TIAA/CREF

WHEREAS, the faculty and academic staff of American universities and colleges depend on institutionally sponsored retirement plans for their principal basis of support after completing their professional work life; and

WHEREAS, analysis has shown that the monopoly position of the Teachers Insurance and Annuity Association-College Retirement Equities Fund (TIAA-CREF) restricts the investment choices of policy- holders with regard to money market funds, lump-sum distributions upon retirement or roll-over into alterna­tive plans, reallocation of funds between TIAA and CREF, and has resulted in a lack of accountability and diversification on the part of CREF's management; and

WHEREAS, the governance structure of TIAA-CREF provides for election of only four (4) of twenty (20) trustees by faculty-staff participants, thus concentrating the continuity of leadership in a self-perpetuating group of appointed trustees:

RESOLVED, that the American Federation of Teachers recommends that all higher education institutions offer alternative retirement benefit plans to faculty and staff, and urges state federations and locals to work toward the adoption of such alternatives; and

RESOLVED, that the American Federation of Teachers contacts other higher education organizations to promote a review of TIAA-CREF programs by an independent, foundation-supported panel of pension authorities, including college faculty.