Repository: UIHistories Project: Board of Trustees Minutes - 1944 [PAGE 459]

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456

BOARD O F

TRUSTEES

[July 28

action of the Board of Trustees of the University Retirement System relating to war risk insurance. After reading this memorandum, it appears that the decision of the Board of Trustees seems not to have been acquainted with the fact that there are two different kinds of government insurance held by members of the Armed Forces—National Service Life Insurance, and converted World W a r Risk Government Insurance, and that anyone holding the latter form of insurance cannot take out additional insurance under the National Service Life Insurance plan. Furthermore, that those of the first World W a r holding converted government insurance could not abandon their present insurance and take out National Service insurance without loss in present protection and past investment. I note there is a time limit between the announcement of change in policy and date which it becomes effective, August 31, but in view of the difficulties and time required in arrangements, it seems insufficient to insure a decision on the plan by all concerned. It is almost certain that some men will be in doubt of status of their insurance at a time when peace of mind about such matters is essential. Viewed as it stands, the action of the Board seems to penalize the most patriotic individuals, although the Board could scarcely have had any intention of doing that. Another item I note is in regard to the resignation paragraph. Since a leave of absence is much easier to explain and by general practice more normal under existing conditions than resignation with a promise of re-employment, it would seem simpler and better for the reputation of the University to permit, in the event of an individual's inability to conform to the Board's plan, withdrawal from the retirement system during the period of military service, instead of obliging him to resign from the staff of the University. After reading it over a couple of times, it is suggested that perhaps the most practicable way to correct the situation would be to insert the sentence as indicated. This would permit the plan that the Board of Trustees envisaged be operated in such cases where the individual is eligible and would not penalize the faculty member as indicated heretofore in this letter. I discussed this matter with the Insurance Division of the Adjutant General's office, and they are of the same opinion. These suggestions are made with the best of intentions to perhaps clarify a misconception of the facts. Very truly yours,

W. B. H A Y E S

Colonel, F.D., Chief, Fiscal Branch

The President presented other letters from members of the staff on this matter. The Secretary reported that he had not received notice from the Teachers College Board of its action on the recommendation of the University Board on this matter (see Minutes of April 29, 1943, page 333)Superintendent Nickell reported orally (as secretary of the Teachers College Board) that that Board had taken action concurring in the action taken by the University Board, effective as of the date of passage but not to be retroactive. It was the opinion of the Executive Committee that the Retirement System Board should consider this matter further. 1 The Executive Committee continued its consideration of matters presented by the President of the University.

1 The Board of Trustees of the University Retirement System of Illinois considered this matter at a meeting held July 28, 1943, and voted to recommend to the Employers of the System that no further attempt be made to require staff members on leave to cover the responsibility of the Retirement System by war-risk insurance; but that such Employers should endeavor to get members of their staff to take such insurance on a voluntary basis.