SMP FAQ - Are there any differences in when Principal and TIAA begin paying their monthly annuity benefit amounts?

June 28, 2016 - 10:38
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Question: 

Are there any differences in when Principal and TIAA begin paying their monthly annuity benefit amounts?

Category: 
Distribution Options/Health Insurance
Answer: 

Yes. For example, if your retirement date is April 1 and your retirement papers are sent to the provider on June 20th. Principal will pay you for April, May and June with your first regular deposit paid on July 1st. TIAA will not pay you for April and May. They will pay you for June (TIAA must receive paperwork by the 20th of the month (before 4pm EST) for you to be paid that month) with your first regular deposit paid on July 1st. Since TIAA did not pay you for April and May, those payments will be spread out over your life expectancy, thus resulting in your monthly benefit being slightly higher than the Principal payout.

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