July 31, 1990
TO: PENSION COMMITTEE NO. 19-90
RE: TIAA-CREF RESPONSE TO INSTITUTE LETTER
__________________________________________________________
As you know, the Institute requested TIAA-CREF to revise
its procedures for trustee to trustee transfers of assets between
403(b) plan sponsors. (See Institute Memorandum to Pension
Committee No. 17-90 dated July 23, 1990.) In response to the
Institute's request, TIAA-CREF released the attached letter dated
July 30, 1990.
The letter from Monica Calhoun states that TIAA-CREF will
continue to require spousal consent for transfers of 403(b)
assets from ERISA to non-ERISA plans. However, the TIAA-CREF
correspondence to Plan Administrators from Larry Hershberger
dated July 1990 which accompanies the attached response letter
does not specifically reflect this position. The Hershberger
letter shows that TIAA-CREF has adopted many of the procedures
that the Institute and its members have recommended during the
last year, even though Monica Calhoun's letter to the Institute
is uncompromising.
TIAA-CREF has again asked that operational problems
regarding CREF transfers be communicated to Monica Calhoun.
We will keep you informed of further developments.
W. Richard Mason
Assistant General Counsel
Attachments