Office of the President
                                                       December 22, 1986








Members, Executive Committee, Board of Trustees:


       PROPOSED AMENDMENTS IN THE UNIVERSITY OF KENTUCKY RETIREMENT PLAN


Recommendation:   that the following proposed amendments in the University of
Kentucky Retirement Plan (AR 11-1.6-1) be approved:

                    [NOTE: Proposed additions are underlined;
                       proposed deletions are brackected.I

Amendment #1 - that the following paragraph be added as a new first paragraph
               in Section I.A.3:

    Notwithstanding any provision to the contrary contained herein, all Group
    I personnel who have satisfied the age and service requirements for
    mandatory participation shall be required to contribute on a salary
    reduction (pre-tax) basis all contributions which are required to be made
    by the participant according to the applicable contributions schedule
    contained herein provided, however, that this provision shall not apply
    to  any   participant  who   prior   to  December   22,   1986,  was   making
    contributions on a salary deduction (after-tax) basis.


Amendment #2 - that the first part of the first sentence following the table
                in Section I.A.3 be changed to read:

    The University shall [deduct] withhold the contribution of the participant
    from regular salary payments, add its contribution, and apply the combined
    sum to the purchase of retirement annuities for the participant as follows:


Amendment #3 - that the following paragraph be added as a new first paragraph
                in Section I.B.3:

    Notwithstanding any provision to the contrary contained herein, all Group
    II personnel who have satisfied the age and service requirements for
    mandatory participation shall be required to contribute on a salary
    reduction (pre-tax) basis all contributions which are required to be made
    by the participant according to the applicable contributions schedule
    contained herein; provided, however, that this provision shall not apply
    to  any   participant  who   prior   to  December   22,   1986.  was   making
    contributions on a salary deduction (after-tax) basis.



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