The graded payment method of receiving traditional annuity benefits was introduced by the Teachers Insurance and Annuity Association (TIAA) in 1982 to introduce an inflation-fighting factor into the annuity program. Under the graded method, in contrast to the standard method, a part of current annuity dividend income is withheld each year to increase annuity income for the following year. The starting income is smaller, but the method has a superior capacity for growth and for maintenance of purchasing power, as reflected in the Consumer Price Index (CPI). Comparative data on the annuity payments under the two methods, assuming retirement in 1970, 1975, 1980, 1985, and 1990, are charted. The increasing ratio of graded to standard payments is indicated in each case. (MSE)