TIAA-CREF Investment Management LLC

Item 5 Fees and Compensation
TCIM provides its investment advisory and administrative services to CREF on an “at-cost” basis.
A daily deduction is made from the assets of CREF’s investment portfolios in connection with the
advisory and administrative services provided. These rates are designed to reflect the cost of
advisory and administrative services and are not intended to include any profit. The rates of these
deductions are revised from time to time, based solely on estimates of expenses anticipated to be
incurred, with the objective of keeping the deductions as close as possible to actual expenses. As
soon as is practicable, after the end of each quarter, adjusting charges or credits are made to correct
any difference between the deductions and the expenses actually incurred. Accordingly, the
amounts deducted each year as a percentage of the net assets of each investment portfolio may be
higher or lower than the current annual deduction rates, depending upon expense experience.

For CREF equity accounts managed by TCIM, management fees are expected to range from
approximately 4.5 basis points to 9.5 basis points.

For the CREF index account managed by TCIM, the management fee is expected to be
approximately 1 basis point.

For CREF fixed income accounts managed by TCIM, management fees are expected to range from
approximately 2.5 basis points to 7.0 basis points.

For the CREF specialty/balanced account managed by TCIM, the management fee is expected to
be approximately 5.5 basis points.

For the CREF money market account managed by TCIM, the management fee is expected to be
approximately 1.0 basis points.

The Investment Management Services Agreement between TCIM and CREF is subject to approval
by the board of trustees of CREF (the “Board of Trustees), including a majority of Trustees who
are not parties to the Agreement or “interested persons” of any party to the Agreement. TCIM’s
fees under such Investment Management Services Agreement are set forth in the registration
statements and other documents of CREF on file with the SEC.

The Investment Management Services Agreement between TCIM and CREF may be terminated
at any time upon the mutual consent of the parties. To avoid a penalty, the Board of Trustees of
CREF must give 60 days’ written notice to TCIM or TCIM must give 60 days’ written notice to
the Board of Trustees.

TCIM’s Fees in General
TCIM’s fees, which are non-negotiable, are exclusive of transactions costs related to the buying
and selling of securities such as brokerage commissions, odd-lot differentials, transfer taxes, wire
and electronic transfer fund fees, and other fees and taxes on brokerage accounts and securities

transactions. In addition, client accounts may incur other certain charges imposed by third parties.
Such fees are charged by custodians, broker-dealers, administrators, and distributors and are
exclusive of and in addition to TCIM’s fee. TCIM shall not receive any portion of these
commissions, fees, and costs.

TCIM is reimbursed for the expenses assumed in connection with its advisory services to CREF
through daily payments based on an annual rate agreed upon by CREF and TCIM. The agreed
upon rate is an estimate of the costs of the services that TCIM will provide with the objective of
keeping the actual payments for the services close to the estimated costs.

The daily payment to TCIM is from the net assets of each client account, each valuation day for
each calendar day of the valuation period. On a quarterly basis, the amount necessary to correct
any differences between the payments to TCIM and the expenses actually incurred by TCIM will
be determined. This amount will be paid by or credited to TCIM as the case may be, in equal
installments over the remaining days in the quarter.

The internal management fees associated with the accounts managed by TCIM and which may be
incurred by investors in the accounts are disclosed in CREF’s Prospectus in the section titled “Fee
and expense tables of each Contract”.

Additionally, an account may purchase shares of other types of investment companies, which may
include exchange-traded funds (“ETFs”) principally used for cash management, investment
exposure or defensive purposes. Typically, a client account would purchase ETF shares to obtain
exposure to all or a portion of the stock or bond market. When a client account invests in another
investment company, like an ETF, it typically bears a proportionate share of expenses charged by
the investment company in which it invests.

Item 12 further describes the factors that TCIM considers in selecting or recommending broker-
dealers for client account transactions and determining the reasonableness of their compensation
(e.g., commissions).

Item 7 Types of Clients

TCIM provides portfolio management services to CREF which provides variable annuities for
certain types of retirement and tax-deferred savings plans for employees of colleges, universities,
other educational and research organizations, and other governmental and non-profit institutions.

CREF’s main purpose is to invest funds for retirement and pay income based on investments in its
eight registered investment accounts:

  Equity Accounts
     ▪ Total Global Stock Account
     ▪ Global Equities Account
     ▪ Growth Account

  Index Account
     ▪ S&P 500 Index Account

  Fixed Income Accounts
      ▪ Core Bond Account
      ▪ Inflation-Linked Bond Account

  Specialty/Balanced Account
    ▪ Responsible Balanced Account

  Money Market Account
    ▪ Money Market Account

The accounts have no minimum account size requirements.

CREF Class Eligibility (Class R1, Class R2, Class R3 and Class R4)

Class R1
▪ Institutions with CREF assets under management below $20 million.
▪ Individual and Annuity Products – Individual Retirement Accounts (IRA) and Keogh Contracts.

Class R2
▪ Institutions with CREF assets under management of $20 million or more, but less than $400
   million.
▪ Individual and Annuity Products – After-Tax Retirement Annuity (ATRA).

Class R3
▪ Institutions with CREF assets under management of $400 million or more.
▪ Individual and Annuity Products – Immediate Annuity and Accumulation Unit Deposit Option
   (AUDO).

Class R4
▪ Institutions utilizing Retirement Choice/Retirement Choice Plus Contracts and that have
   entered into a recordkeeping services agreement with TIAA.