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July 23, 1990
TO: PENSION COMMITTEE NO. 17-90
RE: INSTITUTE REQUESTS THAT TIAA-CREF FACILITATE 403(b)
TRANSFERS
__________________________________________________________
The Institute has requested TIAA-CREF to facilitate its
procedures for trustee to trustee transfers of assets between
403(b) plan sponsors. A copy of the Institute request is
attached.
The letter addresses several continuing problems regarding
403(b) transfers from CREF. TIAA-CREF continues to require the
consent of a 403(b) plan participant's spouse in order to
transfer funds in many cases. The attached letter challenges the
legal basis of this requirement. The letter also confirms the
fact that written employer consent is not required in cases where
an employer already allows its employees to invest their 403(b)
accounts in mutual funds or otherwise provides for
transferability. In addition, TIAA-CREF is encouraged to
inform employees whose CREF accumulations are attributable to
several employers that they have the right to split their CREF
account balances between employers who will and will not allow
transferability to mutual fund 403(b) accounts.
The Institute's request contains a list of the account
balance information that TIAA-CREF should provide to a mutual
fund transferee. In the absence of such information, TIAA-CREF
is requested to provide a statement indicating unavailability.
Finally, the letter confirms that TIAA-CREF will accept a mutual
fund's transfer authorization request form in order to process a
CREF transfer unless TIAA-CREF needs its own form in order to
open a new account in cases when accounts are split between
employers that do and do not allow transfers to mutual funds.
TIAA-CREF has requested that our members call Monica
Calhoun at (212) 916-4656 to report any operational problems
regarding transfers of CREF funds. For example, she should be
notified if an employer has amended its plan to allow transfers
to your fund group and TIAA-CREF operations is not authorizing
requested transfers.
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We will keep you informed of further developments.
W. Richard Mason
Assistant General Counsel
Attachment