Campaign for a New TIAA-CREF
Dear Friends and Colleagues:
In a New York Times article (January 6, 2002), TIAA-CREF's CEO John H. Biggs said he would support the creation of a new retirement fund that would employ not only negative screens (avoiding certain companies), but also positive screens (investing in companies strong on social responsibility). As such, it would be more similar to a state-of-the-art socially responsible mutual fund than TIAA-CREF's current Social Choice Account. (In the Times article and since, Biggs has voiced opposition to other more proactive ways of investing that would make direct social change along with making a profit. However, we will continue to push for those.)
Mr. Biggs made this offer in the context of a challenge: to quote the article, "He said he would support creating such a fund only 'if you could guarantee the investors would be there to invest.'" He explained that TIAA-CREF would need $50 million in seed money, and that the minimum commitment needed from investors to justify the development of such a fund would be $25 million. TIAA-CREF would provide the other $25 million, with the expectation that it could be withdrawn as the fund grew.
Accordingly, we are gathering financial commitments to the new fund from TIAA-CREF participants. The opportunity toward which many have been working over the past few years has finally arrived. We ask that you step up and make a commitment to ensure the launch of this new fund. Here is a chance for our retirement savings within the TIAA-CREF Pension System to make a real difference in the world at large, as well as secure our later years.
To learn more about our proposed new fund and to submit information we need to present to TIAA-CREF, visit:
http://www.manchester.edu/academic/programs/departments/peace_studies/fund/
This includes how much of your current retirement savings you are willing to transfer into the new fund, and what percentage of your future retirement savings you will earmark for the new fund. (Some of those heavily involved in lobbying efforts for the fund have already pledged to put a large percentage of their current CREF investments and future contributions into the new fund. However, we recognize the value of proper diversification and do not expect anyone to put all of their money into this fund unless you feel so inclined.)
The information you provide will be kept strictly confidential. The website data is secure (requiring username and password). Other than management at TIAA-CREF, the only person who will see the data is a Vice President at Manchester College who has agreed to help. He administers the school's insurance and TIAA-CREF retirement plans, so he is accustomed to keeping personal financial information confidential.
It is relatively easy to move current investment assets from one CREF fund to another. If just a little more than one percent of the assets in the $4.3 billion Social Choice Account were to transfer, it would amount to $50 million. This would allow TIAA-CREF to withdraw its seed money very quickly. More importantly, it would send a clear message that many CREF participants are committed to a more positive approach to investing their retirement dollars.
After you visit the website, please copy and paste this message into a new e-mail message with a personal explanation and plug for this effort. Please pass it on to sympathetic friends, colleagues, retirees, and listserves. If you happen to receive a copy of this message but are not a participant in the TIAA-CREF Pension System, you can still help out by sending this message to those who might be and who would likely be interested in supporting this effort.
We thank you in advance for your support.
Abigail A. Fuller, Assistant Professor of Sociology
Neil Wollman, Senior Fellow of the Peace Studies Institute and Professor of
Psychology
Co-Chairs, Social Choice for Social Change: Campaign for a New TIAA-CREF
MC Box 135
Manchester College
North Manchester, IN 46962
Tel: (260) 982-5346
Email: njwollman@manchester.edu
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