Agenda Item No.________________

Washburn University Board of Regents

SUBJECT: University Council Request for retirement contributions to be paid on summer school salaries.


Article V, 10 of the University Bylaws permits the University Council to formulate policy recommendations to the Board of Regents through the President for action. In the event the President of the University does not concur with the University Council proposals, the University Council may still refer the item directly to the Board of Regents.

In the Spring of 1999, the Personnel Committee of the University Council recommended to the University Council that retirement contributions be made for faculty who have additional supplemental employment from the University such as summer school, intersession or continuing education which was adopted by University Council (copy attached).

President Farley provided to University Council his opinion on the proposal (copy attached) after which the Council formed a committee in November 1999 to discuss the matter with the President. In March, the President met with that committee and in April sent a letter to University Council (copy attached). In both communications to the Council, the President pointed out a number of reasons why he could not support this measure.

In May 2000, the Council amended its earlier action to require retirement contributions only for summer school teaching (copy attached). The action also requires that the recommendation be forwarded directly to the Board of Regents with or without the administration's involvement and concurrence.

As requested by the University Council, this recommendation is forwarded to the Washburn Board of Regents for consideration.

The President does not recommend the adoption of this proposal for two fundamental reasons. First, this is a budget issue. We have continually urged the Board to focus our limited resources to the improvement of base salaries for all faculty members. The University Council proposal would require that those limited resources be allocated as an additional retirement contribution only for those faculty who teach in the summer. Further, the President believes the University Council proposal is not fair because it excludes those who teach continuing education courses or who work overtime.

The administration has made every effort to ensure that our retirement programs are competitive. In the Spring 1998, the Board approved an increase in contributions to employee retirement accounts from 9 percent of base salary to 10 percent of base salary for all employees. This change was made based upon sound principles that would benefit all employees of the university and allows Washburn to have a competitive retirement program. The retirement program is built upon the concept of using one's base salary as the basis of computation of retirement contributions to achieve replacement income in retirement. Once this competitive position has been achieved our highest priority in each budget year has been to increase faculty salaries for all faculty.

FINANCIAL IMPLICATIONS: Estimated $85,000 to $100,000.

RECOMMENDATION: President Farley does not recommend Board of Regents approval of this request to pay retirement contributions on summer school teaching salaries.

__________________________ _____________________________________ (date) Jerry B. Farley, President

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