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FACULTY RETIREMENT PROGRAM RESOLUTION



(Board of Trustees Meeting, October 27, 1974)



ee-A request was made that the Board of Trustees consider

adopting a resolution with regard to the College's faculty retire-

ment program. The resolution...was considered to be necessary to

provide for the increasing rate of inflation and to take into

account changes in federal laws. An explanation was given to the

effect that when the Board of Trustees first approved the parti-

cipation by the College of the Virgin Islands in the Teachers

Insurance and Annuity Association/College Retirement Equities

Program, the contributions of faculty members to the Retirement

Program were set at 5% of the gross salary on the amount of salary

subject to Social Security taxes and 73% of the gross salary above

the amount subject to Social Security taxes.



For the years from 1963 through 1968 a faculty member earning

$12,000 per year contributed 5% of $4,800 and 72% of $7,200 toward

his Teachers Insurance Annuity Association retirement benefits. His

total annual contribution was $780. This was matched by the College.

During 1969, the Social Security tax was collected on a salary up to

$6,600. This meant that the faculty member's contribution was

reduced to $735 per year because the 7234 was applied against a

smaller part of the $12,000 and the 5% was applied against a larger

part of the $12,000. The amount of salary subject to Social Security



taxes has changed three times since 1969. It now stands at $13,100.



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RESOLUTION OF THE BOARD OF TRUSTEES



WHEREAS, the maximum taxable salary under The Federal

Insurance Contribution Act has increased during the past few years,

and



WHEREAS, this increase has reduced the amount of the

contributions of the faculty of the College of the Virgin Islands to the

Teachers Insurance Annuity As sociation/College Retirement Equities

Fund, and



WHEREAS, the benefits of The Federal Insurance Contribu-

tion Act are not equivalent to the benefits of the Teachers Insurance

Annuity Association/College Retirement Equities Fund, and



WHEREAS, the retirement benefit of each College faculty

member is being deteriorated by increased Federal tascsance 7

Contribution Act taxes and the reduction of annuity contributions to

the Teachers Insurance Annuity Association/College Retirement

Equities Fund,



NOW THEREFORE, Be It Resolved that the Board of Trustees

of the College of the Virgin Islands does hereby ee *eaniatoes

from each faculty member salary for amounts up to The Federal

Insurance Contribution Act taxable maximum to be increased from 5%

of the gross salary to 6-1/4% of the gross salary, and



Be It Further Resolved that the Board of Trustees of the

College of the Virgin Islands does hereby authorize the increase of



the contributions of the College for the benefit of the faculty members



contributing to the Teachers Insurance Annuity Redasteiion/ Collees

Retirement Equities Fund to be increased from 5% of the gross salary

up to the Federal Insurance Contribution Act maximum taxable amount

to 6-1/4% of the gross salary up to The Federal Insurance Contribution

Act maximum taxable amount.



Approved by the Board of Trustees October 27, 1974.



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