With the variety of available investment options and a volatile securities market, it is vital that boards make wise choices about employee retirement programs. Issues to consider when discussing pension-plan changes are presented. (Author/MLW)

In developing an endowment spending policy, the college or university governing board should seek both endowment protection and growth while providing reasonable current budgetary support. A sound policy should include built-in features that adjust to budgetary requirements, changing economic conditions, and the dynamic investment market…

Discusses principles for allocation of endowment funds by governing boards, including intergenerational equity, the inherent conflict between an institution's operating budget and its endowment, the importance of achieving financial integrity, and spending policies in volatile markets. Guidelines for board-reviewing policies are offered. (DB)

Issues in college divestiture of investments based on moral considerations, such as South Africa's apartheid system, are outlined. A governing board's options, role, and responsibility to the institution in the face of such decisions are discussed. (MSE)

Faced with deteriorating physical plants, a need for new facilities, and a shortage of financial aid funds, colleges and universities have become players in a debt-financing game, which can hasten the organization's demise. The board must ensure that today's securities do not become tomorrow's junk bonds. (Author/MSE)

One of the most important financial policy decisions a board of trustees must make is setting the rate of tuition. Escalating costs can be attributed to: preparing the budget based on projected expenses; external market focus; fee discounting; and trustees' complacence when large tuition increases are proposed. (MLW)

Trustees can set endowment spending policies to meet current spending needs and protect the future by understanding, forecasting, and managing potential risks and returns. Spending policy should be based on a combination of economic conditions and capital market characteristics related to the institution's investment portfolio. (Author/MSE)