MINUTES OF THE EXECUTIVE COMMITTEE
OF THE BOARD OF TRUSTEES
OF THE TRUSTEES OF PURDUE UNIVERSITY
JUNE 29, 2000
The Executive Committee of the Board of Trustees of the Trustees of Purdue University (Messrs. McGinley, Hardin and Townsend) convened at 1 p.m. on Thursday, June 29, 2000 in Room 203, Hovde Hall, pursuant to call of Committee Chairman McGinley and to prior notice by mail from Kenneth P. Burns, Treasurer of the Corporation. Public notice of the date, time and place of the meeting as required by law was given by Mrs. Doris Pearson, Secretary of the Corporation.
Trustees McGinley, Hardin and Townsend participated in the meeting by conference call. The meeting was held in Room 203, Hovde Hall. All doors were open during the meeting. Present were President Beering, Treasurer Burns, Assistant Treasurer Almond, Director Beeike, Counsel Benton and Secretary Pearson.
I. APPROVAL OF 403(b) DEFERRED CONTRIBUTION RETIREMENT PLAN.
Treasurer Burns explained to the Committee that, because of IRS limits imposed on contributions to retirement plans for those hired after 1996, there is a need to establish a separate 403(b) plan for the President. It is proposed that the President will receive University contributions at a rate of 25% of salary up to the maximum allowed under Internal Revenue Code (currently $30,000). This will constitute a new 403(b) plan for the President and he will not be eligible to participate in the existing 403(b) plan for faculty and staff.
After further discussion and upon motion by Trustee Hardin and seconded by Trustee Townsend, the Executive Committee unanimously approved the plan as presented.
II. APPROVAL OF 401(a) DEFERRED CONTRIBUTION RETIREMENT PLAN.
Treasurer Burns recommended establishing new defined contribution retirement plans under Section 401(a) of the Internal Revenue Service Code. These will be qualified plans, which the IRS will have to approve, but recent changes to the Code have allowed this opportunity to provide additional deferred retirement contributions. A copy of the plan documents had been sent to Committee members prior to the meeting (copy filed with Minute Material).
It is proposed that the President and the Head Football Coach receive University contributions at a rate of 25% of salary, subject to an annual maximum of $30,000 (Purdue University Defined Contribution—401(a) Retirement Plan I for Key Employees).
Treasurer Burns reported that certain senior staff (Executive Vice President and Treasurer, Executive Vice President for Academic Affairs, Intercollegiate Athletic Director and the Men's Head Basketball Coach) will be provided the opportunity, on a