THE UNIVERSITY OF ALABAMA IN HUNTSVILLE

Faculty Senate

20 November 1997

SENSE OF THE SENATE RESOLUTION

Whereas, since the inception of the Teachers' Retirement System in 1939 and the Employees' Retirement System in 1945, the Retirement Systems of Alabama (RSA) has operated on a system of "book-value" of assets; and

Whereas, now the Government Accounting Standards Board has directed that all governmental pension programs in the United States use "market related value" in place of "book value"; and

Whereas, the RSA has experienced significant gains earned by RSA investments and the conversion from "book value" to "market place value" will result in a significant decrease in required contributions to the RSA for at least the next five years; and

Whereas, these gains resulted from faculty and staff of our universities and colleges, assisted by the State, paying large amounts each year into the RSA in order to assure their future retirement income; and

Whereas, an increase in the market value of RSA invested funds such as is presently being discussed rightfully belongs to the severely underpaid faculty and staff of our institutions and should therefore be passed on to them through increased salaries or reduced RSA personal contributions.

Therefore, be it resolved that: The Legislature of Alabama be advised of the absolute necessity of leaving in the budgets of individual state institutions all retirement matching dollars currently appropriated to these individual institutions.

Passed unanimously this day:

Signed

Mark V. Bower, President