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*  Status as of 3 May 1994:                                          *
*  Motion to approve defeated by the Senate                          *
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MICHIGAN
TECHNOLOGICAL
UNIVERSITY                The Senate of Michigan Technological University
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                                                  (version of 18 Apr 95)
                             PROPOSAL 35-95

                       (Voting Units: Full Senate)

             SUPPORT OF CONTINUING FINANCING OF SELF-FUNDING
               FOR THE TIAA-CREF RETIREE MEDICAL COVERAGE


The Finance Committee of the Senate unanimously supports continuation of
the retiree health benefit self-funding plan approved by the MTU Board of
Control July 17, 1992, and instituted as University policy on October 19,
1992.

We further strongly urge that any changes in the existing compensation
package, proposed or contemplated, be reviewed by the Senate Finance
Committee prior to decisions being made.  

It is the understanding of the committee that the sense of the 1992
commitment by both the Board of Control (BOC) and the faculty and staff
was that this program was a long-term commitment to provide TIAA-CREF
retiree health care.  This understanding was developed by both review of
BOC minutes and meeting with Bert Whitten, who was the administration
representative in negotiating the program.  The semiannual reviews of the
program were intended to monitor the financial details of the plan to
determine if the assumptions and associated financing commitment were
consistent.  

We recognize that the underlying actuarial assumptions need to be
revisited periodically, and that appropriate adjustments will need to be
made.  In fact, the assumptions should be revisited soon because of the
much lower rate of change in health care costs since 1992.  However,
these periodic reviews are intended to assure the continuity of the
program, and should in no way compromise the continuity of the TIAA-CREF
retiree health care program and the associated prefunding philosophy.  
.