Repository: UIHistories Project: Board of Trustees Minutes - 1982 [PAGE 132]

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1980]

UNIVERSITY OF ILLINOIS

121

Therefore, I recommend that the comptroller and the secretary be authorized to execute contracts with the First National Bank of Chicago to provide services of Master Charge and VISA as described above for an initial period covering the balance of the fiscal year ending June 30, 1981. (It will be unnecessary to open a deposit account with the First National Bank of Chicago since appropriate accounts have already been established.) O n m o t i o n of D r . D o n o g h u e , a u t h o r i t y w a s g i v e n as r e c o m m e n d e d .

Salary Annuity Option Program

(16) Pursuant to Chapter 127, Section 166(c), of the Illinois Revised Statutes, a Salary Annuity Option Program was approved by the Board of Trustees on May 20, 1964, and amended on January 12, 1967. Under this program, an employee may accept a reduction in earnings or forego an increase in earnings, and the University will pay the amount of the earnings adjustment to an insurance company to be applied as a premium on an annuity contract. T h e intent of the program is to allow employees to defer their receipt of income and to make individual decisions regarding the possible benefits or tax consequences of various options which are available to them under contracts with insurance companies. The following insurance companies were selected to participate in the Salary Annuity Option Program: Continental Assurance Company, Massachusetts Mutual Life Insurance Company, Northwestern Mutual Life Insurance Company, Prudential Insurance Company of America, and Teacher's Insurance Annuity Association ( T I A A / C R E F ) . The program is administered by the benefits centers on each campus and all enrollments and requests for changes by individuals are coordinated by the benefits centers. Earlier this year, at the request of the Faculty Benefits Committees of the Senates, the executive vice president appointed an ad hoc committee 1 to evaluate the program with regard to current insurance markets and economic conditions. T h e study included a comparison of the contracts which are provided by the five companies selected in 1964 and other contracts which are now available through other insurance companies. Quotations were solicited from insurance companies which offer contracts suitable for this program and were reviewed by the committee. The committee now has recommended that a program be adopted which will make the contracts offered by Mutual Benefit Life Insurance Company available to employees. T h e contracts of Continental Assurance, Massachusetts Mutual, Northwestern Mutual, Prudential, and T I A A / C R E F will continue to be available under the program. Therefore, the executive vice president has recommended that, until further action by the board, the Salary Annuity Option Program described above be accepted as the University's program and as replacing the board's action of May 20, 1964, and January 12, 1967; and that an agreement with Mutual Benefit Life Insurance Company for a Group Annuity Contract be authorized. I concur. If approved by the board, I will direct that management of the University's Salary Annuity Option Program be the responsibility of the Office of the Executive Vice President.

On motion of Mr. Howard, this recommendation was approved.

James R. Gallivan, university director of risk management, chairman; James J. Costello, university counsel; Richard Graczyk, radiographer V, Dental Clinics, Medical Center; Charles M. Hundley, associate director of State Universities Retirement System; Charles M. Linke, associate professor of finance, Urbana-Champaign; Robert I. Mehr, professor emeritus of finance, UrbanaChampaign; Tawfik Sabet,_ professor of histology Medical Center; John A. Saldeen, electronics engineer, School of Chemical Sciences, Urbana-Champaign; William Tongue, professor emeritus of economics and finance, Chicago Circle; Henry D. Walli, head, audiovisual services, Office of Instructional Resources Development, Chicago Circle; and J. Nelson Young, professor of law, Urbana-Champaign.

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