FEDERAL TAX REFORM/TIAA-CREF

WHEREAS, the Tax Reform Act of 1985 (H.R. 3838) passed by the House and now being considered by the Senate would:

Result in a reduction in retirement income to many of our members by withdrawing tax-exemption status accorded to TIAA-CREF for over 65 years.

Impose unnecessary and costly administrative burdens on educational institutions by requiring them to conform to rules applicable to commercial and industrial firms.

Place severe restrictions on Tax-Deferred Annuities (TDAs) administered by TIAA-CREF; and

WHEREAS, greater sums are contributed to government-created pension systems with no mechanism available for switching to these retirement systems; and

WHEREAS, compensation for teaching is at an all-time low in comparison to other professions, and hence incentives are needed:

RESOLVED, that the AFT use all of its resources to eliminate those provisions of H.R. 3838 that would adversely affect our members' pension rights and benefits attributed to TIAA-CREF.