TIAA, a provider of workplace-based retirement plans, has added a deferred fixed annuity option for corporate 401(k) plans.
The TIAA Secure Income Account (SIA) is distributed by Nuveen, a TIAA subsidiary and asset manager with $1.2 trillion in assets.
"People are living longer and need help preparing for a secure retirement, yet few corporate defined contribution plans offer the guaranteed lifetime income they need," said Thasunda Brown Duckett, president and CEO of TIAA, in a statement. "Building on our heritage, we are offering companies of all types and their employees a solution to more efficiently save, invest and ensure those assets last through retirement."
The TIAA Secure Income Account is designed as an allocation within managed accounts or custom target-date model portfolios in 401(k) plans and can be part of a plan's qualified default investment alternative (QDIA).
The account provides protection of principal, guaranteed growth, low volatility and lifetime income with potentially increasing payments. Employees who choose to annuitize will not pay any expenses or commissions. Balances have minimum guaranteed rates between 1% and 3% that are reset each March.
