Syndicated columnist Malcolm Berko continues to mischaracterize our organization. In a column dated July 16, Mr. Berko writes that TIAA offers "high-commission, high-cost" policies.
Once again Mr. Berko plays fast and loose with the truth. TIAA-CREF consultants receive no sales commission as part of their compensation.i
Mr. Berko knows better. After he last published such inaccurate information, he was forced to run a correction, which was distributed by the Copley News Service on December 21, 2007.ii In that correction, Mr. Berko acknowledged that TIAA-CREF consultants "receive a salary – not commissions – plus an incentive bonus that emphasizes client service."
True to our mission of service to the non-profit community, we offer personalized, objective investment advice that puts the client's interests first. And we deliver value: over 98% of the mutual funds and variable annuity accounts managed by TIAA-CREF have expense ratios that are in the bottom quartile of their respective Morningstar category.iii
Mr. Berko's disregard for truth is remarkable. For more on TIAA-CREF's response to his mischaracterizations about our organization and irresponsible advice to individuals, view this press release.
i TIAA-CREF consultants are compensated through a salary plus incentive program that emphasizes client service excellence.
ii Berko, Malcolm, "Taking Stock: Some Lessons on Teachers' Retirement Fund," Copley News Service, December 21, 2007.
iii Morningstar Direct, June 30, 2008, based on Morningstar expense comparisons by category.
TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products. Insurance and annuity products issued by TIAA (Teachers Insurance and Annuity Association), New York, NY and TIAA-CREF Life Insurance Co., New York, NY. Advisory services are provided by Advice and Planning Services, a division of TIAA-CREF Individual & Institutional Services, LLC, a registered investment advisor.
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