Flexible Compensation Benefits Committee

Special Meeting

Thursday, Apr. 10, 2003

Conference Room, Wellness Center

Minutes

Present:  Blackburn, Fox, Lehenbauer, Payne, Stromberg

Absent:  Brooks, Cooper, Harrison, Henderson, Morris, Poole, Reed

Ex Officio, Ad Hoc members and guests present:  Barfield, Matoy, Oehrtman

A motion to approve the agenda was made by Lehenbauer and seconded by Blackburn. The motion passed.

Barfield presented the Retirement Taskforce’s recommendation to be forwarded by this committee to the administration.  Nearly all of the public presentations of the plan have been done and all feedback has been positive.  Because of the current legislative activities concerning OTR, the taskforce feels that the executive of the university should act on this recommendation as soon as possible.   Discussion followed and after some minor editing the recommendation was accepted and will be sent to the administration as corrected.

Matoy reported that the bill dealing with OTR before the legislature looks a lot like the recommendation.  Representatives from OSU HR and OSU’s attorneys have been working with legislative staff to perfect the language. 

The bill as it stands now would allow current employees a one-time option to leave OTR.  Future employees would not be allowed to join.  Non-vested employees who opt out of OTR would be able to roll employee contributions & interest into TIAA/CREF (with IRS approval).  HR is talking with TIAA/CREF about the possibility of a defined benefits plan.  If this rollover is not approved the money would stay with OTR until separation or retirement.

Vested employees who opted out would be able to rollover the money or let the money stay with OTR without further contributions until retirement. 

The second part of the bill deals with all of the formula fixes recommended by the Retirement Taskforce.

The bill has not been reviewed by OU or by Tommy Beavers.  It will also need to be passed on by the OTR Board.  According to the university’s legislative advisors, Boren and Schmidly will have to support this measure and be willing to “wear out the shoe leather” in order for it to pass.  The prevailing wisdom is that if the university uses it’s political capital to press for passage and fails, then the issue will be “dead” for five to ten years.

Motion was made and seconded to adjourn.  Passed.