MINUTES
EMPLOYMENT BENEFITS COMMITTEE
February 18, 2010
Members Present
Don Clothier
Debbie Copp
Alisa Dougless
Brenda Freese - Chair
Don Harrison
Members Absent
Suzanne Gilmore
Joann Dean
Chad Johnson
Frank Lawler
Darryl McCullough – Vice Chair
Scott Moses
Sue-Anna Miller
Will Wayne
Simone Pulat
Justin Wert
Ex Officio Members
Barbara Abercrombie
Julius Hilburn
Nick Kelly
The meeting was called to order by the Chair at 1:30 pm.
I.
Approval of Minutes

The January 2010 minutes were approved with one change.
III. Master Record Keeper, Tier 2, second bullet should read as follows:
Approximately 4 Index Funds
II. Defined Contribution Plan


In the January meeting it was decided that HR would prepare additional defined
contribution reduction scenarios for presentation. Julius began with some
background on why HR began modeling defined contribution scenarios, rather
than other programs, to absorb the impact of potential reductions to benefit
spending.
Since the last meeting various groups have suggested the following approaches be
considered:


Furloughs – there is a perception by some that furloughs may be a
more appropriate solution for short-term budget constraints
Voluntary leave without pay – there are some Norman faculty who
expressed a desire for an option to take voluntary leave without
pay rather than a furlough to aid budget reductions
Comment: A committee member from HSC has concerns about how furloughs might
coordinate with clinic operations.
Response: Julius indicated that many universities exclude clinical operations from
furloughs, as well as those whose positions are funded by grants and contracts. However,
positions funded by the state are normally included in furlough programs. The approach
used to manage the furlough process would likely be campus specific.
Comment: A Norman committee member expressed his opinion that systemic changes
are necessary to the defined contribution system now. He suggested reductions in DC
now with a match, and furloughs later, if necessary.
Comment: Nick Kelly reminded the group of the competitive impact of furloughs over a
two to three year period.
Comment: Julius indicated that OU is currently at the top of the Big 12 market in
university contributions to defined contribution plans.
Question: A committee member asked what OU’s competitive position is with regard to
salaries.
Response: Julius indicated that at the Health Sciences Center where we have a
compensation system and an annual review of our competitive position, that our salaries
are “at market”.
Comment: It was suggested by a committee member that there be a cafeteria approach,
or possibly different approaches for faculty vs. staff.

After discussion about the various additional approaches, Julius reviewed the DC
options with the committee.
 Option A – 20% Reduction on All Plans
 Would affect each group proportionally
 Easy to administer and explain
 Option I - 25% Across the Board with Match
 Provides Incentive for employees to save
 All employees take the same initial percentage reduction
 Administration and communication marginally more difficult, but
manageable
 All plans remain competitive
 Option J - Eliminate Offset with Match


While it introduces progressive cuts, inequities exist within and
between plans at the high and low ends of the salary scale
 Very difficult transition communication, easier administration and
communication going forward
 All plans remain competitive
 Match adds incentive for savings
Option K – The same as “I” except it has a larger reduction and match for
the 15% plan
Motion: A motion was made and approved to recommend Option A if a reduction in the
defined contribution plans is chosen as the means by which to reduce benefit costs. A
second motion was made to vote on whether to include a match, if the reduction is
necessary.
 Match – 4
 No Match – 6
Based on the results of the vote, the Committee will prepare a recommendation for
Option A which will be an across the board reduction in all defined contribution plans, if
necessary. The recommendation will include a request that the University evaluate the
plans annually and add a match as soon as financially feasible.
Next Steps:


The Committee Chair will draft a recommendation to President Boren for review
by the Committee via e-mail.
HR will evaluate furloughs, leave plans, and phased retirement plans. The most
appropriate options will be modeled and presented at the March EBC meeting.
III. Master Record Keeper


Meetings are scheduled for the end of March to talk with potential fund managers.
The current 5 member Retirement Plans Management Committee will be
expanded to 7 for additional perspective.
IV. Updates from the Chief Human Resources Officer

V.
There were no additional updates
Other Business

There was no other business
The next EBC meeting will be Thursday, March 11, 2010.
There being no other business, the meeting was adjourned at 3:35 p.m.