TIAA-CREF will discourage you from withdrawing or transfering money. However, I think your problem was how you presented your question to the TIAA-CREF representive. As earlier posters have stated, each institution has a slightly different set of rules. And you probably need to contact her old employer for information on those rules.

Call TIAA-CREF back and explain to the representative that your spouse is planning to retire this year at 55 and you would like information on setting up a pay out annuity. They should work with you on this.

Good luck.
Tony