ERIC Number: ED028721
Record Type: RIE
Publication Date: 1969-Mar-3
Reference Count: 0
Extraordinary Benefit Environment in Higher Education.
Greenough, William C.
In terms of benefit plan coverage and protection, or "Benefit Environment", higher education is the most advanced of professional or employment groups. Between 1959 and 1969, the percentage of 4-year institutions of higher education in the U.S. having faculty retirement plans grew from 85% to 95%. About 50% of these institutions have some form of long-term disability protection in addition to that provided by Social Security. Within the last 10 years, the proportion of colleges and universities reporting group life insurance plans for faculty increased from 50% to 70% and those with basic hospital-surgical-medical plans grew from 80% to 90%. The TIAA-CREF system provides a retirement plan that permits mobility with assured benefits, and is more responsive to economic changes. In the nationwide TIAA-CREF program, monies are both put away and put to work for an individual each year. When a staff member in higher education who is participating in the TIAA-CREF system retires, he receives the TIAA annuity, which provides a guaranteed, fixed-dollar retirement income and the CREF annuity, which provides an income that varies yearly according to the performance of securities in the CREF portfolio. This contrasts with most pension plans in industry where benefits are determined as a percentage of salary, and investment gains or losses are used to decrease or increase the employer's pension costs. (WM)
Publication Type: N/A
Education Level: N/A
Authoring Institution: American Association for Higher Education, Washington, DC.
Note: Paper presented at the 24th Conference on Higher Education, Chicago, Illinois, March 3, 1969