Passed: May 10, 2000

Sponsor: University Benefits Committee

Senate Discussions: May 2000

WHEREAS, the University Benefits Committee unanimously adopted a motion in its meeting of April 13, 2000 and urges the Employee Assembly and the Faculty Senate to adopt it as well,

THEREFORE, BE IT RESOLVED, that the Faculty Senate recommends that TIAA should relax its restriction on Transfers and Withdrawals from TIAA when feasible, i.e., unless these transfers and withdrawals would cause substantial problems for TIAA.

Rationale:

Procedural Considerations. The Faculty Senate and the Employee Assembly passed a motion without the “when feasible” clause in May and April, 1999 respectively.  Institutional problems, too complex to discuss here, interfered with UBC follow-up to last year’s Motion. Hence, we are asking the Faculty Senate to reconfirm its action of a year ago. The Employee Assembly adopted this Motion on April 13, 2000.

The Substantive Issue. TIAA allows transfers/withdrawals from the TIAA Traditional Account only in 10 or more annual installments. More specifically, if you wish to shift your TIAA Accumulation from TIAA to CREF or other mutual funds, you cannot do it immediately. Or, upon retirement, if you wish to withdraw your entire accumulation converting it into cash, you cannot do it immediately. In both cases you must wait, transferring or withdrawing your money in 10 or more annual installments.  The University Benefits Committee and its Subcommittee on Investment Vehicles for Retirement finds this restriction unacceptable. This policy applies to both Active and Retired Employees.

Members of UBC Subcommittee on Investment Vehicles for Retirement which dealt with this issue included:

Scott Maynes, Chair; Professor Emeritus, Department of Policy Analysis and Management, College of Human Ecology

Harold Bierman, Jr., Nicholas H. Noyes Professor of Finance and Economics, Johnson Graduate School of Management

Paul Bursic, Director of Benefits, Office of Human Resources

Seymour Smidt, Nicholas H. Noyes, Professor of Finance and Economics, Johnson Graduate School of Management

Mary D’Ambrosia Zielinkski, Associate Director of Benefits, Office of Human Resources

5/2/00