TIAA
| Company type | Nonprofit entity with taxable subsidiaries |
|---|---|
| Industry | Financial services |
| Founded | 1918 |
| Founder | Andrew Carnegie, Carnegie Foundation for the Advancement of Teaching, Henry S. Pritchett |
| Headquarters | New York City , United States |
Area served | Worldwide (over 50 nations) |
| Products | Retirement solutions, annuities, real estate investment |
The Teachers Insurance and Annuity Association of America-College Retirement Equities Fund (TIAA, previously known as TIAA-CREF) is a U.S.-based financial services firm specializing in retirement solutions for professionals in academia, research, healthcare, cultural institutions, and government. Ranked among the Fortune 100, TIAA serves upwards of 5 million current and former employees affiliated with more than 15,000 organizations, managing assets totaling $1 trillion across over 50 nations as of December 2017.
Profile
Originally established as a tax-exempt nonprofit, TIAA lost this status following a 1997 tax legislation change. It currently operates as a nonprofit entity with taxable subsidiaries, directing all earnings back to its policyholders. The organization’s activities are governed by the TIAA Board of Governors.
TIAA secured its Manhattan headquarters at 730 Third Avenue in 1955. It maintains significant offices in Denver, Charlotte, Chicago, and Frisco, along with approximately 70 additional branch offices throughout the United States. In 2018, Fortune ranked TIAA 84th among the largest U.S. corporations. By 2017 metrics, it held the position as the foremost global investor in agriculture, ranked second in U.S. wine grape cultivation by acreage, and stood as the third-largest commercial real estate manager worldwide.
History
Founded in 1918 through the efforts of Andrew Carnegie and the Carnegie Foundation for the Advancement of Teaching, under the leadership of Henry S. Pritchett, TIAA was created to establish a fully funded pension plan for educators. Initial capital was supplied via foundation grants—including support from the Carnegie Corporation of New York—alongside continuous contributions from participating institutions and individuals. In 1921, policyholders approved adding educator representatives to TIAA’s board to ensure governance included stakeholder perspectives.
The cornerstone product of TIAA is the TIAA Traditional annuity, which guarantees principal returns contractually and pays discretionary dividends derived from the company’s stable long-term investment portfolio. Since 1948, dividends have consistently exceeded guaranteed minimums due to a prudent investment approach.
Annuities and Real Estate
In 1952, TIAA introduced the College Retirement Equities Fund (CREF), a variable annuity aimed at broadening retirement investment options. Further diversifying its portfolio offerings, TIAA launched the TIAA Real Estate account in 1995—a variable annuity providing an alternative that balances stability with flexibility compared to traditional annuities and equity funds.
21st century
On June 15, 2007, TIAA became one of the earliest U.S. firms to voluntarily implement a policyholder advisory vote on executive pay and was the first to put such a measure into practice.
On February 22, 2016, as part of a marketing overhaul, TIAA-CREF rebranded itself simply as TIAA. Chief Marketing Officer Connie Weaver noted that the previous name was seen as overly complex; the new branding sought to communicate a more straightforward and approachable identity.
By February 2018, TIAA had established gender-neutral parental leave policies applicable to all parents regardless of gender identity.
Environmental Impact Considerations
In May 2021, TIAA pledged to align its General Account with net zero carbon emissions by the year 2050. The organization's 2022 climate publication, titled Ensuring Our Future, underscored the perspective that climate-related risks are inherently investment risks. Nevertheless, a November 2022 analysis by the Institute for Energy Economics and Financial Analysis (IEEFA) criticized TIAA for its continued investments in fossil fuels, labeling this stance as lacking strategic foresight.
On October 19, 2022, close to 300 clients of TIAA lodged a formal grievance with the Principles for Responsible Investment (PRI), an initiative supported by the United Nations, calling for TIAA’s exclusion from PRI's sustainable investor roster. As one of the globe’s largest financiers of fossil fuel enterprises, TIAA holds a minimum of $78 billion invested across coal, oil, and gas sectors. Ranking third after Vanguard and BlackRock, TIAA is the fifth-largest global holder of coal-related bonds, with $6.7 billion allocated to companies involved in coal. The PRI examined the complaint but ultimately chose not to take action.
By March 2024, both TIAA clients and university-based activists publicly condemned the company’s sponsorship of Big Ten basketball events while it maintained substantial fossil fuel investments. Their criticisms highlighted issues such as land appropriation, hazardous chemical usage, and the role of fossil fuel funding in exacerbating climate change.
Investment Portfolio and Diversification
- 2012: Procured Festival Place, a retail complex located in Basingstoke, England, for £280 million.
- 2013: Acquired a 50% ownership interest in the Grand Canal Shoppes, which includes the Shoppes at the Palazzo situated in Las Vegas, Nevada, for US$410 million. This purchase established a joint venture with General Growth Properties, which continues to oversee management of the property.
- 2014: Announced the acquisition of Nuveen Investments through a transaction valued at $6.25 billion.
- 2016: Entered into an agreement to acquire EverBank Financial Corp. for $2.5 billion in cash; the deal was finalized on June 12, 2017, resulting in the combined entity being named TIAA, FSB. In June 2018, TIAA rebranded its banking division as TIAA Bank. In November 2022, plans were announced to divest TIAA Bank to private investors; following completion of this sale, the institution reverted to its former EverBank name.