2-5-99

BOARD APPROVES ALTERNATIVE RETIREMENT PLAN, RECOGNIZES EMPLOYEES

   COLUMBUS -- The Ohio State University Board of Trustees on Friday (2/5) approved a retirement plan option for faculty and administrative staff, and recognized Physical Facilities personnel.

Alternative retirement plan approved

   An alternative retirement plan option has arrived for nearly 4,600 current Ohio State faculty and administrative staff and approximately 700 new hires this year. The plan allows participants to place their retirement contributions with investment vehicles other than state retirement systems.

   The ARP will be available to all new faculty and administrative staff with 75 percent or greater full-time equivalent appointments or to current employees holding equivalent appointments who have fewer than five years of service credit in one of the state retirement systems.

   Eligible faculty and staff members have until June 4 to decide whether to switch to the new plan. New employees will be given 90 days to decide after they arrive at Ohio State. Once a switch is made, employees are locked into a package until they leave the university. However, they may select a different option if at some point they are employed again by a public institution.

   The university is not endorsing any of the plans as the best choice for participants. "We don't take the position that either choice is superior to the other. Faculty or staff members will need to decide which choice is best for them," said Larry Lewellen, associate vice president for human resources.

   Investments can be made with any of eight approved providers: Aetna Life Insurance and Annuity Co., The Equitable Life Assurance Co., Great American Life Insurance Co., Lincoln National Life Insurance Co., Metropolitan Life Insurance Co., Nationwide Life Insurance Co., TIAA-CREF and VALIC.

   Ohio State has been waiting to implement the statewide initiative since its initial approval by the Ohio Legislature in December 1996, but a series of legislative delays that stretched into autumn quarter prevented the program from being rolled out. Gov. Voinovich signed House Bill 673 Dec. 8, but the university had to wait to implement the plan until it could be approved at the next trustees meeting.

   The university will contribute 8 percent for faculty and 7.31 percent for staff participating in the ARP. The university also will continue to make a 6 percent contribution to the appropriate public retirement system to offset past-service liabilities.

   The defined benefit plans provided through the State Teachers Retirement System and Public Employees Retirement System are calculated based on age, final average salary and years of service credit. While STRS and PERS plans include survivor benefits and health-care coverage after retirement, alternative retirement plans do not, so participants will need to rely on their investment returns to fund those benefits.

   The alternative plan is not available to classified civil service staff despite Ohio State's efforts to have all employees included in the state's legislation, Lewellen said.

Physical Facilities personnel recognized

   Janet Ashe, vice president for business and administration, recognized nine employees in the Resource Management division of Physical Facilities who received a state award for making Continuous Quality Improvements at the university. As the training team for Physical Facilities, the group examined existing processes and increased training opportunities using Business and Administration's Continuous Quality Improvement process to help achieve work force excellence. Among the highlights of their efforts, they developed an annual training schedule and increased training hours from 20 per employee in fiscal year 1996 to 35 per employee in fiscal 1997. The Quality Team members are Leon A. Davis, Alyson L. DeAngelo, James E. Dertinger, Richard D. Lighthiser, Samuel D. Rucker, Paul E. Sherwood, Amy M. Sullivan, Nathaniel V. Taylor and James D. Woltz.

Name of cancer hospital changed

   Trustees approved the addition of Richard J. Solove's name to the Arthur G. James Cancer Hospital and Research Institute at Ohio State. From this day forward, the institution will be officially named the Arthur G. James Cancer Hospital and Richard J. Solove Research Institute.

   On Jan. 13, Solove's gift of $20 million toward cancer genetics research at The James was announced. At that time, Ohio State Board Chair Ted Celeste announced that the Board of Trustees would vote to add Solove's name to the research institute in honor of his generous gift.

   Solove's commitment to and partnership with The James began in 1953, when his father was diagnosed with cancer. Dr. Arthur James was his father's physician. Solove then learned of Dr. James' dream to open a cancer hospital to offer unparalleled care for the citizens of Ohio and the world. They developed a great friendship and shared in the passion to create a free-standing cancer hospital in Columbus. Solove worked with the Ohio Legislature to help secure funding for the cancer hospital and later became a founding board member and on-going supporter.

   Solove was a founder of The James Foundation Board, served as its president for five years, and continues to serve as a member. He also serves as a member of The James Cancer Hospital Board and is chairman of the "Threshold of Discovery" campaign, which is designed to raise $50 million for the Human Cancer Genetics Program at Ohio State. He is managing partner of R.J. Solove and Associates, a real estate development company.

   The James Cancer Hospital and Solove Research Institute is one of few free-standing cancer research and treatment hospitals in the country. An important goal of the institution is to combine research and treatment under one roof to facilitate translational research and the rapid translation of research advances to patient care.

   Solove's $20 million gift supports The James Cancer Hospital and Solove Research Institute's $50 million "Threshold of Discovery" campaign, which is part of Ohio State's five-year, $1 billion "Affirm Thy Friendship" fund-raising campaign.

Contact:
Larry Lewellen, Human Resources, (614) 292-4164
Jan Ray, The James Cancer Hospital and Solove Research Institute, (614) 293-6054