Repository: UIHistories Project: Board of Trustees Minutes - 1944 [PAGE 216]

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1942]

UNIVERSITY OF ILLINOIS ATHLETIC ASSOCIATION RETIREMENT SYSTEM

213

Mr. Davis, for the Committee on Athletic Activities, presented also a proposal from the Board of Directors of the Athletic Association, endorsed by the Comptroller and the President of the University, for a system of retiring allowances and death and disability benefits corresponding substantially to those provided by the University Retirement System. The following is a summary of the proposed program:

1. Each employee will contribute 3 ^ % of his salary, the same as is required of University staff members. 2. Each insurable employee will buy group insurance for the approximate amount of his salary, not less than $2,000, for which he will pay 15(4 per month per $1,000. 3. The Association will contract for annuities and insurance and pay the cost of these policies in excess of employees' contributions estimated at $7,260 a year. (Due to certain credits on policies now in existence, the increased outlay for the current year will be about $5,500.) 4. Policies will provide the following benefits: ( a ) Retirement at age 65, a guaranteed annuity of 40% to present employees for 25 years service, this to become 50% if the individual does not retire until age 68. New employees to receive whatever the accumulations will provide, with a maximum of 60% of final salary. (b) Option of electing a survivorship annuity in lieu of an individual annuity on retirement. (c) Death benefit during active service of whatever amount of group insurance is purchased with a maximum of $1,000 for each $10 of retirement income. Death benefit after retirement, $500. Persons not insurable to receive a death benefit of half a year's salary. ( d ) A fund to be set aside to provide benefits in case of disability. (e) Persons leaving the service of the Association may withdraw their own accumulations with interest or receive a deferred annuity. Contributions by the Athletic Association are not available in case of withdrawal but are transferred to the disability reserve fund. The terms and benefits are approximately the same as those of the University Retirement System covering employees and staff members in the academic and administrative departments. The contract of insurance is to be with the Massachusetts Mutual Life Insurance Company. O n m o t i o n of M r . J e n s e n , t h e B o a r d a p p r o v e d t h i s p l a n in p r i n c i p l e and a u t h o r i z e d t h e contract a n d salary deductions, subject to f u r t h e r c o n s i d e r a t i o n o f final d e t a i l s a s m a y b e n e c e s s a r y b y t h e P r e s i d e n t a n d the Committee on Athletic Activities and subject to reconsideration w h e n t h e l e g a l s t a t u s of t h e A s s o c i a t i o n is m o r e d e f i n i t e l y d e t e r m i n e d . AUDIT REPORT OF THE UNIVERSITY OF ILLINOIS FOUNDATION M r . K a r r a k e r , for t h e F i n a n c e C o m m i t t e e , p r e s e n t e d the following report: The Finance Committee has received a copy of the audit report, prepared by Arthur Andersen & Company, of the University of Illinois Foundation, for the year ended June 30, 1942. A copy has been filed for record with the Secretary of the Board of Trustees. This report was received for record. INTRODUCTION OF DEAN WORKS At this point, President W i l l a r d introduced D e a n George A. W o r k s with the following s t a t e m e n t : The Board of Trustees on November 27, 1942 (Minutes, page 187), instructed the President of the University "to request the Director of Finance to have Dean W o r k s give his opinion of the competence and adequacy of the Booz, Fry, Allen, and Hamilton Survey of the University of Illinois." This was done