Tuition Remission Summary Plan Description

Tuition Remission Summary Plan Description Approved by the Rockford University Board of Trustees, March 2003 Amended January 1, 2010 Introduction Thi...
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Tuition Remission Summary Plan Description Approved by the Rockford University Board of Trustees, March 2003 Amended January 1, 2010

Introduction This document describes the provisions of the Rockford University Tuition Remission Plan as amended effective January 1, 2010. I.

PURPOSE

The purpose of this Plan is to provide tuition remission benefits for undergraduate courses taken at Rockford University by children of eligible employees and for undergraduate and graduate courses taken at the University by employees and the spouses or domestic partners of employees. II.

ADMINISTRATION

Plan Administrator The Plan shall be administered by the Human Resources Office. It shall be the joint duty of the Human Resource Manager and the Vice President for Business & CFO to construe and interpret this Plan. The Human Resource Director and Vice President for Business & CFO and other administrators of this Plan shall have full authority and discretion to determine eligibility for benefits under this Plan and to construe the terms of this Plan. The existence of this plan does not negate nor modify in any way admission requirements to become enrolled as a student of the University or continuing as an enrolled student after admission. Eligibility for course registration and maintaining student status is subject to requirements established by the University and monitored by the Office of Student Administrative Services. Questions about financial aid, student status and hour requirements should be referred to the Office of Student Administrative Services. All other questions should be referred to the Human Resources Office. Neither the Plan Administrator, the Office of Student Administrative Services nor any member of the University delegated to perform administrative duties to the Plan shall be liable for any act done or determination made in good faith. III.

PARTICIPANT ELIGIBILITY REQUIREMENTS

The Plan shall provide tuition remission benefits to an employee, spouse/domestic partner, or child who meets the following outlined below.

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A.

Employees

Current full-time employees are eligible for this benefit upon hire. All terms and conditions within the policy must be met to qualify for this benefit. Employees must have the approval of their supervisors to take courses during business hours. The approval must address any and all modifications necessary in the employee’s employment including any agreed upon adjustments to the employee’s schedule. Up to four hours may be authorized for employees to take course(s) during that employee’s normal work schedule, as determined by the employee’s supervisor. Non-exempt employees may not record time in class as time worked; therefore, any hours. Please note, that this policy recognizes that a difference can exist between an employee’s normal work schedule and what is considered “normal business hours.” Other courses must be taken outside those time frames. An employee should only be enrolled in two courses at any given time – exceptions to this rule can only be made by Executive Council members. There may be times when due to business circumstances an employee is unable to take courses even outside of business hours – these circumstances should be discussed between supervisor and employee. 1.

Adjunct Professors

As employees, Adjunct Professors may receive tuition remission under the following terms:   

2.

Adjunct professor must have taught for a minimum of one academic year which includes teaching a minimum of six credit hours. Employee, spouse/domestic partner and immediate dependents qualify for tuition remission. A maximum of six credit hours of tuition remission may be taken per academic year. Employee and dependent tuition remission combined cannot exceed six hours.

Part-Time Employees

Part-time employees may receive tuition remission under the following terms:   

Part-time employees include any employee working over twenty hours per week, but less than 30 hours per week on a continuous basis (26 weeks or more). Any person working as part of the Student Work Study program does not qualify for this benefit. Employee, spouse/domestic partner and immediate dependents qualify for tuition remission.

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Part-time employees are eligible for tuition remission upon hire. Any courses which the employee, spouse/domestic partner, or dependent is enrolled in prior to hire are not covered by this benefit. The employee must take classes outside his or her working schedule. Due to the nature of part-time schedules, accommodations will not be made by supervisors to arrange working schedules around class schedules. A maximum of six credit hours of tuition remission may be taken per academic year. Employee, spouse/domestic partner, and dependent tuition remission combined cannot exceed six hours.

3. Rockford University Employees who Transition to Outsourced Services An employee who elects employment with the outsourced service provider and who remains employed by that company at this location (Rockford University Campus) will remain eligible to participate in the Rockford University tuition remission benefit, but only at Rockford University and subject to the same terms and conditions as those that apply to current Rockford University employees (including any amendments, modifications, or termination of the benefit that may occur). Tuition remission is available for the former Rockford University employee and their spouse provided that the individual who is seeking tuition remission is actively pursuing/taking courses at Rockford University towards a degree program. Additionally, dependent children who are currently in eighth grade or higher at the time of the Rockford University employee’s separation remain eligible for tuition remission after they graduate from high school if they are a dependent living in the employee’s household. If a dependent child chooses to utilize the Rockford University Tuition Remission benefit, they will be required to reside on campus. B.

Employee’s Spouse or Domestic Partner

The spouse or domestic partner of a full-time employee is eligible for this benefit on the employee’s first day of work. All terms and conditions within the policy must be met to qualify for this benefit. To be eligible, you must provide to Human Resources proof of the marriage or relationship. The following is a list of acceptable documents which could prove the relationship:   

an official marriage certificate, an official city or county-issued domestic partner certificate, joint lease or house mortgage,

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    

joint ownership or lease of a vehicle, joint checking, savings, or credit account, proof of the domestic partner's designation as the beneficiary for the employee's life insurance policy or retirement benefits, proof of the domestic partner's designation as a beneficiary in the employee's will, or proof of the domestic partner's power of attorney for the employee's healthcare.

In the event a domestic partner is requesting this benefit, the employee and domestic partner will sign an affidavit of their domestic partnership status confirming the following qualifications are met:     

they are not legally married, they are both at least 18 years old, they are not related in such a way that would prohibit marriage in any state, they are in a committed, financially interdependent relationship, and they are the sole domestic partner of each other.

To be eligible, the spouse’s or domestic partner’s employer must complete a statement of benefits. Any tuition remission allowed by the spouse’s or domestic partner’s employer must first be exhausted before Rockford University’s tuition remission benefit applies. A copy of this form may be obtained from the Human Resource Department or on my.rockford.edu. If there is a change in status of the marriage or domestic partnership, the employee must complete a Notice of Termination of Eligibility within 30 days of the change and submit it to the HR Department. Benefits will be discontinued on the last day of the month that the statement is received. Once benefits are discontinued, the student is responsible for any prorated tuition and for tuition in all future semesters. A copy of this form may be obtained from the Human Resource Department or on my.rockford.edu. All employee information, including statements of marriage or domestic partnership, will be kept confidential and released only to personnel with a need to know. C.

Employee’s Dependents

The dependents of a full-time employee are eligible for this benefit on the employee’s first day of work. Rockford University will not cover costs associated with living on campus. All terms and conditions within the policy must be met to qualify for this benefit. Students who are classified as independent for financial aid purposes will not qualify for this benefit. The Federal Department of Education defines an independent student as one who fits into one or more of the following categories listed below: 4

     

Will turn 24 before January 1 of the academic year in which he/she is enrolled. Is in a Graduate or professional program Has a legal dependents other than a spouse, for whom he/she provides more than 50% of their support Is an orphan or ward of the court (or was until age 18). Is an emancipated minor Is a veteran or currently serving on active duty for other than training purposes

Dependent children of Rockford University employees wishing to take University level courses may qualify for the Tuition Remission benefit after completion of their sophomore year of high school through the Early Scholars Program. The dependent must be admitted into the Early Scholars Program following the admission process required by Rockford University. For more information contact the Office of Undergraduate Admission. D.

Graduate Assistants

Graduate students who are admitted to Rockford University and who are awarded a tuition scholarship as remuneration for efforts as a graduate assistant are eligible for this benefit. Such scholarships are renewable annually. See Graduate Assistant Handbook for terms and conditions. IV.

TERMS FOR ELIGIBITY

All participants must meet these terms: 



  

Applications for tuition remission must be submitted once per semester. Forms are available through Human Resources or at my.rockford.edu. Once the required signatures are obtained by the employee, the application should be submitted to Human Resources for review of eligibility. The tuition remission application must be submitted in advance of the semester that employee/spouse/domestic partner/dependents will be taking classes. No later than June 30th for fall semester or full academic year, October 31st for spring semester only, and April 30th for summer semester only. Failure to submit this form on time will result in tuition remission not being granted. This is a requirement for budgeting and financial aid purposes All students receiving tuition remission must pay all fees associated with their enrollment. Rockford University will not cover these costs. Rockford University will not pay for students receiving tuition remission to take the same course more than once. All students receiving tuition remission must file for financial aid within the appropriate deadlines. Priority filing deadline is March 1st. 5



 

 



Additional information may be obtained through Student Administrative Services (SAS). Tuition Remission will be the difference between Rockford University Tuition and State/Federal aid and applicable scholarships. Students receiving tuition remission must make satisfactory academic progress consistent with the academic and financial regulations of the University and the U.S. Department of Education. Tuition remission for fulltime employees is limited to 180 hours of coursework. Tuition remission for spouse, domestic partner or dependents is limited to 150 hours of coursework per person. Available hours per person also apply to auditing courses. Participant can not have any outstanding balance with the University at the start of the semester. Any outstanding balance will result in tuition remission not being applied to the participant’s account. Enrolled Rockford University students will be given priority acceptance into classes over individuals taking courses using the tuition remission benefit. Acceptance into classes is contingent on class size/maximum capacity. This policy does not apply to any study abroad programs or programs that require direct cash outlays by Rockford University.

V.

TAXATION OF BENEFITS

A.

Introduction

In general, IRS regulations consider anything of value provided to an employee by an employer to be a form of compensation. All compensation must be reported as taxable wages and is subject to income tax withholding, unless specifically excluded by the Internal Revenue Code. B.

Undergraduate Courses

Under section 117(d) of the Internal Revenue Code, educational institutions offering a full reduction of tuition charges to employees, their spouses and dependent children for undergraduate coursework may exclude the value of this education from their employees’ taxable wages. Therefore, undergraduate courses will not be considered a taxable benefit with the exception of domestic partners. C.

Domestic Partners Taking Undergraduate or Graduate Courses

Domestic partners are not included under section 117(d) of the Internal Revenue Code, and therefore any tuition provided to domestic partners is considered a taxable benefit. If your domestic partner takes graduate level courses, the employee will be taxed at the regular graduate course rate per credit hour and a $50.00 per credit hour fee will be assessed to the student.

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D.

Former Employees Who Have Elected Employment with an the Outsourced Service Provider.

Former employees who have elected employment with an outsourced service provider are not included under section 117(d) of the Internal Revenue Code, and therefore any tuition provided to such former employees is considered taxable and will be reported accordingly. E.

Employees Taking Graduate Courses

Employers may provide each employee with up to $5,250 of educational assistance per year on a tax-free basis. The tuition remission that the University offers employees for graduate-level education is eligible for this exclusion. The Internal Revenue Code requires that educational assistance in excess of the $5,250 exclusion must be added to employees’ taxable wages and employment taxes must be withheld. Rockford University is able to offer tuition at a discount to its employees. Effective January 1, 2010 the employee tuition rate for graduate courses will be twenty percent less than our not-for-profit rate. If an employee wants to take graduate level courses over the value of $5,250, he or she may do so. Two conditions apply. Rockford University will charge a fee of $25.00 per credit hour for credit hours exceeding the $5,250 amount. And, tuition above the amount of $5250 will be considered taxable income. F.

Spouses Taking Graduate Courses

If your spouse takes graduate level courses, the employee will be taxed at the regular graduate course rate and a $50.00 per credit hour fee will be assessed to the student. G.

How Taxes Are Withheld

Income earned in addition to your regular salary is subject to the highest tax rate that you pay. The IRS defines a flat supplemental tax withholding rate, to be used for income over and above an employee’s regular salary, which is pegged to the middle tax rate of the IRS graduated tax tables. The additional taxable income and taxes withheld are reported on the W-2 form. The University is required to issue W-2 forms to employees by January 31st to provide the information necessary for completing their tax returns. Educational assistance in excess of the excludable amount for employees, all graduate level courses taken by spouse or domestic partner, and all undergraduate courses taken by domestic partners are subject to federal, Social Security and Medicare taxes. H.

Determination of Taxable Amount

Each semester, the Payroll Department receives a report indicating the total dollar amount of tuition remission received by employees and their spouses/domestic partners

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that is considered taxable income. This report totals tuition remission for the spring, summer and fall terms, as applicable. If the amount received by an employee exceeds the annual excludable amount ($5,250), the excess must be added to the employee’s taxable wages when the employee receives the benefit. Any graduate course taken by a spouse will be considered taxable income. Any course taken by a domestic partner will be considered taxable income. The increase in taxable wages increases the taxes withheld and reduces net pay. I.

Schedule of Tax Withholdings

The additional income tax withholdings will be spread out evenly throughout a semester as indicated below: Spring Semester

Summer Semester

Fall Semester

February, March, April, May

July, August

September, October, November, December

Taxes on your graduate tuition benefit (or undergraduate tuition for domestic partners) must be recorded and collected without delay and can not be taken prior to the employee receiving the benefit, exceptions to this schedule will not be made. The IRS does not permit the University to accept direct payments from an employee toward the employee’s income tax withholding. Income taxes required to be withheld must be withheld from the employee’s paychecks. VI.

FORFIETURE AND RESCISSION

A.

Voluntary Leave

Any staff or faculty who voluntarily terminates his or her employment will forfeit his/her tuition remission and any benefits for spouse/domestic partner and dependents effective the last day of employment with Rockford University. The forfeiture of this benefit is based on the fact the tuition remission benefit was due to active employment and based on no other written agreement. Tuition will be prorated for the remainder of the term based on the number of weeks remaining in the semester. The student will then be responsible for paying the prorated tuition according to standard payment terms as determined by the University. B.

Termination

In the event of termination, tuition remission will be rescinded for any staff, faculty, spouse/domestic partner, or dependent whose benefit was based on employment of a staff or faculty member effective the last day of employment with Rockford University unless otherwise noted in a separation agreement. Tuition will be prorated for the remainder of

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the term based on the number of weeks remaining in the semester. The student will then be responsible for paying the prorated tuition according to standard payment terms as determined by the University unless otherwise agreed upon in a separation agreement. C.

Tuition Remission Death Benefit

The Tuition Remission Benefit described will also be available to the dependents of deceased faculty and staff who were employed by Rockford University. In order for such dependents to be eligible, the faculty or staff member must have been an active employee of the University at the time of death, must have been continuously employed by the University for at least one full year at the time of his or her death and the dependent children must be a Senior in high school or currently attending Rockford University at the time of the employee’s death to be eligible for tuition remission. All other requirements of the tuition remission benefit shall apply to this benefit. VII.

LIMITATION OF RIGHTS

No provision in this Plan shall be construed to:   

Give any plan participant any right other than those provided within the Plan. Limit in any way the right of the University to terminate an employee’s employment at any time. Be evidence of any agreement or understanding, express or implied that the University shall employ an employee in any particular position or at any particular rate of remuneration.

VIII. NON-ALIENATION OF BENEFITS No right or benefit under this Plan shall be subject to any anticipation, alienation, sale, assignment, pledge, encumbrance, or charge, and any attempt to anticipate, alienate, sell, assign, pledge, encumber, or charge the same shall be void. No right or benefit hereunder shall in any manner be liable for or subject to the debts, contracts, liabilities, or torts of the person entitled to such benefits. IX.

AMENDMENT OR TERMINATION OF PLAN

Subject to such obligations as the University may have undertaken with employee constituencies, the University may amend this Plan at any time and from time to time in whole or in part or it may terminate this Plan. X.

CLAIM PROCEDURE

A.

Claim

A person who believes that he or she is being denied a benefit to which he or she is

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entitled (hereinafter referred to as “Claimant”) may file a written request for such benefit with the Human Resources Office, setting forth the basis for the claim. B.

Claim Decision

Upon receipt of a claim the Human Resources Office shall advise the Claimant that a reply will be forthcoming within 90 days and shall in fact deliver such reply in writing within such period. The Human Resources Office may, however, extend the reply period for an additional 90 days for reasonable cause. If the claim is denied in whole or in part, the Human Resources Office will provide in writing an explanation to the Claimant setting forth:    

C.

The specific reason or reasons for the denial. Specific references to pertinent Plan provisions on which the denial is based. A description of any additional material or information necessary for the Claimant to perfect the claim and an explanation why such material or such information is necessary. Appropriate information as to the steps to be taken if the Claimant wishes to submit the claim for review and the time limits for requesting a review.

Request for Review

Within 60 days after the receipt by the Claimant of the written opinion described above, the Claimant may request in writing that the Vice President for Business & CFO review the determination of the Human Resources Office. The Claimant may, but need not, review the pertinent documents and submit issues and comments in writing for consideration by the Vice President for Business & CFO. If the Claimant does not request a review of the Human Resources Office’s determination within a 60-day period, the claimant shall waive all rights of an additional review. D.

Review of Decision

Within 60 days after the Vice President for Business & CFO’s receipt of a request for review, he or she will review the Human Resources Office’s determination. After considering all materials presented by the Claimant, the Vice President for Business & CFO will render a written opinion, written in a manner to be understood by the Claimant, setting forth the specific reasons for the decision and containing specific references to the pertinent Plan provisions on which the decision is based. If special circumstances require that the 60-day time period be extended, the Vice President for Business & CFO will so notify the Claimant and will render the decision as soon as possible but not later than 120 days after receipt of the request for review. The decision of the Vice President for Business & CFO shall be final and binding.

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XI.

EFFECTIVE DATE

This document describes tuition remission benefits available and replaces and supersedes the previous document entitled “Rockford Tuition Remission Policy”. In the event of any conflict between this document and statements concerning the Rockford University Tuition Remission Plan made in any other written materials or publication, this document shall be controlling.

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