Repository: UIHistories Project: Board of Trustees Minutes - 1986 [PAGE 28]

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1984]

UNIVERSITY OF ILLINOIS

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Service on these investments which were not applicable to the 403(b) (3) annuities previously provided. An independent consulting firm, Hewitt Associates, Inc., was asked to make recommendations for the establishment of a program which would: (1) Provide expert financial counseling to the faculty and staff in their selection of investments and their withdrawal of investments, (2) Assure all investments are restricted to mutual funds (load and no-load) as qualified by the IRS, (3) Establish a custodial account for the payment of amounts withheld from salaries for employees participating in this form of investment, and (4) Provide liaison with the mutual funds to assure proper administration of the individual accounts in the various funds. The study by Hewitt Associates resulted in their recommendation of the brokerage firm of Merrill Lynch, Pierce, Fenner & Smith, Inc., to provide the described services. The cost of the Merrill Lynch services will be partially covered by an annual administrative charge to each active participant of $20.00 per year. There will be no expenditure of University funds under this agreement. Members of the faculty and staff appointed by the associate vice president for personnel to the Benefits Advisory Committee have reviewed this proposal, interviewed representatives of the firm, and support the recommendation that Merrill Lynch, Pierce, Fenner & Smith, Inc., serve as the broker of record for the investments authorized under IRC 403 (b) (7) by University employees. The vice president for business and finance has recommended that the University contract with Merrill Lynch, Pierce, Fenner & Smith, Inc., to provide the described services. I concur. O n m o t i o n of M r . H o w a r d , this r e c o m m e n d a t i o n w a s approved.

Revision of the Genera/ Rules Concerning University Organization and Procedure [Article III, Sec. 4: Retirement, Death, Survivor, and Disability (Sick Leave) Benefits]

(27) In January, the board approved interim guidelines on sick leave for the 198384 appointment year designed to respond to Public Act 83-976, which provides for payments to be made for accrued and unused sick leave to State employees whose services terminate. Under the permanent arrangements now recommended,1 the total number of sick leave days currently available to academic staff, 25, would remain the same. Twelve of those days would accrue and be cumulative under the new guidelines, compared to 10 under existing rules; however, the new proposal requires that the 12 accruable days be charged (used) first, as opposed to the current rule under which 15 nonaccruable days are charged first. The total number of days which may be accrued is increased under the proposal from 180 to 240. If the total of 25 days of sick leave is exhausted in any year, under the proposal, an academic staff member can draw upon any balance of sick leave accumulated after January 1, 1984, the effective date of the new law. Following total use of this accumulation, leave accumulated before that date may be used. The provision is retained that currently allows the president or chancellor to grant a leave with pay for illness up to one-half of the appointment year (including the leaves described above) for academic staff with three or more years of service. For nonacademic employees, the same principle of use — that the most recently earned sick leave be used first — would be the policy under the new

1 Attachment A contains the proposed revisions to Article III. Section 4 oft the General Rules Concerning University Organization and Procedure; Attachment B is the existing Section 4; and Attachment G shows the proposed revisions of Chapter XIII of Policy and Rules — Nonacademic.