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THE PENNSYLVANIA STATE UNIVERSITY

 

The University Faculty Senate

 

AGENDA

 

Tuesday, September 10, 2002, at 1:30 PM in

112 Kern Graduate Building

 

 

 

          [In the case of severe weather conditions or other emergencies, please call the Senate Office

          at (814) 863-0221 to determine if a Senate meeting has been postponed or canceled.  This may be

          done after business office hours by calling the Senate Office number and a voice mail message can

          be heard concerning the status of any meeting.]

 

A.  MINUTES OF THE PRECEDING MEETING -

      Minutes of the April 23, 2002, Meeting in The Senate Record 35:7  [www.psu.edu/ufs/recordx.html]

 

B.     COMMUNICATIONS TO THE SENATE - Senate Curriculum Report (Blue Sheets) of

                                                                        August 27, 2002 

                                                                        [www.psu.edu/ufs/bluex.html]

 

                                                                        Seating Chart for 2002-03

C.  REPORT OF SENATE COUNCIL - Meeting of August 27, 2002

D.  ANNOUNCEMENTS BY THE CHAIR -

E.  COMMENTS BY THE PRESIDENT OF THE UNIVERSITY -

 

F.      FORENSIC BUSINESS –

 

G.     UNFINISHED BUSINESS –

 

H.     LEGISLATIVE REPORTS –

 

I.        ADVISORY/CONSULTATIVE REPORTS -

 

J.       INFORMATIONAL REPORTS –

 

      Admissions, Records, Scheduling and Student Aid
            Awards and Scholarships

 

        Faculty Benefits

 

      Performance of the TIAA-CREF Retirement Savings Plan

 

        Joint Committee on Insurance and Benefits

 

            Annual Report – June 2002

 

        Undergraduate Education

 

            University Advising Council

 

        University Planning

 

Intermodal Transportation Concept

 

K.  NEW LEGISLATIVE BUSINESS -

 

L.  COMMENTS AND RECOMMENDATIONS FOR THE GOOD OF THE UNIVERSITY -

 

-----------------

Note:  The next regular meeting of the University Faculty Senate will be held on Tuesday,

           October 22, 2002, at 1:30 PM in Room 112 Kern Building.

 

 

THE PENNSYLVANIA STATE UNIVERSITY

The University Faculty Senate

101 Kern Graduate Building

University Park, PA  16802

(814) 863-1202 – phone   (814) 865-5789 – fax

 

 

Date:   August 28, 2002

 

To:      John W. Moore, Chair, University Faculty Senate

 

From:  Shelley M. Stoffels, Chair, Senate Committee on Curricular Affairs

 

 

The Senate Curriculum Report dated August 27, 2002, has been circulated throughout the University.  Objections to any of the items in the report must be submitted to the University Curriculum Coordinator at the Senate Office, 101 Kern Graduate Building, e-mail ID sfw2@psu.edu, on or before September 26, 2002.

 

The Senate Curriculum Report is available on the web.  It can be accessed via the Faculty Senate home page (URL http://www.psu.edu/ufs).  An electronic mailing list is used to notify individuals of its publication.  Please contact the Curriculum Coordinator at the e-mail ID indicated above if you would like to be added to the notification list.

 


 

THE PENNSYLVANIA STATE UNIVERSITY

SEATING ARRANGEMENT FOR UNIVERSITY FACULTY SENATE

112 Kern Graduate Building

 

AISLE                                                             RIGHT SECTION (Facing Stage)                                                 AISLE

=======================================================================================

     Row A         001                                                                                                      Susan Abmayr  005          Anthony Ambrose

              002      Cheryl Achterberg                                                                              006        Richard Ammon

              003      Phyllis Adams                                                                                    007        James Anderson

              004      Richard Althouse

___________________________________________________________________________________________________

     Row B     -   008                                                                                                      Mohamad Ansari              013          Connie Baggett

              009      Lauren Applegate                                                                               014        Anthony Baratta

              010      Anthony Atchley                                                                               015        Guy Barbato

              011      Deborah Atwater                                                                                016        David Barnes

              012      Kultegin Aydin                                                                                   017        Paul Barney

___________________________________________________________________________________________________

     Row C     -   018                                                                                                      Richard Barshinger            024          Leonard Berkowitz

              019      Rosann Bazirjian                                                                                 025        Leonid Berlyand

              020      Aida Beaupied                                                                                    026        Thomas Berner

              021      Laura Beck                                                                                          027        Hemant Bhargava

              022      Paul Becker                                                                                         028        Edward Bittner

              023      Thomas Benson

_____________________________________________________________________________________________

     Row D     -   029                                                                                                      Dawn Blasko    035          Laurie Breakey

              030      Ingrid Blood                                                                                        036        David Breslin

              031      John Boehmer                                                                                     037        Robert Bridges

              032      Edward Bollard                                                                                   038        Dan Brinker

              033      Robert Bonneau                                                                                  039        Douglas Brown

              034      Thomas Boothby                                                                                040        Stephen Browne

___________________________________________________________________________________________________

     Row E     -    041                                                                                                      Barton Browning              048          John Cancro

              042      Victor Brunsden                                                                                  049        Michael Cardamone

              043      Charles Burchard                                                                                050        Richard Carlson

              044      Robert Burgess                                                                                   051        Lynn Carpenter

              045      Keith Burkhart                                                                                    052        Arthur Carter

              046      John Cahir                                                                                           053        Meshawn Carter

              047      Clay Calvert

___________________________________________________________________________________________________

     Row F     -    054                                                                                                      Mark Casteel    062

              055      Gary Catchen                                                                                      063        VISITOR

              056      Joseph Cecere                                                                                     064        SECTION

              057      John Challis                                                                                        065

              058      Debora Cheney

              059      Michael Chorney

              060      Chao-Hsien Chu

              061      Roy Clariana

___________________________________________________________________________________________________

     Row G     -   066                                                                                                      Paul Clark         075         

              067      Lance Cole                                                                                          076        VISITOR

              068      Milton Cole                                                                                        077        SECTION

              069      Lee Coraor                                                                                          078       

              070      Elizabeth Corwin

              071      Eric Cowden

              072      David Cranage

              073      Robert Crane

              074      Robert Crum


AISLE                                        RIGHT SECTION (Facing Stage)                                                                                AISLE

___________________________________________________________________________________________________

     Row H     -   079                                                                                                      Brian Curran     089

              080      Wayne Curtis                                                                                      090        VISITOR

              081      Dwight Davis                                                                                      091        SECTION

              082      Gordon De Jong                                                                                  092

              083      Travis DeCastro

              084      Peter Deines

              085      Laurence Demers

              086      Diane Disney

              087      Cheng Dong

              088      James Donovan

___________________________________________________________________________________________________

     Row I           093                                                                                                      Caroline Eckhardt             104

              094      Roger Egolf                                                                                         105        VISITOR

              095      James Elder                                                                                         106        SECTION

              096      Bill Ellis                                                                                              107

              097      Terry Engelder

              098      Charles Enis

              099      Rodney Erickson

              100      Paul Eslinger

              101      Jacqueline Esposito

102         Christine Clark-Evans

103         Dorothy Evensen

____________________________________________________________________________________________________

     Row J     -    108                                                                                                      Peter Everett     120

              109      Christopher Falzone                                                                           121        VISITOR

              110      Fred Fedok                                                                                          122        SECTION

              111      Charles Fisher                                                                                     123

112         Joanna Floros

113         Ryan Fortese

              114      Gary Fosmire

              115      William Frank

              116      Mary Frecker

              117      Joyce Furfaro

118         Andrzej Gapinski

119         Roger Geiger

____________________________________________________________________________________________________

     Row K     -   124                                                                                                      SENATE PERSONNEL   136

              125      SENATE PERSONNEL                                                                     137        VISITOR

              126      SENATE PERSONNEL                                                                     138        SECTION

              127                                                                                                                  139

              128                                                                                                                 

              129     

              130     

              131      Gregory Ziegler

              132      Stamatis Zervanos

              133      Edgar Yoder

134         Billie Willits

135         Nancy Williams

___________________________________________________________________________________________________

     Row L     -                                                                                                                              140

                                                                                                                                      141        VISITOR

                                                                                                                                      142        SECTION

                                                                                                                                      143

             

             

                                                                                                                                     

======================================================================================


THE PENNSYLVANIA STATE UNIVERSITY

SEATING ARRANGEMENT FOR UNIVERSITY FACULTY SENATE

112 Kern Graduate Building

 

AISLE                                                            LEFT SECTION (Facing Stage)                                                    AISLE

======================================================================================

     Row A         007                                                                                                                    003     

              006                                                                                                                  002       

              005                                                                                                                  001       

              004     

__________________________________________________________________________________________________

     Row B     -   018                                                                                                      Madlyn Hanes

              017      Daniel Hagen                                                                                       012        Dennis Gouran

              016      Wallace Greene                                                                                   011        Margaret Goldman

              015      David Green                                                                                        010        Thomas Glumac

              014      Timothy Gray                                                                                    009        David Gilmour

              013      Robert Gray                                                                                        008        Peter Georgopulos

__________________________________________________________________________________________________

     Row C     -   031                                                                                                      Brandon Hunt

              030      Pamela Hufnagel                                                                                 024        Kane High          

              029      Alan Horwitz                                                                                      023        Julia Hewitt

              028      Dale Holen                                                                                          022        John Harwood

              027      Jay Holcomb                                                                                       021        Irene Harvey

              026      James Hilton                                                                                       020        Norman Harris

              025      Robert Hill                                                                                          019        Elizabeth Hanley

__________________________________________________________________________________________________

     Row D     -   046                                                                                                      Steven Koeber

              045      Amir Khalilollahi                                                                                038        Christopher Johnstone

              044      Kenneth Kephart                                                                                037        Ernest Johnson

              043      Richard Kennedy                                                                                036        Leif Jensen

              042      Peter Jurs                                                                                            035        Deidre Jago

              041      Michael Jonson                                                                                   034        Janis Jacobs

              040      Terrell Jones                                                                                       033        Zachary Irwin

              039      Billie Jo Jones                                                                                     032        Ali Hurson

__________________________________________________________________________________________________

     Row E     -    062                                                                                                      Wayne Marshall               054          Luen-Chau Li

              061      Daniel Marshall                                                                                  053        Mark Levin

              060      Cynthia Massie-Mara                                                                        052        Alphonse Leure-duPree

              059      Digby Macdonald                                                                               051        Daniel Larson

              058      Christopher Lynch                                                                             050        Pablo Laguna

              057      Nancy Love                                                                                        049        Donald Kunze

              056      Kathleen Lodwick                                                                               048        John Kramer

              055      Amy Locke                                                                                         047        Ravinder Koul

__________________________________________________________________________________________________

     Row F     -    078                                                                                                      Rajen Mookerjee               070          Gwenn McCollum

              077      Elise Miller-Hooks                                                                             069        Ronald McCarty

              076      Arthur Miller                                                                                      068        James May

              075      Louis Milakofsky                                                                               067        Kevin Maxwell

              074      Craig Meyers                                                                                      066        Anna Mattila

              073      Kidane Mengisteab                                                                             065        Andrew Masters

              072      Annette McGregor                                                                             064        John Mason

              071      Sallie McCorkle                                                                                  063        Salvatore Marsico

__________________________________________________________________________________________________

     Row G     -   095                                                                                                      Gary Petersen   086          Dawn Noga

              094      Joy Perrine                                                                                          085        Victor Nistor

              093      Eva Pell                                                                                               084        John Nichols

              092      Katherine Pearson                                                                               083        Paul Neiheisel

              091      Judy Ozment Payne                                                                           082        Jamie Myers

              090      Laura Pauley                                                                                       081        Al Mueller

              089      Robert Pangborn                                                                                 080        Wilson Moses

              088      Mary Beth Oliver                                                                               079        Karen Morin

              087      Robert Novack


AISLE                                LEFT SECTION (Facing Stage)                                                                                  AISLE

_________________________________________________________________________________________________

     Row H     -   111                                                                                                      Dawn Rupp      101          Howard Sachs

              110      William Rowe                                                                                     100        Peter Rebane

              109      Andrew Romberger                                                                             099        Jean Landa Pytel

              108      Paula Romano                                                                                     098        Frank Pugh

              107      John Romano                                                                                      097        Thomas Poole

              106      Michael Ritter                                                                                     096        Martin Pietrucha

              105      Robert Ricketts                                                                                  

              104      Irwin Richman                                                                                   

              103      Winston Richards

              102      David Richards

__________________________________________________________________________________________________

     Row I           129                                                                                                      Semyon Slobounov           118          Alan Scaroni

              128      Timothy Simpson                                                                               117        Dennis Scanlon

              127      Richard Simons                                                                                   116        Sandra Savignon

              126      Julia Simon                                                                                          115        Dhushy Sathianathan

              125      Patience Simmonds                                                                             114        Louise Sandmeyer

              124      Dennis Shea                                                                                        113        Karen Sandler

              123      Thomas Seybert                                                                                  112        David Russell

              122      Ladislaus Semali

              121      Robert Secor

              120      Cara-Lynne Schengrund

              119      Stephen Schaeffer

__________________________________________________________________________________________________

     Row J     -    148                                                                                                      Reiko Tachibana               136          Summer Spangler

              147      Bonj Szczygiel                                                                                    135        Kristin Sommese

              146      Mila Su                                                                                               134        Stephen Smith

              145      James Strauss                                                                                      133        Sandra Smith

              144      Valerie Stratton                                                                                   132        James Smith

              143      Shelley Stoffels                                                                                   131        Edward Smith

              142      Dagmar Sternad                                                                                   130        Carol Smith

              141      Kim Steiner

              140      Macklin Stanley

              139      Stephen Stace

              138      John Spychalski

              137      Graham Spanier

__________________________________________________________________________________________________

     Row K     -   167                                                                                                      Kay Wijekumar 154          Tramble Turner

              166      Barbara Wiens-Tuers                                                                          153        Rodney Troester

              165      Eric White                                                                                           152        Brian Tormey

              164      Douglas Werner                                                                                  151        Paul Tikalsky

              163      Susan Welch                                                                                        150        Joan Thomson

                  162  Marley Watkins                                                                                  149        Evelyn Thomchick

                  161  Robert Walters

                  160  James Wager

                  159  Richard Wade

                  158  Alexandros Vgontzas

                  157  Keith Verner

                  156  Thomas Vary

                  155  John Urenko

=====================================================================================

 

 

 

SENATE COMMITTEE ON ADMISSIONS, RECORDS,

SCHEDULING AND STUDENT AID

 

Awards and Scholarships

 

(Informational)

 

This committee is charged with selecting the recipients of those awards and scholarships that come under the jurisdiction of the University Faculty Senate.  Awards were made based on the following guidelines:

 

1.      Scholarship and need were the primary criteria.

 

2.      In the selection of recipients, the committee followed the

donor’s specifications as approved by the Board of Trustees.

 

3.      Awards were made beginning with those students who had the

highest cumulative grade point average and most substantial

need.

 

The following is a summary of the committee’s work.  It should be noted that the committee awarded all available funds.  A list of the students receiving awards is on file in the Senate Office.

 

SENATE COMMITTEE ON ADMISSIONS, RECORDS, SCHEDULING AND STUDENT AID
Edward W. Bittner
Stephen Browne
Mark A. Casteel, Chair
Milton W. Cole
Anna Griswold
Geoffrey J. Harford
Steven D. Koeber
Chau-Luen Li
Christopher J. Lynch
Paul Neiheisel
John J. Romano
Thomas A. Seybert
Carol A. Smith, V. Chair
Richard A. Wade
J. James Wager

PLEASE CONTACT THE SENATE OFFICE IF YOU WANT A COPY OF THE CHART

 

SENATE COMMITTEE ON FACULTY BENEFITS

 

Performance of the TIAA-CREF Retirement Savings Plan

Executive Summary

 

(Informational)

 

 

The following report compares the performance of the investment funds in the Teacher’s Assurance & Annuity Association and College Retirement Equities Fund (TIAA-CREF) to several key benchmarks during the most recent one and five year periods.  Sixty-two percent of the 15,000 benefits-eligible employees participate in this plan.  The remaining thirty-eight percent (approximately 700 faculty members) participate in the State Employees Retirement System (SERS).  Employees must invest an amount equal to 14.3% of their annual salary in one or more of the ten accounts available.  Penn State contributes 9.3% of the annual salary and the employee contributes a mandatory 5% to the retirement plan.  This informational report lets faculty know that other funds may be performing better now, especially since TIAA-CREF, which lost its tax-exempt status recently due to its decision to offer financial services to the general public, may not be the star it has been for so many years.

 

Table 1 shows the average annual rate of return for the most recent five years as well as the rate of return for the last twelve months.  Last year’s return rate was one of the poorest years for investments in the last twenty-five years.  In light of recent changes in the TIAA-CREF program, Penn State faculty and administration may need to consider whether additional retirement investment options should be made available to Penn State employees.

 

 

SENATE COMMITTEE ON FACULTY BENEFITS
Keith K. Burkhart
Gary L. Catchen
Michael Dooris
Elizabeth A. Hanley
Deidre E. Jago, Chair
Kathleen L. Lodwick
Cynthia Massie-Mara
Sandra J. Savignon
Cara-Lynne Schengrund
Dennis G. Shea, Vice-Chair
Patience L. Simmonds
Marley W. Watkins
Billie S. Willits

SENATE COMMITTEE ON FACULTY BENEFITS

 

Performance of the TIAA-CREF Retirement Savings Plan

 

(Informational)

 

INTRODUCTION

The faculty and staff compensation package at Penn State consists of annual salary, a health care plan, and retirement savings plan.  The Committee reports to the Senate annually on salaries and frequently reports on health care.  Retirement savings plans have received less attention from the Senate, to date.  This is the first of the Committee’s occasional reports to the Senate on Penn State faculty and staff retirement savings plans.

 

At present, Penn State contributes 9.3% of salary payments (contract salary plus any supplemental salary payments) to an individual’s retirement savings plan.  The faculty member makes a mandatory before-tax contribution of 5% of salary payments to this plan.  Therefore, total mandated contributions to a retirement plan are 14.3% of annual salary, at this time. In accordance with state law, on joining the University faculty members must make an irrevocable decision to have these contributions credited to the State Employee’s Retirement System (SERS) or to a plan administered by a private insurance firm, Teacher’s Assurance & Annuity Association and College Retirement Equities Fund (TIAA-CREF).   Furthermore, once this commitment is made, an individual’s retirement savings in each plan are locked in until employment at Penn State ends, regardless of changes in potential retirement benefits available from either plan.

 

SERS is a defined benefit plan, which means that the monetary value of retirement benefits  depends on a formula that incorporates,

(a)       the number of years contributions are made to the plan, which is equivalent to the length of Penn State employment (also called the enrollment period),

(b)      the average of the 3 highest  annual incomes received from Penn state during the enrollment period and,

(c)       the per year retirement credit specified by state law.

Currently, the retirement credit is 2.5% of the average of 3 highest annual incomes multiplied by the number of years of service in the System for employees with 25 years or more of service.  (This was recently increased from 2.0%.)  These funds are invested by the state agency administering the SERS.  Retirement benefits received by SERS enrollees do not depend on the performance of the SERS investment funds or on any investment decision of the employee.  The state underwrites (guarantees) these benefits.  Retirees do not share in gains received by the SERS fund, regardless of the performance of these investments in stocks, bonds, and money market instruments.  On the other hand, retirees are indemnified against any losses incurred by the SERS fund.[1] 

 

By contrast, TIAA-CREF provides a defined contribution plan.  In this plan retirement benefits depend on,

(a)     the mandatory contributions made to the plan during the enrollment period, which depends on the employee’s yearly Penn State salary income over the entire employment period,

(b)     the employee’s personal decision on allocation of these funds among TIAA-CREF ten investment accounts (enrollees have limited freedom to invest in any combination of these 10 funds) and on,

(c)      the gains and losses in these investment accounts resulting market conditions and from decisions of TIAA-CREF investment managers. 

At present, a majority of faculty and staff are enrolled in the TIAA-CREF plan.  The performance of TIAA-CREF investment accounts is an important determinant of future retirement benefits for these employees.  This report focuses on the performance of these investment accounts and compares them to benchmarks.   

 

COMPARATIVE PERFORMANCE OF TIAA-CREF RETIREMENT FUNDS (ACCOUNTS)

 

Every academic institution that offers the TIAA-CREF retirement plans to its employees has a separate contract with that organization.  State regulations are currently restrictive in that Penn State employees who participate in the TIAA-CREF retirement plan must invest their mandatory contributions in one or more of the TIAA-CREF investment accounts, which are similar to mutual funds. 

(Penn State employees may elect to make voluntary tax-deferred contributions to one of 5 supplementary annuity plans available through Penn State.  TIAA-CREF is one of these providers of supplemental annuities. Contributions to these plans are facilitated by the University through payroll deduction, but no separate funds are contributed by Penn State to these supplemental plans.  Employee withholdings are tax deferred to the extent permitted by law.  This report does not cover these voluntary plans.)



 


Table 1 reports recent returns on these investment funds as well as comparable information about them.[2]   The 10 fund choices, called accounts, are listed in column [A].  We do not have information about the choices of these TIAA-CREF funds that were made by Penn State employees.  However, we do know about the total amount of money managed by TIAA-CREF for all of its participants.  These are shown in columns [F] and [G].  Of the ten investment choices available to Penn State employees, 2 are TIAA funds and 8 are CREF funds.

 

Rates of return on investment accounts vary considerably from year to year.  We used the average annual rate of return for the most recent 5 years as a reasonable indicator of long-term returns on these accounts since it would be speculative to rank accounts on the basis of short-term results.  This 5-year average is shown in col. [D].  However, we also show the last 12 month’s return, col. [C], because this was one of the poorest years for investments in the last 25 years (and which we hope will prove to be a “worst case” scenario).  Comparison of columns [C] and [D] illustrates variation in returns. 

 

Nearly half of the retirement savings managed by TIAA-CREF for all of its participants (Penn State and non-Penn State) are invested in the TIAA TRADITIONAL ANNUITY account.  This account pays a moderate rate of return on investments that is fixed annually by the TIAA and is guaranteed for one year; it is the only account that guarantees against loss of principal and is, therefore, the most conservative.  This rate has been adjusted downward in recent years.  It was 7.0% during the past 12 months (see col. [C] ) and averaged 7.2% over the past 5 years, as shown in col. [D].[3]   Fortunately, this fixed rate generally exceeds the rate of inflation, which was 1.2% in 2001.

 

Following the conventional practice in financial markets, we measured an investment fund’s performance over the most recent 1 and 5 year periods by comparing it with a benchmark investment fund that invests in the same type of assets.  For all but one of the CREF investment funds, we used the benchmark listed in  the Appendix. [H].[4]  In most cases this was the benchmark used by TIAA-CREF itself.  In other cases, where appropriate, the Committee used a modified benchmark.   The specific benchmarks are explained in the Appendix to this report.  Those rates of return that exceeded the benchmark rate of a particular investment fund are bold-faced in columns [C] and [D]. 

 

The oldest and most popular CREF account is the CREF STOCK account, which currently holds 38% of all TIAA-CREF participants’ savings.  Its average annual 5 year return of 8.3% slightly exceeds that of the benchmark rate 8.0%.[5]  However, last year’s rate of return for this fund was far worse than the benchmark.  The average world stock market return showed a loss of 8.3% for 2001, in what was a very bad year for the markets.  But the CREF Stock Market fund lost nearly 14% (which would hurt a participant with heavy investment in that account and who retired that year).  This illustrated that the CREF Stock Fund suffers significant yearly fluctuations.  In efficient investment markets risky investments should reward the investor with relatively higher potential returns.  The risk vs. reward balance is essential to a sound retirement savings plan.  These figures show that the CREF Stock account may be giving the participant high risk exposure, but it provides little extra reward compared with less volatile investments. 

 

Morningstar is a widely used and respectable mutual fund rating service that assigned 1 to 5 stars to any investment fund.  The Morningstar rating balances risk and reward.  If a mutual fund has low returns relative to high-risk exposure it earns 1 or 2 stars (like hotels, there are no zero star mutual funds).  If return is large relative to risk it earns 4 or 5 stars.  CREF Stock account earns only 3 stars, which academics can regard as a “C” grade. 

 

The third most popular CREF fund is the CREF Growth Stock account.   This is the account that enables participants to benefit the most from economic growth and it should be its most promising investment choice.  But it gets a 2 star “D” rating because it has a roller coaster history of returns.  (At one point in 2001 its price was down nearly 50% from its high.)  It lost a whopping 23% over the past 12 months, while peer funds lost only half as much. 

 

Experiences with the TIAA-CREF stock market accounts demonstrate the need for faculty and staff members who are enrolled in TIAA-CREF to give particular attention to asset allocation and asset management as retirement nears.

 

However, in general, the performance of TIAA-CREF investment funds was marginally above the benchmarks, although some accounts gave below average investment results compared with their riskiness.  In all, seven of the eight TIAA-CREF accounts that could be benchmarked over the past five years had returns that exceeded its benchmark rate of return.  However, its largest funds had “C” and “D” grades.   Indeed, participants who relied on these funds to steward their retirement savings had some disappointments.  Only two accounts had “A” grades.  They held relatively small amounts of money and neither gave stellar returns relative to their benchmarks. 

 

CONCLUDING OBSERVATIONS

 

The data in Table 1 and observations in this Report are not intended to provide guidance for placement of individuals’ retirement savings.  The range of issues that would be relevant for investment decision-making is too complex and too specific to individual circumstances to be properly treated here.  The Committee considers investment advice to be outside its charge.

 

TIAA-CREF was an innovative provider of financial services to the academic community for several decades.  But it is no longer a superior manager of retirement savings.  The organization has changed and this change may be related to its loss of position.  A few years ago new management decided to offer financial services to the general public and it now sells mutual funds and other products that are similar to what it offers the academic community.  One result is that outside rating agencies are now following its funds’ investment performance.  Ratings given by Lipper and by Investors’ Business Daily show some funds in the “C” and “D” category.  Furthermore, TIAA-CREF’s decision to enter the non-academic marketplace (offering its financial services to the general public) led to an act of Congress that withdrew its tax-exempt status so that it now must devote a share of its earnings to taxes rather than to servicing clients.   We can only hope that its performance will improve as it now has entered the public arena where it must compete with such savvy giants as Vanguard, Fidelity, Prudential, and American Express.   The academic community no longer has its exclusive attention.

 

In accordance with current state law, Penn State employees who do not enroll in SERS, when joining the University, must use TIAA-CREF to manage their retirement savings and they are locked into this organization for the duration of their University tenure.  Some participants believe that the huge stream of income that TIAA-CREF receives from Penn State gives that organization a strong incentive to manage funds well.  Others believe that this incentive is weakened by the inability of employees to elect another organization (aside from SERS) to manage their mandated contributions to a retirement savings plan.   It is possible that state regulators will someday permit mandatory contributions to be made to other retirement savings plan providers; a wider choice is likely to benefit most participants.

 

 

FACULTY BENEFITS COMMITTEE AY2001-2002

 

                                                                                                        

Michael Bernhard

Keith Burkhart, chair

John Dawson                                                                                                         Jacob De Rooy, Chair

Jacob De Rooy

Anne McGregor, vice-chair                                                                                                         Patience Simmons

Dennis Shea                                                                                     

 

 

Patience Simmonds                                             

Sandra Smith

Mark Strikman

Billie S. Willits

 

Staff Support: Michael Dooris

 

 

 

APPENDIX: BENCHMARK RATES OF RETURN FOR TIAA-CREF INVESTMENT ACCOUNTS

 

TIAA-CREF INVESTMENT ACCOUNTS and BENCHMARKS

INVESTMENT ACCOUNT

BENCHMARK USED FOR THIS REPORT

(Benchmark selected by TIAA-CREF, unless otherwise noted)

CREF STOCKS

 

CREF reports that it uses two benchmarks to internally evaluate this investment account: the Morgan Stanley World Stock Index and the Russell 3000 Stock Index.  Because CREF invests about 19% of its funds in foreign stocks, the Committee’s benchmark is equal to 19% of the rate of return on the  Morgan Index and 81% of the rate of return on the  Russell Index.

CREF GLOBAL EQUITIES

Rate of return on Morgan Stanley World Stock Index

CREF GROWTH STOCKS

Rate of return on Russell 3000 Stock Index

CREF EQUITY INDEX

Rate of return on Russell 3000 Stock Index

CREF SOCIAL CHOICE

Because the account currently invests about 40% in bonds, and the remainder in stocks, of socially responsible corporations, the Committee’ benchmark is equal to 40% of the rate of return on the Lehman Brothers Aggregate Bond Index and 60% of the rate of return on the Standard & Poor’s 500 Common Stock Index.

CREF BONDS

 

Rate of return on the Lehman Brothers Aggregate Bond Index

CREF INFLATION-INDEXED BONDS

(This investment account does not have a designated benchmark index chosen by CREF)

CREF MONEY MARKET

(This investment account does not have a designated benchmark index chosen by CREF); the Committee used the WALL STREET JOURNAL iMoneynet Market Fund Average for Taxable Funds

TIAA REAL ESTATE

 

(This investment account does not have a designated benchmark index chosen by CREF); the Committee used the WALL STREET JOURNAL Real Estate Sector Fund index

TIAA TRADITIONAL

 

(This investment account does not have a designated benchmark index chosen by CREF)

 

 

Notes:

(a) Sources are College Retirement Equities Fund Annual Reports, The Wall Street Journal, TIAA-CREF Investment Forum.


(b) To make the benchmarks comparable to the investment account returns, the Committee reduced the published benchmark rates of return by the size of the TIAA-CREF administrative costs.

 

 

JOINT COMMITTEE ON INSURANCE AND BENEFITS

 

Annual Report – June 2002

 

(Informational)

 

Our previous annual report covered the time period from November, 2000 through August, 2001.  Since that time, the Joint Committee on Insurance and Benefits has met on October 22, 2001, December 10, 2001 and May 14, 2002.

 

This report is a summary of the issues reviewed and discussed and the actions recommended by the Committee in the following areas:

 

·       Health Care Rates

 

·       Health Plan Issues and Changes

 

·       Benefits Changes Online

 

·       Student Immunizations

 

·       “Life Events” Website

 

·       SERS Changes

 

·       Military Leave Benefits

 

·       Occupational Medicine Program

 

 

Health Care Rates

 

During the October meeting, the committee reviewed the proposed health care rates for 2002, including the percentage of increase in costs from the previous year.  It was noted that the cost of the Plan A indemnity plan remained approximately the same as in 2001, which was quite unusual. However, there were substantial rate increases in several of the other health plans.  The committee concluded that rising pharmacy costs, along with new medical technology and treatment methods, were some of the most significant factors that accounted for the sharp rise in health care rates.

 

It was agreed by the committee that the Office of Human Resources should continue to monitor and request more data regarding health care trends as the year 2002 progressed in order to be prepared for any possible increase in costs.

 

Health Plan Issues and Changes

 

Each year there is a certain amount of shifting among some of the health care providers and those physicians, hospitals and other facilities who participate within their networks.  In addition, counties in Pennsylvania that are eligible to participate in certain health plans may vary from year to year. 

 

For example, as of January 1, 2002 the Aetna U.S. Healthcare Golden Medicare HMO was no longer available to retirees who reside in Lehigh and Montgomery Counties.  However, those retirees were provided another medical plan choice--the University Medicare Supplement plan.

 

In addition, in April 2002 several health care facilities withdrew from the Health Net HMO network in southeastern Pennsylvania.  As a result, the participants in the Health Net HMO were given the opportunity to switch to an Aetna U.S. Healthcare plan, if they wished.

 

On another subject, the committee was informed that the Office of Human Resources has established a goal for the 2002-2003 fiscal year to develop a strategic plan with HealthAmerica, as well as all of the other health plan administrators who are contracted with Penn State, to monitor health care costs and review plan designs.

 

With regard to the University’s dental coverage, the committee agreed that it was advisable to be open to continually consider other dental plan options in case there were more affordable plans with equally good, or better, coverage.

 

Since July 1, 1997, when The Milton S. Hershey Medical Center Pharmacy was no longer directly a unit within Penn State, faculty and staff of the University were no longer able to receive their maintenance drugs under the Maintenance Prescription Drug Plan through that pharmacy.  As a result, those employees began requesting to receive their prescriptions from the University Health Services Pharmacy at University Park. Consequently, because of the increased volume of prescription requests, the turn around time for filling prescriptions had not been satisfactory for some time at the University Health Services Pharmacy.  However, the committee was pleased to learn that the dispensing of maintenance prescription drugs at the University Health Services Pharmacy recently had shown a marked improvement.  This was partially due to the efforts of a new pharmacist, along with the addition of a new drug-dispensing machine.

 

At the present time the Psychology Clinic located at University Park is not included as a facility that participates in the Employee Assistant Program (EAP) program.  The Joint Committee discussed the possibility of adding the clinic as another option to the EAP network.  The committee agreed that it was worth researching the matter to determine if the Psychology Clinic would be interested in participating and whether they were equipped to handle the numbers and types of cases that may be presented.  Furthermore, the committee was very specific in recommending that the clinic should be viewed by the EAP participants as a facility that was available “in addition to” all the other EAP providers with no obvious, or implied, pressure to use the clinic.

 

Benefits Changes Online

 

For the first time, as of November 1, 2001, employees were able to request changes to their medical, dental and/or vision coverage online, via the web, rather than by paper copy.  A future goal of the Office of Human Resources is to provide a means so that employees can enroll in, or make changes online, to any of the five tax-deferred annuity plans that are available through Penn State.

 

Student Immunizations

 

Due to the possibility of students contacting infectious meningitis, the committee reviewed the results of a survey with the other Big Ten universities regarding their requirements for student immunizations.  There were varied responses.  Some schools required the immunizations, and some did not.  Several HMO health plan administrators also were contacted.  From the health plan administrators who responded, most of the health plans did not cover the immunization at that time.  However, a few plans covered the immunization if it was a “high risk” situation.  The committee agreed that it was difficult to decide whether this item should be included under Penn State health plans because it would create a considerably higher cost relative to the low number who may be at risk.  Until a clearer decision can be reached, faculty and staff are encouraged to use the flexible spending account opportunity.

 

“Life Events” Website

 

During their employment with Penn State, faculty and staff members encounter a variety of personal and professional milestones that may cause them to seek additional information regarding their employee benefits, the University’s policies and programs and/or other offerings.  When the suggestion of allowing the Office of Human Resources to create a “Life Events” website was presented, the committee was very supportive of the idea. The website would offer assistance and direction regarding needs that may arise, such as providing benefits options at the time of employment, advising employees of any actions that may be required as the result of marriage, divorce, arrival of children, absences from the University, disability and retirement.  The site is currently in test and is expected to be available in the Fall, 2002.

 

SERS Update

 

On July 1, 2001, the State legislators passed Act 2001-9 that permitted employees who were enrolled in the State Employees’ Retirement System (SERS) to retire using a multiplier of 2.50%, instead of 2.00%.  When this option to elect Class AA service became available to SERS participants, they were required to make an election no later than December 31, 2001.

 

During their December meeting, the committee was informed that as of that date there were 703 employees who were enrolled in SERS but who had not elected Class AA service.  For those employees who elected the Class AA service, their monthly contribution towards their SERS retirement plan increased from 5.00% to 6.25% on January 1, 2002

 

Military Leave Benefits

 

From time to time the Office of Human Resources reviews its policies regarding military leave.  The committee was informed that Penn State had issued a “Supplementary Bulletin” which provided a $500 stipend, per month, for reservists who were called to active duty as a result of September 11, 2001 events.  This “Supplementary Bulletin” was modeled after that of the Commonwealth of Pennsylvania and intended for those who planned to return to employment after active duty.  In addition if desired, reservists and/or their families could remain under a Penn State benefits plan at the regular rate.  Policy HR-19 continues to provide that those reservists who were on active duty would be eligible for educational privileges and could continue to make retirement contributions if they were enrolled in TIAA-CREF.  SERS members could buy back up to five years of active military service upon return to work.

 

Occupational Medicine Program

 

The committee agreed that Occupational Health Services are needed at Penn State.  The task force, created to review Occupational Health Services and Worker’s Compensation, was the result of a need for a closer relationship between Occupational Medicine and Worker’s Compensation in order to share more data and look at the broader point of view.  It was the consensus of the committee that Penn State should have a facility for occupational medicine.  It was suggested that perhaps Penn State could out source with the College of Medicine at Hershey to provide services at University Park.  If not, then the two programs needed to be more closely aligned.

 

JOINT COMMITTEE ON INSURANCE AND BENEFITS
Kenneth S. Babe
Bill Ellis
George W. Franz, Chair
Nancy J. Hensel
Michael G. Klein
Joan M. Lakoski
Patricia J. Long
Leonard J. Berkowitz
Patience Simmonds
Billie S. Willits

 

SENATE COMMITTEE ON UNDERGRADUATE EDUCATION

 

University Advising Council

 

(Informational)

 

In Spring 1999, Senate legislation (Policy 32-00) established the University Advising Council (UAC).  The first report of the activities of the UAC to the Senate was given in March of 2000.  This informational report is an update on the UAC activities. 

 

While other universities have bodies similar to the University Advising Council, this one is unique in its Senate origins and in its inclusive membership of faculty advisers, staff advisers, advising administrators, administrators with a vested interest in advising and students.  The council is chaired by the Vice-Provost and Dean for Undergraduate Education and consists of two faculty who are members of the Senate Committee on Undergraduate Education, two students, two academic advisers, and two administrators appointed by the chair of the Council.  Faculty on the Council last year were Jill Findeis of Agricultural Sciences, Jean Pytel of Engineering, Richard Robinett of Science, Dennis Scanlon of Agricultural Sciences, Thomas Seybert of Engineering, and Carol Smith of Health and Human Development.

 

When possible, the UAC initiatives are posted on its web site at www.psu.edu/dus/uac. Such initiatives have included an exemplary practices in academic advising site, a University-wide advising contact (via e-mail addresses) matrix by college and campus, and examples of advising assessment instruments.  The UAC invites suggestions for additional initiatives from the faculty.

 

Initiatives since the last report have been:

 

 

 

Initiatives for the coming year include:

 

 

 

 

 

 

 

 

SENATE COMMITTEE ON UNDERGRADUATE EDUCATION
Cheryl L. Achterberg
Richard I. Ammon
Laura M. Beck
Thomas E. Boothby
John J. Cahir
John P. Cancro
Paul F. Clark
Terry Engelder
Cheryl Gallagher
Peter D. Georgopulos
Robert S. Hill
Richard R. Kennedy
John H. Kramer
Amy E. Locke
Nancy S. Love
Laura L. Pauley, Chair
Robert D. Ricketts, V-Chair
David W. Russell
Dhushy Sathianathan
Dennis C. Scanlon
Julia B. Simon
James A. Strauss
D. Joshua Troxell
Eric R. White

 

SENATE COMMITTEE ON UNIVERSITY PLANNING

 

Intermodal Transportation Concept

 

(Informational)

 

The Senate Committee on University Planning is sponsoring a report on the current planning for transportation in and around the University Park Campus. The plan will impact the way most of us commute to and from campus as well as how we move about the campus.  Dubbed the Intermodal Transportation Concept, the plan was developed to address the need to provide adequate access to campus, create a pedestrian friendly environment and to provide a wide range of alternatives to accessing the UP Campus.  It is the result of the long-term planning process for the University Park Campus.

 

In this report, Gordon Turow and Bill Anderson will describe the plan as it is today and how it integrates transportation by various means or modes, hence the name intermodal.  They discuss the integration of private automobile commuting with improved bus service, the use of bicycles, and the reduction of automobile traffic in critical highly traveled pedestrian corridors.  Because of the impact that the plan will have on the University community and the region at large, the Committee on University Planning has asked Gordon Turow and Bill Anderson to present the plan to the Senate for information and discussion.  Since the plan is a dynamic one, this discussion will provide the faculty with an opportunity to comment for the good of the University on the proposal.

 

In accordance with the University Park Campus Master Plan, the Intermodal Transportation Concept has been developed to:

 

(1)   prioritize pedestrian safety

 

(2)    reduce congestion and improve vehicular circulation in the core

 

(3)    maximize the efficiency and effectiveness of the transit system

 

(4)    enhance accommodations for bicyclists and pedestrians

 

(5)   provide a low cost parking alternative on the campus periphery.

 

The Intermodal Transportation Concept proposes a comprehensive strategy to integrate vehicular circulation, transit use, bicycling, and walking into an efficient transportation network that is synchronized with improvements to parking.  The result will be a safer, more pedestrian-friendly, and environmentally sustainable campus.

 

 

SENATE COMMITTEE ON UNIVERSITY PLANNING
P. Richard Althouse
William Anderson, Jr.
Anthony J.Baratta, Chair
John P. Boehmer
Dan T. Brinker
Eric B. Cowden
Gordon F. De Jong
Peter B. Everett
William M. Frank
Roger L. Geiger
Daniel R. Hagen
Christopher L. Johnstone
Rodney Kirsch
Karen H. Morin
Robert N. Pangborn
Paula J. Romano
William A. Rowe, Vice-Chair
Louise E. Sandmeyer
Gary C. Schultz
Richard J. Simons, Jr.
Timothy W. Simpson
Edward C. Smith
Gregory R. Ziegler

 

THE PENNSYLVANIA STATE UNIVERSITY

The University Faculty Senate

MINUTES OF SENATE COUNCIL

Tuesday, August 27, 2002     1:30 PM   102 Kern Graduate Building

 

MEMBERS PRESENT
C. D. Baggett
C. J. Bise
M. Blumberg
R. L. Burgess
W. T. DeCastro
C. D. Eckhardt
R. A. Erickson
J. R. Esposito
D. H. Evensen
D. S. Gouran
E. A. Hanley
P. C. Jurs
S. A. Marsico
R. L. McCarty
L. Milakofsky
J. W. Moore
J. S. Nichols
J. L. Pytel
P. P. Rebane
A. W. Scaroni
J. C. Spychalski
S. W. Stace
B. B. Tormey

V. R. Price
S. C. Youtz

ACCOUNTED FOR
W. R. Curtis
A. E. Leure-duPree
W. A. Richards
G. B. Spanier

GUESTS
A. Baratta
J. Cahir
M. Casteel
G. Franz
T. Jones
L. Pauley
J. Romano
L. Semali
R. Secor
D. Shea

 

Chair John Moore called the meeting to order at 1:40 PM on Tuesday, August 27, 2002, in Room 102 Kern Graduate Building.  It was moved and seconded (Jurs/Scaroni) that the minutes of the April 9, 2002 Senate Council meeting be approved as distributed. 

 

ANNOUNCEMENTS AND REMARKS

 

Dr. Moore announced that a remembrance of the September 11 events would be held on September 11 at the Eisenhower Auditorium.  The doors will open at 11:30 AM and the ceremony will begin at noon.  Similar commemorations will be held at other university locations.  Faculty, staff and students are encouraged to attend. 

 

New Senator orientation is scheduled for September 10, 2002, 7:00 PM, 102 Kern Graduate Building.  The Officers’ and Chairs’ meeting will immediately follow the orientation.

 

On September 13 at 3:00 PM, President Spanier will present his annual State of the University address.  His comments will focus on Penn State as a student-centered university.  The convocation will be televised at all Penn State locations.

 

Chair Moore acknowledged immediate past chair John Nichols for his leadership in the 2001-02 year and introduced the Senate Officers for 2002-03.  Letters are being sent to the deans and department heads of the 2001-02 and 2002-03 Senate committee chairs and vice-chairs, and Faculty Advisory Committee to the President members acknowledging their service and contributions to the Senate and the University community. 

 

Dr. Moore commented on the following areas that the Senate will focus on this year:

 

·        Improved communication with all University faculty via College listservs.

·        Recertification of General Education courses.  The deadline for submission of recertification proposals is November 1, 2002. 

·        Initiate review of the Intercultural and International Competence requirement and First-Year Seminar.

·        Work with committees to improve, streamline and make Senate informational reports more meaningful.

·        Implement new attendance legislation and share attendance data with Senate.

 

Chair Moore reminded Senate Council members that they have the responsibility to determine if a report is adequately prepared and documented.

 

The Senate Officers and Executive Secretary will visit the Hazleton Campus on September 17 and the Pennsylvania College of Technology on September 18.  All other campus visits are posted on the Senate website www.psu.edu/ufs/

 

The Faculty Advisory Committee met on August 22 and discussed the following topics: General Education recertification; Calendar implementation; Vice Provost for Undergraduate Education search; University Office of International Programs; Royalties Courses - AD-17; Possibility of the appointment of a privacy officer/other privacy initiatives at Penn State; College recognition of Senate service; Emeritus rank for retired associate professors; Attendance at Senate meetings, and faculty mobility.  The next meeting of FAC is scheduled for October 8, 2002.  Any items for discussion at FAC may be submitted to a Senate Officer or one of the three elected members: Wayne Curtis, Elizabeth Hanley, or Peter Rebane.

 

Provost Erickson commended the Senate Officers for their leadership in addressing important University issues and acknowledged Susan Youtz on completing her first year as Executive Secretary.  Dr. Erickson acknowledged the seamless work of the Senate Office during this transition year.  The Provost noted that he was looking forward to reading the final report from the Self-Study committee and encouraged the committee to address the increasing size of the Senate.

 

Dr. Erickson commented on the University’s budget situation and noted that the final budget cut was 3.5%, with some funding to Agricultural Research and Cooperative Extension restored.  There will be approximately 90 positions eliminated in Agricultural Research and Extension over the next two years, mostly by attrition and not filling a vacated position.  There were 19 employees at the county-level and University Park laid-off this summer.  There is the expectation in central administration that the budget situation may be even tighter next year; however, the University continues to make its case for an increased appropriation. 

 

Provost Erickson observed that the overall room, board, and tuition increase was 10.6%.  He observed that the tuition hike was especially difficult and painful for the Board of Trustees, “their anguish at the July meeting was apparent.”  At the October 22, Senate meeting, Dr. Erickson will present this year’s budget and a preliminary budget scenario for next year.  A cost-savings task force continues to meet and identify strategies for fiscal savings.

 

REPORT OF THE GRADUATE COUNCIL

 

Dr. Caroline Eckhardt, the liaison to the Graduate Council, reported on the May 8, 2002 Graduate council meeting.  The summary is attached. 

 

AGENDA ITEMS FOR SEPTEMBER 10, 2002

 

Legislative Reports

 

None

 

Advisory and Consultative

 

None

 

Informational Reports

 

Admissions, Records, Scheduling, and Student Aid – “Awards and Scholarships.”  This annual report was placed on the agenda on a Jurs/Tormey motion.  Mark Casteel will standing for questions.

 

Faculty Benefits – “Performance of the TIAA-CREF Retirement Savings Plan.”  This report was placed on the agenda on a McCarty/Scaroni motion.  A request was made to clarify the meaning of TIAA-CREF as a “taxed entity.”  Deidre Jago, Dennis Shea, and Keith Burkhart will stand for questions.

 

Joint Committee on Insurance and Benefits  -- “Annual Report - 2002.”  Following a question about retirement benefits, the report was placed on the agenda on a Jurs/Scaroni motion.  George Franz will stand for questions.

 

Undergraduate Education – “University Advising Council.”  This report was placed on the agenda on a Tormey/Jurs motion.  Eric White will stand for questions.

 

University Planning. – “Intermodal Transportation Concept.”  This report was placed on the agenda on a Jurs/Tormey motion.  Questions were asked about the purpose, clarity, focus and length of time needed for the report.  A request was made to revise the first paragraph to more accurately reflect the purpose of the report. There will be a 15-minute power point presentation. 

 

APPROVAL OF THE AGENDA FOR SEPTEMBER 10, 2002

 

The agenda was approved on a Jurs/Tormey motion. 

 

ACTION ITEMS

 

Appointment of a Subcommittee on External Matters

 

Dr. Moore asked Council to approve the membership of the Senate Council Subcommittee on External Matters.  John Nichols will chair this subcommittee as Immediate Past Chair and Connie Baggett, Travis DeCastro, Peter Jurs, Alphonse Leure-duPree and Brian Tormey will make up the membership along with Richard DiEugenio as a member-at-large.  Council approved this subcommittee membership on a Scaroni/Landa Pytel motion.

 

Chair Moore asked Council to approve the membership of the Senate Council Subcommittee on Unit Constitutions.  Melvin Blumberg will chair the subcommittee by virtue of his position as Senate Secretary and the membership will be the Executive Secretary, Salvatore Marsico (representing the campus colleges), Dennis Gouran (representing University Park).  There is a provision for an ad hoc member from the voting unit submitting the constitution under consideration. 

 

NEW BUSINESS

 

There was no new business.

 

ADJOURNMENT

 

Senate Chair Moore thanked Council for their attendance and participation, and accepted a motion to adjourn the meeting at 2:50 PM.

 

Respectfully submitted,

Susan C. Youtz

Executive Secretary

 

 

THE PENNSYLVANIA STATE UNIVERSITY

The University Faculty Senate

101 Kern Graduate Building

University Park, PA  16802

(814) 863-0221 – phone   (814) 863-6012 – fax

 

 

Date:      August 27, 2002

 

To:         Senate Council Members

 

From:     Caroline D. Eckhardt, Senate Liaison to the Graduate Council

 

 

The Graduate Council met on Wednesday, May 8, 2002, at 3:30 PM in Room 102 Kern Graduate Building, with Chair Eva Pell.  This summary concentrates on items that may be of particular interest to Senators.  Complete minutes are available from Mary Hosband in the Graduate School (meh1@psu.edu).

 

 

REPORTS OF STANDING COMMITTEES

 

Committee on Committees and Procedures

 

Carla Mulford (Liberal Arts) and Peter Schiffer  (Science) are continuing members of the Committee and will begin the second year of their two-year terms. New members elected for 2002-03 are M. Christopher Brown, Dolores Fidishun, Richard Ready, Mary Ann Stankiewicz, and Katie Streicher.

 

Committee on Academic Standards

 

Dean Pell had asked the Committee to look at the Graduate Bulletin Appendices in light of existing policies including academic integrity, research administration polices and conflict resolution.  A number of editorial changes were proposed to Appendix II (Resolution of Problems) and some minor editorial changes were proposed for Appendix III and Appendix IV.  In addition, the Committee has developed a summary of inconsistencies in other University policies that they will share with the appropriate units. 

 

Dr. Thompson provided an overview of the changes to Appendix II, Procedures for Resolution of Problems.   The revised appendix now includes an introductory paragraph clarifying the issues that would be addressed under these procedures.  In addition, a statement was added in Section B in the event no academic misconduct was determined to have occurred to ensure that faculty and students reputations are restored.  He also noted that the college dean’s decision is final in cases involving situations outside of the classroom.  It was also noted that Appendix D may be used by either faculty or students when problems arise. 

 

Dr. Pell noted that, in the case of faculty, the college dean’s decision would not necessarily be final, as faculty may take concerns to the Faculty Rights and Responsibilities Committee for further consideration.  An editorial change was recommended as follows:  The decision by the College Dean shall be final, but does not preclude existing independent avenues of appeal (e.g., Faculty Rights and Responsibilities). The revised document was approved unanimously.

 

Dr. Harold Shill provided an overview of changes to Appendix III, Procedures for Termination of the Degree Program of a Graduate Student for Unsatisfactory Scholarship. A number of minor editorial changes were made throughout the document.  These included examples of what constitutes unsatisfactory scholarship; “department head, program chair, and program committee” has now been replaced throughout by “program chair;” the Dean of the Graduate School now has three weeks to respond to an appeal rather than two weeks; and reference has now been added regarding cases of discrimination to direct students to the Affirmative Action Office. It was noted that the “program chair” would be the person in each graduate program who oversees graduate program matters. The revised document was approved unanimously.

 

Dr. Suk-young Lee provided an overview of changes to Appendix IV, Procedures for Termination of Assistantships due to Inadequate Performance. The only change in the procedures for terminating a graduate assistantship is the addition of a statement regarding notifying graduate students of the consequences with regard to health care and other benefits when an assistantship is terminated.  The revision to Appendix IV was approved unanimously.

 

Committee on Programs and Courses

 

Dr. Pell recognized Dr. Michael Adewumi, representing the Committee on Programs and Courses. 

 

Dr. Adewumi presented the following program proposals for Council approval:

a.      Program Change:  Option in Watershed Stewardship in Ecology

b.         Program Change:  Option in Watershed Stewardship in Environmental Pollution

                        Control

c.                   Program Change:  Option in Watershed Stewardship in Agricultural, Environmental and

Regional Economics

d.      New Option:  Option in Applied Linguistics in the Graduate Program in French

e.      New Program:  Master of Architecture degree program in Architecture with Options in

Architectural Theory and Design, Community and Urban Design, and Digital Design

f.       Program Drop:  Master of Science in Architecture

g.      New Minor:  Graduate Minor in Bioinformatics at Penn State Great Valley

h.      Program Change:  Change in Requirements for the M.Ed. in Youth and Family Education (addition of thesis option)

i.       Program Change:  Change in Requirements for the M.A. degree program in Art History

j.       Program Name Change:  Graduate Program in Speech Communication name changed to Communication Arts and Sciences

k.      Program Drop:  Drop of the M.Eng. degree program in Mineral Engineering Management

 

There being no discussion, the question was called on the motion to approve the proposed programs.  The motion was approved unanimously.

 

COMMENTS AND RECOMMENDATIONS FOR THE GOOD OF THE GRADUATE COMMUNITY

 

Dr. Pell thanked the Graduate Council faculty members whose terms expire this summer, including the graduate student representatives. Dr. Pell also extended a special thank you for their efforts on behalf of the Graduate School to Dr. Richard Yahner, Associate Dean, who will be leaving the Graduate School this summer; and Dr. M. Joan Schumacher, Director of the Fellowships and Awards Office, who will be retiring at the end of June.

 

Graduate Council adjourned at 4:22 p.m.

 

 

THE PENNSYLVANIA STATE UNIVERSITY

The University Faculty Senate

 Inter-office Correspondence

101 Kern Graduate Building

814-863-0221

 

 

 

Date:       August 28, 2002

 

From:      Susan C. Youtz, Executive Secretary

 

To:          All Senators and Committee Members

 

 

 

Please note the scheduled time and location of your committee.  If you are unable to attend, notify the Senate Office prior to Senate Day -- if possible.

 

 

    MONDAY, SEPTEMBER 9, 2002                    7:00 PM

 

                    New Senators’ Workshop (Immediately           [New Location]

                    followed by Officers' and Chairs' Meeting       102 Kern Building

 

 

                                                                                 8:00 PM

 

    Commonwealth Caucus                                         CANCELLED

 

 

     TUESDAY, SEPTEMBER 10, 2002                 7:30 AM

 

     Intercollegiate Athletics                                         233 HUB/Robeson Cultural Center

 

 

                                                                                 8:00 AM

 

     Faculty Affairs                                                       129A HUB/Robeson Cultural Center

 

     Outreach Activities                                                502 Keller Building

 

     Student Life                                                          107 HUB/Robeson Cultural Center

 

 

                                                                                 8:30 AM

 

     Admissions, Records, Scheduling and

                   Student Aid                                                           203 Shields Building

 

     Computing and Information Systems                      201 Kern Building

 

     Curricular Affairs                                                   102 Kern Building

 

    Committees and Rules                                           19 HUB/Robeson Center

 

     Intra-University Relations                                      325 HUB/Robeson Cultural Center

 

     Research                                                               106 HUB/Robeson Cultural Center 

 

                    Undergraduate Education                                      330 HUB/Robeson Cultural Center

 

     University Planning                                                322 HUB/Robeson Cultural Center

 

 

                                                                                 9:00 AM

 

     Faculty Benefits                                                     114 Kern Building

 

     Libraries                                                               510A Paterno Library

 

 

                                                                                 1:30 PM

 

            University Faculty Senate          112 Kern Building

 

 

There will be a Commonwealth Caucus meeting at 11:00 AM on TUESDAY,

SEPTEMBER 10, 2002, in the Alumni Lounge of the NLI.  At approximately

12:00 Noon, a buffet luncheon will be served.