Premium Billing

     In order to simplify tha administration of the plan TIAA establishes a

reamiumr nor -employe for the Monthly Income Benefit and a  renmi-m ner ermloyee

lor the Monthly Waiver Benefit. Based on the number of employees and the

nonthly premium shown on.pages 5 and 5a, the przmimns per amplovee would be

as folLows:

                                      Number of      Estimated Monthly
                 Monthly Premium   I Employees    - Premium Per Employee

  Income Benefit  $3,156.65            1,069               $2.95

  Waiver Benefit   $1,077.96            1,039              $1.04

     Each month the institution will be billed on the basis of the number of

employees then insured for each benefit times the premium per employee for that

benefit. Tha premium pdr employee will normally remain the same for twelve

months at a time regardless of salary changes that may occur during the year.