will be made to you each month for as
long as you live. After your death, a payment will be made each
month to the second annuitant you have named, for as long as he or
she survives you. You cannot change your choice of second annuitant
after your payments begin. You may include a guaranteed period of 10
or 20 years. If you do not include a guaranteed period, all payments
will cease when you and your second annuitant have both died. You
may choose from among the following forms of two-life annuity.
FULL BENEFIT TO SURVIVOR. At the death of either you or your
second annuitant, the full amount of the monthly payments that
would have been paid if you both had lived will continue to be
paid to the survivor. If you include a guaranteed period and
you and your second annuitant both die before the end of the
period chosen, the full amount of the monthly payments that
would have been paid if
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you both had lived will continue to be paid until the end of
that period and then cease.
TWO-THIRDS BENEFIT TO SURVIVOR. At the death of either you or
your second annuitant, two-thirds of the monthly payments that
would have been paid if you both had lived will continue to be
paid to the survivor. If you include a guaranteed period and
you and your second annuitant both die before the end of the
period chosen, two-thirds of the monthly payments that would
have been paid if you both had lived will continue to be paid
until the end of that period and then cease.
HALF BENEFIT TO SECOND ANNUITANT. The full monthly income will
continue to be paid as long as you live. After your death, if
your second annuitant survives you, one-half of the monthly
payments that would have been paid if you had lived will
continue to be paid to your second annuitant. If you include a
guaranteed period and you and your second annuitant both die
before the end of the period chosen, one-half of the monthly
payments that would have been paid if you had lived will
continue to be paid until the end of that period and then
cease.
AUTOMATIC ELECTION PROVISION. If on your required beginning date,
you have not met the requirements for starting income benefits as
described in section 39, you will be deemed to have chosen a one-life
annuity with a 10-year guaranteed period, if allowed under federal tax
law.
41. POST-MORTEM PAYMENTS DURING A GUARANTEED PERIOD. Any periodic payments or
other amounts remaining due after your death and the death of your second
annuitant, if any, during a guaranteed period will be paid to the payee
named to receive them. You name the payee at the time you choose the
income option, as described in section 64. You may later change the named
payee. If you choose a two-life annuity, your surviving second annuitant
may change the named payees after your death, unless you direct otherwise.
A payee may choose to receive in one sum the commuted value of any
remaining periodic payments that do not involve life contingencies, unless
you direct otherwise. If no payee was named to receive these payments, or
if no one so named is then living, we will pay the remaining payments due
or the commuted value of the remaining periodic payments in one sum to
your estate, or to the estate of the last survivor of you and your second
annuitant if you chose a two-life annuity.
If a payee receiving payments during a guaranteed period option dies
while payments remain due, the commuted value of any remaining payments
due to that person will be paid to any other surviving payee that you (or
your second annuitant) had named to receive them. If no payee so named is
then living, the commuted value will be paid to the estate of the last
payee who was receiving these benefit payments.
42. The AMOUNT OF PERIODIC INCOME BENEFIT will be determined as of the
effective date for the income benefit by:
A) the amount of your Traditional Annuity accumulation applied to
provide the income benefit;
B) the rate schedule or schedules under which any premiums and
internal transfers were applied to your Traditional Annuity
accumulation;
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C) the income option you choose;
D) if you choose a one-life annuity, your age; and
E) if you choose a two-life annuity, your age and your second
annuitant's age.
If your income benefit would be less than $100 a month, TIAA will
have the right to change to quarterly, semi-annual or annual payments,
whichever will result in payments of $100 or more and the shortest
interval between payments. If different rate schedules apply to different
parts of your Traditional Annuity accumulation, the portion applied to
provide the income benefit chosen will be allocated among the parts on a
pro-rata basis.
PART G: DEATH BENEFIT
43. PAYMENT OF THE DEATH BENEFIT. If you die before your certificate's
maturity date, the death benefit will be payable to your beneficiary. We
must receive the following in a form acceptable to TIAA before any death
benefit will be paid:
A) proof of your death;
B) the choice of a method of payment as provided in section 45;
and
C) proof of the beneficiary's age if the method of payment chosen
is the one-life annuity.
Payment under the single-sum payment method will be made effective
as of the date we receive these items; payment under the one-life annuity
method of payment will be effective and begin no later than the first day
of the month after we have received these items.
Upon receipt of proof of your death, we will divide your
accumulation into as many portions as there are validly designated
beneficiaries for your certificate. If different rate schedules apply to
different parts of your Traditional Annuity accumulation, the resulting
portions will be allocated among the parts on a pro-rata basis. Each
validly designated beneficiary will then have the right to make elections
available under this certificate in connection with his or her portion of
the accumulation.
44. NAMING YOUR BENEFICIARY. Beneficiaries are persons you name to receive the
death benefit if you die before your certificate's maturity date. At any
time before your certificate's maturity date, you may name, change, add or
delete your beneficiaries by written notice to TIAA, as explained in
section 64.
You can name two classes of beneficiaries, primary and contingent,
which set the order of payment. At your death, your beneficiaries are the
surviving primary beneficiary or beneficiaries you named. If no primary
beneficiary survives you, your beneficiaries are the surviving contingent
beneficiary or beneficiaries you named. The share of any named beneficiary
in a class who does not survive will be allocated in equal shares to the
beneficiaries in such class who do survive, even if you've provided for
these beneficiaries to receive unequal shares.
The death benefit will be paid to your estate in one sum if: you
name your estate as beneficiary; or none of the beneficiaries you have
named is alive at the time of your death; or at your death you had never
named a beneficiary. If distributions to a named beneficiary are barred by
operation of law, the death benefit will be paid to your estate.
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45. METHODS OF PAYMENT are the ways in which your beneficiary may receive the
death benefit. The single-sum payment method is available from your
Traditional Annuity and Real Estate Account accumulations. The other
methods are available from the Traditional Annuity only. Your beneficiary
can, however, transfer some or all of your Real Estate Account
accumulation to the Traditional Annuity in order to receive that portion
of the death benefit under a method of payment available from the
Traditional Annuity. Your beneficiary can also transfer some or all of
your accumulation to CREF in order to receive that portion of the death
benefit under a method of payment offered by CREF. Such transfer can be
for all of your accumulation, or for any part thereof not less than
$1,000.
You may choose the method of payment and change your choice at any
time before payments begin. After your death, your beneficiary may change
the method chosen by you, if you so provide. If you do not choose a method
of payment, your beneficiary will make the choice when he or she becomes
entitled to payments. If the amount of the death benefit due to any one
beneficiary is less than $5,000, TIAA may change the method of payment for
the portion of the death benefit payable to that beneficiary to the
single-sum payment method. The right to elect a method or change such
election may be limited in accordance with section 70.
A beneficiary may not begin to receive the death benefit under the
one-life annuity method after he or she attains age 90. If you die before
your certificate's maturity date and have chosen the one-life annuity
method for a beneficiary who has attained age 90, he or she must choose
another method. Any choice of method or change of such choice must be made
by written notice to TIAA, as explained in section 64.
Generally, the distribution of the death benefit under any method of
payment must be made over the lifetime of your beneficiary or over a
period not to exceed your beneficiary's life expectancy.
As of the April 1 following the calendar year in which you attain
age [70 1/2], we will begiN distributions satisfying the minimum
distribution rules of federal tax law unless you instruct us otherwise.
The distribution of the death benefit under a method of payment must
be made in such a form and begin at such date as meets the requirements of
the IRC and the regulations thereunder. If such method of payment has not
been chosen to begin by that date, we will elect a method of payment in
accordance with the requirements of the IRC and any regulations
thereunder. The following are the methods of payment:
SINGLE-SUM PAYMENT. The death benefit will be paid to your
beneficiary in one sum.
ONE-LIFE ANNUITY. A payment will be made to your beneficiary each
month for life. A guaranteed period of 10 or 20 years may be
included. If a guaranteed period isn't included, all payments will
cease at the death of your beneficiary. If a guaranteed period is
included and your beneficiary dies before the end of that period,
monthly payments will continue until the end of that period and then
cease, as explained in section 47.
46. The AMOUNT OF DEATH BENEFIT PAYMENTS will be determined as of the date
payments are to begin by:
A) the amount of your Traditional Annuity accumulation applied to
the method of payment;
B) the rate schedule or schedules under which any premiums and
internal transfers were applied to your Traditional Annuity
accumulation;
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C) the method of payment chosen for the death benefit; and
D) if the method chosen is the one-life annuity, the age of your
beneficiary.
If any method chosen would result in payments of less than $100 a
month, TIAA will have the right to require a change in choice that will
result in payments of at least $100 a month. If different rate schedules
apply to different parts of your Traditional Annuity accumulation, the
portion applied to provide the death benefit chosen will be allocated
among the parts on a pro-rata basis.
47. PAYMENTS AFTER THE DEATH OF A BENEFICIARY. Any periodic payments or other
amounts remaining due after the death of your beneficiary during a
guaranteed period will be paid to the payee named by you or your
beneficiary to receive them, by written notice to TIAA as explained in
section 64. The commuted value of these payments may be paid in one sum
unless we are directed otherwise.
If no payee has been named to receive these payments, or if no one
so named is living at the death of your beneficiary, the commuted value
will be paid in one sum to your beneficiary's estate.
If a payee receiving these payments dies before the end of the
guaranteed period, the commuted value of any payments still due that
person will be paid to any other payee named to receive it. If no one has
been so named, the commuted value will be paid to the estate of the last
payee who was receiving these payments.
PART H: INTERNAL TRANSFERS
48. AVAILABILITY OF INTERNAL TRANSFERS. You may transfer between your
Traditional Annuity accumulation and your Real Estate Account
accumulation. In addition, you may transfer all or part of your
Traditional Annuity accumulation or your Real Estate Account accumulation
to your companion CREF certificate. If you have an accumulation in your
companion CREF certificate, you may transfer from that certificate to this
certificate. TIAA reserves the right to limit internal transfers from each
of your Traditional Annuity accumulation and your Real Estate Account
accumulation to not more than one in a calendar quarter. TIAA reserves the
right to stop accepting internal transfers to the Traditional Annuity
and/or internal transfers to the Real Estate Account at any time. Any
internal transfer to or from CREF is subject to the terms of your
companion CREF certificate and CREF's Rules of the Fund.
49. AMOUNT OF INTERNAL TRANSFER. You can transfer all of your Traditional
Annuity accumulation or your Real Estate Account accumulation, or any part
of either account not less than $1,000. If you choose to transfer from
your Traditional Annuity accumulation, the amount to be transferred will
be reduced by any surrender charge in accordance with the applicable rate
schedule or schedules.
An internal transfer reduces the accumulation from which it is paid
by the amount transferred, including any surrender charge. If you transfer
from your Traditional Annuity accumulation and different rate schedules
apply to different parts of the accumulation, the reduction will be
allocated among the parts on a pro rata basis.
50. EFFECTIVE DATE OF INTERNAL TRANSFER. An internal transfer will be
effective as of the end of the business day in which we receive your
written request for an internal transfer. You may defer the effective date
of the internal transfer until any business day following the date on
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which we receive your written request. TIAA will determine all values as
of the end of the effective date. You can't revoke a request for an
internal transfer after its effective date.
51. SYSTEMATIC TRANSFERS. You may elect to have transfers made on a systematic
basis. Systematic transfers may be made semi-monthly, monthly, quarterly,
semi-annually or annually. Semi-monthly transfers are made twice a month,
with the second payment scheduled 14 days after the first payment. You
choose which day the transfer will be made, except that if the date of a
scheduled transfer is not a business day, the transfer will be made on the
following business day. Transfers will continue until you tell us to stop
or your Traditional Annuity accumulation or Real Estate Account
accumulation is insufficient to support the transfer. Systematic transfers
are subject to all the provisions described above for transfers, except
that a reduced minimum amount of $100 applies to such transfers.
52. CREDITING INTERNAL TRANSFERS. Internal transfers to your Traditional
Annuity accumulation are credited to the Traditional Annuity as of the end
of the effective date of the internal transfer and begin participation in
the Traditional Annuity as of the following day. Internal transfers to
your Real Estate Account accumulation purchase accumulation units as of
the end of the effective date of the internal transfer.
PART I: LUMP-SUM BENEFITS
53. AVAILABILITY OF THE LUMP-SUM BENEFIT. You may, subject to the limits
described below, withdraw as a lump-sum benefit all of your Traditional
Annuity accumulation or Real Estate Account accumulation, or any part
thereof not less than $1,000. TIAA reserves the right to limit lump-sum
benefits from each of your Traditional Annuity accumulation and your Real
Estate Account accumulation to not more than one in a calendar quarter. If
you have a severance of employment with your employer, we may choose to
distribute your accumulation to you as a lump-sum benefit (without
surrender charge) subject to the restrictions on mandatory distributions
under the IRC.
Federal tax law may restrict distributions, as described in section
72.
54. EFFECTIVE DATE OF A LUMP-SUM BENEFIT. Any choice of lump-sum benefit must
be made by written notice to TIAA on or before your certificate's maturity
date, as explained in section 64. A lump-sum benefit will be effective as
of the business day on which we receive, in a form acceptable to TIAA,
your request for a lump-sum benefit.
You may choose to defer the effective date of the lump-sum benefit
until any business day following the date on which we receive the above
requirements. TIAA will determine all values as of the end of the
effective date. You can't revoke a request for a lump-sum benefit after
its effective date.
TIAA may defer the payment of a Traditional Annuity lump-sum benefit
for up to six months.
55. PAYMENT OF A LUMP-SUM BENEFIT. A lump-sum benefit may be paid:
A) to you as a cash withdrawal;
B) to another funding vehicle as a direct transfer under federal
tax law; or
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YOUR TIAA RETIREMENT SELECT PLUS (II) CERTIFICATE
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C) to a TIAA IRA contract, a CREF IRA certificate, or to a
funding vehicle whether or not it is offered by TIAA or CREF,
as a tax-free rollover as permitted in section 65.
56. AMOUNT OF A LUMP-SUM BENEFIT. If you choose a lump-sum benefit from your
Traditional Annuity accumulation, we will pay the portion of your
Traditional Annuity accumulation you choose, less any surrender charge in
accordance with the applicable rate schedule or schedules. If you choose a
lump-sum benefit from your Real Estate Account accumulation, we will pay
the portion of your Real Estate Account accumulation you choose.
Payment of a lump-sum benefit reduces the accumulation from which it
is paid by the amount chosen, including any surrender charge. If you
choose a lump-sum benefit from your Traditional Annuity accumulation and
different rate schedules apply to different parts of your accumulation,
the reduction will be allocated among the parts on a pro-rata basis.
57. SYSTEMATIC WITHDRAWALS. You may elect to have lump-sum benefits made on a
systematic basis. Systematic withdrawals may be made semi-monthly,
monthly, quarterly, semi-annually or annually. Semi-monthly withdrawals
are made twice a month, with the second payment scheduled 14 days after
the first payment. You choose which day the lump-sum benefit will be paid,
except that if the date of a scheduled lump-sum benefit is not a business
day, it will be paid on the following business day. Withdrawals will
continue until you tell us to stop or until the portion of your
Traditional Annuity accumulation or your Real Estate Account accumulation
is insufficient to support the withdrawal. Systematic withdrawals are
subject to all the provisions described above for lump-sum benefits,
except that a reduced minimum amount of $100 applies.
PART J: GENERAL PROVISIONS
58. INSULATION OF THE SEPARATE ACCOUNT. TIAA owns the assets in separate
account VA-2. To the extent permitted by law, the assets of the separate
account will not be charged with liabilities arising out of any other
business TIAA may conduct. All income, investment gains and investment
losses of the separate account, whether or not realized, will be credited
to or charged against only that account without regard to TIAA's other
income, gains or losses.
59. DELETION OF THE REAL ESTATE ACCOUNT. TIAA may delete the Real Estate
Account. If you own accumulation units in the Real Estate Account and it
is deleted, you must transfer them to your Traditional Annuity
accumulation or to your companion CREF certificate. If you don't tell us
where to transfer your accumulation units, we'll transfer them to the CREF
Money Market Account under your companion CREF certificate.
60. REPORT OF ACCUMULATION. At least once each year, we will provide you with
a report for your certificate showing the value of your accumulation
(death benefit) as of a date specified in the report.
61. NO LOANS. This certificate does not provide for loans.
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62. NO ASSIGNMENT OR TRANSFER. Neither you nor any other person may assign,
pledge, or transfer ownership of this certificate or any benefits under
its terms. Any such action will be void and of no effect.
63. PROTECTION AGAINST CLAIMS OF CREDITORS. The benefits and rights accruing
to you or any other person under this certificate are exempt from the
claims of creditors or legal process to the fullest extent permitted by
law.
64. PROCEDURE FOR ELECTIONS AND CHANGES. You (or your beneficiaries after your
death) have to make any choice or changes available under your certificate
in a form acceptable to TIAA at our home office in New York, NY, or at
another location that we designate. If you (or your beneficiaries after
your death) send us a notice changing your beneficiaries or other persons
named to receive payments, it will take effect as of the date it was
signed even if you (or any other signer) then die before the notice
actually reaches TIAA. Any other notice will take effect as of the date
TIAA receives it. If TIAA takes any action in good faith before receiving
the notice, we won't be subject to liability even if our acts were
contrary to what was stated in the notice.
For purposes of determining the effective dates of any transactions,
transaction requests will only be deemed to have been received when they
are received by TIAA, or its appropriately designated agent, in good
order, in accordance with procedures established by TIAA or as required by
law. TIAA reserves the right to limit the number of transactions that you
may make effective on a single business day.
65. RIGHT TO A TAX-FREE ROLLOVER. If you or your surviving spouse (or your
spouse or former spouse as an alternate payee under a "qualified domestic
relations order," as defined in the IRC) receive a distribution from your
certificate which qualifies as an eligible rollover distribution under IRC
Section 402(c)(4), any portion of it may be paid as a direct rollover to
an eligible retirement plan. An eligible retirement plan is, to the extent
permitted by law, a plan satisfying the requirements of IRC Section
401(a), 403(a), 403(b), 408 or to the extent that the plan sponsor is a
state or local government, Section 457(b).
Retirement plans eligible for such rollovers may, in the future, be
changed by law. If such changes become effective, your certificate will be
governed by the laws and regulations then applicable.
66. PAYMENT TO AN ESTATE, TRUSTEE, ETC. TIAA reserves the right to pay in one
sum the commuted value of any benefits due an estate, corporation,
partnership, trustee or other entity that isn't a natural person. TIAA
won't be responsible for the acts or neglects of any executor, trustee,
guardian, or other third party receiving payments under this certificate.
If you designate a trustee of a trust as beneficiary, TIAA is not
obliged to inquire into the terms of the underlying trust or any will.
If death benefits become payable to the designated trustee of a
testamentary trust, but:
A) no qualified trustee makes claim for the benefits within nine
months after your death; or
B) evidence satisfactory to TIAA is presented at any time within
such nine-month period that no trustee can qualify to receive
the benefits due,
payment will be made to the successor beneficiaries, if any are designated
and survive you; otherwise payment will be made to the executors or
administrators of your estate.
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If benefits become payable to an INTER-VIVOS trustee (the person
appointed to execute a trust created during an individual's lifetime), but
the trust is not in effect or there is no qualified trustee, payment will
be made to the successor beneficiaries, if any are designated and survive
you; otherwise payment will be made to the executors or administrators of
your estate.
Payment to any trustee, successor beneficiary, executor, or
administrator, as provided for above, shall fully satisfy TIAA's payment
obligations under this certificate to the extent of such payment.
67. SERVICE OF PROCESS UPON TIAA. We will accept service of process in any
action or suit against us on this certificate in any court of competent
jurisdiction in the United States or Puerto Rico provided such process is
properly made. We will also accept such process sent to us by registered
mail if the plaintiff is a resident of the jurisdiction in which the
action or suit is brought. This section does not waive any of our rights,
including the right to remove such action or suit to another court.
68. BENEFITS BASED ON INCORRECT DATA. If the amount of benefits is determined
by data as to a person's age or sex that is incorrect, the benefits
payable will be such as the premium paid would have purchased based on the
correct data. Any amounts underpaid by TIAA on the basis of the incorrect
data will be paid at the time the correction is made. Any amounts overpaid
by TIAA on the basis of the incorrect data will be charged against the
payments due after the correction is made. Any amounts so paid or charged
will include compound interest at the effective annual rate of 6% per
year.
69. PROOF OF SURVIVAL. TIAA reserves the right to require satisfactory proof
that anyone named to receive benefits under the terms of your certificate
is alive on the date any benefit payment is due. If this proof is not
received after it has been requested in writing, TIAA will have the right
to make reduced payments or to withhold payments entirely until such proof
is received. If under a two-life annuity TIAA has overpaid benefits
because of a death of which we were not notified, subsequent payments will
be reduced or withheld until the amount of the overpayment, plus compound
interest at the effective annual rate of 6% per year, has been recovered.
70. COMPLIANCE WITH LAWS AND REGULATIONS. TIAA will administer your
certificate to comply with the restrictions of all laws and regulations
pertaining to the terms and conditions of your certificate. You cannot
elect any benefit or exercise any right under your certificate if the
election of that benefit or exercise of that right is prohibited under an
applicable state or federal law or regulation.
The choice of income options and effective dates, annuity starting
date, beneficiary or second annuitant, method of payment of the death
benefit and effective date, and the availability of internal transfers and
lump-sum benefits as set forth in this certificate are subject to the
applicable restrictions, distribution requirements, and incidental benefit
requirements of the IRC, and any rulings and regulations issued under the
IRC.
71. OVERPAYMENT OF PREMIUMS. Any payments of premiums made in error by the
contractholder in excess of those required by the employer program will be
refunded to the contractholder if requested in writing by the
contractholder prior to the certificate's maturity date subject, however,
to prior transfers or lump-sum benefits made from such funds. TIAA is
entitled to rely on information provided by the contractholder. The
contractholder shall indemnify TIAA and hold TIAA harmless for any action
taken in reliance on such request.
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72. RESTRICTIONS ON DISTRIBUTIONS. IRC Section 403(b) limits distributions
from your certificate. In general, IRC Section 403(b) prohibits the
distribution to you of the portion of your accumulation equal to:
A) amounts attributable to funds transferred to this certificate
from a custodial account established under IRC Section
403(b)(7); plus
B) amounts attributable to premiums paid to an IRC Section
403(b)(1) annuity contract as elective deferrals under a
salary reduction agreement (within the meaning of IRC Section
403(b)(11)); less
C) the value, if any, of the amounts described in B) determined
as of December 31, 1988.
until you:
(1) reach age 59 1/2;
(2) have a severance from employment with respect to the employer
under whose program the aforementioned portion is
attributable;
(3) die;
(4) become disabled within the meaning of IRC Section 72(m)(7); or
(5) encounter financial "hardship" within the meaning of IRC
Section 403(b).
In the case of hardship, IRC Section 403(b) generally requires that
any earnings credited after December 31, 1988 and any contributions paid
after December 31, 1988 to a custodial account established under IRC
Section 403(b)(7) that are not elective deferrals under a salary reduction
agreement, will not be available for distribution.
Any request for an early withdrawal due to disability, hardship, or
severance from employment must be submitted with evidence of the
disability, hardship, or severance from employment on forms satisfactory
to TIAA and must not be inconsistent with applicable law.
73. CORRESPONDENCE AND REQUESTS FOR BENEFITS. No notice, application, form, or
request for benefits will be deemed to be received by us unless it is
received at our home office in New York, NY, or at another location that
we designate. All benefits are payable at our home office or at another
location that we designate. If you have any questions about the contract,
your certificate, or inquiries about our service, or if you need help to
resolve a problem, you can contact us at the address or phone number
below.
TIAA
[000 Xxxxx Xxxxxx
Xxx Xxxx, XX 00000-0000
Telephone: 000 000-0000]
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74. CHANGE OF RATE SCHEDULE. We may, at any time and from time to time,
substitute a new rate schedule for the one currently effective in your
certificate. A new rate schedule will apply only to benefits arising from
any premiums and internal transfers applied to the Traditional Annuity
while such rate schedule is in effect. Any change in the rate schedule
will not affect the amount of benefits purchased prior to the change by
any premiums and internal transfers applied to the Traditional Annuity. A
change in the rate schedule will be made only after we have given you and
the contractholder three months' written notice of the change. Any new
rate schedule will specify:
A) the charges for expenses and contingencies;
B) the interest rates and the mortality bases used for
determining benefits arising from amounts applied to the
Traditional Annuity; and
C) any applicable surrender charges on lump-sum benefits and
internal transfers arising from amounts applied to the
Traditional Annuity.
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RATE SCHEDULE
RATE SCHEDULE. The benefits bought by any premiums and internal transfers
applied to the Traditional Annuity while this rate schedule is in effect
will be computed on this basis:
(1) no deduction for expenses or contingencies, except for any
premium taxes incurred by TIAA for your certificate;
(2) interest from the end of the day on which the premium or
internal transfer is credited, to the date that such amount is
deducted from the Traditional Annuity accumulation, in
accordance with section 32, as follows:
For premiums and internal transfers applied to the Traditional
Annuity in any calendar year, the minimum effective annual
interest rate, to be credited will be set equal to the CMT
less 0.0125, rounded to the nearest 0.0005, provided however
that the minimum rate will never be less than 1.5% nor greater
than 3%. For each calendar year, the CMT is the average
five-year Constant Maturity Treasury Rate reported by the
Federal Reserve for the calendar month of [November],
preceding that year.
We may make future changes to the choice of calendar month for
which the average five-year Constant Maturity Treasury Rate
will be used to set the CMT. Any such change will be effected
only after obtaining any approvals required by the insurance
regulatory authority of the jurisdiction shown on page 3, and
will also be made to all other certificates written on this
form and delivered in that jurisdiction. Any such change will
be made only after we have given you three months' written
notice.
(3) interest at the effective annual rate of 2% after the date
that payments begin under a one-life or two-life annuity; and
(4) mortality according to the Annuity 2000 Mortality Table
(Merged Gender Mod C), with ages set back three months for
each completed year between December 31, 2000 and the date
that payments begin under a one-life or two-life annuity.
A SURRENDER CHARGE of 0% will be assessed against any of the following
paid from the portion of your Traditional Annuity accumulation arising
from premiums and internal transfers applied to the Traditional Annuity
while this rate schedule is in effect:
A) lump-sum benefits paid to you as a cash withdrawal;
B) lump-sum benefits paid to another funding vehicle as a direct
transfer under federal tax law;
C) internal transfers; and
D) rollovers.
These rate guarantees cease to apply to any Traditional Annuity
accumulations that you transfer to the Real Estate Account or to your
companion CREF certificate.
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BETTERMENT OF RATES. When you or your beneficiary begin benefits
under a one-life or two-life annuity, we will compute any benefits
provided by the portion of your Traditional Annuity accumulation
resulting from amounts applied to the Traditional Annuity while this
rate schedule is in effect on the basis stated above, or, if it
produces a larger guaranteed benefit, on the basis then in use for
any single premium immediate annuities offered by TIAA to contracts
of the same class as the contract under which this certificate is
issued.
============================================================================================================
GUARANTEED ANNUAL AMOUNT OF INCOME BENEFITS UNDER THE ONE-LIFE
ANNUITY WITH 10-YEAR GUARANTEED PERIOD OPTION
PROVIDED BY $10,000 FROM YOUR ACCUMULATION
(ASSUMING A PREMIUM TAX RATE OF 0%)
One-twelfth of the amount shown is payable each month
------------------------------------------------------------------------------------------------------------
Adjusted Age Annual Amount of Adjusted Age Annual Amount of Adjusted Age Annual Amount of
When Payments Monthly Benefit When Payments Monthly Benefit When Payments Monthly Benefit
Begin Payments Begin Payments Begin Payments
------------------------------------------------------------------------------------------------------------
40 $305.99 57 $383.81 74 $553.18
41 $309.20 58 $390.38 75 $568.43
42 $312.54 59 $397.25 76 $584.44
43 $316.02 60 $404.44 77 $601.22
44 $319.65 61 $411.96 78 $618.78
45 $323.43 62 $419.85 79 $637.13
46 $327.38 63 $428.13 80 $656.25
47 $331.50 64 $436.82 81 $676.14
48 $335.79 65 $445.95 82 $696.74
49 $340.27 66 $455.55 83 $718.03
50 $344.94 67 $465.65 84 $739.91
51 $349.82 68 $476.29 85 $762.31
52 $354.90 69 $487.50 86 $785.11
53 $360.20 70 $499.31 87 $808.15
54 $365.73 71 $511.75 88 $831.28
55 $371.50 72 $524.86 89 $854.30
56 $377.52 73 $538.66 90 $877.00
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The yearly payments shown above are those that result from the application of an
accumulation of $10,000 (assuming a premium tax rate of 0%) in the Traditional
Annuity to the specified income option when the annuitant has attained an
adjusted age as shown, but has not passed the date on which that adjusted age
was attained by as much as one month.
The annuitant's adjusted age equals the annuitant's actual age minus
three months for each completed year between December 31, 2000 and the date that
payments begin under a one-life or two-life annuity. All ages used in computing
benefits are calculated in completed years and months. Payments beginning at
ages other than those shown, and under other income options, are computed on the
basis stated in the rate schedule. For accumulations other than $10,000,
payments will be proportionate.
================================================================================
GROUP FLEXIBLE PREMIUM DEFERRED ANNUITY
FIXED AND VARIABLE ACCUMULATIONS
NONPARTICIPATING
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TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA
(TIAA)
000 XXXXX XXXXXX, XXX XXXX, XX 00000-0000
ENDORSEMENT TO TIAA RETIREMENT ANNUITY CONTRACT
This endorsement modifies the provisions of your TIAA Retirement Annuity
Contract and becomes part of it. Please read this endorsement and attach it to
your contract.
ALL REFERENCES TO THE TERMS OF AN EMPLOYER'S PLAN AND TO ERISA ARE DELETED AND
ARE NOT APPLICABLE TO THIS CONTRACT.
THE TERM REQUIRED BEGINNING DATE IS REPLACED WITH THE FOLLOWING:
Your REQUIRED BEGINNING DATE is the first of the month in which you turn
age 90.
THE MINIMUM DISTRIBUTION ANNUITY INCOME OPTION IS NOT AVAILABLE UNDER THIS
CONTRACT.
A REAL ESTATE ACCOUNT LUMP-SUM BENEFIT MAY NOT BE PAID TO ANOTHER FUNDING
VEHICLE AS A DIRECT TRANSFER UNDER FEDERAL TAX LAW. ANY REFERENCE TO THE
CONTRARY IS DELETED.
THE FOLLOWING PROVISIONS ARE ADDED:
DISTRIBUTION REQUIREMENTS UPON THE DEATH OF THE ANNUITANT. Notwithstanding
any other provision in your contract, if you die before the annuity
starting date, we will pay the death benefit in accordance with the
requirements of Section 72(s) of the Internal Revenue Code of 1986, as
amended. Thus, the death benefit must be distributed within five years of
the death of the annuitant. However, if your beneficiary is a natural
person and payments begin within one year of your death, and within 60
days of the date we receive due proof of your death, the distribution may
be made over the lifetime of your beneficiary or over a period not to
exceed your beneficiary's life expectancy. If your spouse is the sole
death benefit payee, he or she may choose to become the owner and continue
the contract. If your spouse is the sole death benefit payee and does not
make a choice within 60 days of the date we receive due proof of death, he
or she will automatically become the owner of the contract as of the date
of your death. TIAA may effect such transfer of ownership to your
surviving spouse under a Method of Payment of the Death Benefit chosen by
TIAA.
If you die on or after the annuity starting date, any income benefit
remaining due must be distributed at least as rapidly as under the income
option on which income benefit payments were being made as of the date of
death.
MINIMUM PREMIUMS. Premiums for this contract may be paid in any amount not
less than $100 each.
/s/ Xxxxxxx X. Xxxxxxx, Xx.
CHAIRMAN, PRESIDENT AND
CHIEF EXECUTIVE OFFICER
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