UA-R-GC-1914-01-01-1978-05-11_Page-024

-2- President Pedersen reported that through careful renegotiations of leases the University is set for student and faculty housing for another three years, but that after that we will face a serious problem. He proposed that the retirement program for Egyptian faculty and administrators be changed to bring it into line with the program available to American faculty. Under the new plan, the University would contribute 9% of the salary to the program, and the individual would have the option of contributing' an additional 6%. The Committee approved the proposal and voted to recommend it to the full. Board for ratification with the proviso that by bringing the retirement program for Egyptian faculty into line with that for American faculty, the Trustees are seeking simplification and are not implying that the two programs should be kept equal in the future. President Pedersen pointed out that because monies in the existing insurance program will be used to fund the newly approved program, the actual cash impact on this year's budget will be only LE 15,000. The net result will be that the University's contribution to the retirement of Egyptians will in­crease from 5 to 9%. President Pedersen made a second proposal to the effect that the salaries of all faculty members be increased by an average of 10%. He said that this is necessary in order to restore AUC to a competitive position vis­a- vis equivalent universities in the United States. The Finance Committee approved the recommendation and agreed that it should be recommended to the full Board for ratification with the proviso that the ratio between Egyptian and American salaries remain the same. The reports by Arthur Andersen & Company on the University and the Fund were reviewed and it was determined that Arthur Andersen had not incorpo- ... /