Members Present:  Billie Blackburn, Nancy Clark, Greg Fox, Terry Lehenbauer, Louisa Payne, Fran Stromberg

Absent:  A. B. Harrison, Sally Henderson, Tom Poole, Robert Reed, John Wilguess

Ad Hoc Members:  John Dalton, David Peters

The meeting was called to order by Greg Fox

     I.                   Approval of agenda
                a.       Motion to approve by Billie Blackburn; seconded by Lehenbauer; passed               

II.                  Approval of minutes of May 15, 2002

a. Motion to approve as corrected by Fran Stromberg; seconded by Billie Blackburn; passed

III.               Election of 2002/2003 Officers

a.       Elected by acclamation:  Chairman—Greg Fox; Vice Chair/Chair Elect—Terry Lehenbauer; Secretary—Louisa Payne

     IV.       Human Resources Summary of  457(b) Deferred Compensation Plans—John Dalton          

a.        Tax sheltered like existing TDA plan. Earnings are tax deferred.

b.        New laws make it possible to maximize contributions to TDA plan AND allow a pre-tax contribution to 457(b) with no offsets.

c.        Limits this year are $11,000 ($12,000 if age 50+).  Previous limits were $8,500.

d.        Catch-up limits available of up to twice regular limit when employee is within 3 years of retirement and has not maximized in past years. 
No 15-year catch-up provision as in the TDA 403(b) plan.

e.        No 10% tax penalty if withdrawing prior to age 55 or age 59 ½ rules.

f.          No loan provisions are available.

g.        No hardship withdrawals available.

h.        Unlike the TDA 403(b) plan, 457(b) plan requires a plan document filed with IRS.

i.          Recent legislation allows greater flexibility and portability.  Rollovers are now possible between 403(b), 401(a), 401(k), and 457(b) plans. 
However, rollover of 457(b) funds into another plan type would lose 457(b) and, thus, make the funds subject to the 10% tax penalty rules.

        V.     Task Force Updates
                       a. Retirement. A handout was distributed on the “Issues Impacting the OSU Retirement Program” which outlined the issues the task forces is
                     concentrating on as well as asking for feedback.
                 b. Cafeteria Plan/Leave. No report.

        VI.    Recommendations Update—David Peters.    
                 a. Status of Cafeteria Plan recommendation sent in April—Dr. Birdwell has asked for feedback and input from various groups on campus.
                 b. Life Insurance Death Benefit Increase to $10,000 for Retirees. No response. Unofficially, there seems to be support in theory but no funding 
                    available. 

        VII.   Schedule Summer Meetings
                             July 17; August 21; and September 18.

        VIII.  Announcements
                 a.       John Dalton reported that the OLERS meeting went well.  Human Resources is trying to decide how it meshes with Long Term Disability 
                      and OTRS.
                b.      Terry Lehenbauer reported that the OSU attorneys had filed a motion for summary judgment in the retirement lawsuit.

  Motion to adjourn by Terry Lehenbauer; seconded by Nancy Clark; passed.