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I have always wondered how and why TIAA can keep $50,000: of my retirement accumulation in reserve for health insurance premiums.

I am a retiree with. CUNY.

it does not make sense and seems grossly unjust and maybe illegal that they keep the $50,000 grand until you die. 

Especially concerning the low GHI senior retirees premiums of approx $5.00 s month or less.

I don’t understand how TIAA gets to keep my money until I die when I’m only paying practically nothing for the premium.

im just wondering and hope to get some answers before I start complaining to government agencies, like   NYS Attorney General etc.

Thanks

 

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I've never heard of an insurance company requirement to have a large sum of money held by them. Is the $50,000 held in a 403b account? Are you referring to a TIAA Traditional account which earns 3 or 4% and which can have restrictions on taking distributions. Some versions require distributions over a 10 year period. Have you talked to TIAA about taking distributions? 

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Thanks

its not the ten year distribution.

I’m  afraid I don’t know.

all I know is that they have hijacked my money on the claim they need it for health insurance premiums.

I’m not alone. We are talking about thousands and thousands of CUNY retirees.

.

 

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I, also, have never heard of such an arrangement.  Perhaps you should contact TIAA and ask them to explain before taking other action.  CUNY benefits offices might also be a resource. We'd be interested to hear what they say, too.

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I have used TIAA for years and currently have money in their traditional annuity paying 3.0%. I am a retiree also. I can take it out at any time with no surrender fees. 

Like the others I have never heard of TIAA keeping your money to pay for health premiums!

The most common complaint about TIAA is people sign up for the higher interest product and don't know that TIAA has either a 7 year or a 10 year surrender period on those higher paying products. As krow36 said, there have a product that pays more interest than I get but it is frozen. But the health premium connection makes no sense. 

 

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