Teachers Insurance and Annuity Association of America

The Teachers Insurance and Annuity Association of America-College Retirement Equities Fund (TIAA, formerly TIAA-CREF), is a Fortune 100 financial services organization that is a private provider of financial retirement services in the academic, research, medical, cultural and governmental fields. TIAA serves over 5 million active and retired employees participating at more than 15,000 institutions and has $1 trillion in combined assets under management with holdings in more than 50 countries (as of December 31, 2017).[3]

For other uses, see Tiaa (disambiguation).
TIAA
TypeNon-profit corporation owning subsidiaries for-profit
Founded1918 (1918)
FounderAndrew Carnegie
Headquarters730 Third Avenue,
New York City, New York
,
United States
Key people
Thasunda Duckett (CEO)[1]
Roger W. Ferguson Jr. (former CEO)
ProductsFinancial services
RevenueUS$40.454 billion (2020)[2]
US$1.492 billion (FY 2016)
AUMIncrease US$1.3 trillion (2020)[3]
Total assetsIncrease US$615.042 billion (2020)[4]
Total equityIncrease US$ 38.871 billion (2020)[5]
Number of employees
Decrease 16,533 (2020)[6]
SubsidiariesNuveen, TIAA Bank, Westchester Group
Websitetiaa.org

Profile

Long organized as a tax-exempt non-profit organization, a 1997 tax bill removed TIAA's tax exemption.[7] It is now organized as a non-profit organization, the TIAA Board of Governors,[8] with taxable subsidiaries; all profits are returned to policyholders.

TIAA bought its Manhattan headquarters building, 730 Third Avenue, in 1955.[9][10] It has major offices in Denver, Colorado; Charlotte, North Carolina; and Dallas, Texas; as well as 70 local offices throughout the U.S. In 2018, TIAA ranked 84th on Fortune's list of the 500 largest corporations in America.[11] As of 2017, TIAA is the largest global investor in agriculture, the second-largest grower of wine grapes in the United States (by acreage), and the third-largest commercial real estate manager in the world.[3]

History

In 1918, Andrew Carnegie and his Carnegie Foundation for the Advancement of Teaching, under the leadership of Henry S. Pritchett, created the Teachers Insurance and Annuity Association of America (TIAA), a fully funded system of pensions for professors. Funding was provided by a combination of grants from the foundation and Carnegie Corporation of New York, as well as ongoing contributions from participating institutions and individuals.[12] The policyholders voted in 1921 to implement policyholder representation on the TIAA board so that educators would have a role in running the organization.[13][14]

TIAA's namesake and signature investment/insurance product is the TIAA Traditional, which offers a contractually guaranteed return on principal and, at the discretion of the board of trustees on a periodic basis, additional profit/dividend interest over and above the guaranteed return. From the relatively illiquid and stable, long-term investments of its general account, TIAA has been able to consistently add some dividends to TIAA Traditional contributions since 1948.[15]

CREF

TIAA's investing strategy helped it survive the 1929 stock market crash and the Great Depression.[12] Albert Einstein became a participant in 1933, which TIAA-CREF advertised in a 2001 campaign.[16]

After World War II, in reaction to rising inflation and lengthening life expectancies, and a dramatic expansion of the education sector with the G.I. Bill, TIAA recognized the need for its participants to invest in equities in order to diversify its retirement funds. TIAA created the College Retirement Equities Fund (CREF), a variable annuity, for that purpose, in 1952.[17]

In 1995, TIAA introduced the TIAA Real Estate account, which is a variable annuity, like CREF, but more stable than equity investments and more flexible than TIAA Traditional.[15]

21st century

On June 15, 2007, TIAA became one of the first U.S. companies to voluntarily adopt, and the first to implement, a policyholder advisory vote on executive compensation policy.

On February 22, 2016, TIAA-CREF rebranded as simply TIAA as part of a new marketing and imaging campaign. CMO Connie Weaver explained that the old name was perceived by customers as being complicated, and that the new branding scheme was meant to portray a simpler and friendlier image of the organization.[18][19]

As of February 2018, TIAA was providing parental leave irrespective of the parent's gender.[20]

Investments and diversification

Nearly a year after the acquisition of EverBank, TIAA began rebranding all of its banking activities under the TIAA Bank name on June 4, 2018.[26]

See also

References
  1. "TIAA". 2021 Fortune 500.
  2. "TIAA". 2021 Fortune 500.
  3. "Q4 2017 Facts and Stats" (PDF). TIAA. January 2018. Retrieved 6 February 2019.
  4. "TIAA". 2021 Fortune 500.
  5. "TIAA". 2021 Fortune 500.
  6. "TIAA". 2021 Fortune 500.
  7. Abelson, Reed. "Budget Deal to Cost T.I.A.A.-C.R.E.F. Its Tax Exemption", The New York Times. 20 July 1997.
  8. "TIAA Governors & Trustees". TIAA. TIAA-CREF. Retrieved September 13, 2022.
  9. Schram, Lauren Elkies (30 January 2018). "TIAA Selling HQ Building at 730 Third Avenue [Updated]".
  10. "On second thought, TIAA doesn't want to sell its headquarters". October 17, 2018.
  11. "Fortune 500 Companies 2018: Who Made the List". Fortune. Retrieved 2018-11-10.
  12. Lowell, Jim (14 October 2006). "TIAA-CREF's 401(k) Options". Forbes. Retrieved 6 February 2019.
  13. "Our History: 100 years of serving those who do good in the world". Retrieved 6 February 2019.
  14. Greenough, William C (1990). It’s My Retirement Money, Take Good Care of It: The TIAA-CREF Story. Boston, MA 02116: IRWIN Homewood, IL 60430. ISBN 0-256-08657-5.{{cite book}}: CS1 maint: location (link)
  15. Schloss, Irving S.; Abildsoe, Deborah V. (2000). "Chapter 16: What are the TIAA investment choices?". Understanding TIAA-CREF: How to Plan for a Secure and Comfortable Retirement. New York: Oxford University Press. pp. 69–71. ISBN 0195131975. This book has not been prepared, approved, or licensed by TIAA-CREF or any affiliated organization.
  16. "TIAA-CREF campaign: Managing money for people with other things to think about: Albert Einstein".
  17. Hershey, Jr., Robert D. (November 12, 2000). "Teachers' Fund Happily Learns a New Math, Plus Tax". The New York Times.
  18. Svaldi, Aldo (22 February 2016). "Denver employer TIAA-CREF dropping second half of name". The Denver Post. Retrieved 6 February 2019.
  19. Monllos, Kristina (22 February 2016). "Rebranded TIAA Hopes Its Shortened Name Makes Financial Planning Seem Simpler". Adweek. Retrieved 6 February 2019.
  20. Webber, Lauren (21 February 2018). "Some Companies Move to Gender-Blind Leave for New Parents". The Wall Street Journal. Retrieved 22 February 2018.
  21. Garfield, Richard (14 October 2012). "Festival Place is sold for £280 million". Basingstoke Gazette. Retrieved 6 February 2019.
  22. Phillips, David (May 17, 2013). "GGP and TIAA-CREF Partnership Buys Grand Canal Shoppes for $410M". GlobeSt. Retrieved 2019-04-02.
  23. Condon, Christopher; Stein, Charles (14 April 2014). "TIAA-CREF to Buy Nuveen Investments in $6.25 Billion Deal". Bloomberg News. Retrieved 6 February 2019.
  24. Ensign, Rachel Louise; Telis, Demos (8 August 2016). "TIAA to buy EverBank for $2.5 billion". The Wall Street Journal. Retrieved 6 February 2019 – via MarketWatch.
  25. "TIAA Completes Acquisition of EverBank" (Press release). TIAA. Retrieved 6 February 2019.
  26. Gibbons, Timothy. "As TIAA Bank becomes official, merger 'favorable' to Jacksonville job market". Jacksonville Business Journal. Retrieved 13 June 2018.
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