Inter Faculty Organization

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Faculty Update

_{MAY 2006}

In This Issue:

NOTES FROM THE PRESIDENT

by Nancy J. Black, IFO President  

As the academic year draws to a close, I would like to wish all faculty an enjoyable and productive summer.

This has been a very busy and productive year for the IFO.   We settled our 2005-07 contract and took it through the ratification and implementation process, negotiated a new contract with our staff, and held our biannual Delegate Assembly which set the direction of the organization for the next two years.  As one might expect, some things are still in progress.

The legislature continues to be gripped by highly partisan politics and with just a week and a half to go before the constitutional deadline to adjourn, the final outcomes of this session are still uncertain.   As of this writing, legislation to approve public employee contracts (including the IFO contract) have passed the Senate unanimously as a separate bill, but the House included them in a large supplemental appropriation bill for all sectors of state government - and that bill could get bogged down by controversial provisions.   If that happens, we have a back-up plan - the individual bill that passed the Senate can be called up and passed on a moment’s notice.  We have commitments from the leaders of both the House and Senate that the contract bill will pass.

It looks like we will get a solid bonding bill for higher education.   Sen. Keith Langseth (DFL-Glyndon) and Rep. Dan Dorman (R-Albert Lea) have set partisanship aside and are making steady progress toward passing a bill.   The Supplemental Appropriations Bill has been stripped of all policy items and only contains $100,000 for MnSCU to set up veteran assistance offices.   This was particularly disappointing because one of the policy issues removed from the bill was the Dream Act, which had passed in both the House and Senate higher education committees, will not even get a vote on the House floor.

There are many items that we opposed this session that are not likely to pass, such as the bills for alternative licensure programs for teachers, teacher preparation program “report cards”, and the removal of professors from the classroom if more than 10% of the students complain about their ability to speak clear English.   Thanks to the opposition from a broad coalition of groups—including the IFO—it looks like the constitutional amendment defining marriage will not pass this session.

This summer TIAA-CREF will be replacing Wells Fargo as managers of MnSCU’s IRAP, Supplemental Retirement, and TSA programs.   This change will mean many faculty will have to change their investment funds.   Please read Russ Stanton’s article on this issue below.

Also this summer, MnSCU will be starting to assemble its appropriation request for presentation to the legislature next session.   IFO will have representatives on the task forces that will develop the budget request, and they will be advocating budget proposals developed by the IFO Budget Committee and approved by the IFO Board.

In closing, I want to thank the hundreds of faculty members who participated in the IFO during the last year by serving on the IFO Board and committees, by attending the Delegate Assembly, or by participating in IFO events, such as Lobby Day.   Our union is a member-run organization, and our success depends on the volunteer involvement of our members.   Thank you for the contributions of your time and expertise. 

Important Changes to Your Retirement Plan(s) Will Occur Over the Summer

by Russ Stanton, Director of Government Relations

As you head off for summer break, please remember that important changes to your IRAP, and/or Supplemental Retirement Plan (SRP) and/or Tax Sheltered Annuity (TSA) Plan will be occurring during June and July.   Your pension fund investments will in most cases be transferred to new investment funds.

As of July 1, 2006, TIAA-CREF will be taking over the recordkeeping (management) of the IRAP, SRP, and TSA retirement programs at MnSCU institutions.   The change will bring a new line-up of high-quality investment funds to invest in, lower plan fees, one point-of-contact for retirement information, and a consolidated quarterly statement for all three programs.   In addition, there will be new planning services available to faculty at no cost.

Faculty who currently have money invested with the State Board of Investment (SBI) or Wells Fargo sponsored accounts will have to move their money to one of the new investment options or it will be automatically moved or “mapped” to a similar fund in the new fund line-up.  Click HERE to be linked to a MnSCU notice which explains when the transition process begins, how money invested in the current funds will be mapped to funds in the new line-up, and when the process ends.

Please be aware that during the transfer period listed in the above notice, you will not be able to make changes to your investments.  However, your funds will remain invested in the market during the “blackout” period.

Although you may move your investments from Wells Fargo and SBI funds to TIAA-CREF prior to the start of the blackout period, you do not have to do anything at this time.   If you do nothing, your funds will automatically be transferred to a similar type of account in the new line-up.

My advice is to enjoy your summer and do nothing until after the transfer period is over.   At any time after that point all it will take to immediately change your investments from one fund to another is a single phone call.   Also, next fall will be a good time to schedule a free appointment with TIAA-CREF to review and revise your investments to best meet your retirement plans.   We will post information next fall on when TIAA-CREF will be on each campus.  For more information about the new pension plan investment options and services, please click HERE.
 

CONTACT US

The IFO Faculty Update is published and distributed by the Inter Faculty Organization.  If you need to contact the Inter Faculty Organization, our address is 165 Western Avenue North, Suite 8, Saint Paul, MN 55102, or you can reach us by phone at 800/325-9644 or 651/227-8442.  You can send us an email by clicking here.