Faculty Benefits Committee Meeting Minutes
January 26, 2006, 9:00 – 10:30 AM, OHR
Present: Bill Ballard, Michael Chang, Bettina Cothran, Chuck Donbaugh, Michael Elliott, Blair Funderburk, John Grovenstein, and Jean Hudgins. Guests: James Kelly and Geoff Hall (TIAA-CREF)
The Committee was briefed by Mr. James Kelly from TIAA-CREF regarding changes to the TIAA-CREF retirement plan:
· On the weekend of March 3-4, 2006, all TIAA-CREF retirement records will be migrated to a new record keeping platform.
· After the migration occurs, changes to the retirement plan include expanded investment choices. The number of investment choices will increase from 19 to 35 with 7 of the new funds to be “life cycle” funds.
· Life cycle funds allocate investments between fixed income funds, and equity and real estate securities funds depending on the investors age and time to retirement. When the lifecycle fund’s target retirement age is reached the allocation will consist of 35% equity and real estate securities funds and 65% fixed income funds. Rebalancing is done quarterly. The average expense ratio of the lifecycle funds is 61 basis points.
· TIAA-CREF will provide independent investment advice for 403b and 457 plans via in-person, by phone, and by internet.
Presentation by TIAA-CREF regarding “single plan administration”
The Committee was briefed by Mr. Geoff Hall from TIAA-CREF regarding “things to consider” in case Georgia Tech is required to switch management of the retirement plans to a single plan administrator (such as TIAA-CREF).
· TIAA-CREF presented two administration models: 1) TIAA-CREF is the only vendor and is the single record keeper, and 2) there are multiple vendors with which employees can continue existing relationships, but that the funds of all vendors are on TIAA-CREF’s platform and TIAA-CREF acts as the single record keeper.
· Hall also recommended that Georgia Tech develop an “investment policy statement” that establishes the investment policy and the guidelines by which the plan sponsor monitors the plan on an ongoing basis.
· Faculty Development Program.
o Chang presented a suggestion to remand the faculty development program issue back to the General Faculty Assembly / Academic Senate for the express purpose of creating an ad-hoc Committee specifically to address this topic.
o Grovenstein provided the sabbatical policy from the University of Arizona.
o No consensus was reached and discussion will continue at future meetings.
o Postdocs are not currently eligible for the ORP because they are not faculty.
o The General Faculty Assembly would need to vote on granting faculty status to postdoc positions.
o It may be possible, however, to move postdocs to “Professional General Faculty” status with the only requirement being that the job must require a Master’s Degree.
o Donbaugh to check on status of postdocs at other universities and to discuss the subject with the Provost and report back to the Committee.
· February 23, 9:00 AM, OHR Conference Room