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									Motion FY04-08

Policy Library Procedure
Submitted by Policies & Procedures Committee of the P&S Council
May 21, 2004




It is moved:

       The P&S Council has no expressed concerns with the Policy Library Procedure document* presented to the
P&S Council for review.




* Retrieved May 6, 2004 through Iowa State University Policy Library, http://policy.iastate.edu/procedure.shtml.




Distribution List:        Paul Tanaka, Director of University Counsel




                                                      —1—
Appendix E



Iowa State University
Professional & Scientific Council
Compensation and Benefits Committee Report
Submitted to the P&S Executive Council: May 20, 2004
Submitted to the P&S Council: June 3, 2004




Early Retirement Programs for Professional Staff at the Peer 11
Institutions




Prepared by:
Compensation and Benefits Committee Members
Teresa Peterson, James Jensen, Tom Becker, Brenda Van Beek,
Trevor Reidemann, Lynette Mcbirnie, Felice Iasevoli, Deborah DeWall,
Malisa Rader, Roxanne Clemens, and Kris Pruismann




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                                                   —2—
Table of Contents
Introduction                                                                             4
      Table 1. Iowa State University and Its Peer Land Grant Universities.               4

ERI Program at Iowa State University                                                     5
      Table 2. ERI Program at ISU                                                        5

Comparative Overview                                                                     6
     Table 3. Early Retirement Incentive Program Overview for the Peer 11 Land Grant
     Institutions                                                                        5


Comments Concerning Peer 11 ERI Programs                                                 7

Potential Retirement Incentive Programs                                                  7
       House File 2497                                                                   8
       Table 4. Early Out 3 Incentive Program.
       EEOC Exemption from Age Discrimination in Employment Act                          8

Conclusion                                                                               9

Appendix:

Details of ERI Programs at Peer Institutions                                           10
Iowa State University Age Distribution (Permanent Faculty and Staff)                    20
EEOC News Release                                                                       21




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                                                 —3—
Introduction

Iowa State University (ISU) is a top ranked land-grant university. Generally, comparisons are made of ISU‘s research,
student demographics, and other performance metrics against its peer land-grant institutions, or ―Peer 11‖ institutions.
The Peer 11 institutions are listed below in Table 1, in order of approximate student population. This document will
compare the early retirement incentive (ERI) programs for P&S or equivalent employees within the Peer 11 group. A
generalized proposal for the future of the University‘s early retirement program is also presented.

Table 1. Iowa State University and its Peer Land Grant Institutions
 Peer 11 Institutions                                         Location                     Apprx. Student
                                                                                           Population
 Ohio State University                       OSU              Columbus, OH                 44K
 University of Wisconsin                     UW               Madison, WS                  40K
 Texas A&M University                        TA&M             College Station, TX          40K
 Michigan State University                   MSU              East Lansing, MI             39K
 University of Minnesota                     UM               Minneapolis, MN              37K
 University of Illinois                      UI               Urbana, IL                   36K
 Purdue University                           Purdue           West Lafayette, IN           36K
 University of Arizona                       UA               Tucson, AZ                   30K
 University of California at Davis           UC Davis         Davis, CA                    25K
 Iowa State University                       ISU              Ames, IA                     24K
 North Carolina State University             NCSU             Raleigh, NC                  23K

ISU maintains a phased retirement program, which is not discussed herein. However, the early retirement program is set
to expire this year. There currently are no plans to offer any ERI programs in the future. According to the ISU Office of
Institutional Research, the FY2004 employee age distribution shows 31% of faculty *, 15% of P&S*, and 22% of merit
staff are 55 years of age or older. A total of 1,201 permanent faculty and staff* are eligible for the ERI programs: 449
faculty members, 317 P&S and 435 merit. The ISU ERI program is detailed in the following section.

*Faculty counts include tenured, tenure-eligible, and continuous adjunct faculty; lecturers, clinicians and visiting faculty
are excluded. P&S counts do not include contract employees. See the table in the Appendix for detailed distributions.




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ERI Program at Iowa State University

The ISU ERI program is summarized in the table below. The program details may also be found online †:

Table 2. ERI Program at ISU

 ISU ERI Program                    Explanation
 Eligibility:                       Faculty, professional-scientific employees, Regents merit system employees,
                                    institutional officials, and staff of the Board Office, employed by the Board
                                    of Regents for a period of at least 15 years and who have attained the age of
                                    57 (by June 30, 2002) are eligible for participation in the Early Retirement
                                    Incentive Program. Participation is subject to approval by the appropriate
                                    administrative officers of the institution in which employed. Employee must
                                    completely retire from active service at ISU.
 Application Deadline:              June 30, 2004
 Duration of Participation:         Upon retirement, the participant will receive the health and dental insurance
                                    until the date of eligibility for Medicare, and TIAA/CREF incentives until
                                    the date of eligibility for full Social Security benefits or 5 years after
                                    retirement, whichever is earlier. Incentives will cease upon the death of the
                                    participant. This program will expire for new participation on June 30,
                                    2004.
 Incentives:                        Employer will pay employer share of health and dental insurance until date
                                    of eligibility for Medicare. Participant will have to pay employee share of
                                    premium (if charged) to keep coverage. Employer will pay employee and
                                    employer share of TIAA/CREF for three years, and then employer share for
                                    an additional two years. TIAA/CREF contributions will cease at the date of
                                    eligibility for full Social Security benefits or 5 years after retirement,
                                    whichever is earlier. Employee will receive the $4,000 Retirees Life
                                    Insurance coverage if he or she is eligible under the policy guidelines.
 Alternative Payment Method:        If the employer agrees, all or part of the incentives (except the life
                                    insurance) may be provided as a cash payment equal to the present value of
                                    the benefit(s) for which it is substituted. Employees participating in IPERS
                                    must elect this option for the IPERS contributions. The interest rate used in
                                    calculation of the present value shall be determined annually by the Board of
                                    Regents.
 Special Considerations:            An employee presently participating in the Phased Retirement Program can
                                    transfer to the Early Retirement Incentive Program with the approval of the
                                    employee's department and the University. Each month spent in the Phased
                                    Retirement Program will reduce the period of full payment of TIAA/CREF
                                    benefits (employer and employee contributions) by one month.
 Notes
 Departments have the right to put in place additional guidelines to address budget priorities and preserve the
 integrity of program planning. Delaying your decision or application may negatively impact priority
 consideration for your request.

† http://www.public.iastate.edu/~retire_info/early_retirement_program.html




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Comparative Overview
A brief overview of the early retirement incentive programs at the Peer 11 institutions is found in Table 3. More detailed descriptions are found in the appendix for each
peer institution.
Table 3. Early Retirement Incentive Program Overview for the Peer 11 Land Grant Universities
                                              1                                                             2
*Voluntary early partial retirement program       Advance retirement declaration                                Public Employees Retirement Plan




                                                                                                                                                                                                                                                                               Vacation payout available as
                                                                                                                                                                                                  dept. head, dean, or director
                                                                                                                                                               Group Insurance remains in




                                                                                                                                                                                                                                        Vacation & sick leave paid
                                                                 Years of Service Required




                                                                                                                            Combination of age/ years




                                                                                                                                                                                                  Approval required from




                                                                                                                                                                                                                                                                               full retirement begins
                                                                                                                            of service equal to or




                                                                                                                                                                                                                                        based on level of
                                                                                              Minimum Age
                       Program type




                                                                                                                                                                                                                                        employment
                                                                 Institutions
 Institution




                                              Employee
                                              Eligibility




                                                                                                                            exceeds




                                                                                                                                                               effect
OSU            Early                  Prof staff                  5-30                       none                 70                                    Yes                                                                       No                                 Yes
UW             Early                  All staff                                              55                                                         Yes                                 Yes                                   Yes
                                                                                                                                                                                                                                  Vac – yes
TA&M           Early                  All staff                   5                          50                   55                                    Yes                                 No
                                                                                                                                                                                                                                  Sick - no
               None-see appendix
MSU
               for options offered
               Phased                 Tenured faculty             2                          52                                                         Yes                                 Yes                                   Yes                                1 yr. max
UM
               Early                  All staff                   5                          55                                                         Yes                                 Yes                                   Yes
               No-see appendix
UI
               for options offered
                                      Faculty/Adm/                                                                                                                                                                                Yes
               VEPRP*                                                                        55                   70                                    Yes                                 Yes                                                                      Max. 44 days
                                      Prof staff
                                      Faculty/Adm/
               ARD1                                                                          55                   70                                    Yes                                 Yes                                   Yes                                Max 44 days
                                      Prof staff
Purdue
                                      Clerical staff or
                                      regular operational                                    50-
               PERF2                                                                                              15 yrs. Under PERF prog.
                                      or technical                                           59
                                      assistant
                                                                                                                                                                                                                                                                     Vac - 1 yr. max
UA             Early                  All staff                   5                          50                   55                                    Yes                                 No
                                                                                                                                                                                                                                                                     Sick - $30,000 max
UC
               None                   All Staff
Davis
ISU            None                   All Staff
               Early                  All Staff                   20                         50                   70                                                                        No                                    Unclear                            Unclear
                                                                                                                                                        Yes-5 yrs service
NCSU                                                                                                              Reduced benefit payouts
                                                                  5                          60                                                         required
                                                                                                                  per year

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Comments Concerning Peer 11 ERI Programs

Evaluating programs offered by the Peer 11 institutions, while complex, proved discouraging. Based on the
comparative data, the majority of our peer land-grant institutions are providing early retirement or retirement
incentives and are committed to remaining competitive in their benefit packages. With no future ERI programs to
offer, ISU provides the least competitive retirement benefit of the Peer 11 members.

During a time of downsizing and major restructuring plans, early retirement programs can be a win-win situation for
the employee as well as the employer. For the employer, early retirement incentives can reduce the need for
involuntary termination and allow for modest ―downsizing‖ that is as fair and as compassionate as possible. For the
employee, voluntary early retirement is perceived as a benefit package similar to life insurance or a 401k plan.

There are a number of components that institutions use when configuring their plans. State or federal laws may
govern some included components. Examples that are described here can be found in more complete detail in the
appendix of this document. The examples listed below highlight some of the key elements of the ERI programs in
the Peer 11 institutions:

         University of Wisconsin: Participants can continue the group health and dental insurance at their
         own expense for as long as self or spouse is alive. To assist in funding this option choice, the
         unused sick leave is converted to a dollar credit and is used to pay the premiums first. The
         employee does not receive a sick leave payout.
         Texas A&M: Eligible members may purchase, at the time of retirement, one year of equivalent
         membership service credit for 50 days or more (or 400 hours or more) of accumulated state sick
         and/or personal leave. Only one year of equivalent membership service credit may be purchased.
         Michigan State University: There is no ERI program at MSU. However, employees can retire
         with full medical & dental benefits paid only after completing the specified service requirements.
         University of Arizona: Allows for payout of 500 hours of accumulated unused sick leave, but the
         payout must be over a three-year period. Unused annual leave is limited to the number of days
         earned for one year of service.
         North Carolina State University: If you retire between the ages of 60-65, with less than 25 years
         of creditable service, early retirement percentages are reduced by incremental percentages. See
         appendix for details.

Perhaps the single most important factor to an eligible employee when determining whether or not to take advantage
of an ERI is whether or not healthcare coverage is continued in a form that is found to be acceptable to them. It
should be noted that MSU does not have an ERI program, yet MSU still offers a lucrative health benefit to
retirees. The rising costs of healthcare coverage can be prohibitive to a potential participant of these programs, if
they are required to pay the costs themselves. Another important factor is whether or not the potential participant is
eligible to be added to the healthcare plan of a spouse or lifetime partner. Potential participants may be willing to
consider tradeoffs of other benefits paid under the program in order to maintain healthcare coverage with the
institution until he/she is eligible for Medicare insurance. The issue of continued healthcare coverage should be
considered in any new configuration of a plan for ISU employees.

ISU‘s Early Retirement Program ended on June 30, 2002, with the sunset for eligible applications set for June 30,
2004. At that time, there will no longer be an official early retirement policy or program for ISU employees. The
committee considers this a downgrade to employee benefits. Although the ERI Program was not an ―entitlement‖,
it has been perceived by ISU faculty and staff as an important option offered to them that enhanced the regular
benefit package currently offered.
Potential Retirement Incentive Programs

The Professional and Scientific Council has repeatedly approached ISU administrators and asked whether the ERI
Program at Iowa State University would be reinstated. The unwavering response by all administrators is that there
are no plans to reinstate the program in any form. The optimal situation for ISU employees would be to offer the
program as previously outlined. However, we realize that the previous program created a significant financial
obligation for departments and the institution. Because of this, we would like to offer ISU administrators
alternatives to the original plan that could benefit ISU.

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An issue of concern from an administrative perspective with the previous ISU Early Retirement Incentive Program
(ERI) was the ―entitlement‖ nature of the program. As an entitlement, departments have little control over who uses
ERI, regardless of the financial ramifications. ISU could develop a non-entitlement retirement incentive program
based on a simple set of principles. An example is provided below:

         1.    There is a financial benefit for the department, either short or long term; or
               a. There are organizational benefits (ie, downsizing, reorganization) for the department; and
         2.    The employee is a willing participant; and
               a. After department approval, the retirement package will be approved by Human Resource
                   Services.

Item (1) above eliminates any entitlement aspect. Item (2) allows for retirement incentives to be offered, even if the
there is no financial benefit to the department, if it facilitates departments that are reorganizing or downsizing.
However, typically item (2) is motivated by item (1). Leaving out specifics per the benefits allows maximum
flexibility to balance benefits between the employees and departmental needs.

Alternatively, ISU could employ a benefit similar to the MSU benefit by allowing qualified retirees to pay for
medical insurance with their accumulated vacation and sick leave balances. This provides a significant benefit to the
employee, without the university carrying the burden of TIAA/CREF, and dental and life insurance benefits. This
plan would also be simple to administer, and the costs are clearly assessable. Again, a set of guides, as described
above, could govern eligibility.

ISU should not be without such a powerful workforce management tool. The Legislature of the State of Iowa
recognized the value of an ERI program for controlling the costs. This is evidenced by the passage of a new ―early
out‖ program by the Legislature.

                                                   House File 2497

Iowa Governor T. Vilsack signed the following piece of legislation into law on April 2, 2004. This bill is called the
Early Out 3 Incentive Program. It is the feeling of this committee that a program similar to this should be
considered as a possible substitute for the former Early Retirement Incentive Program used by Iowa State
University. The full text of the bill can be found online†. The program is summarized below:

Table 4. Early Out 3 Incentive Program.
 ISU ERI Program                     Explanation
 Eligibility:                        State workers whose age plus years of service is equal to at least 75. The
                                     program would apply to all executive branch employees
 Application Dead line:              May 1, 2004
 Duration of Participation:          Workers leave their state jobs no later than July 2, right after the start of the
                                     new fiscal year. However, employees would have 45 days after submitting
                                     their applications to change their minds.
 Incentives:                         Participants would get paid for 100 percent of any unused vacation time,
                                     plus 75 percent of their unused sick leave, up to a maximum of 75 percent of
                                     the worker‘s annual salary.
                                     The payout would be made over five years, with 30 percent paid in the
                                     budget year that begins July 1, 20 percent in each of the next three years, and
                                     10 percent in the last year.
 Special Considerations:             Those taking early retirement must sign an agreement that they won‘t accept
                                     permanent part-time or full-time employment with the state after July 2.
 Notes
 A participant in the program shall be eligible to continue participation in the group plan or under the group
 contract at the participant’s own expense in the same manner as a retired employee pursuant to section
 509A.13. In addition, a participant shall be deemed an eligible retired state employee for purposes of eligibility
 for continuation of group insurance covering spouses as provided in section 509A.13A.

† http://www.legis.state.ia.us/GA/80GA/Legislation/HF/02400/HF02497/Current.html
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                                                        —8—
State officials said that 1,930 employees are eligible for the program. It is estimated that 593 will participate, saving
the state $2.8 million in the coming budget year and $27 million over five years. 1 The Iowa Board of Regents had a
choice of whether or not to participate in the Early Out 3 Incentive Program and elected not to participate.

                         EEOC Exemption from Age Discrimination in Employment Act

Under a proposed final rule by the U.S. Equal Employment Opportunity Commission, the EEOC ruling would
permit employers, under the Age Discrimination in Employment Act to lawfully coordinate retiree health benefit
plans with eligibility for Medicare or a comparable state-sponsored health benefit. According to the news release
dated April 22, 2004, the approved proposal now will be submitted, under Executive Order 12067, to federal
agencies for final review and any comments they may wish to submit.2 This will be followed by a review at the
Office of Management and Budget. The rule will not become final until all of the steps are followed. The full text
of the news release is located in the appendix of this document. However, if the final ruling is approved, it would
remove age discrimination questions about offering a new configuration of an ERI program at Iowa State University
that included healthcare options. For that reason, this information was included in this report.




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                                                        —9—
Conclusion

It is critical in both good and bad economic conditions that ISU remain competitive in the job market. In order to be
competitive, the benefits package at ISU should be, at a minimum, comparably valued within its peer group. As is
evident in Table 3, ISU‘s retirement incentive options lag behind those of its peers. Further, ISU should not be
without a retirement incentive in its workforce management tool set. It is the recommendation of this committee that
ISU work to enhance the retirement benefits offered to staff and create a policy that allows flexible retirement
incentives to be offered. The C&B committee encourages the P&S Council to continue to actively pursue this
subject.
1
    http://desmoinesregister.com/news/stories/c4780934/23781542.html
2
    http://www.eeoc.gov/press/4-22-04a.html




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                                                      — 10 —
Appendix: Details of ERI Programs at Peer Institutions

 Ohio State University
 Eligibility:                 Depends on age and length of service:
                              Age        Years of Service Program
                                < 55           < 30           No retirement benefits until the age 60.
                                Any            ≥ 30           Full retirement benefits. Percent of salary
                                                              increases each year of service over 30.
                                ≥ 55           ≥ 25           Reduced retirement benefits. Percent of salary
                                                              increases each year of service over 25.
                                ≥ 60            ≥5            Reduced retirement benefits. Percent of salary
                                                              increases each year of service over 5.
                                ≥ 60            ≤5            No retirement benefits until 5 years of service.
 Program Highlights:          Choose from defined benefit or defined contribution plans.

                              Health insurance is dependent on retirement system. To keep same university
                              plan, must pay premium under COBRA (Consolidated OmniBus
                              Reconciliation Act).

                              Retirement systems are OPERS (a defined benefit plan w/ built-in 3% COLA)
                              or an Alternative Retirement Plan (ARP, defined contribution a.k.a. tax-
                              deferred savings, choose from one of 7 vendors, is a substitute for Social
                              Security). Employee contribution is 8.5%; university contribution is 13.31%.

                              Can also choose to deposit into a Supplemental Retirement Account (choose
                              from one of 17 vendors).
 Notes:                       Sick Leave payout is ¼ of balance, max. 240 hrs. if you have >10 yrs. service.

 University of Wisconsin
 Eligibility:                 Early retirement is available at age 55 (50 for protective classes such as
                              firefighters).
 Program Highlights:          1) Amount of benefit is determined by an average of the 3 highest monthly
                              salaries x years of service x .016 factor. There is a chart showing different
                              combinations of age x years of service. At age 55, there is a reduction of at
                              least 9.6 %, but at 30 years of service one can retire at 57 with no reduction.

                              2) Several different annuity options are available. For example, individuals
                              can choose to get a higher payment prior to age 62 when social security starts
                              in exchange for reduced payments later on, or can get a set number of
                              payments paid to self only or self and a surviving spouse, etc.

                              3) Participants can continue the group health and dental insurance at their own
                              expense for as long as self or spouse is alive. Unused sick leave is converted
                              to a dollar credit and this amount is used to pay premiums first. If retiring with
                              at least 15 years of service, individuals are eligible for additional supplemental
                              sick leave credits based on their sick leave balance x number of years of
                              service. At age 65, participants must enroll in Medicare Part A and B.

                              4) Participants can continue group life insurance coverage with 5 or more years
                              of accrued service. If under age 65, coverage stays the same as prior to
                              retiring, but at age 65 premiums cease and coverage continues at 50% (term
                              life).
 Application Requirements:    Application can be submitted no earlier than 90 days before the last day of
                              work. Application is submitted to employee‘s department, the Wisconsin
                              Retirement System, and the Dept. of Employee Trust Funds.
 Notes:
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  Texas A & M University
  Eligibility:         Texas A&M‘s early retirement program is a defined benefit plan administered by the
                       Teacher Retirement System of Texas. Any contract or appointed employee who has
                       attained age fifty and who has five years of total credited service is eligible to elect to
                       receive a reduced retirement income.

                          Employees can retire with reduced annuity benefits at 50 years of age with at least 5
                          years of service.
   Program Highlights     Early Age Service Retirement
                          When a member elects an early age service retirement, the retiree is entitled to receive
                          a payment of a lifetime monthly annuity, reduced for early age, calculated according to
                          the benefit formula then in effect. If as a member your total of age and service credit
                          is 80 or more, you are eligible for normal age retirement. Under current law, you are
                          entitled to early age service retirement when the total of age and service is less than 80
                          and the following conditions are met: you are at least age 55 with five or more years
                          of service credit or you are any age below age 50 with 30 or more years of service
                          credit.

                          Tables are available on the website that present applicable annuity rates for members
                          who are age 49 or less and have 30 or more years of service credit; members who are
                          between 55 and 64 years of age and have completed between 5 and 19 years of
                          service; and members who are between 55 and 59 years of age and have completed
                          between 20 and 24 years of service. These are not included in this document.

                          Insurance
                          Eligible to participate in TRS-Care if you have at least 10 years of service credit in
                          TRS for actual service in Texas public schools, or if you have at least five years of
                          actual service in Texas public schools as well as five years of purchased out-of-state
                          service credit. You will not be eligible to enroll in TRS-Care if you are eligible for
                          coverage in another statewide insurance plan. Surviving spouses and eligible
                          dependents may also participate in TRS-Care if certain conditions are met. TRS covers
                          former spouses to the extent required by law.

                          The plan generally reimburses the member for 80 percent of eligible expenses after a
                          deductible is satisfied each plan year. Services provided out of network that negatively
                          affect overall plan economics may be reimbursed at a lower rate.

                          Significant plan provisions include:
                          - no maximum on lifetime benefits
                          - no preexisting condition limitation if member enrolls when first eligible

                          There are currently no plans for a TRS-Care open enrollment period, so members
                          should give enrollment in TRS-Care serious consideration at the time of retirement.

                          A small life insurance policy is also free.




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                                                       — 12 —
                        Using Sick Leave to Purchase Service Credit
                        Beginning September 1, 2001, eligible TRS members may purchase, at the time of
                        retirement, one year of equivalent membership service credit for 50 days or more
                        (or 400 hours or more) of accumulated state sick and/or personal leave. This must
                        be unused state leave as of the last day of employment before retirement.
                        Not more than five days of state sick and/or personal leave may be accumulated
                        per year toward the minimum leave required to purchase the service credit. Only
                        one year of equivalent membership service credit may be purchased.
                        To purchase the year of equivalent membership service credit, members must pay the
                        actuarial present value of the benefit attributable to the conversion of their unused sick
                        and/or personal leave. Members will need to verify eligibility to purchase this service
                        credit at the time of retirement.


          Attendance:
                        State-specified application procedure for retirement.
          Application   Contract employees (faculty and high-level administrative staff) have a ―portable‖
        Requirements:   Optional Retirement Plan in which they immediately can become fully vested and can
                        retire at any age. The option to elect the ORP is a one-time irrevocable decision.
                        May purchase service credits from leave of absence, military service, and other
                        circumstances, up to specified limits.
               Notes:   Texas A&M‘s early retirement program is a defined benefit plan administered by the
                        Teacher Retirement System of Texas. Any contract or appointed employee who has
                        attained age fifty and who has five years of total credited service is eligible to elect to
                        receive a reduced retirement income.

                        Employees can retire with reduced annuity benefits at 50 years of age with at least 5
                        years of service.




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                                                     — 13 —
    Michigan State University
    Eligibility:                62 and 15 years of service or 25 years of service and any age
    Program Highlights:         Employees can retire with full medical & dental benefits paid only after
                                completing the following FTE service requirements:

                                If an employee retires with 25 years of service at any age, the following FTE
                                service month ranges determine their health and dental contribution during
                                retirement.
                                FTE service               University contribution level
                                months
                                150 - 194.99              half-time
                                195 - 269.99              three-quarter time
                                270 - 999.99              full-time
                                If an employee retires with a minimum of 15 years of service and is at least
                                age 62, the following FTE service month ranges determine their health and
                                dental contribution during retirement:
                                FTE service               University contribution level
                                months
                                90 - 116.99               half-time
                                117 - 161.99              three-quarter time
                                162 - 999.99              full-time
    Notes:                      Most MSU employees are covered by a collective bargaining agreement.

                                Can also participate in the Supplemental Retirement Plan (SRP, another
                                defined contribution plan) and/or Deferred Compensation Plan (a tax-deferred
                                savings plan).

                                SRP only takes employee contributions, up to a limit imposed by IRS on
                                403(b) plans. Vendors include Fidelity Investments, TIAA-CREF, The
                                Vanguard Group, AIG VALIC, AXA Advisors/Equitable, and Lord, Abbett &
                                Co. Withdrawals can be made after age 59.

                                The Deferred Compensation Plan only takes employee contributions, up to a
                                limit imposed by IRS on 457(b) plans. Vendors include: AIG VALIC, AXA
                                Advisors/Equitable, and TIAA-CREF. Withdrawals can be made after age 65.




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    University of Minnesota
    Eligibility:                Early retirement is available to all other staff who are at least half-time with 5 years
                                of service at age 55, or 15 years of service at age 50, or 30 years of service at any
                                age.

                                Phased retirement is available for tenured faculty with 2-3 years of service to the
                                university who are at least 52 years old.
    Program Highlights:         For the early retirement plan, the university pays medical and dental insurance for
                                36 months after retirement (includes family coverage). After 3 years, employee can
                                stay with plan but must pay own premiums. When reach 65, must apply for
                                Medicare Part B.

                                For phased:
                                1) University contributions to retirement annuity plan, medical insurance, dental
                                insurance, life insurance, and disability insurance continue during retirement phase
                                out. At the end of phase out, medical and dental insurance continues for 24 months
                                regardless of Medicare eligibility (includes family coverage).

                                2) Faculty may make one withdrawal a year from the faculty retirement plan during
                                the phase out. The maximum allowed each year is 10% of the account balance at the
                                time of the withdrawal.

                                3) During the phased retirement plan, vacation accrues when at 67% time or greater,
                                but then ceases. Payout is an option as long as it‘s done within 12 months of
                                accrual.

                                4) For the phased retirement plan, must completely retire within 5
                                years of starting phase-out.
                                6) Annuity funds are not available until age 59.
    Application Requirements:   No prior approval is needed for participating in the early retirement plan. Forms
                                must be submitted to department supervisor for signature only.

                                The application for phased retirement must be submitted to the department and to
                                human resources. Must prove that it is in the best interest of the university to give it.
    Notes:                      The cost of the benefits is charged to the ―fringe pool‖ and is included as part of the
                                total cost used in determining annual fringe rates for departments.




Revision 12, May 19, 2004                                                                                  Page 14 of 21

                                                  — 15 —
    University of Illinois
    Eligibility:                SURS retirement annuities are paid for life. You are eligible to receive a
                                retirement annuity when you satisfy any of the following conditions:
                                (1) You are at least age 55 and have 8 or more years of Illinois service (benefits
                                will be reduced for early retirement if you retire between ages 55 and 60);
                                (2) You are at least 62 and have 5 or more years of service; or
                                (3) At any age when you achieve 30 years of service, provided your covered
                                employment terminated on or after August 2, 2002.

    Program Highlights:         There are four formulas for calculating a retirement annuity: General Formula,
                                Money Purchase Formula, Minimum Annuity Formula, and Police Officer &
                                Firefighter Formula. *

                                The retirement annuity under any formula tag age 62 or earlier cannot exceed
                                75% of the final average earnings. The maximum retirement annuity is 76% at
                                age 63, 78% at age 64, and 80% at age 65 or later. A person who begins
                                participation after Sept. 14, 1977, is subject to a maximum of 75%. If
                                employment terminated on or after August 2, 2002, retirement at any age,
                                without reduction, is allowed if a member has 30 or more service years. The
                                retirement annuity under any formula cannot exceed 80% of the final average
                                earnings.

                                Early Retirement Reduction
                                The General Formula rule states that if you retire before age 60, your retirement
                                annuity will be reduced for early payment unless: you have 30 or more years of
                                service credit or; you are disabled and continue to be disabled after your
                                disability benefits expire. If you do not satisfy any of these conditions, your
                                benefit will be reduced 0.5% for each full month you are under age 60 when you
                                retire under the General Formula.
                                Special Features for Police Officers and Firefighters
                                Police officers and firefighters may claim their full, unreduced retirement
                                annuity: at age 50 with at least 25 years of service as a police officer or
                                firefighter covered by SURS; or at age 55 with at least 20 years of service as a
                                police officer or firefighter covered by SURS.
                                Health Insurance
                                Certain SURS retirees and their survivors may qualify for health insurance
                                benefits through their former employment. While no universal health coverage is
                                offered to all retirees, SURS helps administer the benefits for some of these
                                programs.
                                State-Paid Insurance vs. Retirement Formula
                                Eligible members with less than 20 years of service credit will choose, at
                                retirement, to use the provisions of the laws in effect either before or after July 7,
                                1997. This choice may or may not result in a lower monthly annuity benefit.
                                With regard to health insurance, this choice will result in either a co-payment of
                                monthly insurance premiums or free health insurance.
    Application Requirements:   To apply for a retirement annuity, contact SURS for an Application for
                                Retirement Annuity under the Traditional Benefit Package at least 90 days before
                                you plan to retire.
    Notes:                      *The University of Illinois does not have a stated Early Retirement Incentive
                                program. However, employees can retire between the ages of 55 & 60, and this
                                information was included due to that fact.




Revision 12, May 19, 2004                                                                               Page 15 of 21

                                               — 16 —
    Purdue University
    Program Eligibility:    The retirement options included as part of this policy are: (1) Advance Retirement
                            Declaration; and (2) Voluntary Early Partial Retirement Program. These options are
                            available to regular faculty and administrative/professional staff members who are covered
                            under the University's defined contribution retirement plan. To participate in any of the
                            retirement alternatives, the individual must be at least age 55 with a combination of age and
                            years of service that equals or exceeds 70.
    Program Highlights:     An individual meeting the necessary age and service requirements may reduce his/her
                            employment with an appropriate reduction in pay. The reduced employment under this
                            policy will normally be 50 percent, although arrangements for other levels of part-time
                            employment are acceptable. Sabbatical and faculty exchange leaves of absence shall be
                            counted as years of service. Leaves of absence for other reasons shall not count as years of
                            service; however, they will not constitute a break in continuous service. Teaching,
                            administrative, and research assignments shall be determined for each individual through
                            negotiations with the cognizant department head, dean, or director. Participants in the
                            partial retirement program must agree to accept full retirement from the University within
                            five (5) years. Once a written agreement has been approved, the duration of the retirement
                            accord cannot be lengthened nor the percentage of time employed increased; however, both
                            may be decreased by mutual agreement. Participants may not supplement the terms of these
                            agreements with employment elsewhere at the University.

                            During the period of reduced employment, the University shall continue its regular
                            contribution to retirement based upon the staff member‘s full-time basic annual budgeted
                            salary. If Internal Revenue Service limits prevent the University from making contributions
                            based on full-time budgeted salary, any amounts which cannot be paid into the retirement
                            account(s) will be paid directly to the participant. These payments will be taxable income,
                            subject to all the appropriate taxes such as federal, state, county, Social Security/Medicare
                            and reported on the W-2 for that year.

                            During voluntary early partial retirement, the individual will qualify for all staff privileges
                            and benefits with group insurance coverage levels and rates based upon a full-time salary.
                            The University will continue its regular contributions, if any, to these programs during this
                            period. Vacation and sick leave will be paid based on the salary rate for reduced
                            employment. At the termination of the voluntary early partial retirement arrangement, a
                            staff member will be paid for terminal vacation pay up to a maximum of 44 days.
                            Participants will be permitted to receive cash withdrawals or annuitize up to 100 percent of
                            their retirement accumulations. (TIAA provides transfer payout withdrawals over a ten-
                            year period.) Participants will be considered as regular retirees for the purposes of selecting
                            any retirement payout options.
    Application             Individuals interested in pursuing options available under these programs should consult
    Requirements:           with their department head/dean to outline their plans for retirement. Personnel Services-
                            Compensation and Benefits will assist participants with the initiation of any retirement
                            benefits and ensure that full retirement contributions during any period of reduced
                            employment comply with IRS requirements. All agreements must be in writing, defining
                            the terms and duration of the arrangement, and will require the prior approval of the
                            appropriate Vice President, Chancellor, or Director of Intercollegiate Athletics.
                            Participation cannot be guaranteed, as the work requirements for some positions may not
                            permit part-time assignments. Individuals who are considering participation in the
                            Voluntary Early Retirement Program should contact Compensation and Benefits or their
                            regional campus Personnel Office to determine, in advance, whether their proposed work
                            arrangements and pay will result in the University having to make taxable payments to
                            them in lieu of retirement contributions.
    Notes:

Revision 12, May 19, 2004                                                                                    Page 16 of 21

                                                     — 17 —
    Eligibility (PERF):     The PERF (Public Employees Retirement Plan) benefit rewards those with more years of
                            service with the ability to retire at an early age. As a result, there are three ways you can
                            become eligible to receive full (unreduced) pension benefits under PERF:
                            if you are age 65, and have 10 or more years of creditable service under PERF;
                            if you are age 60, and have 15 or more years of creditable service under PERF; or,
                            if you are at least age 55, and the sum of your age at retirement and your total years of
                            creditable service under PERF equals 85 or greater (known as the ―Rule of 85‖).
    Program Highlights:     Early Retirement with Reduced Pension Benefits
                            PERF also provides early retirement options, where the pension benefit will be reduced
                            based on your age. You will qualify for early retirement with a reduced pension if you are
                            not eligible for normal (unreduced) benefits described above and meet the two following
                            conditions: you are between the ages of 50 and 59, and you have at least 15 years of
                            creditable service under PERF.
                            Keep in mind that if you choose to take early retirement, your pension benefits will remain
                            at the reduced level even after you reach the age requirements for normal (unreduced)
                            benefits.
    Notes:                  There is also a retirement plan offered for police and firefighters that is not included in this
                            comparison.




Revision 12, May 19, 2004                                                                                     Page 17 of 21
                                                      — 18 —
    University of Arizona
    Eligibility:                UA‘s early retirement program is a defined benefit plan administered by the State of
                                Arizona. Any contract or appointed employee who has attained age fifty and who
                                has five years of total credited service is eligible to elect to receive a reduced
                                retirement income.
    Program Highlights:         At age 50 with 5 years of service, benefits are 35% of full retirement benefits. The
                                benefit payable for early retirement is determined by reducing the normal retirement
                                benefit as follows: (1) Reduce 3% per year from age 60 to age 65 and 5% per year
                                from age 50 to age 60. The reduction in normal retirement benefits is based on the
                                period from the date benefits begin to the member's 60 th birthday if the member has
                                at least 20 years of total credited service, 62nd birthday if the member has at least 10
                                but less than 20 years of service, or 65th birthday if the member has at least 5 but less
                                than 10 years of service. (2) If the sum of a member's age and years of total
                                credited service is at least 77 but less than 80, reduce at the rate of 3% for each unit
                                of one or fraction of one by which the sum is less than 80.
                                Unused Annual Leave: When employment terminates for any reason other than
                                death, payments for accumulated annual leave days shall not exceed the amount
                                earned for one year of service.
                                Unused Sick Leave: Eligible appointed personnel who retire from the University
                                and have accumulated unused sick leave of 500 hours or more can receive a cash
                                payout of their sick leave benefit over a three-year period. To qualify, the employee
                                must: (a) be an eligible appointed personnel employed by the State (University) on
                                or after July 1, 1998; (b) have accumulated unused sick leave totaling 500 hours or
                                more at retirement; (c) be eligible for retirement and benefits from the University;
                                (d) apply for retirement with an authorized State of Arizona retirement system
                                immediately (within 14 calendar days) upon separation from state service; and (e)
                                apply for the Retiree Accumulated Sick Leave (RASL) benefit within 180 days from
                                the retirement date. There are no extensions to these deadlines. Failure to comply
                                with these deadlines will result in permanent and irrevocable forfeiture of this
                                benefit. The maximum benefit will be 1,500 hours of sick leave not to exceed
                                $30,000. Appropriate FICA, federal, and state income taxes will be deducted prior to
                                the payment of the benefit. The following table outlines the percentage that will be
                                applied based on the number of accumulated sick leave hours.
                                Sick Leave Balances (Hours)                     Percentage of Hourly Rate
                                500 to 749                                      25%
                                750 to 999                                      33%
                                1,000 to 1,500                                  50%
                                The University president may approve sick leave in addition to that allowed by this
                                policy, but a report shall be made to the Board of Regents in the case of any sick
                                leave which is granted in excess of that allowed by this policy or which exceeds
                                three months, whichever is greater.
                                Insurance
                                All retirees can retain University health and dental policies (no coverage for vision)
                                at a subsidized cost and can change plans during the annual open enrollment period.
                                If a retiree elects to leave the University‘s insurance program, he/she can never
                                return.
    Application Requirements:   State application procedure; no approval needed. Retirees are encouraged to notify
                                their departments once a retirement decision has been made.
    Notes:                      Contract employees (faculty and high-level administrative staff) have a ―portable‖
                                Optional Retirement Plan in which they immediately can become fully vested and can
                                retire at any age. About 1/3 of contract employees are eligible and 70% to 75% of these
                                select the ORP. May purchase service credits from leave of absence, military service,
                                and other circumstances up to specified limits. Have not had an early retirement
                                incentive program since the mid-1980s.


Revision 12, May 19, 2004                                                                               Page 18 of 21

                                                  — 19 —
 University of California at Davis
 Program Highlights:            None available
 Notes:                         With the 2003-04 state budget finalized and exacting a 25 percent permanent cut to
                                the University of California Cooperative Extension and another 10 percent to the
                                Agricultural Experiment Station, in addition to last year's 10 percent cut, UC
                                Division of Agriculture and Natural Resources (ANR) has begun eliminating jobs in
                                its first wave of budget cuts. The cuts will be made through elimination of vacant
                                positions and from retirements, voluntary departures and layoffs.

                                UC explored diligently a number of alternatives to layoffs, including the possibility
                                of a voluntary early retirement incentive program. However, after careful financial
                                analysis, it was determined that an early retirement program was not feasible.
                                http://ucanr.org/internal/Budget/budget8-21-03.shtml

 North Carolina State University
 Eligibility:                   You may retire early with a reduced retirement benefit after: you reach age 50 and
                                complete 20 years of creditable service, or you reach age 60 and complete five years
                                of membership service. Your early retirement benefit is determined by the same
                                formula as a service retirement benefit multiplied by a reduction percentage based
                                on your age and/or service at early retirement.
 Program Highlights:            If you are between ages 60 and 65, with less than 25 years of creditable service, your
                                early service retirement benefit will be reduced to the following percentages:
                                Age at Retirement                              % of Full Retirement Benefit
                                                     64                                           97
                                                     63                                           94
                                                     62                                           91
                                                     61                                           88
                                                     60                                           85
                                When you retire, you are eligible for coverage under the State‘s Comprehensive
                                Major Medical Plan, if you contributed to this Retirement System for at least five
                                years while employed as a teacher or State employee. (Credit received for unused
                                sick leave, or credit transferred from the Local Governmental Employees‘
                                Retirement System does not count toward eligibility for health insurance coverage.)
                                At the time you complete your Application for Retirement, be sure to complete an
                                application to enroll in the retired group of the State‘s Comprehensive Major
                                Medical Plan. Under current law, the State pays the full cost of your individual
                                coverage under the regular State insured plan. The full cost of dependent coverage,
                                if elected, must be paid by you. As a retiree, when you or covered dependents
                                become eligible for Medicare, both Parts A and B must be elected in order to
                                maintain the same level of coverage provided before retirement. When you retire,
                                you will have an opportunity to elect coverage under the $6,000 Contributory Death
                                Benefit for Retired Members. Your election must be made within 60 days from the
                                effective date of your retirement. Information about the cost and coverage provisions
                                will be sent to you shortly after the Retirement System receives your retirement
                                application.
 Application Requirements:      To begin retirement benefits, employees must sign and file an Application for
                                Retirement not earlier than 90 days or later than one day before the effective date of
                                retirement. The effective retirement date is always the first day of the month and is
                                not the date that you quit work. If the retirement application is not executed at least
                                one day before the effective retirement date, the Retirement Systems Division must
                                change the effective date to the first of the following month.




Revision 12, May 19, 2004                                                                                    Page 19 of 21

                                                      — 20 —
                                         IOWA STATE UNIVERSITY
                              AGE DISTRIBUTION (Permanent Faculty and Staff)
                                             FY2004 BUDGET
                                      1                    2
                             FACULTY                   P&S                         MERIT
                                  % of Total              % of Total                   % of Total
         Age            Number     Faculty    Number        P&S             Number       Merit
          50              47        3.30%        95          4.47%            92         4.76%
          51              50        3.51%        80          3.76%            92         4.76%
          52              59        4.15%        86          4.05%            95         4.92%
          53              59        4.15%        72          3.39%            74         3.83%
          54              41        2.88%        72          3.39%            76         3.93%
          55              44        3.09%        65          3.06%            71         3.67%
          56              59        4.15%        61          2.87%            70         3.62%
          57              41        2.88%        39          1.84%            46         2.38%
          58              34        2.39%        35          1.65%            37         1.92%
          59              48        3.37%        27          1.27%            49         2.54%
          60              39        2.74%        28          1.32%            36         1.86%
          61              32        2.25%        20          0.94%            29         1.50%
          62              35        2.46%        10          0.47%            28         1.45%
          63              24        1.69%         7          0.33%            14         0.72%
          64              27        1.90%         2          0.09%            14         0.72%
          65              11        0.77%         7          0.33%             8         0.41%
          66              11        0.77%         5          0.24%             8         0.41%
          67              12        0.84%         3          0.14%             7         0.36%
          68               9        0.63%         4          0.19%             5         0.26%
          69               9        0.63%         2          0.09%             4         0.21%
          70               3        0.21%                                      1         0.05%
          71               1        0.07%                                      1         0.05%
          72               2        0.14%         1          0.05%             3         0.16%
          73               1        0.07%         1          0.05%             1         0.05%
          74               1        0.07%
          75
          76
          77                  2       0.14%                                              2               0.10%
          78                  3       0.21%
          79                  1       0.07%
          80                                                                             1               0.05%
          81
          82
 Total 55 and Over           449      31.55%          317           14.92%             435              22.52%
 Total 60 and Over           223      15.67%           90           4.24%              162              8.39%
 Total 65 and Over            66      4.64%            23           1.08%               41              2.12%
 Total 70 and Over            14      0.98%             2           0.09%                9              0.47%
 Total 75 and Over             6      0.42%                         0.00%                3              0.16%
 Total All Ages             1,423    100.00%         2,125         100.00%            1,932            100.00%
 Aggregate Totals:
                                                 1
                                                  Faculty counts include Tenured, Tenure-Eligible, and
 Total 55 and Over           1,201      21.9%    Continuous Adjunct
 Total 60 and Over             475       8.7%     faculty; Lecturers, Clinicians and Visiting faculty are excluded.
 Total 65 and Over             130       2.4%
                                                 2
 Total 70 and Over              25       0.5%        P & S counts do not include Contract employees.
 Total 75 and Over               9       0.2%
 Total All Ages              5,480

Revision 12, May 19, 2004                                                                         Page 20 of 21

                                                — 21 —
FOR IMMEDIATE RELEASE                                      CONTACT:    Jennifer Kaplan
April 22, 2004                                                         (202) 663-7084
                                                                       David Grinberg
                                                                       (202) 663-4900
                                                                  TTY: (202) 663-4494
EEOC APPROVES PROPOSAL TO EXEMPT RETIREE HEALTH PLANS FROM AGE DISCRIMINATION IN
EMPLOYMENT ACT
Rule Would Permit Employers to Continue Providing Valuable Retiree Health Benefits

WASHINGTON - During a public meeting today, the U.S. Equal Employment Opportunity
Commission (EEOC) voted to approve a proposed final rule that would permit employers, under
the Age Discrimination in Employment Act (ADEA), to lawfully coordinate retiree health benefit
plans with eligibility for Medicare or a comparable state-sponsored health benefit. This common
and long-standing employer practice was called into question in 2000, when the U.S. Court of
Appeals for the Third Circuit (Erie County Retirees Association v. County of Erie) held that the
federal statute requires employers to assure that pre- and post- Medicare eligible retirees receive
health benefits of equal type and value.

"This rule is intended to ensure that the ADEA does not have the unintended consequence of
discouraging employers from providing valuable health benefits to retirees," said Chair Cari M.
Dominguez, emphasizing that the General Accounting Office has estimated 10 million retired
individuals aged 55 and over count on employer-sponsored health plans as either their primary
source of health coverage or as a supplement to Medicare. "Such benefits are provided on a
voluntary basis at the discretion of each employer and the Commission is acting to preserve
these valuable benefits for retirees."

"We know that health benefits are very important to retirees. Our proposal permits the common-
sense practice of coordinating employer-provided retiree health benefits with eligibility for other
benefits to continue," added Vice Chair Naomi C. Earp. "This rule should be welcome news for
America's retirees."

The Commission's prior policy, which was rescinded by a unanimous vote in August 2001, had
concluded that coordinating retiree health benefits with Medicare eligibility constituted an illegal
age-based distinction under the ADEA. A Notice of Proposed Rulemaking published in the July 14,
2003, Federal Register solicited public comments on the document discussed and voted upon
today.

The approved proposal now will be submitted, under Executive Order 12067, to federal agencies
for final review and any comments they may wish to submit. Pursuant to Executive Order 12866,
a review at the Office of Management and Budget will follow. After interagency review, a final
rule will be published in the Federal Register. Only after all of these steps occur will the rule
become final.

In addition to enforcing the ADEA, which prohibits age discrimination against workers age 40 and
older, the five-member Commission enforces Title VII of the Civil Rights Act of 1964; the Equal
Pay Act of 1963; Title I of the Americans with Disabilities Act of 1990; portions of the
Rehabilitation Act of 1973; and sections of the Civil Rights Act of 1991. Further information about
the EEOC is available on the agency's web site at www.eeoc.gov.




Revision 12, May 19, 2004                                                                   Page 21 of 21


                                              — 22 —
P&S Council Year-End Standing Committee Report

P&S Council Committee: P&S Compensation and Benefits Committee 2003-2004

Committee Function (P&S Council Rules and Bylaws):

        Compensation and Benefits. Composed of at least five council representatives, one of whom shall be chair.
         The committee will work to assure a fair and equitable financial reward system for Professional and
         Scientific staff. The committee‘s responsibility will be to assess the effectiveness of the university‘s
         classification and compensation system. The committee will develop and recommend revisions to the plan
         as well as provide counsel to the Professional and Scientific Council in the University‘s annual budgeting
         process. Recommendations shall pertain to issues such as budget requests for salary, salary distribution,
         adjustments to the pay structure, and other compensation concerns.

         The committee shall also assess and make recommendations to the Council on issues dealing with staff
         benefits including leaves, professional development, insurance, and retirement.

Committee Scope (P&S Council Website):

This committee works to assure a fair and equitable financial reward system for P&S staff. The C&B Committee's
responsibility is to assess the effectiveness of the university's classification and compensation system. They develop
and recommend revisions to the plan as well as provide counsel to the P&S Council in the university's annual
budgeting process pertaining to issues such as budget requests for salary, salary distribution, adjustments to the pay
structure, and other compensation concerns. The committee also assesses and recommends action on issues dealing
with staff benefits including leaves, professional development, insurance, and retirement.

Committee Membership:
Council members:                                      Non-Council members:
        Teresa Peterson, Co-Chair                            Lynette Mcbirnie
        Jim Jensen, Co-Chair                                 Felice Iasevoli
        Tom Becker                                           Deborah DeWall
        Trevor Riedemann                                     Malisa Rader
        Brenda Van Beek                                      Roxanne Clemens
                                                             Kris Pruismann

Expectations of Committee Members:
Each committee member is expected to attend the committee meetings, and serve on subcommittees to develop
recommendations for the committee to discuss and process.

Schedule of Ongoing Tasks:
The committee completed a report assessing the Early Retirement Programs for Professional Staff at the Peer 11
institutions.

Issues Address This Year with Year-End Status:

The C&B committee pursued several issues this session. Table 1 summarizes the motions submitted to Council by
the C&B committee concerning said issues.




                                                       — 23 —
Table 1. Summary of C&B motions/resolutions moved forward in the 2003-2004 session.
 Motion Number Motion Title                                                                  Date Passed.
                Resolution Offering Retirement Incentives to Relieve Budget Constraints      Dec. 4, 2003
                Comprehensive review of the P&S Classification and Compensation System       May 6, 2004
                At Large Officer Report from Trevor Reidemann and Dan Woodin-Tuition         Submitted to
                Assistance Programs for Professional Staff at the Peer 11 Institutions       Exec at Feb.
                                                                                             meeting
                At-Large Officer Report from Trevor Reidemann-Past and Present Comments      Submitted to
                from External Auditors Concerning Performance Evaluations at ISU             P&S Council
                                                                                             May 6, 2004
                Early Retirement Programs for Professional Staff at the Peer 11 Institutions Submitted to
                                                                                             P&S Exec.
                                                                                             Committee May
                                                                                             14, 2004


    1.   Continued monitoring of issues presented for action in the previous year. These included:
          H.R. Audit Report
                 a) Merit/P&S Overlap
                 b) Salary compression
                 c) Review of P&S Pay matrix/classifications
                 d) Performance Appraisals at ISU

    2.   University Benefits Committee Council Participation
    3.   Salary increase recommendation proposal
    4.   Early Retirement Incentive Program
    5.   Tuition Assistance Programs for Professional Staff at the Peer 11 Institutions
    6.   Past and Present Comments from External Auditors Concerning Performance Evaluations at ISU
    7.   Mileage increase for Extension personnel

    Other areas of interest:
    1. Healthcare costs
    2. Death Benefits
    3. Support of Extension personnel

Not all of the issues examined resulted in a formal motion. A summary of issues and the status of any work
conducted are provided below.

    1.   Continued monitoring of issued presented for action in the previous year.

         Summary: The first item state that ―continued monitoring of issues presented in 2002-2003 would be
         required.‖ Items a-c contributed to the decision of Iowa State University to hire H.R. Audit as a consultant
         to conduct an assessment of the Professional and Scientific Classification & Compensation system
         currently used. The committee work during the assessment process and resulting reports dominated the
         work of the C&B committee this year.

         Members of the Compensation and Benefits committee were involved in selection of the consultant, focus
         groups held by the hired consultant, reviewing of draft reports, providing comments/suggestions to the
         aforementioned reports, and finalizing the report. The timeline followed after selection of H.R. Audit was:

            December 2003 – focus group meeting with the P&S Executive Council
            Feb. 2004 – first draft report review and modifications
            Mar. 2004 – second draft report review and modifications
            Apr. 2004 – final report received

         Status: Apr. 2004 – Motion presented to P&S Council requesting a comprehensive review of the P&S
         Classification and Compensation system on May 6, 2004. Motion passed.

                                                      — 24 —
         We recently learned that Human Resource Services is adding a module to the PeopleAdmin package
         enabling them to add position description questionnaires online.

    2.   The University Benefits Committee created an ex-officio seat for the P&S Compensation and Benefits
         Committee this year.

    3.   Salary increase recommendation proposal

         Summary: Mid-March the Compensation and Benefits Committee was asked to provide a recommendation
         from the P&S Council for FY05 salary matrix and policies. We were given one week to provide the
         recommendation to Warren Madden, Vice President for Business & Finance.

         Status: C&B Committee worked with the P&S Council Executive Committee to provide a recommendation
         for the FY05 P&S Salary Matrix and Salary Policy. The recommendation was provided to Warren Madden
         on March 26 in memo form. The recommendations included a 3% increase in the minimum and maximum
         of each pay grade. It also included a minimum salary increase that equal .75% of the midpoint in each pay
         grade for satisfactory performance. The salary policy was submitted to the BOR, but won‘t be approved
         until the June meeting.

    4.   Early Retirement Incentive Program

         Summary: The committee finalized a report entitled, ―Early Retirement Programs for Professional Staff at
         the Peer 11 Institutions‖. This has been a project that spans the last several years. The purpose of the report
         is to compare the programs available and being offered at Peer 11 Institutions in an effort to convince the
         ISU administration to reinstate some form of an ERI program at ISU.

         Status: The C&B Committee submitted the final draft report to the Executive Council on May 14, 2004, for
         their review, input, and discussion at the May Executive Council meeting. Plans are to submit the final
         report to the full P&S Council at the June meeting. The report recommends that the P&S Council continue
         to pursue this matter. A motion will not be prepared in this year‘s activities.

         However, in December of 2003 a Resolution Offering Retirement Incentives to Relieve Budget Constraints
         was passed by the Professional & Scientific Council. The report being submitted this year provides
         supporting documentation for that resolution.

    5.   Summary: A report was prepared by Trevor Reidemann and Dan Woodin on Tuition Assistance Programs
         for Professional Staff at the Peer 11 Institutions. Trevor prepared this report in the capacity of At-Large
         Officer of the P&S Executive Committee.

         Status: The report was submitted to the P&S Executive Council at the February meeting. The Exec Council
         is waiting for comments from the Professional Development committee.

    6.   Summary: A report was prepared by Trevor Reidemann on Past and Present Comments from External
         Auditors Concerning Performance Evaluations at ISU. This was another At-Large Officer report.

         Status: Submitted to the P&S Council on May 6, 2004.

    7.   Mileage increase for Extension personnel.

         Summary: Motion 2002-03.10, Support for Extension‘s request to raise the mileage reimbursement rate that
         was passed last year by the Council has not been acted upon by the administration.

         Status: Teri Peterson contacted Ellen Rasmussen to inquire about the status of the proposal. Ellen was not
         able to provide new information. However, the question was raised at the Campus Leader‘s Breakfast held
         on May 12. The issue is still under consideration by ISU Administrators.

Issues Carried Forward To Next Year:
                                                       — 25 —
1.   Comprehensive Review of the P&S Classification and Compensation System at ISU
2.   Reinstatement of the Early Retirement Incentive Program
3.   Other areas of interest items need to be pursued further. There was not time to address these issues during
     the past year.




                                                  — 26 —
                     P&S Council Year-End Standing Committee Report

P&S Council Committee: P&S Policies and Procedures Committee 2003-2004

Committee Function (P&S Council Rules and Bylaws):

          Policies and Procedures. At least five council representatives, one of whom shall be chair. The province of
           the committee shall be all university administrative policies and procedures that affect professional and
           scientific employees. The committee shall regularly assess the value and effectiveness of university policies
           and procedures and their implementation, and shall work with appropriate administrators to develop and
           recommend any revisions or alternative approaches that will best serve the interests of the employees.

Committee Scope (P&S Council Website):

Mission:
           The Policies and Procedures Committee strives to ensure that all university policies and procedures
           pertaining to P&S employees are reasonable, fair, and just.

Purpose:
           The purpose of the Policies and Procedures Committee is to review policies and procedures within the ISU
           community that pertain to P&S employees and to respond to concerns and questions from constituents
           involving ISU and P&S policies and procedures.

Goals:
           1.   Bring policies and procedures of concern to the attention of the P&S Council and the appropriate ISU
                body.
           2.   Develop and recommend revisions or alternative approaches that will best serve the interest of P&S
                employees.

Committee Membership (P&S Council Website):
Council members:                      Non-Council members:
        Kelly McCool, Chair                  Lynne Mumm
        Ann Doty                             Ellen Rasmussen
        Marie Mayer                          Josie Six
        Barry McCroskey                      Chris Strasburg
        Jim Patton
        David Popelka
        Pat Strah
        Dan Woodin

Expectations of Committee Members:
Each committee member is expected to attend the committee meetings and serve on subcommittees to develop
recommendations for the committee to discuss and process.

Schedule of Ongoing Tasks:
This committee has the responsibility to validate the content of the P&S Handbook and to insure that the P&S
policies and procedures are up-to-date and that the Web links are active and pointing to the correct information.

Issues Addressed This Year with Year-End Status:

1. P&S Handbook – Ongoing process/procedures
        Developed a process, P&S Handbook Review Schedule, to insure that the P&S Handbook is up-to-date and
        to insure that all web links are correct and active (see attached).




                                                        — 27 —
2. Dispute Resolution Policy / Conduct Policy
         A draft proposal was developed by the ISU Administration and provided to the committee at the end of
         2002. This draft proposal was reviewed by an ‗ad hoc‘ P&P committee. Comments from the ‗ad hoc‘
         committee were reviewed and discussed early in the year. It was decided to work to revise the existing
         grievance procedure than to move forward with working on the draft proposal as the Employee Relations
         position was vacant. Discussions to revise the existing policy included creating written procedures for the
         Grievance Review Committee and identifying a select pool for the P&S Council President to select a
         representative for the Grievance Review Committee.

3. Ombuds – PIQ development
       No progress was made on the PIQ development due to the budget situation this year.

4. Constitution Changes: P&S Council member changing area of affiliation
         Amendments were made to Article VI and Article IX of the P&S Constitution. Explanation: If a P&S
         Council member changes area of affiliation the constitution of the P&S council require the council member
         to resign from council. The amendments l allow the council member to serve until the end of the fiscal year
         following the newest regular P&S Council elections, if they so choose.

5. P&S Council Business Conduct – policies, procedures, and process.
        A draft P&S Council Operations chart was created to show how ideas, concerns, proposals, and issues
        come to P&S Council and how they may interact with the different committees of P&S Council (see
        attached). A final version of this chart is expected to be available for the retreat in August.

Issues Carried Forward To Next Year:

1. P&S Handbook – Ongoing process/procedures
        Continue to use the Handbook Review Schedule. Separate policy from process.

2. Dispute Resolution Policy / Conduct Policy
         Incorporate Grievance Review Committee procedures received from the Provost‘s office in to the P&S
         Handbook. Work on identifying a selection pool for the P&S Council President and continue to review the
         draft dispute resolution policy.

3. Ombuds – PIQ development
       The Policies & Procedures committee will need to be ready with a proposal as a Faculty proposal is still
       expected. A P&S Council position proposal should be considered along with the Faculty proposal.

4. P&S Council Motions/Actions – policies, procedures, and process.
        Review Article XIV Providing Feedback and Recommendations to Administration of the Rules and Bylaws
        of the Professional and Scientific Council to see if the wording could be changed to reflect process and
        documentation for all P&S Council actions.

5. P&S Council Business Conduct – policies, procedures, and process.
        Review, document, and recommend policies, procedures, and process for P&S Council operation that are
        not documented in P&S Council Constitution or       Bylaws.

6. Constitution Change for:
         Article X – Changes will allow candidates to run unopposed for representative positions.
         Article XV – Changes the maximum time between P&S Council meetings from 60 to 75 days.
         Article XVI – Changes the current vice president and president system to a president-elect to president
         succession system.

7. Bylaw changes




                                                      — 28 —
 Professional & Scientific Council
          Policies & Procedures Committee

         Professional & Scientific Handbook
               FY04 Review Schedule

Section                                          Review Month       Assigned To
1. The University                                April, October     Josie Six
2. General University Policies & Procedures      March, July        David Popelka
3. Personnel Policies & Procedures               February, August   Pat Strah
4. Professional Policies and Procedures          January, July      Dan Woodin
5. Salary and Benefits                           February, August   Barry McCroskey
6. Policy and Information Resources              May, November      Marie Mayer
7. University Services                           June, December     Lynne Mumm
8. Cultural and Recreational Activities          April, October     Anne Doty
9. Appendices                                    May, November      James Patton




                                              — 29 —
                        P&S Council Operations

                                                          P & S Council
                                 Initiate
                                 Discuss
                                 Amend
                                 Recommend
                                 Act (Motion)
  Idea
                                                   Ad Hoc Committee
                                                    of P & S Council
Proposal       Executive Committee                  Discuss
                                                                                ISU Administration
                  of P & S Council                  Research
              Inform/Communicate                   Propose (Motion)            Inform
              Educate/History                                                   Communicate
              Direct/Procedures                                                 Suggest
              Suggest
Concern       Act (Motion)


 Issue
                                                           Standing Committee
                                                             of P & S Council
                                 Initiate
                                 Discuss
                                 Research
                                 Propose (Motion)




                                                                                         DRAFT June 3, 2004



                                          — 30 —
                                                       P&S Council Operations
Issue: “Arrival of Children”

A draft version of a proposed policy on family leave was developed by the Office of the Provost with the assistance of Assistant Vice President for
Human Resource Services. The draft policy had been reviewed and supported by President Geoffroy, the President's Cabinet and the deans. P&S Council and Faculty
Senate were invited by President Geoffroy to comment on the proposal December 20, 2001. After initial feedback was provided by P&S Council, the president of P&S
Council was invited to participate in an ISU ad hoc committee to further develop the proposal. Other participants in the ad hoc committee included representatives
from the Office of the Provost, the Assistant Vice President for Human Resource Services, Faculty Senate, and the University Committee on Women.

P&S Council Compensation and Benefits Committee coordinated efforts to solicit and compile comments and suggestions, and research and develop P&S Council's
input and responses to subsequent drafts. Many of the suggestions and recommendations offered by the Compensation and Benefits Committee were incorporated into
the proposal. That policy was approved unanimously by P&S Council April 3, 2002. Iowa State University requested that the Board of Regents, State of Iowa " . . .
approve, for a three-year trial period, its proposed policy on Leave for the Arrival of Children as a modification of its current leave policy" in May, 2003. Information
provided to the Board staff included the three attached files, Family Leave Policy.doc, Family Leave Policy Scenarios, and Family Leave Policy OPG.doc.

The motion was tabled by the Board staff.

In lieu of approval of a new policy by the Board of Regents, State of Iowa, ISU adopted "Guidelines for Accommodating the Needs of New Parents" in January, 2004.
The attached files, New-Parent Employees.doc, Guidelines.doc, and Written-Agreement-P-S.doc are available on the Office of the Provost Web site at:
http://www.provost.iastate.edu/documents/



Issue: “Mileage Allowance”

Current University mileage allowance is less than the IRS allowable rate. Escalating fuel costs have created a financial burden on P&S employees that are required to
use their vehicles as part of their position. P&S Council members responded to P&S member concerns and requested the P&S Executive Committee consult with the
administration while referring the issue to the Compensation and Benefits Committee.

The Compensation and Benefits Committee forwarded a proposed resolution to the Executive Committee, following three months of research and discussion. The
resolution to adapt a ―Mileage Allowance‖ equal to the IRS rate was approved by the P&S Executive Committee and the P&S Council to be sent to the ISU
Administration.

It was noted during discussions that the current budget constraints would likely not allow this recommendation to be implemented immediately.                   The ISU
Administration and Board of Regents will be encouraged to implement the change again in the next fiscal year.



                                                                                                                                                    DRAFT June 3, 2004


                                                                                — 31 —
                   P&S Council Year-End Standing Committee Report

P&S Council Committee: P&S Representation Committee 2003-2004

Committee Function (P&S Council Rules and Bylaws):

        Representation. Membership of at least three council representatives, one of whom shall be chair. The
         committee shall organize and implement all election activities of the council. The committee shall publicize
         the names of the successful candidates. Popular vote counts shall be available upon request from the
         committee chair. At the direction of the president of the council and when council involvement is
         appropriate, the committee shall evaluate and recommend to the president of the council candidates for
         positions on other university councils and committees.

Committee Scope (P&S Council Website):

The committee organizes and implements all election activities of the Council. It publicizes the names of the
successful candidates and makes popular vote counts available upon request. The committee is responsible for
making recommendations of P&S staff to serve as representatives on various university wide councils and
committees

Committee Membership (P&S Council Website):
Council members:                                      Non-Council members:
        Del Marks, Chair                                     Jody Sanders
        Cathy Good
        Steve Karsjen
        Judy Strand

Expectations of Committee Members:
        Participate in performance of ongoing tasks

Schedule of Ongoing Tasks:
        Conduct annual election of members of P&S Council
        Conduct annual election of P&S Council Officers
        Maintain list of P&S representation on all-university committees and receive annual reports

Issues Addressed This Year with Year-End Status:

1.   2004 Council Election Summary
                    One council member retired after completing two terms.
                    4 council members were elected to their second three-year terms
                    1 incumbent council member who was appointed in 2003 was elected to a three-year term.
                    7 new members of the council were elected to three-year terms
                    2 new members of the council were elected to two-year terms
                    2 new members of the council were elected to one-year terms
          Election was conducted online March 2-26, with a runoff April 8-15 in two areas to resolve ties. Turnout in
          the main election was 608 voters, an increase of 49 percent over 2003.
          Terms of 19 council members carry over into the 2004-2005 year. Ten of those terms expire in June 2005,
          and nine in June 2006.
          Committee followed up on offer by President Geoffroy to provide a memo to assist in candidate
          recruitment. 29 candidates were recruited for 16 openings.
2.   Council representation areas, carried forward to next year.
3.   A vacancy in the office of vice president due to a resignation was filled as required by the P&S By-Laws with
     the installation of the secretary-treasurer in that office. A new secretary-treasurer was recruited with the
     assistance of the representation committee.
4.   Committee recommended replacements for three council members who resigned. Recommendations were
     accepted by the president and approved by the council.

                                                      — 32 —
5.   Committee continued development of a registry of P&S representatives on various all-university committees,
     and recommended replacements as vacancies occurred. Representatives were asked to submit year-end reports
     of committee activities (See Appendix A).
6.   Non-council P&S staff were recruited to serve on the council‘s standing committees.
7.   Exit interviews were conducted with members leaving the council at the end of the 2003-2004 academic year
     and a report prepared.

Issues Carried Forward To Next Year:

1.   Council representation areas were reviewed with an eye to realignment to create areas more equal in numbers of
     staff represented. Decision was made to revisit this issue in 2005 after some realignment may occur due to
     university reorganization.
2.   Recruitment and retention of non-council P&S staff on standing committees, and of P&S representatives on all-
     university committees.

Appendix – Reports of P&S Representatives on All-University Committees
       1. Library Committee
       2. P&S Professional Development Committee
       3. P&S Classification Review Committee
       4. University Childcare Committee




                                                     — 33 —
                               UNIVERSITY COUNCILS AND COMMITTEES
                                   P&S REPRESENTATIVE REPORT
                                             TO THE
                               PROFESSIONAL AND SCIENTIFIC COUNCIL


Name of Committee: Library Committee
Name of P&S Representative: Dru Frykberg
Telephone Number: 294-4353
Committee Meeting Date: 5/7/04
Major agenda items discussed/committee action taken:
    1. Got results that Parks ranked 73 out of 113 members of the Association of Research
       Libraries in 2002-2003.
    2. Discussed organizing a symposium to publicize such issues as the rising cost of journal
       subscriptions and how electronic information can be preserved.
    3. An outside review of Parks‘ e-Library is due May 15.
    4. Were briefed on progress made by the university‘s strategic planning committee and
       discussion followed as to what library goals should be included.

Potential impact on P&S employees:
No new issues were discussed. The main ongoing issue is exploring different funding models so the library can
continue serving the needs of P&S employees as well as faculty and students. The library is facing budget cuts and
rising subscription costs. At the same time, the library would eventually like to rank higher among ARL libraries.

Next committee meeting date: periodically during the summer, TBD.




                                                     — 34 —
                               UNIVERSITY COUNCILS AND COMMITTEES
                                   P&S REPRESENTATIVE REPORT
                                             TO THE
                               PROFESSIONAL AND SCIENTIFIC COUNCIL


Name of Committee: P&S Professional Development Committee
Name of P&S Representative: Dan L Woodin, Chair
Telephone Number: 294-6382
Committee Meeting Date: April 6, 2004
Major agenda items discussed/committee action taken:
Changes to P&S Tuition Grant and P&S Professional Development Grant applications:
* P&S Tuition Grant:
        New web application process through AccessPlus to begin Summer 2004.
        Reduced time on the job requirement to 6 months of continuous employment.
        Removed full-time equivalence as well from the eligibility requirement.
* P&S Professional Development Grant:
        Changed due dates to October 1 and February 1.
        Reduced time on the job requirement to 6 months of continuous employement
        Removed full-time equivalence as well from the eligibility requirement.
        Added statement “Applicants not receiving a grant in the last three years will be given preference.”

*** We have three openings on the P&S Professional Development Committee: External Affairs, IPRT/Ames
Lab, and Extension. Carl Neifert recruited Rich Wrage from Boone to serve as his replacement. So if you
confirm Rich’s appointment, we only need to fill two seats. Thanks.

Potential impact on P&S employees:
* Reducing the time on the job eligibility requirement for both of the grants will allow more P&S staff
members to participate earlier in these programs.
** We plan to notify P&S staff members through Inside Update, P&S ENews, and Inside Iowa State of the
new P&S Professional Development Grant deadline dates and the amount to be awarded to applicants at each
deadline date.

Either write a brief paragraph or indicate that the above information could be posted to the P&S web site:

Next committee meeting date: October 12, 2004, February 8, 2005, and April 5, 2005.




                                                      — 35 —
                                UNIVERSITY COUNCILS AND COMMITTEES
                                    P&S REPRESENTATIVE REPORT
                                              TO THE
                                PROFESSIONAL AND SCIENTIFIC COUNCIL


Name of Committee: P&S Classification Review Committee
Name of P&S Representative: Dan L Woodin
Telephone Number: 294-6382
Committee Meeting Date: Second Thursday of each month – face-to-face or electronic.
Major agenda items discussed/committee action taken:
Review the reclassification requests submitted for approval each month.
HRS staff recommend action and the committee discusses that recommendation.
Appeal process was used a couple of times this past year to present the request in person. These appeals are
typically presented by the supervisors or department heads.
No changes in the method of operations this year.

Potential impact on P&S employees:
I do not anticipate any changes this coming year in the committee function or process. A review of the P&S
classification and compensation system might impact the committee in the future if the P&S Council
recommendation to conduct a review is approved.
My representation on the committee speaks to support P&S reclassifications as they are presented or to
understand the ramifications of approving a reclassification that may cause others to also be considered for
reclassification. I encourage reclassification of the entire job classification where appropriate. I have also
worked as an IT representative in dealing with IT classifications and attend IT job audits with HRS staff
when appropriate to make an appropriate recommendation for job classification whether it be a
reclassification or classification of a new position. I appreciate the opportunity to serve P&S employees
through my serving on this university committee. Thanks.

Either write a brief paragraph or indicate that the above information could be posted to the P&S web site: None at
this time.

Next committee meeting date:
(attach schedule of meetings for the year, if available)




                                                           — 36 —
                               UNIVERSITY COUNCILS AND COMMITTEES
                                   P&S REPRESENTATIVE REPORT
                                             TO THE
                               PROFESSIONAL AND SCIENTIFIC COUNCIL


Name of Committee: University Childcare Committee
Name of P&S Representative: Jennifer Owens
Telephone Number: 294-4831
Committee Meeting Date: 4/22/04
Major agenda items discussed/committee action taken: Dedication of new ISU Family Resource Center and
University Childcare Center

.
Potential impact on P&S employees:
The new ISU Family Resource Center houses several offices available to all ISU students, faculty and staff
including the University Childcare Center.



Either write a brief paragraph or indicate that the above information could be posted to the P&S web site:
The University Childcare Committee helped to coordinate the opening of the ISU Family Resource Center including
remarks from President Geoffroy. The new building houses several offices including the University Childcare
Center.


Next committee meeting date: 5/21/04




                                                     — 37 —
                               UNIVERSITY COUNCILS AND COMMITTEES
                                   P&S REPRESENTATIVE REPORT
                                             TO THE
                               PROFESSIONAL AND SCIENTIFIC COUNCIL

Name of Committee: Athletics Council
Name of P&S Representative: Libby Bilyeu
Telephone Number: 294-8157
Committee Meeting Date: September 23, 2003, December 2, 2003, February 24, 2004 and April 20, 2004
Major agenda items discussed/committee action taken:

         Some of the issue that were discussed during this year were: indoor practice facility; new academic services
         building (request was forwarded to the Board of Regents); football game parking issues; academic calendar
         options; budget reversions; request to Big 12 conference to review officiating at Kansas game; hosting Big
         12 Wrestling and Gymnastics meets and the first round of the NCAA women‘s basketball tournament as
         well as both NIT games; search for new Associate Athletics Director for Business; football ticket prices;
         updating ISU substance education and penalty policies; review of recruitment policies and practices;
         reports from Academic Integrity Committee and the Equity Committee; reviewed revised Student-Athlete
         Code of Conduct statements.

         This was the first year that Paula Morrow served as Big 12 Faculty Athletics Representative. She spent a lot
         of time meeting with the teams, coaches and administration to learn what was expected, etc. She also
         chaired the subcommittee that I was a part of—Rules Compliance. The Rules Compliance Committee met
         twice during the year. The first meeting was more of an introductory meeting to meet the committee
         members and discuss our role. Since compliance is becoming a bigger issue all the time, there were several
         suggestions on how the committee members will be able to interact better in order to be knowledgeable and
         in compliance. The committee also reviewed the summary of violations that were going to be sent to the
         Board of Regents.

Potential impact on P&S employees:

         The budget reversion may affect some P&S employees if cuts need to be made, but the original plan was to
         improve revenue streams and ticket sales and tap into the reserve fund.

Either write a brief paragraph or indicate that the above information could be posted to the P&S web site:
Can use above for web site.

Next committee meeting date: September 24, 2004
Do not have list of entire meetings yet.




                                                      — 38 —
                               UNIVERSITY COUNCILS AND COMMITTEES
                                   P&S REPRESENTATIVE REPORT
                                             TO THE
                               PROFESSIONAL AND SCIENTIFIC COUNCIL

Name of Committee: University Committee on Women
Name of P&S Representative: Marie Mayer
Telephone Number: 294-2787
Committee Meeting Date: Year-End Report
Major agenda items discussed/committee action taken:


Potential impact on P&S employees:

Strategic issues for this committee overlap with initiatives of the P&S Council that affect P&S employees. While
P&S Council's constituency is primarily P&S employees, UCW's primary constituency is female employees. Each
group, however, considers the bigger picture of how their initiatives affect the entire university. The key area of
overlap is P&S female employees. Lest that be considered narrowly focused, keep in mind that initiatives and
successes of a group often provide benefits to recipients beyond those in the group that first addressed the issue.

Examples of overlapping initiatives and concerns in the past year:

   P&S Council's study of pay equity overlaps with UCW's concerns regarding equity for women on campus.
   The Arrival of Children policy has been scrutinized by P&S Council and UCW.
   Recruitment and retention of excellent staff are common concerns of both groups.
   Effect of budget cuts and layoffs on employee morale.
   Leadership and mentoring.


Either write a brief paragraph or indicate that the above information could be posted to the P&S web site:

The above information can be posted to the P&S website.


Next committee meeting date: Fall 2004




                                                      — 39 —
                   P&S Council Year-End Standing Committee Report

P&S Council Committee: P&S Awards Committee 2003-2004

Committee Function (P&S Council Rules and Bylaws):

        Awards. A majority of the committee shall be composed of council members, one of whom shall be chair.
         Non-council representatives shall be added to provide representation from all P&S areas. At the direction
         of the president of the council and when council involvement is appropriate, the committee shall evaluate
         and recommend to the president of the council candidates for honors.

Committee Scope (P&S Council Website):

This committee does preliminary screening for P&S Awards and makes its recommendations to the appropriate
office for University-wide awards for P&S. The P&S awards include Regents Award for Staff Excellence,
Professional & Scientific Excellence Award, the Carroll Ringgenberg Award, the Superior Service Award, and the
P&S Outstanding New Professional Award.

Committee Membership (P&S Council Website):
Council members:                                      Non-Council members:
        Kurt Roberts, Chair
        Debbie Bahr
        Sarah Cooney
        Mark Nelson
        Beverly Peters
        Donald Reed
        Bonnie Whalen

Expectations of Committee Members:
Committee members assist in the review of award applications that are received throughout the year. Members
provide feedback on the awards process, selection criteria and assist in other activities as needed. Committee
members are expected to remove themselves from any review of an award application that they personally have an
interest or when they know the applicant personally.

Schedule of Ongoing Tasks:
The committee is finalizing nominations for the Regents Awards and will be sending those to the President‘s Office
shortly. The final CYtation Award nomination period ends July 1 and we will review those nominees once the
deadline is past. After that review those winners along with the April winners will be forwarded on to the
President‘s Office. A time will be set up for both sets of winners to meet the President and receive a certificate of
congratulations.

Issues Address This Year with Year-End Status:

1. The CYtation Award is in it‘s first year of being fully implemented. It has been a very positive award, but has
needed some structural changes. We recommend the selection process occur twice next year as opposed to the 4
time this year. We recommend an early fall date around October 1, and an early spring date around April 1. This
would make the selection, nomination and award steps flow much easier. The committee will no longer be
reviewing the Alumni Association Awards, so that leaves more time to review other awards.

Issues Carried Forward To Next Year:

    1.   Next year‘s committee will need to continue to monitor the CYtation Award and look to improve the
         award. Certificates are now created for the award and the new Chair will need to check with Reiman
         Gardens to see if they will still give a membership to winners. The issue of nominations for groups of
         people will need to be reviewed as well. Now we only recognize efforts of individuals. The Regents Award
         has been one that did not have a good amount of applications. We have promoted it as we have in the past,

                                                      — 40 —
        but yet, we did not receive number like we have in the past. A second deadline did not yield strong
        numbers either. This is an area the committee will need to review to find better ways to get applications.

Respectfully submitted,

Kurt T. Roberts
Chair, Awards Committee




                                                     — 41 —
                  P&S Council Year-End Standing Committee Report

P&S Council Committee: P&S Communications Committee 2003-2004


Expectations of Committee Members

Next year we want movies and popcorn.


Schedule of Ongoing Tasks

Forums (4/year): organize topics, speakers, venues, etc.
E-newsletter: 2/month and as needed (Jeff Sorensen has resigned from the committee; David Brotherson has offered
to coordinate delivery of the e-news.)
Website maintenance
Maintenance of archives (Dave Brotherson has volunteered to coordinate.)


Issues addressed this year with year-end status
-Hosted forums:
    Roundtable presentations of the ―Best of the Best‖ student recruitment/retention grant projects
    Roundtable discussions of P&S staff-related issues (benefits, etc.)
    University budget
    ISU strategic plan (co-host)
-Redesigned and updated council website (Rex Heer).
-Revamped e-news as a listserv mailing format to avoid bottlenecks and message delays (Jeff Sorensen).
-Helped develop P&S PowerPoint Presentation for President‘s cabinet (Barb McManus).


Issues carried forward to next year:
-Update archives.
-Continue to enhance website:
         Allow committees to update their own information
         Post e-news
         Add in-depth stories, photos
-Communications committee would like to see all motions sent through a review/editing process.
-Present PowerPoint show re P&S staff and council to other groups, e.g.:
         New employee orientation
         Faculty senate




                                                    — 42 —
                   P&S Council Year-End Standing Committee Report

P&S Council Committee: P&S Retention and Recruitment Committee 2003-2004

Committee Function (P&S Council Rules and Bylaws):

        Retention and Recruitment Committee. Membership shall be composed of at least three council
         representatives, one of whom shall be chair. Non-council members may be added but the number of non-
         P&S staff members shall not exceed the number of P&S Council members. The Retention and Recruitment
         Committee has the responsibility of fostering and assisting the development of retention and recruitment
         initiatives coordinated by Professional and Scientific employees. The committee is also responsible for
         administering funds provided for that purpose. The committee establishes criteria for retention and
         recruitment grants, reviews applications, and determines which will be funded. The committee shall
         provide accountability for each program receiving a grant, requiring mid-year and year-end status reports
         for each project.

Committee Scope (P&S Council Website):

The Retention and Recruitment committee has the responsibility of fostering and assisting the development of
retention and recruitment initiatives coordinated by Professional and Scientific employees. Each year since 1994 the
President's office has made funds available for this purpose, administered by the Retention and Recruitment
committee. Through the eight years of the program's existence, the committee has awarded $235,000 in grants to
114 programs. The committee awarded grants this year on August 15, 2003.

Committee Membership (P&S Council Website):
Council members:                                       Non-Council members:
        Mary Darrow, Chair
        Tom Becker
        Beverly Peters
        Kurt Roberts
        Bonnie Whalen
        Yanira Pacheco-Ortiz

Expectations of Committee Members:
Attend committee meetings.
Assist with development of criteria for R&R grants, selection of recipients, evaluation of year‘s projects. Assist with
carryout of May P&S Forum showcasing current grant programs.
Evaluate effectiveness of projects every 5 years.

Schedule of Ongoing Tasks:
June-July: advertise grant program
August: select grant recipients
February: Mid year evaluation from recipients
May: P&S forum on selected grant projects.
May: Final project evaluation from recipients. Review of grant criteria and set time table for next year.

Issues Address This Year with Year-End Status:

    1.   Evaluation of past 5 years of grant projects. Report to ISU Administration.
    2.   Final report submitted to board on June 3.
    3.   May Forum (attached).
    4.   Expanded scope of committee (attached).

Issues Carried Forward To Next Year:

    1.   Guidelines/handbook for those submitting grants (on-line).

                                                       — 43 —
2.   Continue to address issues related to the expanded scope.
3.   Evaluate and improve grant process, evaluation criteria, and accountability of the grant program.




                                                  — 44 —
Recruitment and Retention Committee Report to Exec. Committee
Expanded Scope/Mission Document (Unfinished Business)

I. Recruitment and Retention Committee Description based upon 12/4 committee discussion (original text
taken from website):

The Retention and Recruitment committee has the responsibility of fostering and assisting in the
development of student retention and recruitment initiatives coordinated Professional and Scientific
employees. These initiatives include but are not limited to the following:
       Efforts to reduce financial burdens for students and P & S Staff in the pursuit of a degree
        or continuing education.

       Learning Communities and other efforts which create support networks for students and P
        & S staff.

       Efforts which support student recruitment in local communities.

       Initiatives which eliminate barriers to nontraditional students (including P & S Staff) in the
        pursuit of a degree or continuing education.

       Recruitment and Retention grant programs.




                                                 — 45 —
— 46 —
P&S Council Year-End Standing Committee Report

P&S Council Committee: P&S Peer Advisory Committee 2003-2004

Committee Function (P&S Council Rules and Bylaws):

        Peer Advisory. At least three council representatives, one of whom shall be chair. The function of the
         committee will be to provide information to P&S employees concerning employment and/or grievance
         issues. This committee will provide a means for an employee to obtain a perspective about employment
         concerns from peers familiar with the policies and practices of the university. The committee will also seek
         to ensure that the employee is aware of her/his rights and obligations and of the various processes available
         for the resolution of the concern.

Committee Membership (P&S Council Website):
Council members:                                      Non-Council members:
        Judy Strand, Chair                                   Andy Schuttinga
        Sarah Cooney
        Cathy Good
        Steve Karsjen
        Marie Mayer
        David Popelka
        Brenda Van Beek

Expectations of Committee Members:
        Participate in requests made to the Peer Advisory Committee.

Schedule of Ongoing Tasks:

Issues Addressed This Year with Year-End Status:

1.   Initial contacts with Peer Advisory Chair.
          There were 10 initial contacts with the Peer Advisory Chair during the year.

2.   P & S representation at grievance meeting.
         One committee member went to a grievnce meeting with a P & S employee. He was able to take notes,
         provide feedback, and give support for the P & S employee.

3.   Feedback from committee members.
        The committee members provided feedback by e-mail for three questions during the year from P & S
        employees.

4.   Meetings with P & S employees.
        The committee chair met with two P & S employees and the full committee met with another P & S
        employee to discuss concerns with work situations.

Issues Carried Forward To Next Year:
1. HR has referred a couple people to the P&S Peer Advisory Committee that Marlise McCammon would have
      handled in the past. This is enough of concern that President Geoffrey asked Kevin to write a formal memo to
      Warren Madden for his response on some of these issues (listing of who is now handling various duties, etc.).
      (Source: P & S Council Minutes, March 2004)

2. Training for Peer Adviosry Committee members from the Human Resources Office would help in providing the
      best possible service to P & S employees. Find out exactly what information Human Resources if providing to
      employees who go to HR for assistance and what areas the peer advisory committee can address to provide the
      most benefit to P & S employees.


                                                      — 47 —
Respectfully submitted,

Judy Strand, Chair Peer Advisory 2003-2004




                                             — 48 —
Professional & Scientific Council
At-large Officer Report



Year-End Report for the 2003-2004 P&S Council Session




                                     Prepared by:

                                     Trevor M. Riedemann
                                     Ames Lab/IPRT Representative
                                     P&S Council At-large Office




                            — 49 —
Issues Addressed This Year with Year-End Status:

There are no formal tasks mandated to the at-large officers. Informally, one of the two at-large officers prepares and
organizes the P&S Council‘s schedule and questions for the monthly Campus Leaders Breakfast. Dan Woodin
fulfilled that assignment. To fulfill my unwritten duties, two studies were conducted and submitted to council. I was
also a member of the Compensation & Benefits Committee.

Tuition Reimbursement Study

A study titled, ―Tuition Assistance Programs for Professional Staff at the Peer 11 Institutions,‖ by at-large officers
Trevor Riedemann and Dan Woodin, was submitted to council on February 5, 2004. The report compared the tuition
grant/reimbursement offerings among ISU‘s peer institutions. It was concluded that, despite ISU‘s Tuition Grant
Program, ISU ranked near the bottom of the peer group. Several recommendations were made to improve the
valuable program, and promoted collaboration with the P&S Professional Development Committee on improving
the program.

Dan Woodin, Chair, P&S Professional Development Committee, shared the study with his committee. Dan
submitted the following report vial e-mail, on May 19, 2004:

         The P&S Professional Development Committee appreciates the thoughtful conclusions contained in the
         P&S Council Executive Committee At-Large Officer Report entitled Tuition Assistance Programs for
         Professional Staff at the Peer 11 Institutions. The detailed information included in the Appendices provides
         documentation that the P&S Professional Development Committee can continue to update each year to
         assist in monitoring the strengths and weaknesses of the P&S Tuition Grant program. Through the
         conclusions that are drawn, appropriate recommendations can be made for maintaining and improving the
         program.

         Even with the economic/budget concerns currently at hand, the P&S Professional Development Committee
         did address the short-term directions mentioned in the report. A change was made to "protect the current
         program" through the way the P&S Tuition Grant program is funded. These changes should insure that the
         program will cover the cost of three credits for all P&S employees that request a grant, meet the eligibility
         criteria, and meets the successful completion criteria for reimbursement. A second change was made to the
         first eligibility criteria: "To be eligible, the applicant must be a professional and scientific employee (P
         base) at Iowa State University who has been employed for six months of continuous service. The employee
         must meet the qualifications by the first day that course work begins at Iowa State University for the fall,
         spring, and summer session I terms." Note that we also removed the criteria that would require employees
         on less than full-time continuous employment to provide service up to the full-time requirement (i.e.. 1/2
         time would require double the time on the job). The committee's rationale was that .5 FTE continuous
         positions should be able to learn their job responsibilities in the same timeframe as full-time continuous
         positions since their responsibilities should correlate to the FTE rating; therefore, the distinction was
         removed.

         In addition, HRS has developed a system to allow applicants to submit their tuition grant application
         through AccessPlus. Through this system, we will be able to send email messages to notify applicants of
         their tuition grants in a timely manner. We will also build a database of information to assist in managing
         the program.

         As chair of the P&S Professional Development Committee, I will continue to bring the information
         contained in this report to our committee meetings in the coming year for discussion and potential
         implementation. Thank you for your interest in the P&S Tuition Grant program and the support information
         you provided.


This task should be considered complete. However, the report was a starting point for future work on improving
employee access to academic classes at ISU.

Performance Appraisal History

                                                       — 50 —
A report titled, ―Past and Present Comments from External Auditors Concerning Performance Evaluations at ISU,‖
by at-large officer Trevor Riedemann, was submitted to the P&S Council on May 6, 2004. The executive summary
is quote below:

           A review of recommendations for performance appraisal practices at ISU made by Booz-Allen & Hamilton
           Management Consultants (1976), William H. Mercer, Inc. (1991), and HR Audit, Inc. (2004) is presented.
           P&S council actions and a comparison of the Peer 11 group members are presented. It is recommended that
           ISU must fully commit to a culture of performance or shift to a competency-based system.

It was concluded that ISU‘s performance appraisal system is inadequately administered and inconsistently applied
from unit to unit. The report supports the findings of the HR Audit, Inc. assessment conducted in 2003/4 by detailing
the history of performance appraisals from the inception of the P&S System in 1976.

This task is unfinished; council action may, or may not, be required depending on two external forces. ISU Human
Resource Services (HRS) is in the process of preparing a plan that acts on the recommendations from HR Audit, Inc.
The plan will require close scrutiny from the Council. Secondly, the Iowa Board of Regents (BOR) has formed six
new working committees, of which one is the Human Resources Committee, whose charge is:

       •     Evaluating and providing oversight concerning compensation and benefit issues.
       •     Assessing and making recommendations on matters related to employee relations at the Regent
             institutions, including collective bargaining.
       •     Providing advice and gathering information concerning evaluation systems. [Emphasis added]
       •     Providing information and options for Board self-evaluations and training.
       •     Providing oversight and making recommendations regarding affirmative action and diversity in the
             workplace.
       •     Directing the work of the Interinstitutional Committee on Affirmative Action and Equal Opportunity.

The P&S Council should continue offer-up changes to HRS. But it should be acknowledged that changes in
―evaluation systems‖ may be mandated from the BOR down to ISU HRS.

Early Retirement Incentives

Through membership on the C&B Committee, I participated in the preparation of a report titled, ―Early Retirement
Programs [ERI] for Professional Staff at the Peer 11 Institutions.‖ Details per the ERI report and future actions
stemming from the report are found in the C&B Year End Report.

Comments

I am truly gratified that the effort in preparing the reports mentioned above has resulted in improving the P&S
employee environment (tuition program) and hope that further positive changes will be realized (ERI and
performance appraisals). It takes a lot of work to make an incremental improvement at an institution as large as ISU.
However, with more P&S employees we have trying to improve the employment environment, the more increments
attained, large cumulative gains can be realized.




                                                      — 51 —

								
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