FACULTY ASSEMBLY REPORT Eugene E. Ryan The fortieth meeting of the Faculty Assembly of the University of North Carolina took place Friday, February 22, 1982, at the General Administration Building, Chapel Hill. Members representing ECU were: Caroline Ayers, Head of the Delegation, J. William Byrd, Robert Hursey, and Eugene Ryan. Vice President Raymond Dawson reported on the revision to the Code of the University of North Carolina to be presented to the Board of Governors at ita next meeting. The revision affects the retirement regulations in Section 606 of the Code (see attached). President Friday reported on the effects that would come about if the proposed reductions in student financial aid were enacted in the federal budget. He stated that the most we might be able to hope for regarding salary increments for the new: ‘fiscal year beginning July 1 would be to hold on to the 5% increment that became effective January 1. He reported that of the 16 institutions in the University, applications for admission have declined at two, and have remained without significant change at the others. President Friday also commented that there is something wrong with the process of selecting a Chancellor (in the UNC system)-~- newspapers become part of the process---the best people withdraw. If it happens again, at Greenville and N.C. Central, the process will be changed. We cannot go on this way. Vice President Felix Joyner reported on the move by the General Assembly Committee to solicit bids related to health insurance (see below). He also pointed out that the dollar incremental growth in state aid to private schools will come about July 1, with no change or lessening. The Assembly passed the following resolutions: ~ A recommendation to President Friday that he seek an appropriation, in addition to any in-lieu-of funds, to increase faculty salaries in order to offset the inflation of 1980-81; - A recommendation to President Friday that he encourage the insti- tutions in the system to provide procedures to be followed in the event of financial exigency; -A recommendation to President Friday that he petition appropriate state officials to prepare for bidding a hospital insurance contract for state employees that would maintain present coverage, and that such bids be considered before any final decision is made. The Faculty Welfare Committee informed the Assembly that it planned to bring to the April meeting of the Assembly a model grievance procedure for faculty at the different institutions. The Committee on Planning and Programs reported to the Assembly on Administrative Memorandum 163 regarding the updating of the overall plan for the UNC institutions. It also reported on the studies currently underway by the General Administration (on Engineer-— ing Education, on Public Affairs and Services, and on Industrial Arts and related fields education), and on the study soon to be initiated on programs in business and management. Attachment to Faculty Assembly Report Be it resolved by the Board of Governors: 1. Section 606 of the Code of The University of North Carolina is amended to read, on and after July 1, 1982, as follows: SECTION 606. RETIREMENT OF FACULTY AND REAPPOINTMENT BEYOND NORMAL RETIREMENT DATE (1) Each member of the faculty shall be retired automatically, without notice, on July 1 coincident with or next following his or her seventieth birthday, except as provided in subsection (2), below. (2) A faculty member may be continued in employment beyond the retirement date specified in subsection (1) upon recommendation of the Chancellor and approval of the Board of Trustees; provided, that such a continuation in employment may be accomplished only through a term appointment or a series of term appoint- ments, with each such term appointment not to exceed one year in duration. 2. The relevant sections of the tenure policies and regulations of each constituent institution shall be amended to conform to the revised language of Section 606 of the Code; the President is authorized to approve, on behalf of the Board of Governors, all such changes made by the constituent institutions in their tenure policies and regulations.