Corporation to Increase Endowment Funds Size

The Corporation has voted to increase the size of the general University Endowment Funds by nearly $24 million, providing an across the board 10 per cent increase to departments with holdings in the Endowment Funds, it was announced yesterday.

This added money will come from the capital gain fund, which in June, 1956, was $51,045,378.33. The exact sum to be added to the endowment fund is $23,821,975.

As a result of this addition, income from the principal of the Endowment Funds will be reduced from the present 5.2 per cent to five per cent, but the Corporation said the latter figure will be equal to 5.5 per cent of the old principal.

The transfer will not affect the income which will be distributed to the different departments for the present 1956-57 fiscal year, but will take effect in 1957-58.

The Corporation also acted favorably on recommendations from the Administrative Committee on the Faculty Retirement Plan, increasing the benefits to 1156 members of the Faculty. This will be brought about by increasing the interest credited to both active and retired accounts, and a favorable adjustment in the mortality tables used.

The Corporation said that the exact details will be made available shortly.

The Endowment Fund, as of June. 1956, totaled $239,960,803.85, but this includes the Special Investments which will not be affected by the increase--which will go only to Endowment Funds, not required to be separately invested.