Repository: UIHistories Project: Board of Trustees Minutes - 1984 [PAGE 334]

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1983]

UNIVERSITY OF ILLINOIS

,325

(After this meeting, the following committees of the board m e t : the Buildings and Grounds Committee, the Athletic Activities Committee, the Finance and Audit Committee, the Agriculture Committee, and die Affirmative Action/Equal Opportunity Committee. T h e Board of Trustees reconvened for the regular meeting at 2:30 p.m.) BUSINESS PRESENTED BY THE PRESIDENT OF THE UNIVERSITY President Ikenberry recognized and introduced observers from the campus senates and from the University Senates Conference. 1 H e also introduced Dr. George Kottemann, chairman of the Alumni Association Board of Directors. President's Report President Ikenberry presented a report on selected topics of current interest, copies of which were distributed at die meeting. A copy was filed with the secretary of the board. OLD AND NEW BUSINESS President Forsydi acknowledged receipt of a letter from Mr. E d m u n d Shlens, a local property owner, expressing his concern at die University plan for a reduction in enrollments at Urbana-Champaign and its effect on rental property in the local area. H e asked to appear before the board. Mr. Forsyth had prepared a letter of response to Mr. Shlens, in which the enrollment policy was explained; and he advised the board that in his judgment an appearance was not appropriate. ( T h e correspondence is filed with the secretary for record.) By consensus, the trustees approved the letter to Mr. Shlens. State Universities Retirement System M r . Howard, who is currently serving as president of the board of the State Universities Retirement System, commented briefly on the operations of the system, emphasizing in particular the growing hazard to the system's operation posed by inadequate State funding. H e presented die following formal report: My last formal report to you on the progress of our retirement system was dated March 10, 1983. Since that time, much has happened. 1. The result of two reductions in Fiscal Year 1983 appropriations was to remove a total of $14.9 million, down to 51 percent of gross payment. We had a negative cash flow for the last quarter of our fiscal year (June, July, and August). In the past, the State has refused to comply with the statute requiring prudent, actuarial funding. In FY 1983, the State completely abdicated its prior course of funding at least the annual cost of paying benefits. For the last quarter, even employee payments plus State payments did not meet the cost of benefits. 2. For FY 1984, which we are now entering, the State has retreated from its plan to fund at 77.5 percent of gross payout. Instead, it is funding at 60 percent

1 University Senates Conference: Richard P. Jerrard, professor of mathematics, UrbanaChampaign campus; Chicago campus Senates: Richard L. Cartin, professor of chemistry, and D. Jean Wood, professor and head of Department of Psychiatric Nursing; Urbana-Champaign Senate Council: Gary Fischman, a graduate student.