===========================================================================
Take Ten Minutes to "CREATE SOCIAL CHANGE: SUPPORT NEW TIAA-CREF FUND"
Dear Friends and Colleagues,
TIAA-CREF MAY BE SETTING UP THE NEW SOCIALLY RESPONSIBLE FUND FOR WHICH WE HAVE LONG LOBBIED. WE ARE SEEKING YOUR FINANCIAL COMMITMENT TO TRANSFER SOME OF YOUR CURRENT TIAA-CREF ASSETS TO THE NEW FUND SHOULD IT BE ESTABLISHED.
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. (Mr. Biggs has still 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 developing 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 TIAA-CREF would provide the other $25 million, with the expectation that it could be withdrawn as the fund grew.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. 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.
Go to http://www.manchester.edu/academic/programs/departments/peace_studies/fund/ to learn more about the proposed new fund and to submit information we need to present to TIAA-CREF. 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 it. We ask that you make as large a commitment as you can to ensure the launch of the fund. The Social Choice Account has performed as well over the years as the traditional CREF Stock Account, while the stock portion of the balanced SCA has actually outperformed it. There is no reason to expect better or worse financial returns 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 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 web site data is secure. 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.
Though we are hoping you will consider transferring assets from several of your TIAA-CREF accounts, only about one percent of the assets in the $4.3 billion Social Choice Account would need to transfer to the new fund to amass $50 million. This would allow TIAA-CREF to withdraw its seed money very quickly. More importantly, it would send a clear message that many TIAA-CREF participants are committed to a more positive approach to investing their retirement dollars.
After you visit the web site, please copy and paste this message into a new e-mail message with a personal 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 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 (260) 982-5346 njwollman at manchester.edu