ARP ARBITRATION

As full, and final complete settlement of the pending ARP arbitration, with the intent to bind individual bargaining unit members to the extent permitted by law, the parties agree as follows:

1. Commencing June 1, 203 UC will increase its contribution for STRS-eligible participants in the ARP plan to 10.5%, representing the difference between 14% and the current required University contribution to STRS to fund unfunded liabilities of STRS.  The amount of the University's contribution to STRS-eligible ARP participants will be adjusted from time to time to account for increases or decreases in the University's unfunded liability contribution to STRS by subtracting the new unfunded liability contribution from 14%.  

2. The University will pay $495,000 to eligible STRS-eligible participants in the ARP plan at the rate of $99,000 per year for five years, commencing July 1, 2003.

3. The University will pay $25,000 to eligible PERS-eligible participants in the ARP plan at the rate of $5,000 per year, commencing July 1, 2003.

4. To be eligible for a payment, individual ARP plan participants must have been participants during all or some part of the period September 1, 2002 through May 31, 2003.  The manner of distributing the payments to such eligible participants shall be proportional based on participants' salaries during the period.

5. The parties shall issue a joint statement relating to the settlement agreement.  No other public statement will be made.

6. The terms of this agreement are subject to ratification by the Board of the AAUP.  When ratified, the terms will be reduced to a definitive agreement and executed by the parties.

Signed:

UNIVERSITY OF CINCINNATI  By:  Joseph A. Steger

AAUP  By:  John K. Brackett

May 14, 2003