Yes, I see your concern. Since TIAA CREF deals with teacher’s retirement plans, it’s likely these moves are driven by concern about how they will pay out the promised retirement benefits.
Yes. At the minimum it tells me that rosy picture of “trust us - it’s all good” isn’t so rosy.
I’ve already experienced where retirees from the USG who are Medicare eligible are going to be put off on a private exchange, the primary purpose of which is to stabilize long term health benefit commitments to retired employees. Initial costs will be comparable, but long term, the retiree will bear the brunt of increases, IMO.
I’d hate to be a teacher in TIA-CREFF that doesn’t have a guaranteed fixed return (they don’t do those anymore, BTW). What will come, I believe, is nothing more than a stock market gamble without QE. Not a good sign.
TIAA-CREF is regulated like any insurer, and is required to hold sufficient reserves to cover their liabilities.
I think it may be a bit of an overreaction if people worry about their claims-paying ability.
That said, I am somewhat curious as to specifics of the incentives, which might give a better indication as to whether this is some type of desperation move.