ERIC Number: ED399836
Record Type: Non-Journal
Publication Date: 1995-Dec
Reference Count: N/A
The TIAA Graded Payment Method and the CPI.
King, Francis P.
Research Dialogues, n46 Dec 1995
The graded payment method of receiving traditional annuity benefits was introduced by the Teachers Insurance and Annuity Association (TIAA) in 1982 to introduce an inflation-fighting factor into the annuity program. Under the graded method, in contrast to the standard method, a part of current annuity dividend income is withheld each year to increase annuity income for the following year. The starting income is smaller, but the method has a superior capacity for growth and for maintenance of purchasing power, as reflected in the Consumer Price Index (CPI). Comparative data on the annuity payments under the two methods, assuming retirement in 1970, 1975, 1980, 1985, and 1990, are charted. The increasing ratio of graded to standard payments is indicated in each case. (MSE)
Descriptors: Cost Indexes, Higher Education, Inflation (Economics), Money Management, Program Design, Retirement Benefits, School Personnel, Teacher Retirement
TIAA-CREF, 730 Third Avenue, New York, NY 10017-3206 (free).
Publication Type: Reports - Descriptive; Collected Works - Serials
Education Level: N/A
Authoring Institution: Teachers Insurance and Annuity Association, New York, NY. College Retirement Equities Fund.