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2009: Resolution Concerning Association Retirement Plans
Gary Rhoades and Laura Kumin, counsel and restructuring project manager, informed the Council that the Association's planned restructuring will necessitate a change in the retirement plan for its employees. As a 501(c) (3) public charity, the Association sponsors a 403(b) retirement plan; as a 501(c)(6) professional association, this arm of the AAUP employing staff after restructuring only may sponsor a 401 (k) retirement plan, which all nonprofits may offer their employees. Therefore, in order to continue offering a retirement plan to employees, the AAUP will have to switch from a 403(b) plan to a 401(k) plan.
The Council approved the following resolution, which the Executive Committee had endorsed at its meeting on Friday, November 20:
WHEREAS, AAUP now has a 403(b) retirement plan that it will not be able to continue after restructuring, and WHEREAS, AAUP could provide a 401 (k) plan retirement plan to its employees now, as well as after restructuring, and
WHEREAS, Council, as the governing body of the AAUP, does intend to continue to provide a retirement plan to AAUP employees (without obligation to maintain such a plan for any given period of time and reserving for itself the same rights to amend or terminate as have existed under the current 403(b) retirement plan) and has determined that it prefers to terminate that plan if termination is practicable, and
WHEREAS, Council has determined that the transition from a 403(b) plan to a 401(k) plan should occur earlier than the implementation of restructuring, which will necessitate that the Executive Committee take actions on these matters pursuant to Article IV, Section 5 of the AAUP Constitution between meetings of the Council,
NOW THEREFORE, Council hereby delegates to the Executive Committee all such powers as are necessary and authorizes the Executive Committee to take such actions as are necessary, including but not limited to, amendment of the existing 403(b) retirement plan, to close down that plan, preferably by terminating it, and if that is not practicable, then by freezing the plan.
Council further hereby delegates to the Executive Committee all such powers as are necessary, and authorizes the Executive Committee to take such actions as are necessary, to open an AAUP 401(k) plan on such terms as the general secretary determines to be reasonable and recommends to the Executive Committee, subject to the Executive Committee's agreement to those terms.
