MINUTES OF MEETING NUMBER 105
OF The
Senate OF mICHIGAN tECHNOLOGical university
14 March 1979
(Senate Minute pages: 1550-1573)
Meeting No. 105 was called to order on Wednesday, March 14, 1979 at 7:00 p.m. in the Faculty Lounge of the Memorial Union by President P.A. Nelson.
The roll was called by the President. Twenty-two members or alternates were present. Absent were Adams (IWR), Alkire (CE), Carter (AL), Greuer (MG), Kapp (PE), Kraft (BL), Schulz (AAROTC), Shetron (FF), Sloan (EE), and Smith (President).
Acknowledgement of Visitors: Vice President Koepel, and resident counselors Jann Thompson and Steve Miner were present. Carl Bowman, Instructional Resources, was present to operate the recording equipment.
Senate Report on University's Retirement System
Vice-President Koepel reviewed various aspects of the University's retirement system to explain Senate Proposal 5-79 and the Board of Control action on the proposal at its last meeting. He offered to provide a written statement. In 1945, the Michigan Public School Employees Retirement System (MPSERS) was formed through a merger; it covers employees of public school districts, community colleges, and some state universities including Michigan Tech. The employer's contribution and the accrued service contribution are set by the Department of Management and Budget. The Optional Retirement Act of 1967 allowed boards to establish an alternate retirement system. In that act it was made mandatory that the amount of the contribution by the employer and the employee would be equal to what each would otherwise make under MSPERS. The Board of Control set up an optional program under TIAA-CREF for exempt employees in 1969. In 1969, employees who elected TIAA-CREF were required to contribute the same amount as those under the Michigan system -- 3% of the first $4,200 plus 5% of the balance of annual salary. The University made the contribution set by the Department of Management and Budget every year on an actuarial basis -- 11% in 1969 for the Michigan system. 11% of salary then covered Social Security, unfunded accrued liabilities (about 1%), and the retirement system for TIAA-CREF. The University paid Social Security directly, contributed to the unfunded liabilities and put the balance in TIAA-CREF. In the Michigan plan, the output (retirement benefit) is determined by a formula rather than by the input made by the retiree and the University. Under TIAA, retirement payments depend on contributions and for CREF, on the market.
In 1974, the law changed to improve benefits for retirees under the Michigan plan and instituted a noncontributory plan. This became effective at Michigan Tech in 1974-75.
In 1975, the legislature removed the provision that linked contributions to the two systems. In 1976, the Board of Control resolved to set the MTU contributions to TIAA-CREF at 16.34%. In 1977, the Department of Management and Budget administratively decided not to charge optional retirement members with the unfunded liabilities of the Michigan plan.
Social Security continues to rise. Every time Social Security goes up less is left for the optional retirement system. Both the increase in the base and the increase in the percentage affect the money going into the optional retirement plan. They also affect the money going into the Michigan plan, but not the payments to retirees which are formula based.
The Senate in Proposal 5-79 proposed basically that the University percentage contributions to Social Security be increased to keep pace with the increased percentage going to Social Security. The proposal did not attack the erosion of the base. The President accepted the proposal and asked Vice-President Koepel to recommend an implementation to the next Board of Control meeting. Subsequently, the Board pegged the amount for TIAA-CREF at 10.55%.
The Minutes of Meeting No. 103.
Corrections to the minutes were made as follows: "Mathematics Department" was changed to "Department of Mathematical and Computer Sciences" in several places. On page 1535, V, Report of the Meeting of the Academic Council, the word "completely" was inserted before "incorrect." On page 1527, item II, on the minutes of the Board of Control, the discussion of housing overassignment, the following point was made by Steve Miner. The group of students were supported by residents in all three residence halls and were representing about half the students. The minutes were accepted as corrected.
The Minutes of Meeting No. 104.
Vice-President Stein reported that tapes of Academic Council meetings, not the transcripts as reported on page 1535, are available in the Library. On page 1540, last item Appendix B, MA should be changed to MSBA. The minutes were accepted as corrected.
President's Report
President Paul Nelson submitted a written report as Appendix A (Available by Request from the Senate Office). He will talk with President Smith on April 5 about resolving Proposal 18-78, on a Senate Committee for the University Budget.
Nelson attached a copy of a memorandum from him to the Board of Control on Senate proposals.
Report on Meeting of the Academic Council.
Vice President Sachs presented written reports on meetings of the Academic Council for February 13 (Appendix B - Available by Request from the Senate Office) and March 13 (Appendix C - Available by Request from the Senate Office). Minutes of the February 13 (Appendix D - Available by Request from the Senate Office) meeting were also distributed. Sachs pointed out that his report of the discussion of summer session from an earlier Academic Council meeting was not completely incorrect as Vice-President Stein had claimed, but in fact was reasonably accurate as verified by transcripts of tapes of the meeting.
Vice-President Stein commented that the projections on enrollment at the March 13 meeting were his, not the Admissions Office's. He noted that Engineering needs more than ten positions, but ten would provide a start.
Alexander expressed concern about housing problems in light of expected enrollment increases and about the Board's response. Miner responded by indicating he did not know who had made the presentation at the Board of Control meeting. Thompson reported that student representatives had observed one board meeting, but had felt unwelcome. Nelson stated that there had been a breakdown in communications and suggested several possible methods to resolve the communication problem.
Report on Meeting of the Board of Control.
Vice-President Sachs presented a report on the meeting of the Board of Control on February 16 (Appendix E - Available by Request from the Senate Office). He noted that this was a landmark meeting as it was the first time the Senate Observer was introduced as the Senate "delegate" to the Board and invited to participate.
Election of Representative to AMCF.
An election was held for a representative to the Association of Michigan Collegiate Faculties for a Two-Year term under Senate Proposal 24-78. A J. Pintar was elected.
Committee Reports
A. Curricular Policy
Nelson reported that the committee will meet next week to consider subcommittee reports. The committee has received comments from Metallurgy and Civil Engineering on the draft proposal on safety. Koepel has been asked to provide legal advice on the safety proposal. Dean Yerg has appointed a committee under Proposal 10-70 to review the proposed M.S. program in Computer Science.
B. Instructional Policy
Sloan had provided a written report (Appendix F - Available by Request from the Senate Office) that summarizes response of departments to survey on the calendar.
C. Institutional Evaluation
Sachs reported that the Institutional Evaluation Committee has examined the possibility of evaluating the Senate. He asked for Senators, especially committee chairmen, to suggest comments and approaches for this.
D. Elections Committee - Snyder encouraged people to nominate candidates for Senators at large.
E. Joint Committee on Relations Between the Senate and Faculty Association
Erickson reported that the committee met January 21 and discussed selecting nominees for representatives to AMCF. The committee plans to work with the two representatives.
F. Promotional Policy and Professional Standards and Development - No Report.
G. Senate Representation for Keweenaw Research Center - Nelson reported that he and Sung Lee will meet to discuss this matter soon.
H. Faculty Handbook.
Pintar reported that the committee plans to proceed in stages. Stage 1 will involve editorial review of the faculty handbook; Stage 2 will be an examination of consistency between the handbook and the procedures manual; Stage 3 will be a study of policy.
I. Faculty Fringe Benefits
Reynolds presented a report (Appendix G - Available by Request from the Senate Office). The committee discussed the status of fringe benefits with Vice-Presidents Koepel and Stein. Problems with Blue Cross - Blue Shield may be brought to Koepel's office. The University is investigating a dental plan.
The committee submitted a draft proposal on tuition remission for benefits. A modification to allow dependents parity with other students when they pay tuition was suggested.
I. Instructional Resources
Lide reported that the Instructional Resources Committee plans to attend the Instructional Resources Workshop and will report on it.
Old Business - No old business
New Business
The meeting adjourned.