Proceedings of the Board of Regents (1939-1942)

SECOND MAY MEETING, 1942

959

Regent Cram called attention of her colleagues to the annual meeting of the Association of Governing Boards of State Universities and
Allied Institutions to be held next fall, and asked for suggestions of
subjects for discussion.
The following resolutions establishing a pension plan for nonacademic employees were adopted with the express understanding (1)
that the plan as embodied in the resolutions was subject to such modifications as might be suggested by the University administration and
approved by the Regents, and (2) that it involved expenditures not
in excess of $39,000 during the University fiscal year 1942-1943
(p. 886):
WHEREAS, The superannuation of nonacademic employees of the University
of Michigan has of recent years presented ever-increasing problems of administration;
WHEREAS, An actuarially sound Retirement Plan affords the best solution to
these problems;
WHEREAS, Such a Retirement Plan will contribute to the contentment and
happiness of the nonacademic employees as it has in the case of academic employees, and, by so doing, increase the value of the services of these employees to
the University; now, therefore, be it
Resolved, That the following Retirement Plan be established, to-wit:
1. Name. This Retirement Plan shall be known as "The University of
Michigan Employees' Retirement Plan."
2. Effective Date of Plan. The effective date of this Retirement Plan shall
be July 1, 1942. From time to time participation in this plan shall be extended
to various groups of nonacademic employees, thereafter called eligible groups.
The definition of such groups and the date of eligibility of employees in each
group will be recommended by the University Committee on Annuities to the
Board of Regents.
3. Participation. Any member of an eligible group:
a) may participate in this plan if and when he has completed one year of
continuous service for the University and has attained age 30; and
b) must participate in this plan after one year's service in an eligible group
if group eligibility has been extended for at least a year and the employee is 30
years old.
4. Retirement. Every employee of an eligible group who has attained age
70 when the group becomes eligible shall retire at that time; all other employees
of eligible groups may retire at the end of the semifiscal year during which they
attain normal retirement age as defined below.
Retirement Age Determined by Age at Group-eligibility Date.
Age last birthday on Normal retirement
group-eligibility date age
67 - 70 70
64 - 66 69
61 - 63 68
58 - 60 67
55 - 57 66
54 or less 65
5. Contributions for Future Service. The normal monthly contributions to
the Retirement Fund on behalf of each participant in the Retirement Plan shall
be determined to the nearest dollar according to the percentages appearing in the
following table:
Compensation received Per cent of monthly compensation
during the last preceding contributed by
calendar year Employee University
$1,500 and above 5 5
$1,000 to $1,499.99 4 6
Under $1,000 3 7
It is contemplated that the funds contributed in accordance with the provisions of this clause will be accumulated at rates of interest to be determined by
the Committee on Annuities and approved by the Board of Regents.