Repository: UIHistories Project: Board of Trustees Minutes - 1942 [PAGE 836]

EXTRACTED TEXT FROM PAGE:

1942]

UNIVERSITY OF ILLINOIS

833

over the estimated income. It is estimated that the total excess income at the end of the fiscal year (June 30, 1042) will be between $8,000 and $9,000. The Director of the Station recommends that receipts of the Dixon Springs Experiment Station in the amount of $9,000 in excess of the budget estimate of $14,780 be appropriated to the extent realized for the operating expenses of the Station. I concur in this, with the understanding that major expenditures for improvements or equipment if desired will be submitted for special action, and that any unexpended balance at June 30 will lapse into the unappropriated agricultural income reserve.

On motion of Mr. Fornof, this appropriation was made as recommended. by the following vote: Aye, Mr. Adams, Mr. Davis, Mr. Fornof, Mrs. Grigsby, Mr. Jensen, Mr. Karraker, Mr. Livingston, Dr. Meyer; no, none; absent, Mr. Cleary, Mr. Green, Mr. Wieland.

A P P R O P R I A T I O N TO UNIVERSITY RETIREMENT SYSTEM O F ILLINOIS (11) At its meeting on March 10 (Minutes, page 816), the Board of Trustees approved a plan recommended by the Board of Trustees of the University Retirement System of Illinois establishing charges against institutions participating in the Retirement System to cover the estimated cost of benefits for their respective staff members and employees in each year. The actuary for the Retirement System has completed studies and tabulation of these charges for 1941-1042 and estimates them as follows: F o r death benefits $54 013 For disability benefits (one-half year) 12 952 For operating expenses (Payable from the special state appropriation of $200,000 made to the University of Illinois) 14000 Total $80 065 A small portion of the total charge for death benefits will be applied to certain trust funds and self-supporting activities. No charge can be made against federal funds for any of these items, since such funds may be charged only with the provisions for retiring allowances. These funds as well as trust and self-supporting funds are charged for the current year with the carrying charge for retiring allowances of persons whose salaries are paid from these funds, but such charges are not made against the University in general, since under the law these amounts are to be provided on a pay-as-you-go basis and no retiring allowances are payable by the System during the first year. Such a charge will be necessary, however, for next year, the estimated amount being $20,000. Appropriations have already been made by the Board of Trustees out of the State appropriation of $200,000 as follows: For expenses (August 5, 1041) $12 450 For death benefits (September 26, 1941) 5 000 F o r death benefits (December 16, 1941) 10 000 Total $27 450 These appropriations were made with the understanding that they would apply against the final charge made by the Retirement System which, as above stated, will amount to $80,965 or somewhat less than one-half the biennial appropriation. However, it appears likely that the full amount of the biennial appropriation will be required, taking into consideration increased disability charges for 1942-1943 and retiring allowances to be provided in that year. Furthermore, the retirement law authorizes institutions to pay additional amounts into the fund not exceeding the total estimated expenditures of one year in advance. Consequently, payment of the full $100,000 at this time, representing one-half of the biennial appropriation, would be entirely appropriate. The payment of this full sum would be advantageous to the Retirement System, since