According to Walsh, TIAA has offered
group annuity contracts since the early 2000s, but the regulations accelerated the number of clients using them.
The company has purchased
group annuity contracts for all remaining plan participants.
defined benefit plan, by purchasing
group annuity contracts for all remaining plan participants.
The firm made the move by purchasing a
group annuity contract from The Prudential Insurance Company of America, a subsidiary of Prudential Financial, Inc (NYSE: PRU).
In 2019, the Insurance Compact will undertake the development of new Uniform Standards for
group annuity products, and updating its procedures to possibly expand use of Compact-approved products for non-employer groups.
Management of the company has determined the prior release of
group annuity reserves resulted from a material weakness in internal control over financial reporting.
The only pretax operating loss reported by either individual or
group annuity business lines since 2006 was in 2008.
Additionally, it is not uncommon for large 403(b) plans to offer
group annuity contracts issued by several insurance companies, or custodial accounts with multiple custodians.