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					REVIEW OF TIAA-CREF                                          CREF Money Market Account

Fund Objective and Investment Approach
The CREF Money Market Account is an active strategy focusing on short-term, high credit
quality securities designed to generate high current income while maintaining liquidity and
preserving capital. The variable annuity account invests primarily in money market securities
that have been ranked in the highest category by at least two nationally recognized statistical
rating organizations. In addition, the fund is allowed to invest up to 30% of its assets in money
market and debt instruments of domestic and foreign issuers, denominated in U.S. dollars. The
average weighted maturity of the account’s securities is 90 days or less, and the longest maturity,
except in the case of certain U.S. government securities, is 397 days.

Performance Commentary
The CREF Money Market Account returned 2.44% for calendar year 2008, exceeding by 39
basis points the iMoneyNet Money Fund Average Index return of 2.05%. The year proved very
eventful in commercial paper markets, as Lehman Brothers’ defaults contributed to a freeze in
short-term lending between banks and to corporations, and net asset values (NAVs) of several
money market funds fell below $1, a highly rare occurrence. The fourth quarter brought a
historically low federal funds rate, putting pressure on money market funds and causing many to
close or to waive fees. Over all longer time periods, the fund's returns have exceeded those of
the Index. Strategy elements that contributed to the account’s consistent success include higher
weightings to commercial paper than those in competing products, a laddered maturity approach,
smaller investments in floating rate securities than those in competing products, and other factors
that place the account ahead of the peer group in most periods. In addition, the account did not
hold any commercial paper issued by Lehman Brothers, AIG, or Washington Mutual due to
investment policies already in place, allowing the account to avoid losses in those institutions’

                       Fund Characteristics          CREF Money
                                                     Market Account
                     Total Fund Assets                 $15.1 billion
                     30 Day Yield                      0.86%
                     Average Maturity                  47 days (weighted)
                     Fees                               0.54% Annually
REVIEW OF TIAA-CREF                                        CREF Money Market Account

   Historical Returns
                          CREF Money Market         iMoneyNet Money Fund        Return
                               Return                      Return              Difference
   1999                          4.9                        4.6                    0.3
   2000                          6.4                        5.9                    0.5
   2001                          4.0                        3.7                    0.3
   2002                          1.5                        1.3                    0.2
   2003                          0.8                        0.6                    0.1
   2004                          1.0                        0.8                    0.2
   2005                          2.9                        1.7                    1.2
   2006                          4.7                        3.8                    0.9
   2007                          4.9                        4.9                    0.0
   2008                          2.4                        2.0                    0.4
   Trailing 3-Year              4.0%                       3.7%                    0.3
   Trailing 5-Year               3.2                        2.9                    0.2
   Trailing 10-Year              3.3                        3.1                    0.3

The CREF Money Market Account has demonstrated outperformance versus its benchmark
return over the prior ten calendar years. The account has achieved its objective of providing a
reasonable level of current income while preserving capital. We recommend retention of this

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