SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                            SCHEDULE 14A INFORMATION

                Proxy Statement Pursuant to Section 14(a) of the
                         Securities Exchange Act of 1934

Filed by the Registrant [ X ]
Filed by a Party other than the Registrant [ ]

Check the appropriate box:

[ ]  Preliminary Proxy Statement
[ ]  Confidential,  for  Use  of the  Commission  Only (as  permitted  by  Rule
     14a-6(e)(2))
[X]  Definitive Proxy Statement
[ ]  Definitive Additional Materials
[ ]  Soliciting Material Pursuant to ss.240.14a-11(c) or ss.240.14a-12


                        COLLEGE RETIREMENT EQUITIES FUND
- ---------------------------------------------------------------------------------------------------------------------------------------------------------------
                (Name of Registrant as Specified in Its Charter)


- ---------------------------------------------------------------------------------------------------------------------------------------------------------------
     (Name of Person(s) Filing Proxy Statement if other than the Registrant)

Payment of Filing Fee (Check the appropriate box):

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          pursuant to Exchange  Act Rule 0-11 (Set forth the amount on which the
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     0-11(a)(2)  and identify the filing for which the  offsetting  fee was paid
     previously.  Identify the previous filing by registration statement number,
     or the Form or Schedule and the date of its filing.

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[CREF Logo]

COLLEGE RETIREMENT EQUITIES FUND
730 Third Avenue
New York, New York 10017-3206

NOTICE OF ANNUAL MEETING -- NOVEMBER 10, 1998
- --------------------------------------------------------------------------------


Notice is hereby given to persons having voting rights in respect of theMEETING--NOVEMBER 9, 1999

The College Retirement Equities Fund ("CREF") that the(CREF) will hold its annual meeting of
participants will
be held at CREF's home office, 730 Third Avenue, New York, New York, on November 10, 1998,9, 1999, at
10:00 a.m. for the following purposes:The meeting agenda is:

   1. To elect four trustees to serve for the next four years and until their
      successors are elected and qualified;

   2. To ratifyapprove the selection of Ernst & Young LLP as the independent auditors
      for CREF for the fiscal year ending December 31, 1998;1999;

   3. To vote on the participant proposals set forth and describedpresented in the accompanying proxy statement;and

   4. To transactaddress any other business asthat may properly come before the meeting.

The Board of Trustees has set September 30, 1998,1999, as the record date for
determination ofdetermining the number of votes entitled to be cast. Only those persons whoYou may vote at the meeting
only if you had CREF voting rights as of September 30, 1998,  are entitled to notice of and
to vote at the meeting.1999.



                                    By order of the Board of Trustees,
                                    /s/ E. Laverne Jones
                                    --------------------
                                    E. Laverne Jones
                                    Secretary


WHETHERPLEASE VOTE AS SOON AS POSSIBLE BEFORE THE ANNUAL MEETING, EVEN IF YOU PLAN TO
ATTEND THE MEETING. YOU CAN VOTE QUICKLY AND EASILY BY TOLL FREE TELEPHONE CALL,
OVER THE INTERNET OR NOTBY MAIL. JUST FOLLOW THE SIMPLE INSTRUCTIONS THAT APPEAR ON
YOUR ENCLOSED PROXY CARD. SINCE WE CAN'T HOLD THE MEETING UNLESS A QUORUM IS
REACHED, PLEASE HELP CREF AVOID THE EXPENSE OF A FOLLOW-UP MAILING BY VOTING
TODAY!

IF YOU PLAN TO ATTEND THE MEETING, PLEASE MARK,  SIGN,  DATE,  AND
RETURN THE ENCLOSED PROXY CARD IN THE ADDRESSED AND POSTPAID  ENVELOPE  PROVIDED
OR CAST YOUR VOTE THROUGH THE INTERNET OR BY TELEPHONE AS SOON AS POSSIBLE PRIOR
TO THE MEETING.

TO HOLD THE MEETING,  A QUORUM OF THE SHARES ELIGIBLE TO VOTE IS REQUIRED BY LAW
TO BE  REPRESENTED.  THEREFORE,  IT IS IMPORTANT  THAT YOU VOTE NOW SO THAT CREF
WILL  NOT  HAVE TO BEAR THE  UNNECESSARY  EXPENSE  OF  ANOTHER  SOLICITATION  OF
PROXIES.

If you plan to  attend  the  meeting,  please  callCALL 1 800 842-2776 to  obtain an
admission pass.TO OBTAIN AN
ADMISSION PASS.


October 13, 1998                                                          [LOGO]12, 1999




                                  [Blank Page]





COLLEGE RETIREMENT EQUITIES FUND

PROXY STATEMENT FOR ANNUAL MEETING
TO BE HELD ON NOVEMBER 10, 19989, 1999

The  accompanying  proxy is solicited on behalf of the Board of Trustees of the College Retirement Equities Fund ("CREF") and(CREF) has sent
you this proxy statement to ask for your vote on several matters affecting CREF.
The accompanying proxy will be voted at the annual meeting of persons having CREF voting rights and at any adjournment thereof. The
annual  meeting of CREF will beparticipants
being held on November 10,  1998,  at9, 1999, 10:00 a.m. at
CREF's home  office, 730 Third Avenue, New York, New
York. The  approximate
mailing date of thisThis proxy statement iswas mailed to participants starting on or about
October 13, 1998.12, 1999.


HOW DO I VOTE?
You can vote in any one of four ways:

   (1) By marking, signing, and signingmailing the enclosed proxy card and  returning it for
          use atin the annual meeting;envelope
       provided;

   (2) Through the Internet at http://www.equiserve.com/proxy/tiaa-cref;www.eproxyvote.com/tiaa-cref (or by going
       to our Web site at www.tiaa-cref.org);

   (3) By telephone, by calling toll free 1 877 263-2733;779-8683; or

   (4) By voting in person at the annual meeting.

If you vote by Internet or telephone, please use the 13-digit14-digit "control" number
that appears onin the upper-left corner of your proxy card. PLEASE DO NOT MAIL YOUR PROXY CARD IF
YOU ARE VOTING BY INTERNETPlease don't mail your
proxy card if you vote by Internet or telephone.

CAN I CANCEL OR TELEPHONE.

     Each proxy may be revokedCHANGE MY VOTE?
You can change or cancel your vote at any time up until voting results are
announced at the annual meeting. You can do this by simply voting again--by
executing and returning a later-dated proxy card, voting through the Internet or
by toll-free telephone call, voting in person at the meeting, or writing theCREF's
Secretary of CREF at 730 Third Avenue, New York, New York 10017-3206,  or10017-3206.

HOW DOES A PROXY WORK?
When you vote by voting in personproxy, you are instructing the agents named on the proxy card
how to vote for you at the meeting. In addition,If you can revoke a prior proxy simply by voting again -- by
executing  and  returning a  later-dated  proxy card,  or by voting  through the
Internet or by toll-free telephone call.

     Unless  instructions to the contrary are received,  the proxydon't specifically instruct them
otherwise, they will be votedvote FOR the election of the four nominees for trustee and
FOR ratificationapproval of Ernst & Young LLP as independent auditors for CREF for the
fiscal year ending December 31, 1998,1999, and AGAINST the participant proposals
set forth and describedpresented in this proxy statement. At this time, we don't know of any other
matters being presented at the meeting. If other matters are brought before the
meeting, the proxy agents will vote the proxies using their own best judgment,
as allowed by the proxy.

                                                                               1


WHO MAY VOTE; HOW MANY VOTES DO I GET?
Only participants in certain accounts will be eligible to vote on the
participant proposals. The following table sets forth the voting rights
of CREFshows which accounts' participants
may vote for each item on the proxy ballot:

                                                                STOCK, MONEY MARKET,
                                                             BOND MARKET,
                                                         INFLATION-LINKED BOND,
                                                            GLOBAL EQUITIES,
                                       SOCIAL CHOICE      GROWTH, AND EQUITY
                        ALL ACCOUNTS,
                                   ALL      STOCK AND GLOBAL  EXCEPT THE SOCIAL
                                ACCOUNTS      EQUITIES ONLY     CHOICE ACCOUNT
ONLY     INDEX ACCOUNTS ONLY
- ---------------------------------------------------------------------------------------------------------------------------------------------------------------
Trustee Election                  X
- ---------------------------------------------------------------------------------------------------------------------------------------------------------------
Independent Auditors              X
- ---------------------------------------------------------------------------------------------------------------------------------------------------------------
Participant Proposal I                           X
- ---------------------------------------------------------------------------------------------------------------------------------------------------------------
Participant Proposal II                                               X
- --------------------------------------------------------------------------------

                                                                               1


     The Board of  Trustees  knows of no other  matters to be  presented  at the
meeting. If, however,  other matters are properly brought before the meeting, it
is the  intention  of the persons  named in the  accompanying  proxy to vote the
proxies in accordance with their best judgment,  and discretionary  authority to
do so is included in the proxy.-------------------------------------------------------------------------------
Participant Proposal III          X
- -------------------------------------------------------------------------------
Participant Proposal IV           X
- -------------------------------------------------------------------------------

Each person having voting rights on September 30, 1998, is eligible to1999, may vote at the meeting.
On September 20, 1998,1999, there were a158,757,014,641.43 total of  122,208,084,769.93
votes eligible to be cast. Of the total number of votes,  97,765,698,791.21 were
attributable  to the Stock Account;  5,631,484,961.32  were  attributable to the
Money Market  Account;  2,630,012,095.42  were  attributable  to the Bond Market
Account;  127,951,002.80 were attributable to the Inflation-Linked Bond Account;
2,728,986,893.22    were    attributable   to   the   Social   Choice   Account;
5,150,548,167.19   were   attributable   to   the   Global   Equities   Account;
5,524,440,612.97  were attributable to the Growth Account;  and 2,648,962,245.80
were  attributable  to the Equity  Index  Account.  As of  September  20,  1998,
Teachers Insurance and Annuity Association of America ("TIAA"), CREF's companion
organization,  owned 2,000,000  accumulation units in the Inflation-Linked  Bond
Account,  representing  approximately  43 percent of that account's  outstanding
accumulation  units.  As of that date,  TIAA was entitled to cast .04 percent of
the total number of votes eligible to be
cast, on those matters described in this
proxy statement on which all participants are entitled to vote.broken down as follows:

       Stock Account - 123,005,493,010.37 votes

       Money Market Account - 6,621,278,351.30 votes

       Bond Market Account - 2,959,707,632.63 votes

       Inflation-Linked Bond Account - 125,941,584.52 votes

       Social Choice Account - 3,871,748,376.45 votes

       Global Equities Account - 6,845,752,558.81 votes

       Growth Account - 10,892,976,869.70 votes

       Equity Index Account - 4,434,116,257.65 votes

The number of votes attributable  to a person with a CREF  accumulationyou have is equal to the dollar value of the  amount  credited  to  that  personyour accumulation
in the
accumulation  fund of each CREF account on September 30, 1998.1999. If you are receiving annuity
payments,  are being made, the number of votes for an  annuitantyou have is equal to the number of dollarsdollar amount held on
September 30, 1999 in the annuity fund of each CREF account on September 30,
1998, to meet theour annuity
obligations to that person.  Fractional votesyou. We will be
counted.


VOTE REQUIRED

     CREF's  constitution  provides  thatcount fractional votes.

HOW MANY VOTES ARE NEEDED FOR A QUORUM OR TO PASS A VOTE?
We will have a quorum for the holders ofmeeting if 10 percent of the votes entitled to be
cast will constitute a quorum at the meeting. The vote of persons
holding a majority of the votes present in person or represented by proxy at the
meeting  and  entitled  to vote will  decide  the  outcome  of the  election  of
trustees,  the ratification of the appointment of the independent auditors,  and
the participant proposal vote.are voted. Abstentions are counted in determining whether a quorum has been
reached. When the  quorum  requirements  are met,  abstentions  are not  counted  in
determining  theThe outcome of the election of trustees, the ratificationappointment of the
appointment of independent auditors, orand the participant proposal vote, or any
other  matters  that mayvotes will be brought to a vote at the meeting that require onlydecided by a
majority of sharesthe eligible votes present to be passed.in person or represented by proxy.
Abstentions are not counted in determining the actual voting results. No votes
are cast by brokers.

2



I.  ELECTION OF TRUSTEES

CREF's  constitution  provides  that the Board of Trustees is divided into four classes, with one class of four
trustees elected each year for a term of four years. At this annual meeting, you
will be electing four trustees are to be elected to serve for four years and until their
successors are elected and qualified. All of the nominees currently serve on
CREF's Board of Trustees and have been renominated to serve for another term.

Set forth belowBelow is information concerningabout the age,nominees and continuing trustees. Note that in
addition to the information listed, each of the CREF trustees, including each
nominee, also serves on the board of trustees of TIAA-CREF Mutual Funds and
TIAA-CREF Institutional Mutual Funds.


NOMINEES FOR TRUSTEES

                    NANCY L. JACOB, 56, is president and managing principal occupation,
employment duringof
                    Windermere Investment Associates. She was previously
                    chairman and chief executive officer of CTC Consulting,
                    Inc., and executive vice president, U.S. Trust of the
     [PHOTO]        Pacific Northwest. Dr. Jacob serves as a director of Puget
TRUSTEE SINCE 1979  Sound Power & Light Company. She received a B.A. from the
                    University of Washington and a Ph.D. from the University of
                    California, Irvine.



                    MARTIN L. LEIBOWITZ,* 63, has been vice chairman and chief
                    investment officer of CREF and TIAA since November 1995. He
                    was executive vice president, Investments, CREF and TIAA,
                    from June 1995 to November 1995. Formerly, he was a managing
                    director--director of research, and a member of the
     [PHOTO]        executive committee of Salomon Brothers Inc. Mr. Leibowitz
TRUSTEE SINCE 1995  is a trustee of TIAA, TIAA-CREF Investment Management LLC
                    (Investment Management), and a director of Teachers
Advisors, Inc. (Advisors) and TIAA-CREF Life Insurance Company. He is also
president of Investment Management and Advisors and chief investment officer,
TIAA-CREF Mutual Funds, TIAA-CREF Institutional Mutual Funds, TIAA-CREF Life
Funds, and TIAA Separate Account VA-1. In addition, Mr. Leibowitz is a trustee
of the Carnegie Corporation of New York, the Institute for Advanced Study, and
the Research Foundation of the Institute of Chartered Financial Analysts. He is
also a member of the board of overseers of the New York University Stern School
of Business and a member and past chairman of the board of governors of the New
York Academy of Sciences. He received a B.A. and an M.S. from the University of
Chicago, and a Ph.D. from New York University's Courant Institute of
Mathematical Sciences.
                                                          CONTINUED ON NEXT PAGE


* Because Messrs. Biggs and Leibowitz are officers of CREF, they are deemed
  to be "interested persons" of CREF within the meaning of the Investment
  Company Act of 1940. Mr. Longstreth may be considered an "interested
  person" of CREF because he is associated with a law firm that has acted as
  counsel to CREF.

                                                                               3


                    BEVIS LONGSTRETH,* 65, has been of counsel at the law firm
                    of Debevoise & Plimpton since 1998. Formerly, he was a
                    partner of the same firm. For the past five years educational background,he was an
                    adjunct professor at Columbia University School of Law. Mr.
                    Longstreth is a member of the board of directors of Capstead
     [PHOTO]        Mortgage Corporation and certain other
directorshipsAMVESCAP, PLC. He is also chairman
TRUSTEE SINCE 1996  of eachthe finance committee of the Rockefeller Family Fund, and
                    chairman of the investment committee of the Nathan Cummings
                    Foundation. He is also a trustee of the New School
                    University and chairman of the board of Symphony Space, Inc.
                    Mr. Longstreth received a B.S.E. from Princeton University
                    and a J.D. from Harvard University.



                    EUGENE C. SIT, 61, is chairman, chief executive officer, and
                    chief investment officer of Sit Investment Associates, Inc.
                    and Sit/Kim International Investment Associates, Inc. Both
                    are investment management firms. He also serves as chairman
                    and director of thirteen registered investment companies
     [PHOTO]        managed by Sit Investment Associates, Inc. Mr. Sit currently
TRUSTEE SINCE 1991  serves as a trustee of Carleton College, the Minnesota
                    Historical Society, the Minneapolis Institute of Arts, and
                    the Minnesota Orchestral Association. He received a B.S.C.
                    from DePaul University, and is both a Chartered Financial
                    Analyst and Certified Public Accountant.

Each of the nominees has consented to serve if elected. If any nominee and  continuing  trustee,  as well asis
unavailable to serve when the year in
which each individual first becamemeeting is held, the proxy agents may cast your
votes for a trustee.


                    NOMINEES FOR TRUSTEEsubstitute chosen by the current Board of Trustees.

*See footnote on page 3.

4


CONTINUING TRUSTEES

                    ROBERT H. ATWELL, 67,68, has been president emeritus of the
                    American Council on Education and a senior consultant for
                    A.T. Kearney since November 1996. Formerly, he was president
                    of the American Council on Education and Pitzer College. Mr.
                    [PHOTO]         Atwell is a trustee emeritus of St. Norbert College, a
     TRUSTEE SINCE 1989[PHOTO]        trustee of Eckerd College, and New College Foundation,  and a director of Education
TRUSTEE SINCE 1989  Management Corp. and Collegis, Inc.
                    Mr.  Atwell  also  serves as a trustee of  TIAA-CREF  Mutual
                    Funds. Mr. Atwell received a
                    B.A. from the College of Wooster and an M.A. from the
                    University of Minnesota. He has
                    been a CREF participant since 1970.His current term as trustee expires
                    in 2002.


                    ELIZABETH E. BAILEY, 59,60, is the John C. Hower Professor of
                    Public Policy and Management at The Wharton School of the
                    University of Pennsylvania. Formerly, she was a professor at
                    Carnegie  Mellon  University and dean of its Graduate School
     [PHOTO]        of Industrial Administration. Dr. Bailey has been a visiting
TRUSTEE SINCE 1986  scholar at Yale University.  Dr. Bailey is a director of CSX
                    Corporation, Honeywell Inc., and Philip Morris Companies
                    Inc., as well as the National Bureau of Economic Research.
     [PHOTO]        She is also a trustee of The Brookings Institution and
TRUSTEE SINCE 1986  Bancroft Inc., and is a director of the National Bureau of
                    Economic  Research.  Dr.  Bailey also serves as a trustee of
                    TIAA-CREF  Mutual Funds.NeuroHealth. She received an A.B. from Radcliffe
                    College, an M.S. from Stevens Institute of Technology, and a
                    Ph.D. from Princeton University. Her current term as trustee
                    expires in 2002.


                    JOHN H. BIGGS,* 63, is chairman, president, and chief
                    executive officer of CREF and TIAA. Mr. Biggs also serves as
                    a trustee of TIAA, Investment Management, and TIAA-CREF
                    Individual & Institutional Services, Inc. (Services), and is
                    a director of Teachers Personal Investors Services, Inc.
     [PHOTO]        (TPIS), Advisors, and TIAA-CREF Trust Company, FSB. Mr.
TRUSTEE SINCE 1983  Biggs is a director of The Boeing Company, Ralston Purina
                    Company, and the National Bureau of Economic Research. He is
                    a trustee of the Church Pension Fund (Episcopal), The
                    Danforth Foundation, the Financial Accounting Foundation,
                    and Washington University in St. Louis. Mr. Biggs received
                    an A.B. from Harvard University and a Ph.D. from Washington
                    University in St. Louis. His current term as trustee expires
                    in 2000.


                    JOYCE A. FECSKE, 52, is vice president emerita at DePaul
                    University. Until February 1994, she was vice president for
                    human resources at DePaul University. She has  beenreceived a CREF
                    participant since 1983.B.A.
                    and an M.A. from DePaul University. Her current term as
                    trustee expires in 2001.
     [PHOTO]
TRUSTEE SINCE 1993

*See footnote on page 3.

                                                          CONTINUED ON NEXT PAGE

                                                                               5

CONTINUING TRUSTEES CONTINUED

                    EDES P. GILBERT, 67, is a consultant for Independent
                    Education Services. Previously, she was head of The Spence
                    School and headmistress of the Mary Institute. Ms. Gilbert
                    serves as president of the board of trustees of Lesley
                    College and as a trustee of the Friends Seminary. After
     [PHOTO]        receiving a B.A. from Vassar College, Ms. Gilbert received
TRUSTEE SINCE 1989  an M.Ed. from Lesley College, Graduate School of Education.
                    Her current term as trustee expires in 2001.


                    STUART TSE KONG HO, 62,63, is chairman of the board and
                    president of Capital Investment of Hawaii, Inc., and
                    chairman of the board of Gannett Pacific Corporation. He
                    [PHOTO]        also serves on the boards of Pacific Century Financial
TRUSTEE SINCE 1990
                    Corp., Gannett Co., Inc., and Aloha Airgroup, Inc. Mr. Ho
     also serves as a trustee of TIAA-CREF  Mutual Funds.  Mr. Ho[PHOTO]        received a B.A. from Claremont McKenna College and a J.D.
TRUSTEE SINCE 1990  from The University of Michigan School of Law. 3His current
                    term as trustee expires in 2002.


                    MARJORIE FINE KNOWLES, 60, is a professor of law at Georgia
                    State University College of Law, where she also served as
                    dean until 1991. Formerly, she was a professor of law at the
                    University of Alabama College of Law. She received her A.B.
                    from Smith College and her LL.B. from Harvard Law School.
     [PHOTO]        Her current term as trustee expires in 2000.
TRUSTEE SINCE 1983

                    ROBERT M. LOVELL, JR., 69, is a founding partner of First
                    Quadrant L.P., an investment management firm. Previously, he
                    was chairman and chief executive officer of First Quadrant
                    Corp., its predecessor. Mr. Lovell received his B.A. from
                    Princeton University. His current term as trustee expires in
     [PHOTO]        2000.
TRUSTEE SINCE 1977

                    STEPHEN A. ROSS, 55, has been the Franco Modigliani
                    Professor of Finance and Economics at the Sloan School of
                    Management at the Massachusetts Institute of Technology
                    since July 1998. He was previously the Sterling Professor of
                    Economics and Finance at the Yale School of Management at
     [PHOTO]        Yale University. Dr. Ross is also co-chairman of Roll & Ross
TRUSTEE SINCE 1981  Asset Management Corp., a director of Freddie Mac and
                    Algorithmics, Incorporated, and a trustee of the California
                    Institute of Technology. He received a B.S. from the
                    California Institute of Technology and a Ph.D. from Harvard
                    University. His current term as trustee expires in 2001.


6


                    NOMINEES FORMACEO K. SLOAN, 49, has been the chairman and chief
                    executive officer of Sloan Financial Group, Inc. and NCM
                    Capital Management Group, Inc., since 1991. Mr. Sloan is a
                    director of SCANA Corporation, Mechanics and Farmers Bank,
                    the Calvert New World Fund, and Virtual Technology
     [PHOTO]        Corporation. Mr. Sloan received a B.A. from Morehouse
TRUSTEE (continued)SINCE 1991  College, an M.B.A. from Georgia State University, and a J.D.
                    from North Carolina Central University School of Law. His
                    current term as trustee expires in 2001.


                    DAVID K. STORRS, 54,55, has been president and chief executive
                    officer of Alternative Investment Group, L.L.C., an
                    investment management firm, since August 1996. From January
                    1996 to October 1996, he was adviser to the president, The
                    Common Fund, a collective investment vehicle for college and
     [PHOTO]        university endowments. He had been president and chief
TRUSTEE SINCE 1994  executive officer of The Common Fund since January 1993. He
                    is also a director of eleven money market funds sponsored by
                    Alliance Capital Management. Mr.  Storrs also serves as a
                    trustee of TIAA-CREF  Mutual Funds.  He received a B.A. from Yale
                    University and an M.B.A. from Harvard University Graduate
                    School of Business Administration. He has been a
                    CREF participant since 1975.


                    CONTINUING TRUSTEES

                    JOHN H.  BIGGS,*  62,  is  chairman,  president,  and  chief
                    executive officer of CREF and TIAA. Mr. Biggs also serves as
                    a trustee  of TIAA,  TIAA-CREF  Investment  Management,  LLC
                    ("Investment    Management"),    TIAA-CREF    Individual   &
                    Institutional  Services,  Inc.  ("Services"),  and TIAA-CREF
                    Mutual  Funds,  and  is  a  director  of  Teachers  Personal
                    Investors Services,  Inc. ("TPIS"),  Teachers Advisors, Inc.
     [PHOTO]        ("Advisors"), and TIAA-CREF Trust Company, FSB. Mr. Biggs is
TRUSTEE SINCE 1983  a director of The Boeing  Company,  Ralston Purina  Company,
                    and  the  National  Bureau  of  Economic  Research.  He is a
                    trustee of the Church Pension Fund (Episcopal), The Danforth
                    Foundation,   the  Financial  Accounting   Foundation,   and
                    Washington  University in St. Louis.  Mr. Biggs  received an
                    A.B. from Harvard  University  and a Ph.D.  from  Washington
                    University  in St.  Louis.  He has  been a CREF  participant
                    since 1977. His current term as
                    trustee expires in 2000.


                    GARY  P.  BRINSON,  54,  has  been a  member  of  the  group
                    executive board of UBS AG and chief executive officer of UBS
                    Brinson, the asset management division of UBS AG, since June
                    1998. Mr. Brinson is also chief executive officer of Brinson
                    Partners,   Inc.,  a  registered   investment   adviser  and
     [PHOTO]        subsidiary  of UBS AG. He was formerly a member of the group
TRUSTEE SINCE 1995  executive board and chief  investment  officer of Swiss Bank
                    Corporation. Mr. Brinson serves as a trustee of the Research
                    Foundation of the Institute of Chartered  Financial Analysts
                    and TIAA-CREF  Mutual Funds. He received a B.A. from Seattle
                    University and an M.B.A.  from Washington State  University.
                    His current term as trustee expires in 1999.

4


                    CONTINUING TRUSTEES (continued)

                    JOYCE A.  FECSKE,  51, is vice  president  emerita at DePaul
                    University.  Until February 1994, she was vice president for
     [PHOTO]        human resources at DePaul University. Ms. Fecske also serves
TRUSTEE SINCE 1993  as a trustee of TIAA-CREF  Mutual Funds. She received a B.A.
                    and an M.A.  from  DePaul  University.  She has  been a CREF
                    participant  since 1976. Her current term as trustee expires
                    in 2001.



                    EDES P. GILBERT,  66, recently retired as head of The Spence
                    School  and  is  currently  a  consultant  for   Independent
                    Education Services.  Previously, she was headmistress of the
                    Mary Institute. Ms. Gilbert serves as president of the board
     [PHOTO]        of  trustees  of  Lesley  College  and as a  trustee  of the
TRUSTEE SINCE 1989  Friends Seminary and TIAA-CREF Mutual Funds. After receiving
                    a B.A. from Vassar  College,  Ms. Gilbert  received an M.Ed.
                    from Lesley College,  Graduate School of Education.  She has
                    been a CREF  participant  since 1972.  Her  current  term as
                    trustee expires in 2001.


                    NANCY L. JACOB,  55, is president  and  managing  partner of
                    Windermere   Investment   Associates.   She  was  previously
                    chairman  and chief  executive  officer  of CTC  Consulting,
                    Inc.,  and  executive  vice  president,  U.S.  Trust  of the
                    Pacific Northwest.  Formerly, she was a professor of finance
                    in the School and Graduate School of Business Administration
     [PHOTO]        at the  University of  Washington,  where she also served as
TRUSTEE SINCE 1979  dean.  Dr.  Jacob also  serves as a director  of Puget Sound
                    Power & Light  Company and as a trustee of TIAA-CREF  Mutual
                    Funds. She received a B.A. from the University of Washington
                    and a Ph.D. from the University of California,  Irvine.  She
                    has been a CREF participant  since 1971. Her current term as
                    trustee expires in 1999.


                    MARJORIE FINE KNOWLES,  59, is a professor of law at Georgia
                    State  University  College of Law,  where she also served as
                    dean until 1991. Formerly, she was a professor of law at the
     [PHOTO]        University  of Alabama  College  of Law.  Ms.  Knowles  also
TRUSTEE SINCE 1983  serves as a trustee of TIAA-CREF  Mutual Funds. She received
                    her A.B. from Smith  College and her LL.B.  from Harvard Law
                    School.  She has been a CREF  participant  since  1976.  Her
                    current term as trustee expires in 2000.


                                                                               5


                    CONTINUING TRUSTEES (continued)

                    MARTIN L.  LEIBOWITZ,*  62, has been vice chairman and chief
                    investment  officer of CREF and TIAA since November 1995. He
                    was executive vice  president,  Investments,  CREF and TIAA,
                    from June 1995 to November 1995. Formerly, he was a managing
                    director-director of research, and a member of the executive
                    committee  of  Salomon  Brothers  Inc.  Mr.  Leibowitz  is a
                    trustee of TIAA, Investment Management, and TIAA-CREF Mutual
                    Funds,  and  a  director  of  Advisors  and  TIAA-CREF  Life
                    Insurance Company.  He is also president and chief executive
                    officer of Investment  Management  and  Advisors,  and chief
     [PHOTO]        investment  officer  of  TIAA-CREF  Mutual  Funds  and  TIAA
TRUSTEE SINCE 1995  Separate  Account  VA-1.  In  addition,  Mr.  Leibowitz is a
                    trustee of the Carnegie Corporation of New York, Princeton's
                    Institute  for  Advanced  Study,  a member  of the  board of
                    overseers  of  the  New  York  University  Stern  School  of
                    Business,  a  director  of the  Institute  for  Quantitative
                    Research in Finance, and a member and former chairman of the
                    board of governors  of the New York Academy of Sciences.  He
                    received a B.A. and an M.S. from the  University of Chicago,
                    and a Ph.D. from New York University's  Courant Institute of
                    Mathematical  Sciences. He has been a CREF participant since
                    1996. His current term as trustee expires in 1999.

                    JAY O. LIGHT, 57, is a professor of business  administration
                    at   Harvard   University   Graduate   School  of   Business
                    Administration.  In  addition,  Dr.  Light is a director  of
                    United Asset Management, the Harvard Management Company, the
                    Baupost Fund, and the GMO Trust.  Dr. Light also serves as a
     [PHOTO]        trustee of Brigham and Women's Hospital and TIAA-CREF Mutual
TRUSTEE SINCE 1987  Funds.  He received a B.E.P.  from Cornell  University and a
                    D.B.A.  from Harvard  University.  Dr. Light has been a CREF
                    participant  since 1972. His current term as trustee expires
                    in 1999.

                    BEVIS  LONGSTRETH,*  64,  is of  counsel  at the law firm of
                    Debevoise & Plimpton since 1998. Formerly,  he was a partner
                    of the same firm.  He is an adjunct  professor  at  Columbia
                    University  School of Law. Mr. Longstreth is a member of the
     [PHOTO]        board of  directors  of Capstead  Mortgage  Corporation  and
TRUSTEE SINCE 1996  AMVESCAP,   PLC.  He  is  also  a  member  of  the  National
                    Adjudicatory   Council  of  the  National   Association   of
                    Securities  Dealers,  Inc.,  and a trustee of the New School
                    for  Social  Research  and  TIAA-CREF   Mutual  Funds.   Mr.
                    Longstreth received a B.S.E. from Princeton University and a
                    J.D.  from Harvard  University.  His current term as trustee
                    expires in 2000.

     * Because Messrs. Biggs and Leibowitz are officers of CREF, they are deemed
to be "interested  persons" of CREF within the meaning of the Investment Company
Act of 1940. Mr.  Longstreth  may be considered an  "interested  person" of CREF
because he is associated with a law firm that has acted as counsel to CREF.



6


                    CONTINUING TRUSTEES (continued)

                    ROBERT M. LOVELL,  JR.,  68, is a founding  partner of First
                    Quadrant L.P., an investment management firm. Previously, he
     [PHOTO]        was chairman and chief  executive  officer of First Quadrant
TRUSTEE SINCE 1977  Corp., its predecessor.  Mr. Lovell also serves as a trustee
                    of TIAA-CREF Mutual Funds. Mr. Lovell received his B.A. from
                    Princeton University. His current term as trustee expires in
                    2000.


                    STEPHEN  A.  ROSS,  54,  has  been  the  Franco   Modigliani
                    Professor  of Finance and  Economics  at the Sloan School of
                    Management  at the  Massachusetts  Institute  of  Technology
                    since July 1998. He was previously the Sterling Professor of
                    Economics  and Finance at the Yale School of  Management  at
                    Yale University. Dr. Ross is also co-chairman of Roll & Ross
                    Asset  Management  Corp., a director of General  Reinsurance
     [PHOTO]        Corporation and Algorithmics, Incorporated, and a trustee of
TRUSTEE SINCE 1981  the California Institute of Technology. Dr. Ross also serves
                    as a trustee of TIAA-CREF  Mutual Funds.  He received a B.S.
                    from the California Institute of Technology and a Ph.D. from
                    Harvard  University.  Dr.  Ross has been a CREF  participant
                    since 1974. His current term as trustee expires in 2001.


                    EUGENE C. SIT, 60, is chairman,  chief executive,  and chief
                    investment officer of Sit Investment  Associates,  Inc., and
                    Sit/Kim International  Investment Associates,  Inc. Both are
                    investment  management firms. He also serves as chairman and
                    director of thirteen registered investment companies managed
                    by Sit  Investment  Associates,  Inc.  Mr.  Sit  serves as a
                    trustee  of the  Research  Foundation  of the  Institute  of
     [PHOTO]        Chartered   Financial   Analysts,   Carleton  College,   the
TRUSTEE SINCE 1991  Minnesota Historical Society, and the Minneapolis  Institute
                    of Fine Arts.  Mr. Sit also serves as a trustee of TIAA-CREF
                    Mutual Funds. He received a B.S.C.  from DePaul  University,
                    and is both a  Chartered  Financial  Analyst and a Certified
                    Public  Accountant.  His current term as trustee  expires in
                    1999.

                    MACEO K. SLOAN,  48, has been the chairman,  president,  and
                    chief executive officer of Sloan Financial Group,  Inc., and
                    NCM Capital Management Group, Inc., since 1991. Mr. Sloan is
                    a director of SCANA Corporation, Mechanics and Farmers Bank,
     [PHOTO]        the  Calvert New World Fund,  New Africa  Advisers,  and New
TRUSTEE SINCE 1991  Africa  Management.  Mr.  Sloan also  serves as a trustee of
                    TIAA-CREF  Mutual  Funds.  Mr.  Sloan  received a B.A.  from
                    Morehouse College,  an M.B.A. from Georgia State University,
                    and a J.D. from North Carolina Central  University School of
                    Law. His current term as trustee expires in 2001.

                                                                               7


                    CONTINUING TRUSTEES (continued)2002.


                    ROBERT W. VISHNY, 39,40, has been the Eric J. Gleacher
                    Professor of Finance at the University of Chicago Graduate
                    School of Business since 1993. He also has been a founding
                    partner and director of LSV Asset Management, an investment
                    management firm, since 1994. He is the former director of
     [PHOTO]        the program in corporate finance at the National Bureau of
Economic  Research  and a  founding  partner  of  LSV  Asset
     [PHOTO]        Management,  an investment  management firm. Dr. Vishny also
TRUSTEE SINCE 1996  serves as a trustee of TIAA-CREF  Mutual  Funds.Economic Research. Dr. Vishny received an A.B. from The
                    University of Michigan and a Ph.D. from the Massachusetts
                    Institute of Technology. He has been
                    a CREF  participant  since 1985. His current term as trustee expires
                    in 2000.


As of September 20, 1998:1999: (1) none of the trustees individually owned as much as 1 percent1% of the
outstanding voting securities of any CREF account; and (2) trustees and
officers, as a group, did not own more than 1  percent1% of the outstanding voting
securities of any account.

                                                                               Each of the nominees is available and has  consented to serve if elected.  If
any of these  persons is  unavailable  to serve at the time the meeting is held,
the votes represented by the proxy may be voted for any substitute designated by
the current Board of Trustees.7


COMMITTEES

At each annual meeting of trustees,Every year the board appoints certain committees with specific responsibilities
for various aspects of CREF's operation.operations. Included among these are:

        (1) An Audit Committee, consisting solely of trustees who are not
            officers of CREF, which itself,  or through  independent  auditors or others,  audits and examines the records and affairs
            of CREF as it deems necessary.necessary, using independent auditors or others.
            During 1997,1998, the Audit Committee held sixfive meetings. The current
            members of the Audit Committee are Dr. BaileyJacob (chair), Dr. Jacob,Bailey,
            Mr. Lovell, and Mr. Sloan.

        (2) A Finance Committee, which oversees the management of CREF
            investments in accordance  withsubject to appropriate oversight by the full board.
            During 1997,1998, the Finance Committee held sixfour meetings. The current
            members of the Finance Committee are Mr. Biggs (chair), Mr. Brinson,  Mr. Ho, Dr.
            Jacob, Ms. Knowles, Mr. Leibowitz, Dr. Jay Light, Mr. Longstreth,
            Mr. Lovell, Dr. Ross, Mr. Sit, Mr. Sloan, Mr. Storrs, and Dr.
            Vishny.

        (3) A Nominating and Personnel Committee, consisting solely of trustees
            who are not officers of CREF, which nominates certain CREF officers
            and the standing committees of the board, and recommends personspeople for
            election as trustees. During 1997,1998, the committee held six meetings.
            The current members of the Nominating and Personnel Committee are
            Mr. SitMs. Gilbert (chair), Mr. Atwell, Ms. Fecske, Ms. Gilbert, Dr. Light,Ross, and Dr.
            Vishny.

The Nominating and Personnel Committee will consider potential nominees for
trustees recommended by participants. Any participants  desiringparticipant who wants to presentrecommend a
candidate to the committee for future considerationcandidate should write the name of the individual in the

8
 space provided
on the proxy card, or, if voting through the Internet, should note their
recommended nominee in the "Comments" section. (No recommendations may be made
through our telephone voting facility.) In addition, participants may recommend
nominees to the CREF Board of Overseers by writing to: Secretary, CREF Board of
Overseers, 730 Third Avenue, New York, New York 10017-3206.


MEETINGS
There were fivefour meetings of the Board of Trustees during 1997.1998. All trustees
except Mr. Brinson,  Dr. Jacob, and Dr. RossLight attended at least 75 percent75% of the
total number of meetings of the Board of Trustees
and of theboard committees  of the
board on which they served.


TRUSTEE COMPENSATION OF TRUSTEES
The following table sets forthshows compensation information for the trustees who are not
officers of CREF ("non-officer  trustees")(non-officer trustees) for the year ended December 31, 1997.1998.
The TIAA-CREF fund complex referred to in the last column consists of threesix
investment companies: CREF, TIAA Separate Account VA-1, TIAA-CREF Life Separate
Account VA-1, TIAA-CREF Life Funds, TIAA-CREF Mutual Funds, and TIAA-CREF
Institutional Mutual Funds.

LUMP-SUM DEFERRED           
                              AGGREGATE       COMPENSATION           TOTAL
                            COMPENSATION     BENEFIT ACCRUED     COMPENSATION
                                FROM         AS PART OF CREF    FROM TIAA-CREF
NAME                            CREF          EXPENSES (1)       FUND COMPLEX
                                                             
Robert H. Atwell              $ 42,952           $16,088           $ 43,000
Elizabeth E. Bailey           $ 46,954           $10,004           $ 47,000
Gary P. Brinson               $ 23,975           $ 3,029           $ 24,000
Joyce A. Fecske               $ 30,966           $ 2,844           $ 31,000
Edes P. Gilbert               $ 33,962           $12,937           $ 34,000
Stuart Tse Kong Ho            $ 28,966           $ 9,493           $ 29,000
Nancy L. Jacob                $ 29,964           $ 9,748           $ 30,000
Marjorie Fine Knowles         $ 35,961(2)        $10,977           $ 36,000(2)
Jay O. Light                  $ 28,964           $ 7,451           $ 29,000
Bevis Longstreth              $ 29,970           $ 5,215           $ 30,000
Robert M. Lovell, Jr.         $ 32,960(2)        $22,842           $ 33,000(2)
Stephen A. Ross               $ 27,970(2)        $ 8,248           $ 28,000(2)
Eugene C. Sit                 $ 35,957           $ 6,919           $ 36,000
Maceo K. Sloan                $ 40,951           $ 3,012           $ 41,000
Harry K. Spindler             $126,959(3)        $17,264           $127,000(3)
David K. Storrs               $ 37,953           $ 3,194           $ 38,000
Robert W. Vishny              $ 30,960           $   762           $ 31,000
                                                           

     (1) Amounts were accrued under a CREF deferred  compensation plan in effect
through the end of 1997, and were calculated assuming service through age 70.

     (2)  Trustee8

LONG-TERM PERFORMANCE AGGREGATE DEFERRED COMPENSATION TOTAL COMPENSATION COMPENSATION ACCRUED AS PART OF FROM TIAA-CREF NAME FROM CREF CREF EXPENSES FUND COMPLEX - -------------------------------------------------------------------------------------------------- Robert H. Atwell $48,700 $12,442 $49,000 - -------------------------------------------------------------------------------------------------- Elizabeth E. Bailey $51,713 $12,442 $52,000 - -------------------------------------------------------------------------------------------------- Gary P. Brinson $38,260 $12,442 $38,500 - -------------------------------------------------------------------------------------------------- Joyce A. Fecske $48,708 $12,442 $49,000 - -------------------------------------------------------------------------------------------------- Edes P. Gilbert $45,753 $12,442 $46,000 - -------------------------------------------------------------------------------------------------- Stuart Tse Kong Ho $42,746 $12,442 $43,000 - -------------------------------------------------------------------------------------------------- Nancy L. Jacob $39,773 $12,442 $40,000 - -------------------------------------------------------------------------------------------------- Marjorie Fine Knowles1 $48,722 $12,442 $49,000 - -------------------------------------------------------------------------------------------------- Jay O. Light $39,749 $12,442 $40,000 - -------------------------------------------------------------------------------------------------- Bevis Longstreth $42,744 $12,442 $43,000 - -------------------------------------------------------------------------------------------------- Robert M. Lovell, Jr.1 $45,737 $12,442 $46,000 - -------------------------------------------------------------------------------------------------- Stephen A. Ross1 $41,245 $12,442 $41,500 - -------------------------------------------------------------------------------------------------- Eugene C. Sit $48,706 $12,442 $49,000 - -------------------------------------------------------------------------------------------------- Maceo K. Sloan $45,737 $12,442 $46,000 - -------------------------------------------------------------------------------------------------- David K. Storrs $47,230 $12,442 $47,500 - -------------------------------------------------------------------------------------------------- Robert W. Vishny $47,219 $12,442 $47,500 - --------------------------------------------------------------------------------------------------
1This trustee elected to defer payment of thishis/her compensation. A portion of the compensation was deferred under a CREFvoluntary deferred compensation plan for non-officer trustees which was closed as to future participation in 1986. (3) Includes $90,0001986 and terminated as to future contributions as of June 30, 1998, and a portion was deferred compensation benefit paid to Mr. Spindler,under a former CREF trustee, in accordance withnew plan provisions. The CREFwhich went into effect on July 1, 1998. CREF's long-term performance deferred compensation plan in effect through the end of 1997 provided that a non-officer trustee who had served at least five years receive a lump-sum 9 deferred compensation benefit after leaving the CREF board based on half the trustee stipend in effect when leaving the board and years of service. CREF has adopted a new long-term deferred compensation plan to replace this plan, effective January 1998. Under this newfor non-employee trustees is an unfunded plan, accounts have been set up for each non-officer trustee and credited with amounts from the former plan. Going forward,in which annual contributions equal to half of the amount of the basic annual trustee stipend are allocated to notional CREF and TIAA accounts, in predetermined percentages. Benefits arewill normally be paid out in a lump sum after the non-officer trustee leaves the board. Under a separate voluntary deferred compensation plan, which went into effect on July 1, 1998, non-employee trustees also have the option to defer payment of their compensation and allocate it to notional TIAA and CREF accounts chosen by the individual trustee. Benefits under that plan are also normally paid in a lump sum after the trustee leaves the board. Trustees who are active officers of CREF or TIAA do not receive any additional compensation for their services as trustees. 9 II. RATIFICATIONAPPROVING THE SELECTION OF INDEPENDENT AUDITORS ForErnst & Young LLP (Ernst & Young) served as independent auditors to CREF for the fiscal year ended December 31, 1997, Ernst & Young LLP ("Ernst & Young") served as independent auditors to CREF.1998. At a meeting held on May 20, 1998,19, 1999, the CREF Board of Trustees, including a majority of thosenon-officer trustees, who are not "interested persons" of CREF, again selected Ernst & Young to serve as independent auditors for CREF for the fiscal year ending December 31, 1998,1999, subject to ratification by persons having voting rights in CREF. In 1997,participant approval. Ernst & Young replaced Deloitte & Touche LLP ("Deloitte")performs independent audits of CREF's financial statements. To maintain auditor independence and avoid even the appearance of conflicts of interest, CREF, as independent auditors. The decision toa policy, does not engage Ernst & Young was the result of a process initiated by the CREF Board of Trustees pursuant to its policy to periodically consider rotation of CREF's external audit firm. Deloitte's reports on CREF's financial statements for the years ended December 31, 1996 and December 31, 1995 did not contain an adverse opinionmanagement, advisory or a disclaimer of opinion and were not qualified as to uncertainty, audit scope, or accounting principles. There were no disagreements with Deloitte on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure during 1995 and 1996 or subsequently.consulting services. Representatives of Ernst & Young will be present at the annual meeting to respond to appropriate questions. 10 III. ADDITIONAL INFORMATION EXECUTIVE OFFICERS Set forth belowBelow is information concerning the age, positions, certain directorships, and offices held during the past five years byabout each CREF executive officer of CREF.officer. These executive officers are selected annually by the Board of Trustees. Messrs. Biggs and Leibowitz, who are trustees and whose positions with CREF are described above, are not listed again here. PRINCIPAL BUSINESS OCCUPATION NAME AGE DURING PAST FIVE YEARS RichardNote that in addition to the information listed below, all CREF executive vice presidents also serve in that same capacity for TIAA-CREF Mutual Funds, TIAA-CREFInstitutional Mutual Funds, and TIAA Separate Account VA-1 (VA-1), unless otherwise noted. RICHARD J. Adamski 56 ViceADAMSKI, 57, vice president and treasurer, CREF and TIAA, since March 1991. Mr. Adamski is also vice president and treasurer of TIAA-CREF Investment Management, LLC ("Investment Management")(Investment Management), TIAA-CREF Individual & Institutional Services, Inc. ("Services")(Services), Teachers Personal Investors Services, Inc. ("TPIS")(TPIS), Teachers Advisors, Inc. ("Advisors")(Advisors), TIAA-CREF Mutual Funds, TIAA-CREF Institutional Mutual Funds (Institutional Funds), TIAA-CREF Life Funds (Life Funds), and TIAA-CREF Life Insurance Company ("TIAA-CREF Life")(TIAA-CREF Life). Douglas A. Dial 62 Senior managing director-CREF Stock Account, CREF and TIAA, since May 1997; prior to May 1997, vice president, CREF and TIAA. Mr. Dial is also senior managing director and assistant secretary of Investment Management and Advisors and senior managing director of TIAA-CREF Mutual Funds. ScottSCOTT C. Evans 39 ExecutiveEVANS, 40, executive vice president, CREF and TIAA, since September 1997; from March 1997 to September 1997, managing director-CREFdirector--CREF Account, CREF and TIAA; from March 1994 to March 1997, second vice president, CREF and TIAA; prior to that, assistant vice president, CREF and TIAA. Mr. Evans is executive vice president of Investment Management, Advisors, and TIAA-CREF Mutualthe Life Funds. Mr. Evans is also a director of TIAA-CREF Life. 11 PRINCIPAL BUSINESS OCCUPATION NAME AGE DURING PAST FIVE YEARS Eric E. Fisher 59 Senior managing director-Quantitative Investments, CREF and TIAA, since May 1997; prior to that, vice president, CREF and TIAA. Mr. Fisher is also senior managing director of Investment Management, Advisors, and TIAA-CREF Mutual Funds. RichardRICHARD L. Gibbs 51 ExecutiveGIBBS, 52, executive vice president, CREF and TIAA, since March 1993; prior to March 1993, vice president, CREF and TIAA. Mr. Gibbs is also executive vice president of Investment Management, Services, Advisors, TPIS, and TIAA-CREF Mutualthe Life Funds, and a director executive vice president, and chief financial officer of TIAA-CREF Life. DonDON W. Harrell 60 ExecutiveHARRELL, 61, executive vice president, CREF and TIAA, since March 1992; previously, administrative assistant to U.S. Senator David Pryor. Mr. Harrell is a director of TIAA-CREF Life andLife. He is also executive vice president of TIAA-CREF Mutualthe Life Funds. MatinaMATINA S. Horner 59 ExecutiveHORNER, 60, executive vice president, CREF and TIAA, since December 1989; previously, president of Radcliffe College. Dr. Horner is chair of the board of trustees of 10 MGH Institute of Health Professions and Fund for the City of New York. Dr. HornerShe also serves as a director of TIAA-CREF Life, Boston Edison Company, the Greenwall Foundation, and The Neiman Marcus Group, and as a trustee of the Massachusetts General Hospital, the Twentieth Century Fund, and the Women's Research & Education Institute. Ms. HornerShe is also executive vice president of TIAA-CREF Mutualthe Life Funds. E. Laverne Jones 49 ViceLAVERNE JONES, 50, vice president and corporate secretary, CREF and TIAA, since August 1998; prior to that, senior counsel. Ms. JonesShe is also vice president and corporate secretary of TIAA-CREF Mutual Funds and Institutional Funds. 12 PRINCIPAL BUSINESS OCCUPATION NAME AGE DURING PAST FIVE YEARS JohnJOHN J. McCormack 54 ExecutiveMCCORMACK, 55, executive vice president and president, TIAA-CREF Enterprises, CREF and TIAA, since June 1998; prior to that, executive vice president, CREF and TIAA. Mr. McCormack is a director of TIAA-CREF Life, TPIS, and TIAA-CREF Trust Company, FSB, and a trustee of the Life Funds. He is on the boards of St. Bonaventure University and the Employee Benefit Research Institute. He is alsoJOHN A. PUTNEY, JR., 60, executive vice president of TIAA-CREF Mutual Funds. Michael T. O'Kane 53 Senior managing director-Securities, CREF and TIAA, since May 1996; prior to that, managing director, Investments, TIAA. Mr. O'Kane is also senior managing director of Investment Management, Advisors, and TIAA-CREF Mutual Funds and chief investment officer of TIAA-CREF Life. John A. Putney, Jr. 59 Executive vice president and president, Retirement Services, CREF and TIAA, since June 1998; prior to that, executive vice president, CREF and TIAA. Mr. Putney is a trustee of Services, and a director of TIAA-CREF Trust Company, FSB,Life, and TIAA-CREF Life. He is also executive vice president of TIAA-CREF Mutualthe Life Funds. DeanneDEANNE J. Shallcross 49 ExecutiveSHALLCROSS, 50, executive vice president, CREF and TIAA, since June 1998; prior to that, vice president, Marketing, CREF and TIAA. Ms. Shallcross is also executive vice president of TIAA-CREF Mutual Funds and vice presidentServices. She is on the board of Services. Davidthe Marketing Services Institute. DAVID A. Shunk 51 ExecutiveSHUNK, 52, executive vice president, CREF and TIAA, since June 1998; prior to that, vice president, Institutional & Individual Consulting Services, CREF and TIAA. Mr. Shunk is president of Services and executive vice presidenta director of TIAA-CREF Mutual Funds. JohnTrust Company, FSB. JOHN A. Somers 54 ExecutiveSOMERS, 55, executive vice president, CREF and TIAA, since April 1996; prior to that, senior vice president, Mortgage and Real Estate, CREF and TIAA. Mr. Somers is also executive vice president of TIAA-CREF MutualInstitutional Funds, the Life Funds, Investment Management, and Advisors and a director of TIAA-CREF Life. He is also on the boards of the Guardian Life Insurance Company of America, the Emigrant Savings Bank, and the Community Preservation Corporation. 13 PRINCIPAL BUSINESS OCCUPATION NAME AGE DURING PAST FIVE YEARS CharlesCHARLES H. Stamm 59 ExecutiveSTAMM, 60, executive vice president and general counsel, CREF and TIAA. Mr. Stamm also serves as a trustee of Investment Management and Services, as a director of TPIS, Advisors, TIAA-CREF Trust Company, FSB, and TIAA-CREF Life and as executive vice president and general counsel of TIAA-CREF Mutualthe Life Funds. ThomasTHOMAS G. Walsh 56 ExecutiveWALSH, 57, executive vice president, CREF and TIAA. Mr. Walsh is a director and president of TIAA-CREF Life, and TPIS, president of TIAA-CREF Mutual Funds, chairman and director of TPIS, chairman of the management committee of TIAA Separate Account VA-1. Mary Ann Werner 53 ExecutiveVA-1, and chairman of the board and president of the Life Funds. MARY ANN WERNER, 54, executive vice president, CREF and TIAA, since June 1998; prior to that, vice president, CREF and TIAA. She is also executive vice president of TIAA-CREF Mutual Funds and vice presidentServices. She is on the board of Services. Jamesthe Regional Plan Association. 11 JAMES A. Wolf 53 ExecutiveWOLF, 54, executive vice president, CREF and TIAA, since June 1998; prior to that, vice president, Corporate MIS, CREF and TIAA. He is also executive vice president of TIAA-CREF Mutual Funds. INVESTMENT ADVISORY AND DISTRIBUTION ARRANGEMENTS TIAA-CREF Investment Management, LLC ("Investment Management")(Investment Management) manages the assets in each CREF account. It is a nonprofit subsidiary of TIAA, and provides its services for the CREF accounts at cost. Investment Management is registered as an investment adviser under the Investment Advisers Act of 1940, although it is not considered an investment adviser under the Investment Company Act of 1940 because it provides its services at cost. CREF's certificates are distributed by TIAA-CREF Individual & Institutional Services, Inc. ("Services")(Services), another nonprofit subsidiary of TIAA. Services is registered as a broker-dealer and is a member of the National Association of Securities Dealers, Inc. The TIAA Board of Overseers, a New York membership corporation, owns all of the stock of TIAA. The address for Investment Management and Services is 730 Third Avenue, New York, New York 10017-3206. 14 IV. PARTICIPANT PROPOSALS PARTICIPANT PROPOSAL I BecauseThe first proposal asks that the first participant proposal concerns the Social ChoiceStock Account screens,and Global Equities Account divest from a particular company's stock. Therefore, only participants in the Social Choice Accountfrom those accounts can vote on it. A. Chris Abajian, 202 NW 43rd Street,Since the proposal would affect participants in these accounts differently, the votes will be tallied separately for each account. Ann Marchand, 7043 22nd Avenue N.W., Seattle WA 98107-4328,98117, owning 272.28877.176 accumulation units in the CREF Social ChoiceStock Account Allyson Carlyle, 6012 40th Ave. NE, Seattle, WA 98115, owning 127.566 accumulation unitsand 114.715 in the CREF Social ChoiceGlobal Equities Account, Mary Lou Finley, 327 29th Avenue E, Seattle, WA 98112, owning 84.938 accumulation units in the CREF Social Choice Account, Edward P. Flowers, 382 Mercy Street, Mountain View, CA 94041-2204, owning 14.434 annuity units in the CREF Social Choice Account, David S. Gordon, 4728 40th Avenue NE #3A, Seattle, WA 98105, owning 947.859 accumulation units in the CREF Social Choice Account, Bruce Hawkins, 61 Henshaw Avenue, Northampton, MA 01060, owning 7.096 annuity units in the CREF Social Choice Account, Steven L. Hulbert, 9 Woodcrest Drive, East Moriches, NY 11940-1420, owning 286.662 accumulation units in the CREF Social Choice Account, Lawrence C. Jones, 712 Woods Road, Vestal, NY 13850-3566, owning 2,189.674 accumulation units in the CREF Social Choice Account, Patrick Malone, 1702 Euclid Rd., Durham, NC 27713, owning 32.309 accumulation units in the CREF Social Choice Account, and Frank Zucker, 3808 Interlake Ave. No., Seattle, WA 98103, owning 138.675 accumulation units in the CREF Social Choice Account, havehas given notice that they intendshe intends to present the following resolution at the annual meeting: The TIAA-CREF Social Choice Account shall not invest in other mutual funds, in banks, inWhereas: Since 1967, PT Freeport Indonesia Company (PT-FI) an operating unit of Freeport McMoRan Copper and Gold, Inc. (FCX) has been operating on lands traditionally inhabited by indigenous people, especially the Amungme and Komoro; Whereas: PT-FI has discharged over 110,000 tons of tailings per day into local Irian Jaya rivers and has expanded its milling operations to exceed 190,000 cubic tons per day. In 1995, prior to a settlement with PT-FI, the Overseas Private Investment Corporation, a U.S. government agency which provided political risk insurance companies, or in other financial services, unless TIAA-CREF has determinedto this operation stated that the institution is followingmine "created and continue to pose unreasonable or major environmental, health, or safety hazards with respect to the screensrivers that are being impacted by the tailings, the surrounding terrestrial ecosystem and the local inhabitants"; Whereas: PT-FI has attempted to ameliorate the social and environmental damages by proposing the "one Percent Trust Fund Offer" and the establishment of an Amungme Foundation, but the Amungme Tribal Council (LEMASA), an organization representing one of the Social Choice Account when the institution invests its assets. PARTICIPANTS' SUPPORTING STATEMENT We areindigenous communities affected by PT-FI's operations in Irian Jaya, issued a large, diverse group of people intent on improving the quality of the TIAA-CREF Social Choice Account because we have our money in it. We are spread from the West Coast to the East Coastresolution "unconditionally and our ages range from 29 to 67. We urge you all to vote in favor of our resolution as being in our interests. This resolution was on the ballot last year and received 37% of the vote (a stunning success since most resolutions receive 1 or 2%). Last year there was a massive mailing mix-up in which many people initially received our statement but got ballots without our resolution on them, and then later got ballots but no statement. We believe the vote would have been even higher had this mix-up not occurred. When the Social Choice Account invests in a normal company and helps it raise money, the money is used for purchasing equipment, paying salaries, and expanding 15absolutely" rejecting these two proposals; 12 production. However, a financial institution is different. When the Social Choice Account helps a financial institution raise money, most of the money is reinvested by that financial institution. This money may be reinvested in tobacco companies, weapons companies, and other things prohibited by the TIAA-CREF Social Choice Account. Thus investing in financial institutions provides a loophole through the social screens of the TIAA-CREF Social Choice Fund. This is the reason why some other socially responsible mutual funds do not invest in financial institutions (and they still get a good return). Investing in financial institutions is no different than investing in other non-socially responsible mutual funds. This is not a new screen; it is closing a loophole in the existing screens. There are a few financial institutions that do adhere to the Social Choice Fund's screens (such as Chicago's South Shore Bank). But these are not the financial institutions the Social Choice Fund is invested in. This proposal is exceedingly easy and inexpensive to administer; if TIAA-CREF doesn't want to spend the time to investigate the investments of a bank, it can just not invest in that bank. Currently, the TIAA-CREF Social Choice Account invests approximately 15% of its assets in financial institutions. More alarmingly, the percentage the Social Choice Fund is putting into this sector has been growing.Whereas: It is importantunclear to stop this trend while the percentage is still smallshareholders how much environmental liability, cleanup responsibility, and the financial impactremediation costs may exist, and no existing audit contains information on the Social Choice Fund is minimal. It is our intentionany actual environmental liability; Therefore, Resolved that the Boardparticipants request that CREF take steps to divest the CREF Stock Account/CREF Global Equities Account of Trustees divest of financial institutions not instantly, but over a period of not more than 18 months in order to maximize return. Since we are invested in the Social Choice AccountFreeport McMoRan Copper and committed to improving it, we will continue this effort for the long term.Gold stock. OPPOSING STATEMENT OF THE BOARD OF TRUSTEES THE BOARD OF TRUSTEES RECOMMENDS A VOTE AGAINST THE PROPOSAL WHICH IS CONTRARY TO THE INTERESTS OF PARTICIPANTS, AND URGES ALL PARTICIPANTS IN THE ACCOUNT TO READ CAREFULLY THeTHE FOLLOWING STATEMENT BEFORE CASTING THEIR VOTE. The trustees, including those trustees who areVOTING. Management strongly believes that implementing proponent's resolution, which seeks to impose subjective social investment standards on the Stock and Global Equities investment programs, would be contrary to the best interests of our participants. Participants have the option of investing in the CREF Social Choice Account, investors themselves, are strongly opposed to proponents' resolution. Thewhose environmental screens currently exclude Freeport McMoRan stock. Implementing proponent's divestment proposal by extendingor similar proposals for other CREF accounts would deprive participants of investment options that give financial concerns the Account's social screens to companies whose activities may have only an indirect relationship to "non-socially responsible" activities, would put unreasonable and serious constraints on the Account if adopted. Indeed, the trustees question whether the Social Choice Account would still be viable given the severe limitations that would be imposed on the Account's investment program. The Social Choice Account's current social screens already preclude the Account from investing in companies that make up approximately 50% of the market value of the Standard & Poor's 500 index (S&P 500). The proposal presented here, in the pursuit of further social "perfection," would substantially limit the already limited universe of 16 companies in which the Account may invest. Indeed, to follow the logic of proponents' resolution, the Account should be required to examine the investments, such as pension plan investments, of all companies otherwise acceptable to the Account, not just those of financial institutions, assuminghighest priority. To provide individual choice, we could even get that information. Since it is likely that few companies invest their assets in accordance with the Social Choice Account's screens, the Account would be closed out of all but a limited number of companies. We could not operate the Social Choice Account successfully with such extensive constraints. If we were to simply eliminate all financial institutions fromestablished the Social Choice Account as proponents suggest,a viable investment alternative for participants wanting to make a sound financial investment but also to exclude categories of investments for nonfinancial reasons. This carefully designed account, which at almost $4 billion is now the Accountlargest socially responsible fund in the world, has proven to be an excellent option for those wanting social concerns to be considered along with financial ones. Indeed, were we to divest from a specific company because some participants object to that company's environmental or social record, there would lose muchbe no reason why a multitude of such types of requests could not be made. It would be difficult to fully consider those requests and run an effective investment program for participants who wish their investments to be based primarily upon financial analysis. An additional problem with the proposal is that it would require us to engage in a case-by-case debate on the facts, since often a situation is more complex than what is described in a proponent statement. For example, Freeport McMoRan's 1998 Annual Report's review of the diversitycompany's environmental and social programs clearly indicates that has contributedthere are two sides to its excellentevery issue. This underscores our concern that we cannot debate divestment issues each time a participant brings a complaint against a single portfolio company or industry. We choose instead to follow the sound investment results, raising the financial risks for participants. Financial institutions constitute approximately 16%standards of our professional money managers. Management continually monitors CREF's portfolios to ensure that they remain well invested consistent with their stated investment objectives. As part of the S&P 500 index,analysis of CREF's actively-managed investments, we evaluate the Account's equities benchmark.effect any potential environmental exposure or liability may have on a company's earnings and prospects. If the Account is precluded from investing in financial institutions, it could lose the flexibility to track its benchmark, especially given the already limited universe of stocks available to the Account. In 1997, financial stocks in the S&P 500 index posted total returns of 48.13%, far exceeding the returns of the index as a whole. While past performance does not guarantee future results, we do not believe that forgoing investments in this industry sector would serve the best interests of participants. Finally, proponents base their argument on the premise that the Account is helping financial institutions raise money -- money that may be reinvested in non-socially responsible companies. However, in reality, when the Account purchases the stock of a financial institution in the open market, that money does not provide that financial institution with investment funds, but rather goes to the third-party seller of the stock. The assertion, then,conclude that investing in a company, such as Freeport McMoRan, is not in our participants' best financial institutions is a loophole through which the Account can invest in non-socially responsible companies is incorrect.interests, we will take appropriate action. For all of these reasons, the board strongly recommends a vote against the proposal. 13 PARTICIPANT PROPOSAL II Because the second participant proposal concerns CREF's tobacco-related investments, participants in all CREF accounts, except the Social Choice Account, can vote on it. Since the proposal would affect participants in each of these accounts differently, the votes will be tallied separately for each account. Dr. Eugene Feingold, 352 Hilldale Drive, Ann Arbor, Michigan 48105, owning 9,561.135 accumulation units in the CREF Stock Account and 2,702.937 accumulation units in the Global Equities Account, Thomas F. Hogan, M.D., 429 Civitan St., Morgantown, WV 26505, owning 8,078.925 accumulation units in the CREF Money Market Account, Dr. Douglas C. Kelley, 910 Sunset Rd., Ann Arbor, MI 48103, owning 7.6717.691 annuity units in the CREF Stock Account, and C. Everett Koop, M.D., 5924 Maplewood Park Place, Bethesda, MD 20814, owning 23.775 annuity units in the CREF Stock Account, have given notice that they intend to present the following resolution at the annual meeting: 17 For both ethical and financial reasons, participants request CREF: 1) To announce that CREF will make no additional tobacco-related investments, and 2) To begin an orderly divestment of all tobacco investments. PARTICIPANTS' SUPPORTING STATEMENT (1) It is wholly inappropriate for educators to seek to enrich their own retirement by investing in tobacco products which when used as directed produce disease and premature death for more than a third of their longtime users, including our own students. TIAA-CREF publications assert that "The long-run interests inof TIAA-CREF participants are best served by investing in corporations that are both financially and socially responsible." Twenty-twoFifteen tobacco corporations (in which CREF currently invests about $2$1.3+ Billion) cannot possibly qualify as "socially responsible." EvenUnconscionable tobacco marketing schemes contributed to a 73% increase in nine years, in smoking by U.S. kids under age 18, according to the U.S. Senate Commerce Committee's conservative Chairman declares "It has been well established that the tobacco industry has been dishonestCenters for Disease Control and deceitful to Congress and the American people."Prevention. For TIAA-CREF to suggest it invests only in "socially responsible" corporations is blatantsheer hypocrisy. (2) The American Medical Association, American Public Health Association, and organizations battling cancer, heart and lung diseases all urge investors to divestdivestment of tobacco holdings. Colleges, universities and retirement systems are doing so, citing tobacco's uncertain future and its disastrous nature.shaky future. The NEW YORK TIMES no longer accepts tobacco advertising. Are newspaper executives more concerned than CREF administrators about saving student lives? Co-sponsors of this CREF tobacco divestment proposal include a former Surgeon General of the United States, a past president of the American Public Health Association, a practicing oncologist,cancer specialist, and an adult educator who organizedis Secretary of "Educators for Tobacco-Free Investments by TIAA-CREF.Investments." (3) Many tobacco-free investment funds are equally or more profitable than funds which include investments in deadly tobacco. But TIAA-CREF's Social Choice Fund is not an adequate answer.inadequate substitute for divestment. It involves only about 1% of TIAA-CREF's total investments. That leaves some $2investments, 14 leaving over $1.3 Billion of CREF participants'educators' funds sponsoring tobacco -- without any expressed approval by most participants, since thetobacco. The great majority of themparticipants do not respond to CREF's annual ballot mailing and may thus be unaware of their substantial investment in thefifteen tobacco industry. (4)corporations. TIAA-CREF's ability to make impartial decisions with respect to tobacco is impeded by the presence on CREF's board of trustees of a Philip Morris Director.director. It is said the Philip Morris Directordirector does not vote on CREF's tobacco-related decisions. But TIAA-CREF executives, staff members, and other trustees cannot avoid being influenced by their awareness that a Philip Morris Directordirector is Chair of CREF's Audit Committee, a senior member of CREF's Nominating and Personnel Committee, and -- ironically -- aand-ironically-a member of CREF's "Corporate Governance and Social Responsibility Committee." This statement is written on Memorial Day, 1999, on behalf of millions of young men and women throughout the world whose lives will be cut short by lung cancer or other diseases, as a result of their becoming addicted, this year, to tobacco products-products of which TIAA-CREF is an important financial sponsor. Supporting this tobacco divestment proposal is an important way to criticize the behavior of the tobacco industry and tocan help send a message to TIAA-CREF decision-makers that TIAA-CREF'stheir backing of 18 the industryTobacco Industry with educators' retirement dollars and with higher education's credibility is both financially risky and ethically unacceptable. OPPOSING STATEMENT OF THE BOARD OF TRUSTEES THE BOARD OF TRUSTEES RECOMMENDS A VOTE AGAINST THE PROPOSAL WHICH IS CONTRARY TO THE INTERESTS OF PARTICIPANTS, AND URGES ALL PARTICIPANTS TO READ CAREFULLY THE FOLLOWING STATEMENT BEFORE CASTING THEIR VOTE. The Board of Trustees believes that EACHeach participant should have the individual choice to decide whether or not to invest in an account that includes tobacco stocks. This decision should not be made by the Board of Trustees or even by a vote of other participants. Because of this conviction as to individual choice, CREF created the Social Choice Account in 1990. The Social Choice Account is a balanced account that does not invest in companies that produce or market tobacco products. Approximately 60 percent of the Account is invested in stocks and 40 percent in fixed-income investments, which we believe is a desirable balance for long-term retirement portfolios. The Account has had an excellent performance record and has proven extremely popular since its inception. Over 200,000Almost 300,000 participants currently invest in it and it has approximately $2.8$3.8 billion in assets, which is more than three times the size of the next largest socially screened fund. The proponents' assertion that the great majority of participants have not expressly approvedis unaware of the CREF accounts' investment in tobacco is misplaced. No specific investments by the CREF accounts are "approved" by individual participants. Investments in the CREF accounts are selected and approved by CREF professionals on the basis of financial objectives and this is the way it should be. As to disclosure, allWe believe CREF participants have been informedare well aware that the CREF accounts, other than Social Choice, may invest in tobacco stocks. Participantsstocks, particularly in light of proponents' efforts over the years. Moreover, participants who do not approve of the CREF accounts' tobacco investments have the choice to transfer to the Social Choice Account. In addition, the proponents question the ability of CREF management and trustees to make impartial decisions because of the presence of a Philip Morris director on the Board. This 15 criticism, which regrettably personalizes the issues, is also misplaced. Our management and trustees exercise independent professional judgment and issues of this nature are dealt with appropriately. We have adopted procedures that require any trustee to be recused during discussions relating to a matter where there is any potential for conflict. Finally, if we believewere to eliminate the stocks of the entire tobacco industry from each account, we increase the chances that investment performance will vary considerably from an account's benchmark index in any given year. Moreover, the past has shown that tobacco stocks continue to have excellent appreciation potential, despite thecan perform well even in times of uncertainty ofabout tobacco legislationlitigation and litigation. If CREF concludes at any time that tobacco investments are notlegislation. We believe it is in our participants' best financial interests we will take appropriate action.to maintain the diversification and potential investment opportunities that have contributed to CREF's strong investment results over the years. The trustees believe the proposal would eliminate an important personal choice that participants are now free to make. We urge a vote against it. 19PARTICIPANT PROPOSAL III All CREF participants can vote on the third participant proposal. Votes will not be tallied separately for each CREF account. C.C. Chu, 14 Laura Lane, Ithaca, NY 14850-9784, owning 1,239.383 accumulation units in the CREF Stock Account, 277.291 accumulation units in the CREF Global Equities Account, 2,906.206 accumulation units in the CREF Growth Account, and 18.662 accumulation units in the CREF Equity Index Account, has given notice that he intends to present the following resolution at the annual meeting: The existing "Equity Index" option of CREF tracks Russell 3000 index which measures the performance of the 3,000 largest US companies based on total market capitalization. I want to submit a proposal to request CREF to offer S&P 500 index option under CREF for the following reasons. 1). Focus vs. Diversification. All existing CREF options (Stock, Growth, Equity Index and Global Equity) have very high diversification among thousands of stocks in US and outside US. For example, Growth and Equity Index options use Russell 3000 index as their benchmark. There is no focus-oriented options like Standard & Poor 500 index with fewer than thousands of stocks. One of the arguments of using Russell 3,000 is that there are more choices of stocks (i.e., diversification) for investment than S&P 500 index. However, the use of 3,000 stock index would lead to over-diversification which could dilute the good performers by many poor performers. S&P 500 index provides the best balance between performance, diversification and risk. 2). Cost Benefits. Because the tracking and management of 500 stocks are far simpler and cheaper than dealing with 3,000 stocks. It would have cost benefits. 3). Most Popular Index. S&P 500 is the most popular index in pension and investment arena. This popularity is mainly due to its high performance that more than 80% of the actively managed fund managers can't beat. 16 OPPOSING STATEMENT OF THE BOARD OF TRUSTEES THE BOARD OF TRUSTEES RECOMMENDS A VOTE AGAINST THE PROPOSAL AND URGES ALL PARTICIPANTS TO READ CAREFULLY THE FOLLOWING STATEMENT BEFORE CASTING THEIR VOTE. We do not believe that adding an S&P 500 index account would best serve the interests of CREF participants at this time. When introducing the Equity Index Account, management chose the Russell 3000, rather than the S&P 500, because the former is more comprehensive and better represents the U.S. stock market as a whole. Unlike the S&P 500, which tracks only "large cap" equities, the Russell 3000 tracks the entire range of U.S. stocks, providing participants with a more diversified portfolio of equity investments. While it is true, as proponent asserts, that the good performance of some stocks in a well diversified portfolio could be "diluted" by the poor performance of many; conversely, it is also true that the good performance of many stocks mitigates the bad performance of some. Thus, the more diversified a portfolio the less sensitive its overall performance is to the performance (good or bad) of a handful of stocks. Undeniably, the recent performance of the S&P 500 has been stellar. But, contrary to proponent's assertion, this is not the result of the number of stocks in the index, but rather is because large capitalization stocks have outperformed small cap stocks in the last 15 years or so. This was not always the case. Indeed, up until this most recent period (going back as far as 1929), small cap stocks outperformed large cap stocks by such large margins that economists gave this stock market anomaly a name: the "small firm effect." In addition, contrary to proponent's assertion, tracking an index of 3,000 stocks does not result in material additional costs over and above tracking an index of 500 stocks. CREF's management believes that CREF's pension product menu provides a reasonable variety of investment choices. A proliferation of accounts with similar objectives would undermine our successful ongoing efforts to maintain our low cost leadership position and minimize potential investor confusion. In addition, adding any new account involves significant allocation of personnel and resources to handle investment management, administration, systems, consumer education, and marketing. Such large expenditures of human and financial capital can be justified only for quality investment products that best serve the long-term needs of our participants. For these reasons, the board recommends a vote against the proposal. PARTICIPANT PROPOSAL IV All CREF participants can vote on the fourth participant proposal. Votes will not be tallied separately for each CREF account. Walter Moore, 916 South Mitchell St., Bloomington, IN 47401, owning 50.433 annuity units in the CREF Stock Account, has given notice that he intends to present the following resolution at the annual meeting: The participants request that CREF establish and make available a Social Choice Equity Fund. 17 PARTICIPANT'S SUPPORTING STATEMENT The present Social Choice Fund invests in a mixture of stocks and bonds. This mixed fund does not meet the needs of a large number of CREF participants. They do not wish to invest in socially undesirable companies, but they require the performance characteristics of an equity fund. For example, they may already have their bond investments in TIAA and may not wish to increase their proportion in bonds. CREF could easily provide a Social Choice Equity Fund by simply using the stock component of the present Social Choice Fund without the bond component. Thus no extra research expense would be involved. It may be noted that the performance of the stock component of the Social Choice Fund has been as good as or better than that of the regular CREF Stock Fund. OPPOSING STATEMENT OF THE BOARD OF TRUSTEES THE BOARD OF TRUSTEES RECOMMENDS A VOTE AGAINST THE PROPOSAL AND URGES ALL PARTICIPANTS TO READ CAREFULLY THE FOLLOWING STATEMENT BEFORE CASTING THEIR VOTE. Management does not believe that creating an all-equity "social choice" account in addition to the current CREF Social Choice Account would best serve the interests of CREF participants at this time. The CREF Social Choice Account was designed to meet the objectives of participants who want to invest all of their retirement funds in accordance with social criteria. The account was structured as a balanced account, with a mix of stocks, bonds and money market instruments, to allow participants to invest all of their long-term retirement savings in a socially conscious manner and still be appropriately diversified. The Social Choice Account has been extremely well received by participants, who have made it the largest socially conscious fund of any kind. Assets are almost $4 billion. We do not believe it would be wise to create a new equity "social choice" account to compete with this successful CREF account. CREF's management believes that CREF's pension product menu provides a reasonable variety of investment choices. A proliferation of accounts with similar objectives would undermine our successful ongoing efforts to maintain our low cost leadership position and minimize potential investor confusion. In addition, adding any new account involves significant allocation of personnel and resources to handle investment management, administration, systems, consumer education, and marketing. Such large expenditures of human and financial capital can be justified only for quality investment products that best serve the long-term needs of our participants. For these reasons, the board recommends a vote against the proposal. 18 V. OTHER MATTERS MEANS OF SOLICITING PROXIES Typically, thisThis proxy solicitation will be conducted mainly by mail, telephone, and the Internet, but it may also be conducted by telephone, any other method of electronic communication, (e.g., the Internet), or by personal interview. AllCREF bears all expenses incurred in connectionconnected with this solicitation of proxiessoliciting proxies; the expenses are borne by CREF and included in the administrative expenses that are paid for out offrom the net assets of each account. PROPOSALS OF PERSONS WITH VOTING RIGHTS Proposals submitted by or on behalf of persons with voting rights for presentation at the 1999 annual meeting and inclusionparticipants to be included in the CREF proxy statement and proxymaterials for the Year 2000 annual meeting must be received by CREF no later than June 15, 1999.14, 2000. Unless CREF is notified by August 29, 199928, 2000 of any other matters that may be properly brought before the 19992000 annual meeting by or on behalf of persons with voting rights,participants, the persons named in the proxy will have the discretion to vote on suchthose matters as they see fit. ANNUAL REPORTS If you would like a copy ofto see the most recent CREF semi-annual and annual reports, pleaseyou can visit the TIAA-CREF Web site WWW.TIAA-CREF.ORG, or use our on-line request form to order print versions electronically. Or, you can call 1 800 842-2733, extension 5509 or write to CREF at 730 Third Avenue, New York, New York 10017-3206 or call 800 842-2733, extension 5509. You can also view the reports in the Library section of TIAA-CREF AT YOUR SERVICE on the Internet, or use our on-line request form to order print versions electronically. Our Web site address is WWW.TIAA-CREF.ORG. 20 [LOGO] Printed on recycled paper10017-3206. 19 [CREF LOGO] COLLEGE RETIREMENT EQUITIES FUND 19981999 PROXY SOLICITED BY THE BOARD OF TRUSTEES CONTROL NUMBER NOW YOU HAVE THE OPTION OF VOTING YOUR PROXIES BY MAIL, INTERNET, OR TELEPHONE-IT'STELEPHONE - IT'S EASY AND CONFIDENTIAL. Your internetInternet or telephone vote authorizes the proxies named on the back of your proxy card to cast your votes in the same manner as if you marked, signed, and returned youyour card. Internet and telephone voting is available 24 hours per day, 7 days per week. All votes cast by telephone, Internet, or proxy card must be received by noon (eastern time) on November 10, 1998.9, 1999. OUR RECORDS SHOW THAT YOU ARE ELIGIBLE TO VOTE ON THE FOLLOWING ITEMS. REGISTRATION NAME ADDRESS ADDRESS ADDRESSITEMS: IMPORTANT: CREF PROXY AND TIAA BALLOT HAVE DIFFERENT VOTER CONTROL NUMBERS
TO VOTE VIA THE INTERNET TO VOTE BY TELEPHONE 1) Visit the Internet voting site at HTTP://WWW.EPROXYVOTE.COM/TIAA-CREF 1) Dial 1 877 779-8683 on a touch-tone telephone. 2) Enter your 14-digit Voter Control Number, located above in the upper This is a toll-free call. right-hand corner of this form or at the top of the ballot below. 2) Enter your 14-digit Voter Control Number, located 3) Follow the instructions on the screen. above in the upper right-hand corner of this 4) Your vote will be confirmed at the end of the session. form or at the top of the ballot below. 3) Follow the recorded instructions. 4) Your vote will be confirmed at the end of the session. If you vote via the Internet or by telephone, please do NOT mail back your proxy card. IF YOU VOTE BY MAIL, PLEASE USE BLACK OR BLUE INK AND MARK AN X IN THE APPROPRIATE BOXES ON THE PROXY CARD BELOW. Detach here if voting by mail. Please sign and date your proxy card before returning it in the postage-paid envelope.
[CREF LOGO] YOU ARE ELIGIBLE TO VOTE VIA THE INTERNET 1) Visit the Internet voting site at HTTP://WWW.EQUISERVE.COM/PROXY/TIAA-CREF 2) Enter your 13-digit Control Number, located above in the upper right-hand corner of this form. 3) Follow the instructions on the screen. 4) Your vote will be confirmed at the end of the session. TO VOTE BY TELEPHONE 1) Dial 877 263-2733 on a touch-tone telephone. This is a toll-free call. 2) Enter your 13-digit Control Number, located above in the upper right-hand corner of this form. 3) Follow the recorded instructions. 4) Your vote will be confirmed after each selection. If you vote via the Internet or by telephone, please do NOT mail back your proxy card. - -------------------------------------------------------------------------------- [CREF LOGO] NAME SEQUENCE NO. - -------------------------------------------------------------------------------- THE BOARD OF TRUSTEES RECOMMENDS A VOTE FOR ITEMS 1 AND 2 WITHHOLD VOTE FOR FOR FROM ALL ALL EXCEPT 1. Election of trustees [ ] [ ] [ ] Nominees: ROBERT H. ATWELL, ELIZABETH E. BAILEY, STUART TSE KONG HO, AND DAVID K. STORRS TO WITHHOLD YOUR VOTE FROM ANY NOMINEE, MARK THE "VOTE FOR ALL EXCEPT" BOX ABOVE AND STRIKE A LINE THROUGH THE NOMINEE'S NAME. If you would like to suggest future nominees, please [ ] check the box at the right and write their names and affiliations on the back of this ballot FOR AGAINST ABSTAIN [ ] [ ] [ ] 2. Approval of Ernst & Young LLP as auditors. ================================================================================ THE BOARD OF TRUSTEES RECOMMENDS A VOTE AGAINST ITEMS 3 AND 4 FOR AGAINST ABSTAIN 3. Participant proposal 1 regarding the CREF [ ] [ ] [ ] Social Choice Account screens. (THIS PROPOSAL APPLIES ONLY TO THE CREF SOCIAL CHOICE ACCOUNT.) 4. Participant proposal II regarding tobacco-related investments in the CREF accounts. (THIS PROPOSAL DOES NOT APPLY TO THE CREF SOCIAL CHOICE ACCOUNT.) FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN A) Growth [ ] [ ] [ ] E) Money Market [ ] [ ] [ ] B) Global Equities [ ] [ ] [ ] F) Bond Market [ ] [ ] [ ] C) Equity Index [ ] [ ] [ ] G) Inflation- [ ] [ ] [ ] Linked D) Stock [ ] [ ] [ ] Bond ================================================================================ When signing as attorney, executor, administrator, trustee, guardian, or corporate officer, please indicate your full name and title. Signature_______________ Date _____ - --------------------------------------------------------------------------------FOR:
- ------------------------------------------------------------------------------------------------------------------------------------ THE BOARD OF TRUSTEES RECOMMENDS A VOTE THE BOARD OF TRUSTEES RECOMMENDS A VOTE FOR ITEMS 1 AND 2. AGAINST THE FOLLOWING ITEMS. - ----------------------------------------------------------------------------------------------------------------------------------- Withhold Vote for 3. Participant proposal I (relating to Freeport For from all all except McMoran Copper and Gold, Inc. stock) 1. Election of Trustees [ ] [ ] [ ] For Against Abstain For Against Abstain Nominees: A) Stock [ ] [ ] [ ] B) Global Equities [ ] [ ] [ ] NANCY L. JACOB (01), MARTIN L. LEIBOWITZ (02), 4. Participant proposal II (relating to CREF's tobacco-related investments) BEVIS LONGSTRETH (03), AND EUGENE C. SIT (04) (ALL ACCOUNTS EXCEPT THE SOCIAL CHOICE ACCOUNT) TO WITHHOLD YOUR VOTE FROM ANY NOMINEE, MARK THE For Against Abstain For Against Abstain "VOTE FOR ALL EXCEPT" BOX ABOVE AND STRIKE A LINE A) Growth [ ] [ ] [ ] E) Money Market [ ] [ ] [ ] THROUGH THE NOMINEE'S NAME. B) Global [ ] [ ] [ ] F) Bond Market [ ] [ ] [ ] Equities If you would like to suggest future nominees, please [ ] C) Equity [ ] [ ] [ ] G) Inflation-Linked [ ] [ ] [ ] check the box at the right and write their names Index Bond and affiliations on the back of this ballot. D) Stock [ ] [ ] [ ] For Against Abstain 2. Approval of Ernst & Young LLP [ ] [ ] [ ] as auditors. For Against Abstain - --------------------------------------------------------- 5. Participant proposal III (relating to an S&P 500 [ ] [ ] [ ] When signing as attorney, executor administrator, index account) trustee, guardian, or corporate officer, please indicate your full name and title. For Against Abstain 6. Participant proposal IV (relating to a social [ ] [ ] [ ] SIGNATURE__________________________________DATE_________ choice equity account) - ------------------------------------------------------------------------------------------------------------------------------------
COLLEGE RETIREMENT EQUITIES FUND By signing this form, I authorize Edes P. Gilbert, Nancy L. Jacob,Joyce A. Fecske, Maceo K. Sloan, and Bevis Longstreth,David K. Storrs, singly or together, with power of substitution in each, to represent me and cast my vote at CREF's annual meeting, and any adjournment or postponement thereof. They will vote as I instruct. IF NO DIRECTIONS ARE GIVEN, OR IF THE INSTRUCTIONS ARE CONTRADICTORY, THE PROXIES WILLWIll VOTE (i)(I) FOR THE ELECTION OF ALL LISTED NOMINEES; (ii)(II) IN ACCORDANCE WITH THE TRUSTEE'STRUSTEES' RECOMMENDATIONS ON THE OTHER SUBJECTS LISTED ON THIS CARD;CARD: AND (iii)(III) AT THEIR DISCRETION ON ANY OTHER MATTERS THAT MAY PROPERLY COME BEFORE THE ANNUAL MEETING OR IF A NOMINEE IS NOT AVAILABLE FOR ELECTION. The CREF annual meeting will be held on November 10, 1998,9, 1999, at 10:00 a.m. at CREF's home office, 730 Third Avenue, New York, New York. Unless you have voted by Internet or telephone, please sign and date this ballot on the reverse side and return it in the enclosed postage-paid envelope to Boston EquiServe, P.O. Box 9393, Boston, MA 02205-9972. Boston EquiServe has been engaged to tabulate ballots returned by mail to preseve the confidentiality of your ballot SUGGESTIONS FOR FUTURE CREF NOMINEES Name: _____________________________________________________________________________________________________________________________________________________ Institution: _______________________________________________________________________________________________________________________________________ Name: _____________________________________________________________________________________________________________________________________________________ Institution: _______________________________________________________________________________________________________________________________________ Name: _____________________________________________________________________________________________________________________________________________________ Institution: _______________________________________________________________________________________________________________________________________ TIAA AND CREF INTERNETVOTE WELCOME! BY NET NAME LINE ADDRESS LINE CITY, STATE ZIP LINE Proceed VOTE BY NET IF YOU HAVE MORE THAN ONE BALLOT SERVICES TIAA and CREF use Boston EquiServe's Web-based tabulation system to allow you to securely voteYOU MUST VOTE THEM SEPARATELY. EACH BALLOT HAS A UNIQUE VOTER CONTROL NUMBER. [1] Enter the Voter Control Number that appears in the upper right hand corner of your ballots overproxy card. ----------------------- [2] Enter the Web. BOSTON EQUISERVE KEEPS ALL RESPONSES INlast 4 digits of your U.S. Taxpayer Identification (Social Security) Number for this account. ------------- IMPORTANT: FOR YOUR VOTE TO BE CAST, THE STRICTEST CONFIDENCE. [GRAPIC OMITTED] [TIAA LOGO] [CREF LOGO] To cast your TIAA ballot using Boston To vote your CREF proxy using Boston EquiServe's secure Internet services, EquiServe's secure Internet services, have your ballot ready and click on the have your ballot ready and click on button below. the button below. ____________ ____________ TIAA BALLOT CREF Ballot ____________ ____________ ================================================================================ Copyright DIRECT REPORT CORPORATION. All Rights Reserves. Internet services provided by Shareholder Direct ------------------ [BOSTON EQUISERVE LOGO] INTERNET BALLOT SERVICES - -------------------------------------------------------------------------------- PLEASE ENTER THE 13 DIGITVOTER CONTROL NUMBER LOCATED INAND THE UPPER RIGHT-HAND CORNERLAST FOUR DIGITS OF YOUR BALLOT INSTRUCTIONS AND CLICKTHE U.S. TAXPAYER IDENTIFICATION (SOCIAL SECURITY) NUMBER FOR THIS ACCOUNT MUST MATCH THE NUMBERS ON "SUBMIT." ---------------- CONTROL NUMBER: ---------------- __________ SUBMIT __________ COPYRIGHT C 1998 BY BOSTON EQUISERVE, L.P. AND DIRECT REPORT CORPORATION. ALL RIGHTS RESERVED. INTERNET SERVICES PROVIDED BY SHAREHOLDER DIRECTOUR RECORDS. ------------------------------------------------------------- [3] Enter your e-mail address to receive an e-mail confirmation of your vote. -------------------------- Enter your e-mail address again for validation. ------------------------------------ Proceed [BOSTON EQUISERVE LOGO] [CREF LOGO] INTERNET BALLOT SERVICES - --------------------------------------------------------------------------------CREF COLLEGE RETIREMENT EQUITIES FUND 19981999 PROXY SOLICITED BY THE BOARD OF TRUSTEES You may now mark your CREF ballot. If you would like to review the CREF proxy statement, CLICK HERE. ---------- - -------------------------------------------------------------------------------- INSTRUCTIONS PLEASE NOTE: Based on your account holdings, YOU MAY NOT BE ELIGIBLE TO VOTE ON ALL PROPOSALS. Those proposals on which you are not eligible to vote will have a gray background. Please click on the button below to cast your ballot. _________ BEGIN _________ COPYRIGHT C 1998 BY BOSTON EQUISERVE, L.P. AND DIRECT REPORT CORPORATION. ALL RIGHTS RESERVED. INTERNET SERVICES PROVIDED BY SHAREHOLDER DIRECT [BOSTON EQUISERVE LOGO] [CREF LOGO] INTERNET BALLOT SERVICES - ------------------------------------------------------------------------------ Please vote on proposals 1 through 4 below by clicking on the box that indicates how you would like your votes cast for each proposal. When you have finished, click on the "Submit" button at the bottom of the page. THE BOARD OF TRUSTEES RECOMMENDS A VOTE FOR ITEMS 1 AND 2. - -------------------------------------------------------------------------------- 1. ELECTION OF TRUSTEES NOMINEES: Robert H. Atwell Elizabeth E. Bailey Stuart Tse Kong Ho David K. Storrs o Vote for All Nominees o Withhold from All Nominees o Vote for All Except: Check the box next to the name of any nominee from whom you would like to WITHHOLD your vote. [ ] Robert H. Atwell [ ] Elizabeth E. Bailey [ ] Stuart Tse Kong Ho [ ] David K. Storrs - -------------------------------------------------------------------------------- 2. APPROVAL OF ERNST & YOUNG LLP AS AUDITORS. ------------------------- FOR | AGAINST | ABSTAIN ------------------------- o | o | o ------------------------- THE BOARD OF TRUSTEES RECOMMENDS A VOTE AGAINST ITEMS 3 AND 4 - -------------------------------------------------------------------------------- 3. PARTICIPANT PROPOSAL I REGARDING THE CREF SOCIAL CHOICE ACCOUNT SCREENS. (THIS PROPOSAL APPLIES ONLY TO THE CREF SOCIAL CHOICE ACCOUNT.) ------------------------- FOR | AGAINST | ABSTAIN ------------------------- o | o | o ------------------------- - -------------------------------------------------------------------------------- 4. PARTICIPANT PROPOSAL II REGARDING TOBACCO-RELATED INVESTMENTS IN THE CREF ACCOUNTS. (THIS PROPOSAL DOES NOT APPLY TO THE CREF SOCIAL CHOICE ACCOUNT.) ------------------------------------------------ | FOR | AGAINST | ABSTAIN ------------------------------------------------ A) Growth | o | o | o ------------------------------------------------ B) Global Equities | o | o | o ------------------------------------------------ C) Equity Index | o | o | o ----------------------------------------------------- D) STOCK | o | o | o ----------------------------------------------------- E) Money Market | o | o | o ----------------------------------------------------- F) Bond Market | o | o | o ----------------------------------------------------- G) Inflation-Linked Bond | o | o | o ----------------------------------------------------- By submitting this ballot, I authorize Edes P. Gilbert, Nancy L. Jacob,Joyce A. Fecske, Maceo K. Sloan, and Bevis Longstreth,David K. Storrs, singly or together, with power of substitution in each, to represent me and cast my vote at CREF's annual meeting,meeting. and any adjournment or postponement thereof. They will vote as I instruct. IF NO DIRECTIONS ARE GIVEN, OR IF THE INSTRUCTIONS ARE CONTRADICTORY, THE PROXIES WILL VOTE (I) FOR THE ELECTION OF ALL LISTED NOMINEES; (II) IN ACCORDANCE WITH THE TRUSTEES' RECOMMENDATIONS ON THE OTHER SUBJECTS LISTED ON THIS CARD; AND (III) AT THEIR DISCRETION ON ANY OTHER MATTERS THAT MAY PROPERLY COME BEFORE THE ANNUAL MEETING OR IF A NOMINEE IS NOT AVAILABLE FOR ELECTION. The proxies will vote at their discretion on any new matters that may properly come before theCREF annual meeting or ifwill be held on November 9, 1999, at 10:00 am. at CREF's home office, 730 Third Avenue, New York, New York. The Board of Trustees recommends a nominee is not availablevote "FOR" all Nominees for election. ___________ _______________ SUBMIT REVISE BALLOT ___________ _______________ COPYRIGHT C 1998 BY BOSTON EQUISERVE, L.P. AND DIRECT REPORT CORPORATION.Trustee and "FOR" Approval of the Independent Auditors. The Board of Trustees recommends a vote "AGAINST" Participant Proposals I, II, III and IV. - -------------------------------------------------------------------------------- CHECK THIS BOX TO CAST YOUR VOTE IN ACCORDANCE WITH ALL RIGHTS RESERVED. INTERNET SERVICES PROVIDED BY SHAREHOLDER DIRECTTHE BOARD OF TRUSTEES' ___ RECOMMENDATIONS | FOR All Nominees Withhold (Unless Noted As To All Below) Nominees __ __ l. Election of Trustees. | | Nominees: Nancy L. Jacob, Martin L. Leibowitz, Bevis Longstreth, Eugene C. Sit Check the box for the Nominee(s) from whom you wish to WITHHOLD your vote: ___ ___ | Nancy L. Jacob | Martin L. Leibowitz ___ ___ | Bevis Longstreth | Eugene C. Sit [BOSTON EQUISERVE LOGO] [CREF LOGO] INTERNET BALLOT SERVICES - ------------------------------------------------------------------------------ PROXY CONFIRMATION PLEASE REVIEW YOUR VOTING INSTRUCTIONS INDICATED BELOW. You can either
For Against Abstain ___ ___ ___ 2. Approval of Ernst & Young LLP as auditors. | | | 3. Participant Proposal I (relating to Freeport McMoRan Copper and Gold, Inc. stock) For Against Abstain ___ ___ ___ A) Stock | | | For Against Abstain ___ ___ ___ B) Global Equities | | | 4. Participant Proposal II (relating to CREF's tobacco-related investments) (All accounts except the Social Choice Account) For Against Abstain ___ ___ ___ A) Growth | | | For Against Abstain ___ ___ ___ B) Global Equities | | | For Against Abstain ___ ___ ___ C) Equity Index | | | For Against Abstain ___ ___ ___ D) Stock | | | For Against Abstain ___ ___ ___ E) Money Market | | | For Against Abstain ___ ___ ___ F) Bond Market | | | For Against Abstain ___ ___ ___ G) Inflation-Linked Bond | | | For Against Abstain ___ ___ ___ 5. Participant Proposal III (relating to an S&P 500 index account) | | | For Against Abstain ___ ___ ___ 6. Participant Proposal IV (relating to a social choice equity account) | | | - -----------------------------------------------------------------------------------------------------------
To submit your instructions or revise what you have entered. PROPOSALvote please click the button below. (YOUR VOTE WILL NOT BE COUNTED UNTIL THE SUBMIT YOUR VOTE BUTTON IS CLICKED.) SUBMIT YOUR VOTE CEEF VOTE BY NET Please review your vote. If this is incorrect, please use the Back button on your browser, change your vote and resubmit. Your proxy vote has been recorded as follows: ================================================================================ 1. Election of trustees Vote all Nominees ____________________________________________________________ PROPOSALTrustees. ================================================================================ 2. Approval of Ernst & Young LLP as auditors. ____________________________________________________________ PROPOSAL================================================================================ 3. Participant proposalProposal I regarding the CREF Social Choice Account screens. (THIS PROPOSAL APPLIES ONLY TO THE CREF SOCIAL CHOICE ACCOUNT.) ____________________________________________________________ PROPOSAL 4. Participant proposal II regarding tobacco-related investments in the CREF accounts. (THIS PROPOSAL DOES NOT APPLY TO THE CREF SOCIAL CHOICE ACCOUNT.)(relating to Freeport McMoRan Copper and Gold, Inc. stock) A) GrowthStock ================================================================================ B) Global Equities ================================================================================ 4. Participant Proposal II (relating to CREF's tobacco-related investments) (All accounts except the Social Choice Account) A) Growth ================================================================================ B) Global Equities ================================================================================ C) Equity Index ================================================================================ D) Stock ================================================================================ E) Money Market ================================================================================ F) Bond Market ================================================================================ G) Inflation-Linked Bond _____________________________________________________________ ___________ ___________ SUBMIT REVISE ___________ ___________ COPYRIGHT C 1998================================================================================ 5. Participant Proposal III (relating to an S&P 500 index account) ================================================================================ 6. Participant Proposal IV (relating to a social choice equity account) ================================================================================ If this is correct, please click the Proceed button. PROCEED CREF VOTE Success! Your vote has been cast and will be tabulated by the BY BOSTON EQUISERVE, L.P. AND DIRECT REPORT CORPORATION. ALL RIGHTS RESERVED. INTERNET SERVICES PROVIDEDNET Equiserve within 24 hours. If you would like to suggest future nominees, please click the proceed button below. PROCEED You can now vote another ballot. ------ TIAA-CREF homepage ------------------ CREF VOTE Please enter your future nominee suggestions in the box below BY SHAREHOLDER DIRECT [BOSTON EQUISERVE LOGO] [CREF LOGO] INTERNET BALLOT SERVICES - ------------------------------------------------------------------------------ THANK YOU FOR YOUR PARTICIPATION. Please fill in any ofNET and then press the following that apply: 1. Please change my address: My new address is: ---------------------------------------Submit button. _____________________________ Your Name*: | _____________________________ E-mail address*: | _____________________________ Daytime Phone*: | _____________________________ Subject: | Future Nominees Suggestions: ----------------------------------------------- | | | | | | | | | | | | ---------------------------------------* These fields are optional. SUBMIT CREF - 1999 TELEPHONE VOTING SCRIPT All system directions are stated in {BOLD ITALIC}. 1. Welcome to the electronic voting system. Please have your proxy card available before voting. 2. SuggestionsEnter the Voter Control Number as it appears on the proxy card, followed by the pound sign. 3. One moment please while we verify your information. 4. Enter the last four digits of the U.S. taxpayer identification number for futurethis account, followed by the pound sign. 5. You are voting your 1999 CREF nominees (Please include affiliation): --------------------------------------- | | | | | | | | | | | | --------------------------------------- 3. If you would likeProxy solicited by its Board of Trustees. {pronounce CREF phonetically} 6. Only participants in certain accounts are eligible to receive an e-mail confirmationvote on certain issues. Please check your proxy card to confirm your voting eligibility. Your telephone vote is subject to the same terms and authorizations as indicated on the printed proxy card. 7. To vote ALL proposals in accordance with the recommendations of your vote, please check the box that follows and enter your e-mail address below: [ ] IF YOU ENTERED NOMINEE SUGGESTIONS AND/OR CHECKED "YES" TO QUESTION 3, PLEASE ENTER YOUR E-MAIL ADDRESS. My e-mail address is: ---------------------------- | | | | ---------------------------- _____________ SUBMIT _____________ COPYRIGHT C 1998 BY BOSTON EQUISERVE, L.P. AND DIRECT REPORT CORPORATION. ALL RIGHTS RESERVED. INTERNET SERVICES PROVIDED BY SHAREHOLDER DIRECT [BOSTON EQUISERVE LOGO] [CREF LOGO] INTERNET BALLOT SERVICES - ------------------------------------------------------------------------------ Thank you for your participation.Board of Trustees press 1. If you wish to vote on each proposal one at a time, press 2. {IF 1, GO TO 36} {IF 2, GO TO 8} 8. You will now vote for the Trustee Nominees. The Board of Trustees recommends a vote FOR each of the nominees listed on your ballot. 9. ITEM # 1 To vote FOR ALL nominees press 1. To WITHHOLD FROM ALL nominees press 2. To WITHHOLD FROM INDIVIDUAL nominees press 3. {IF 1, GO TO 10} {IF 2, GO TO 10} {IF 3, GO TO NOMINEE EXCEPTION WITHHOLDING} {NOMINEE EXCEPTION WITHHOLDING:} For each nominee from whom you wish to withhold your vote enter the 2-digit number after the nominee names listed on the proxy. Press the pound sign if you have completed your withholding. {IF #, GO TO 10.} {IF VALID NOMINEE NUMBER, GO TO NEXT NOMINEE.} {NEXT NOMINEE, DID NOT PRESS #:} To withhold your vote from another nominee enter the 2-digit number next to the name listed on the proxy card, or if you have completed your withholding, press the pound sign. {IF #, GO TO 10.} {IF VALID NOMINEE NUMBER, GO TO NEXT NOMINEE.} 10. You will now vote on the approval of Ernst & Young LLP as auditors. The Board of Trustees recommends a vote FOR this proposal. 11. ITEM # 2. To vote FOR, press 1; AGAINST, press 2; ABSTAIN press 3. {IF 1, GO TO THE NEXT ITEM.} {IF 2, GO TO THE NEXT ITEM.} {IF 3, GO TO THE NEXT ITEM.} 12. Only participants in the CREF Stock Account and CREF Global Equities Account are eligible to vote on Participant Proposal 1. The Board of Trustees recommends a vote AGAINST this proposal. 13. Participant Proposal 1 relating to Freeport McMoRan Copper and Gold stock. 14. ITEM # 3. This vote applies to your CREF Stock Account holdings, #3a on the ballot. To vote FOR, press 1; AGAINST, press 2; ABSTAIN press 3. {IF 1, GO TO THE NEXT ITEM.} {IF 2, GO TO THE NEXT ITEM.} {IF 3, GO TO THE NEXT ITEM.} 15. Participant Proposal 1 relating to Freeport McMoRan Cooper and Gold stock). 16. ITEM # 4. This vote applies to your CREF Global Equities Account holdings, #3b on the ballot. To vote FOR, press 1; AGAINST, press 2; ABSTAIN press 3. {IF 1, GO TO THE NEXT ITEM.} {IF 2, GO TO THE NEXT ITEM.} {IF 3, GO TO THE NEXT ITEM.} 17. Participants in all accounts except the CREF Social Choice Account are eligible to vote on Participant Proposal 2. The Board of Trustees recommends a vote AGAINST this proposal. 18. Participant Proposal 2 relating to CREF's tobacco-related investments. 19. ITEM # 5. This vote applies to your CREF Growth Account holdings, #4a on the ballot. To vote FOR, press 1; AGAINST, press 2; ABSTAIN press 3. {IF 1, GO TO THE NEXT ITEM.} {IF 2, GO TO THE NEXT ITEM.} {IF 3, GO TO THE NEXT ITEM.} 20. Participant Proposal 2 relating to CREF's tobacco-related investments. 21. ITEM # 6. This vote applies to your CREF Global Equities Account holdings, #4b on the ballot. To vote FOR, press 1; AGAINST, press 2; ABSTAIN press 3. {IF 1, GO TO THE NEXT ITEM.} {IF 2, GO TO THE NEXT ITEM.} {IF 3, GO TO THE NEXT ITEM.} 22. Participant Proposal 2 relating to CREF's tobacco-related investments. 23. ITEM # 7. This vote applies to your CREF Equity Index Account holdings, #4c on the ballot. To vote FOR, press 1; AGAINST, press 2; ABSTAIN press 3. {IF 1, GO TO THE NEXT ITEM.} {IF 2, GO TO THE NEXT ITEM.} {IF 3, GO TO THE NEXT ITEM.} 24. Participant Proposal 2 relating to CREF's tobacco-related investments. 25. ITEM # 8. This vote applies to your CREF Stock Account holdings, #4d on the ballot. To vote FOR, press 1; AGAINST, press 2; ABSTAIN press 3. {IF 1, GO TO THE NEXT ITEM.} {IF 2, GO TO THE NEXT ITEM.} {IF 3, GO TO THE NEXT ITEM.} 26. Participant Proposal 2 relating to CREF's tobacco-related investments. 27. ITEM # 9. This vote applies to your CREF Money Market Account holdings, #4e on the ballot. To vote FOR, press 1; AGAINST, press 2; ABSTAIN press 3. {IF 1, GO TO THE NEXT ITEM.} {IF 2, GO TO THE NEXT ITEM.} {IF 3, GO TO THE NEXT ITEM.} 28. Participant Proposal 2 relating to CREF's tobacco-related investments. 29. ITEM # 10. This vote applies to your CREF Bond Market Account holdings, #4f on the ballot. To vote FOR, press 1; AGAINST, press 2; ABSTAIN press 3. {IF 1, GO TO THE NEXT ITEM.} {IF 2, GO TO THE NEXT ITEM.} {IF 3, GO TO THE NEXT ITEM.} 30. Participant Proposal 2 relating to CREF's tobacco-related investments. 31. ITEM # 11. This vote applies to your CREF Inflation-Linked Bond Account holdings, #4g on the ballot. To vote FOR, press 1; AGAINST, press 2; ABSTAIN press 3. {IF 1, GO TO THE NEXT ITEM.} {IF 2, GO TO THE NEXT ITEM.} {IF 3, GO TO THE NEXT ITEM.} 32. Participant Proposal 3 relating to an S&P 500 index account. The Board of Trustees recommends a vote AGAINST this proposal. 33. ITEM # 12. To vote FOR, press 1; AGAINST, press 2; ABSTAIN press 3. {IF 1, GO TO THE NEXT ITEM.} {IF 2, GO TO THE NEXT ITEM.} {IF 3, GO TO THE NEXT ITEM.} 34. Participant Proposal 4 relating to a social choice equity account. The Board of Trustees recommends a vote AGAINST this proposal. 35. ITEM # 13. To vote FOR, press 1; AGAINST, press 2; ABSTAIN press 3. {IF 1, GO TO THE NEXT ITEM.} {IF 2, GO TO THE NEXT ITEM.} {IF 3, GO TO THE NEXT ITEM.} 36. You have cast a TIAA ballotyour vote as follows: 37. To confirm your vote, press 1. To cancel your vote, press 2. 38. Your vote has been successfully recorded. It is not necessary for you to mail in your proxy card. If you wish to vote another proxy card or change your CREF vote please click "Vote Again." For each proxy submitted, our system will automatically count only your last vote. AN E-MAIL CONFIRMATION OF YOUR PREFERENCE HAS BEEN SENT _____________ VOTE AGAIN _____________ COPYRIGHT C 1998 BY BOSTON EQUISERVE, L.P. AND DIRECT REPORT CORPORATION. ALL RIGHTS RESERVED. INTERNET SERVICES PROVIDED BY SHAREHOLDER DIRECT CREF PROXY TELEPHONE SCRIPT TOPIC CODE: 1030 DESCRIPTION: CONTROL NUMBER ENTRY VOICE ARTIST: MALE MESSAGE: WELCOME TO THE BOSTON EQUISERVE AND SHAREHOLDER DIRECT TELEPHONE BALLOTING SYSTEM. PLEASE BE ASSURED THAT YOUR TELEPHONE-BASED RESPONSE IS STRICTLY CONFIDENTIAL. (PAUSE) PLEASE USE YOUR TOUCH TONE TELEPHONE KEY PAD TO ENTER YOUR THIRTEEN-DIGIT CONTROL NUMBER; LOCATED IN THE UPPER RIGHT-HAND PORTION OF YOUR BALLOT CARD. TOPIC CODE: 1032 DESCRIPTION: VOTING HAS NOT BEGUN VOICE ARTIST: FEMALE MESSAGE: BALLOTING HAS NOT YET BEGUN. PLEASE CHECK YOUR DATES. TOPIC CODE: 1033 DESCRIPTION: VOTING HAS ENDED VOICE ARTIST: FEMALE MESSAGE: BALLOTING HAS ENDED. TOPIC CODE: 1034 DESCRIPTION: VERIFICATION OF CONTROL NUMBER VOICE ARTIST: FEMALE MESSAGE: PLEASE WAIT WHILE WE VERIFY YOUR CONTROL NUMBER TOPIC CODE: 1025 DESCRIPTION: INVALID SELECTION VOICE ARTIST: FEMALE MESSAGE: YOU HAVE ENTERED AN INVALID SELECTION. PLEASE TRY AGAIN. TOPIC CODE: 1020 DESCRIPTION: YOU HAVE SELECTED... VOICE ARTIST: MALE MESSAGE: YOU HAVE SELECTED... TOPIC CODE: 9999 DESCRIPTION: CREF VOICE ARTIST: Female MESSAGE: CREF...1998 PROXY SOLICITED BY THE BOARD OF TRUSTEES [pronounce CREF phonetically] TOPIC CODE: 9997 DESCRIPTION: Company Intro Message... VOICE ARTIST: Female MESSAGE: BASED ON YOUR CREF ACCOUNT HOLDINGS, YOU MAY NOT BE ELIGIBLE TO VOTE ALL PROPOSALS. PLEASE CHECK YOUR BALLOT TO CONFIRM YOUR VOTING ELIGIBILITY. TOPIC CODE: 3001 DESCRIPTION: Trustee Election (Withhold Selectively) VOICE ARTIST: Male MESSAGE: YOU WILL NOW VOTE FOR THE TRUSTEES: THE BOARD OF TRUSTEES RECOMMEND A VOTE FOR EACH OF THE NOMINEES LISTED ON YOUR BALLOT. TO ACCEPT ALL OF THE NOMINEES, PRESS 1. TO WITHHOLD YOUR VOTE FROM ALL OF THESE NOMINEES, PRESS 2. TO VOTE FOR EACH NOMINEE SEPARATELY, PRESS 3. TOPIC CODE: 3010 DESCRIPTION: Confirm Vote - Accept All VOICE ARTIST: Female MESSAGE: YOU HAVE CHOSEN TO ELECT ALL OF THE NOMINEES. TOPIC CODE: 3020 DESCRIPTION: Confirm Vote - Withhold All VOICE ARTIST: Female MESSAGE: YOU HAVE CHOSEN TO WITHHOLD YOUR VOTE FROM ALL OF THE NOMINEES. TOPIC CODE: 3030 DESCRIPTION: Confirm Vote - Withhold Selectively VOICE ARTIST: Female MESSAGE: YOU HAVE CHOSEN TO VOTE ON A PER NOMINEE BASIS. TOPIC CODE: 3160 DESCRIPTION: Please Consider... VOICE ARTIST: Female MESSAGE: PLEASE CONSIDER NOMINEE... TOPIC CODE: 3101 DESCRIPTION: Board of Trustees Nominee #1 VOICE ARTIST: Female MESSAGE: ROBERT H. ATWELL TOPIC CODE: 3102 DESCRIPTION: Board of Trustees Nominee #2 VOICE ARTIST: Female MESSAGE: ELIZABETH E. BAILEY TOPIC CODE: 3103 DESCRIPTION: Board of Trustees Nominee #3 VOICE ARTIST: Female MESSAGE: STUART TSE KONG HO TOPIC CODE: 3104 DESCRIPTION: Board of Trustees Nominee #4 VOICE ARTIST: Female MESSAGE: DAVID K. STORRS TOPIC CODE: 3170 DESCRIPTION: Accept or Withhold Menu VOICE ARTIST: Male MESSAGE: TO VOTE FOR THIS NOMINEE AS A TRUSTEE, PRESS 1. TO WITHHOLD YOUR VOTE FROM THIS NOMINEE, PRESS 2. TOPIC CODE: 3171 DESCRIPTION: Confirm Vote - Accept VOIce ARTIST: Female MESSAGE: YOU HAVE CHOSEN TO VOTE FOR... TOPIC CODE: 3172 DESCRIPTION: Confirm Vote - Withhold VOICE ARTIST: Female MESSAGE: YOU HAVE CHOSEN TO WITHHOLD YOUR VOTE FROM... TOPIC CODE: 4001 DESCRIPTION: Voting Issues VOIce ARTIST: Male MESSAGE: PROPOSAL 2: APPROVAL OF ERNST & YOUNG LLP AS AUDITORS. THE BOARD OF TRUSTEES RECOMMENDS A VOTE FOR THIS PROPOSAL. TOPIC CODE: 4002 DESCRIPTION: Voting Issues VOIce ARTIST: Male MESSAGE: PROPOSAL 3: PARTICIPANT PROPOSAL I REGARDING THE CREF SOCIAL CHOICE ACCOUNT SCREENS. TOPIC CODE: 4003 DESCRIPTION: Voting Issues VOIce ARTIST: Male MESSAGE: PROPOSAL 4A: PARTICIPANT PROPOSAL II REGARDING TOBACCO- RELATED INVESTMENTS IN THE CREF GROWTH ACCOUNT. THE BOARD OF TRUSTEES RECOMMENDS A VOTE AGAINST THIS PROPOSAL. TOPIC CODE: 4004 DESCRIPTION: Voting Issues VOIce ARTIST: Male MESSAGE: PROPOSAL 4B: PARTICIPANT PROPOSAL II REGARDING TOBACCO- RELATED INVESTMENTS IN THE CREF GLOBAL EQUITIES ACCOUNT. THE BOARD OF TRUSTEES RECOMMENDS A VOTE AGAINST THIS PROPOSAL. TOPIC CODE: 4005 DESCRIPTION: Voting Issues VOIce ARTIST: Male MESSAGE: PROPOSAL 4C: PARTICIPANT PROPOSAL II REGARDING TOBACCO- RELATED INVESTMENTS IN THE CREF EQUITY INDEX ACCOUNT. THE BOARD OF TRUSTEES RECOMMENDS A VOTE AGAINST THIS PROPOSAL. TOPIC CODE: 4006 DESCRIPTION: Voting Issues VOIce ARTIST: Male MESSAGE: PROPOSAL 4D: PARTICIPANT PROPOSAL II REGARDING TOBACCO- RELATED INVESTMENTS IN THE CREF STOCK ACCOUNT. THE BOARD OF TRUSTEES RECOMMENDS A VOTE AGAINST THIS PROPOSAL. TOPIC CODE: 4007 DESCRIPTION: Voting Issues VOIce ARTIST: Male MESSAGE: PROPOSAL 4E: PARTICIPANT PROPOSAL II REGARDING TOBACCO- RELATED INVESTMENTS IN THE CREF MONEY MARKET ACCOUNT. THE BOARD OF TRUSTEES RECOMMENDS A VOTE AGAINST THIS PROPOSAL. TOPIC CODE: 4008 DESCRIPTION: Voting Issues VOIce ARTIST: Male MESSAGE: PROPOSAL 4F: PARTICIPANT PROPOSAL II REGARDING TOBACCO- RELATED INVESTMENTS IN THE CREF BOND MARKET ACCOUNT. THE BOARD OF TRUSTEES RECOMMENDS A VOTE AGAINST THIS PROPOSAL. TOPIC CODE: 4009 DESCRIPTION: Voting Issues VOIce ARTIST: Male MESSAGE: PROPOSAL 4G: PARTICIPANT PROPOSAL II REGARDING TOBACCO- RELATED INVESTMENTS IN THE CREF INFLATION-LINKED BOND ACCOUNT. THE BOARD OF TRUSTEES RECOMMENDS A VOTE AGAINST THIS PROPOSAL. TOPIC CODE: 4043 DESCRIPTION: Voting Issues Menu (Without the Terminate Option) VOICE ARTIST: Male MESSAGE: TO VOTE FOR, PRESS 1. TO VOTE AGAINST, PRESS 2. TO ABSTAIN, PRESS 3. TOPIC CODE: 4051 DESCRIPTION: Confirm Vote - For VOICE ARTIST: Female MESSAGE: YOU HAVE CHOSEN TO VOTE FOR THIS PROPOSAL. TOPIC CODE: 4052 DESCRIPTION: Confirm Vote - Against VOICE ARTIST: Female MESSAGE: YOU HAVE CHOSEN TO VOTE AGAINST THIS PROPOSAL. TOPIC CODE: 4053 DESCRIPTION: Confirm Vote - Abstain VOICE ARTIST: Female MESSAGE: YOU HAVE CHOSEN TO ABSTAIN FROM VOTING ON THIS PROPOSAL. TOPIC CODE: 1590 DESCRIPTION: IF THIS IS CORRECT... VOICE ARTIST: MALE MESSAGE: IF THIS IS CORRECT, PRESS 1. IF THIS IS NOT CORRECT, PRESS 2. TOPIC CODE: 9998 DESCRIPTION: If you plan to attend...or other "ending" message... VOICE ARTIST: Female MESSAGE: [EMPTY...] TOPIC CODE: 1036 DESCRIPTION: Additional Proxy Vote VOICE ARTIST: Male MESSAGE: IF YOU HAVE AN ADDITIONAL BALLOT YOU WOULD LIKE TO VOTE, PRESS 1. TO TERMINATE THIS CALL, PRESS 2; OR SIMPLY HANG UP.. TOPIC CODE: 1600 DESCRIPTION:hang up and call back. Thank You. And Good-bye. VOICE ARTIST: Female MESSAGE: THANK-YOU FOR PARTICIPATING. GOOD BYE.you.