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Administration appreciates the good work that Professor Dillehay does for the
University of Kentucky. They have brought good positive attention to the
University and to themselves, and they are valued.

      Professor Mather pointed out that Professor Dillehay came to the
University of Kentucky from graduate school and stayed. He is now an
internationally known archaeologist and the greatest in his field. He said that
the University has been a good place to get people's careers started, but it has
been difficult in some fields to retain them at the University. Retaining good
faculty is critically important for the institution. He said that he strongly
suspected that the University is well behind its benchmarks for the kind of
institution it aspires to be. But, the University has the greatness that it has in
this area because Tom Dillehay chose to stay at the University of Kentucky.
He commended the Administration for their efforts in retaining good faculty.

      President Wethington thanked Professor Mather for his comments and
said they were well stated.

      E.    Personnel Actions (PR 2)

      President Wethington recommended that approval be given to the
appointments, actions and/or other staff changes which require Board action;
and that the report relative to appointments and/or changes already
approved by the administration be accepted. Mr. Aja moved approval. The
motion, seconded by Mr. Welenken, carried. (See PR 2 at the end of the
Minutes.)

      F.    Revision of Administrative Regulations (PR 3A)

      President Wethington said PR 3A is a recommendation for two
revisions in the Administrative Regulations (AR's) regarding the
University's retirement plan. He asked George DeBin to comment on the two
revisions.

      Mr. DeBin stated PR 3A recommends that the Board approve two
changes in the Administrative Regulations: Retirement Regulation Plan
AR 11-1.6-1 and the Phased Retirement Policy and Program AR II-1.6-2. He
explained that early retirement is authorized when the combination of the
employee's age and years of continuous service equal or exceed 75. The
revision proposed to the University of Kentucky Retirement Plan is to
require individuals electing early retirement to have a minimum of 15 years
of continuous service at the time of retirement.

      He said that a further revision entitles an individual electing early
participation in the Phased Retirement Policy and Program to activate any or
all of retirement benefits that have been acquired under the University of
Kentucky Retirement Plan. The revision in the Phased Retirement Policy