May 8, 1990
TO: PENSION COMMITTEE NO. 11-90
RE: TIAA-CREF PRACTICES REGARDING TRANSFER ATTEMPTS
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The ad hoc subcommittee on TIAA-CREF transfers decided
yesterday to prepare a request to CREF that it change its
procedures regarding outgoing transfers of funds. The request
will be supported by a legal memorandum clearly outlining current
CREF procedure inconsistency with pension law and the SEC
Settlement Agreement. The Institute believes its request will be
most effective if the educational organizations who represent
CREF's customer base and the parties to the SEC Settlement
Agreement join the Institute's request.
In order to gather the support of the educational
organizations, we would like to present them with examples of
CREF practices that are adversely affecting their members. For
instance, we understand that TIAA-CREF has sent letters to
members and others demanding they cease communications with any
CREF customers under authority of the SEC settlement agreement.
If you or your affiliates have received any correspondence
from TIAA-CREF directly or from your customers which reflects
CREF intransigience or bad faith, please send them to the
undersigned (FAX 202-659-1519) as soon as possible .
We will keep you informed of further developments.
W. Richard Mason
Assistant General Counsel
WRM:bmb