UpDate - Vol. 12, No. 13, Page 11                      
December 3, 1992                                       
Benefits                                               
                                                       
     Following are several pieces of information regarding University
employee benefits. For answers to questions, call 831-8129.  
                                                       
Coverage for children                                        
     Employees concerned about medical coverage for dependent children
who are reaching age 21 ask two questions: "How long will my child
continue on my health insurance?" and "What about dental coverage?"
     Under Blue Cross/Blue Shield's Basic, Basic Plus, Comprehensive,
Total Health Plus and HMO Copay plans, coverage ends Dec. 31 of the
year the dependent child reaches age 21. There is no extension for
full-time students.                                          
     Principal Health Care coverage also ends on Dec. 31 following the
dependent child's 21st birthday. However, Principal will continue 
coverage for full-time students until the end of the month in which
the dependent child reaches age 24.                          
     Metropolitan Life will continue dental coverage until the end of
the month in which the dependent child reaches age 19. For a full-time
student and a dependent (according to Internal Revenue Service
regulations), dental coverage will continue until the end of the month
in which the child reaches age 23.                           
     For more information, call the Benefits Office at 831-8129.
                                                       
Employee contributions to state pension plan to be tax-deferred
     In accordance with Section 414 of the Internal Revenue Code, the
state pension plan has been amended to permit employee pension
contributions to be deferred from federal and state income taxes
effective Jan. 1, 1993. Beginning with the first paycheck of 1993, a
deduction equal to the amount of the employee's pension contribution
will be taken from each employee's gross earnings, thereby resulting
in a reduced salary for federal and state tax purposes.      
     This change will result in more take-home pay because taxable
income will be reduced by the amount of the employee's pension
contribution with consequent reductions in federal and state 
withholdings. There will be no change in pension benefit computations
or FICA/Medicare and Wilmington City wage taxes which are based on
gross earnings.                                              
                                                       
Tax law changes impact TIAA/CREF and fidelity investments cash
distributions                                                
     In accordance with the recently enacted Unemployment Compensation
Amendments Act of 1992, which takes effect on Jan. 1, 1993, 403(b)
participants who are eligible to take a cash distribution and roll it
over will be able to have any portion of the eligible money rolled
over into a similar plan or an IRA.                          
     Prior to Jan. 1, by contrast, money can be rolled over only if it
constitutes at least 50 percent of a participant's accumulation and
meets certain other requirements.                            
     If participants roll cash distributions directly over to a
similar plan or to an IRA, the money will not be subject to  
withholding. However, if it is not rolled over directly (that is, if
it is distributed to the participant first before being invested in
another similar plan or an IRA) it will be subject to 20 percent
withholding.                                                 
     For information, call the Benefits Office at 831-8129, TIAA-CREF
at 1 (800) 842-2776, or Fidelity Investments at 1(800) 841-3363.
                                                       
New CREF equities account                                    
     Beginning Jan. 1, 1993, a new CREF account can help University
faculty and professional staff diversify their basic retirement plan
investments by allowing them to invest in foreign stock markets.
     Foreign stocks have become increasingly popular with American
investors in recent years. Because foreign stocks don't always move in
coordination with U.S. stocks, some investors feel they can temper the
effect of price gyrations in a U.S. stock portfolio by including some
foreign stocks. Swings in the dollar's value in the foreign exchange
market also affect the value of foreign stocks to U.S. investors. 
     The new Global Equities Account will seek to reap the benefits of
overseas investing while minimizing the risks. Initially, the account
will invest largely in countries with well-established markets.
However, as opportunities emerge, the account may invest increasingly
in the markets of economically developing nations.           
     Those employees, including salaried and hourly staff, who
participate in Supplemental Retirement Annuities (SRAs) can also
invest in the Global Equities Account.                       
     For more information about the Global Equities Account, call 
TIAA-CREF at 1 (800) 842-2776.