Repository: UIHistories Project: Board of Trustees Minutes - 1980 [PAGE 456]

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1979]

9/28

UNIVERSITY OF ILLINOIS

445

1 500 000 First National Bank of Chicago 12'/» percent certificate of deposit due 3/26/80 12.25 1 500 000 00 O n m o t i o n of M r s . S h e p h e r d , this r e p o r t w a s a p p r o v e d as p r e s e n t e d .

Waiver of Application Fee for Students Seeking CIC Fellowships

(22) Waivers of the University application fee are authorized at present for several categories of students, e.g., those who cannot meet the cost of the fee because of extreme financial hardship, extramural nondegree applicants, and members of the University faculty and staff. The Committee on Institutional Cooperation, consisting of the "Big T e n " universities plus the University of Chicago, from time to time develops and sponsors graduate fellowship programs which encourage the applicant to apply simultaneously to several of the CIC member institutions. Because of the high cost to the student of this multiple application procedure, the other CIC institutions have either waived the application fee or have arranged to pay it for the student through special funding. To make University practice consistent with that of other CIC institutions, the vice president for academic affairs (the University's representative on the CIC) has recommended an additional category of students for whom application fees would be waived: Persons who are applying for CIC-supported fellowships to study at a CIC member institution. The recommendation has been endorsed by the University Planning Council and is supported by the vice president for administration. I concur.

On motion of Mr. Grady, authority was given as recommended.

Application for Internal Revenue Service Ruling

(23) House Bill 700 of the Eighty-first General Assembly amends the provisions of the Illinois Pension Code relating to the State Universities Retirement System to require university employers to "pick u p " an employee's contributions to the retirement system, thus sheltering those amounts from federal income taxation until distribution. As passed by both houses H.B. 700 has an effective date of January 1, 1980. On September 20, 1979, the governor recommended that the effective date be changed to January 1, 1981, in order to provide adequate time for university employers to obtain rulings from the Internal Revenue Service or otherwise to determine that the tax shelter result is available. It is anticipated that the General Assembly will act upon the governor's recommendation in the near future and, if such action is favorable, it is desirable that there be immediate follow up to obtain the necessary rulings or determinations. Accordingly, the university counsel has recommended that he be authorized to take such steps as may be necessary or appropriate, including the employment of special counsel, to secure the necessary assurances that employee contributions "picked u p " under H.B. 700 are not taxable to employees until distribution. I concur.

On motion of Mr. Howard, authority was given as recommended.

Roll Call Items

By c o n s e n s u s t h e b o a r d a g r e e d t h a t o n e roll call v o t e w o u l d be t a k e n a n d c o n s i d e r e d t h e roll call v o t e o n e a c h of t h e n e x t t w o i t e m s .