Yes. For example, your retirement date is April 1 and you are enrolling in State or CIP insurance. Your retirement papers are sent to the provider on June 20. Principal will pay you for April, May and June with your first regular deposit paid on July 1. If you are not enrolling in State or CIP insurance, Principal´s first annuity payment will be for June 1. TIAA will not pay you for April and May. They will pay you for June (TIAA must receive paperwork by the 20th of the month (before 4 pm EST) for you to be paid that month) with your first regular deposit paid on July 1. In this example, TIAA annuitants and Principal annuitants without insurance would not receive pay for April and May. Instead those payments will be spread out over your life expectancy, thus resulting in your monthly benefit being slightly higher than the Principal annuity for those who enrolled in insurance. LIS payments will begin when the claim’s “activation date.” LIS payments usually arrive in your account around the fourth or fifth business day of each month.
