Office of the President
                                            May 3, 1983



                                            FCR b

Members, Board of Trustees:

Voluntary Contributions to Fidelity Group of Funds, Twentieth
Century Investors, and Value Line Securities,Inc.   Pension Funds
by University Employees

Recommendation: that the Board authorize the University to make
available to employees on a voluntary basis the following 403(b)
investment vehicles: Fidelity Group of Funds; Twentieth Century
Investors; and Value Line Securities, Inc. These investment
alternatives will be offered in addition to the voluntary plans
currently offered in Teachers Insurance Annuity Association and
College Retirement Equity Fund Plans. University administration
will establish operating procedures for withholdings similar to
those utilized for the TIAA/CREF voluntary plans, and will
implement the new alternatives as soon as such procedures are
developed.

Background: The University by virtue of being classified as a
501.C.3 organization under federal revenue regulations may offer
its employees the opportunity to voluntarily tax shelter salary
funds under the provisions of codes 403(b) and 415. Since the
early 1960's the University has limited these voluntary
investments to a single company, Teachers Insurance Annuity
Association and College Retirement Equity Fund. The majority of
institutions throughout the country now permit their employees
alternatives for their voluntary investments. This does not
impact the University's retirement plan being confined solely to
TIAA/CREF. Between 650 and 700 employees voluntarily tax shelter
funds under the provisions of 403(b) and 415. There is
considerable employee interest in this matter.

A special committee, chaired by Dr. Dean White, was appointed to
investigate and recommend on the question of alternatives. Dr.
White's committee invited proposals from all eligible companies.
Out of the 18 proposals that were received, three are recommended
for approval. The three recommended offer the variable type of
investment vehicle and thus are comparable to CREF. No
institution funds are involved. The plans would be administered