Number: 240

Subject:   EMPLOYEE BENEFITS

Fringe benefits are a part of the budgetary process and are subject to change annually. However, regardless as to changes authorized, benefits that accrue vested interest directly to the employee (such as the retirement program) will be protected to the extent of vested rights earned. All un-accrued benefits cease and are forfeited at termination.

Eligible employees at Amberton University are provided a wide range of benefits. A number of the programs (such as Social Security, Medicare, worker's compensation, and unemployment insurance) cover all employees in the manner prescribed by law.

Benefits eligibility is dependent upon a variety of factors, including employee classification and hours of service. The University's Chief Personnel Officer can identify the programs for which you are eligible.

Some benefit programs require contributions from employees, but most are fully paid by Amberton University. The benefit package for employees classified as full-time (full-time administration, full-time faculty council members, full-time professional and operational staff) represents an additional cost to Amberton University of approximately 30-35 percent of wages.

Definition of Full-time Employees

For the purpose of this regulation and eligibility of benefits restricted to full-time employees, a full-time employee is generally an employee who is classified in one of the following categories:

Full-time Administrator

Full-time Faculty Council Member

Full-time Professional Staff

Full-time Operational Staff

Part-time employees (those classified as part-time or casual) and full-time dedicated faculty are not eligible for benefits unless required by law (FICA and payroll taxes).

SCHOLARSHIPS AND DISCOUNTS (Full and Part-Time Employees)

1.   Employee Policy:

Full-time employees of Amberton University (excluding administration and faculty) are eligible to make application prior to the beginning of an enrollment session for a tuition scholarship.  The employee's supervisor, the divisional vice president, and Chief Personnel Officer must approve all classes (all classes includes those requested through scholarship and/or any other classes to be taken at Amberton) to be taken and any scholarship award in advance of enrollment. Class time will not be counted as part of the employee's work schedule.

2.   Employee Dependents Policy:

Full-time employees may file applications for tuition scholarships for their dependents who are under the age of twenty-five years (6 hours per regular session). An application must be filed at the beginning of each session. Any scholarship awarded from institutional funds will be considered a part of the dependency scholarship.

3.   Part-Time Employees:

Part-time employees are not eligible for University tuition benefits.

4.   Death:

If an employee classified as full-time dies in service, dependents will continue to be eligible to apply for current scholarship benefits for a period of three years or until they reach the age of twenty-five years.

RETIREMENT PLAN (Full-Time Employees)

Amberton University's Retirement Plan is a defined contribution program whereby the University makes contributions on behalf of eligible employees.

1.   Participation:

Full-time employees will be eligible for participation in the retirement plan when all eligibility requirements have been satisfied. Participation begins on the earliest semi-annual date (June 1 or December 1) on which the following eligibility requirements have been met. This date is the employee's entry date.

The employee has completed one year of eligibility service before his entry date.

2.   University Contribution:

When an employee becomes eligible for the retirement plan, the University makes the entire contribution for the individual directly and, thus, the contribution is tax-sheltered. The University's contribution is 6% of the base salary (up to the maximum amount allowed by law) for all eligible employees employed as of May 31. Contributions are made at the end of the fiscal year and are based upon the employee's twelve-month base salary. (Base salary is the annual scheduled salary. It does not include overtime, teaching overload, or research overload.)

3.   Retirement Age:

Employees may elect to retire upon reaching the social security retirement age; however, retirement is not mandatory. Employees choosing to retire should do so at the end of their contract period, if applicable. Employees may also elect "early retirement" prior to reaching normal retirement age.

4.   Vesting:

The part of the retirement account an employee owns is called the vested amount. Amberton University employees are 100% vested in their retirement plan. That is, if the employee should terminate his work with the University before retirement age, he will receive 100% of the University's contribution to the retirement plan.

TAX SHELTERED ANNUITY (Full-Time Employees)

Full-time employees of Amberton University are eligible to participate in tax sheltered annuity plans, commonly known as 403(b) plans.  Pre-tax employee contributions may be made on a monthly basis up to the annual maximum allowed by law.  Tax Sheltered Annuity contributions are subject to FICA (Social Security and Medicare) payroll taxes but are not subject to Federal Withholding Taxes.  Participation is strictly on a voluntary basis.  Details on how to participate are available in the Business Office.  Information concerning this benefit is also available on the University’s employee website.

HEALTH/GROUP LIFE/DISABILITY INSURANCE (Full-Time Employees)

1.   Health and Long-Term Disability:

Health and long-term disability (LTD) insurance is available within 30 days after the beginning of full-time employment. If the proper forms are completed, Amberton University will pay the premium for the employee. If an employee chooses to be included in the health and LTD plans within 15 days after becoming eligible, no proof of insurability is required.

Proof of insurability may be required if application is made at a later date. Details on health and LTD policies may be obtained from the Business Office.

The Affordable Care Act

Amberton University provides a health benefit plan that complies with the Affordable Care Act (ACA). Under the ACA, if an individual works more than 30 hours per week (based on actual hours or averaged over a formal measurement period), his/her employer must offer him/her sufficient health insurance coverage or pay a penalty. In determining who is eligible for the health benefit plan, the 30 hours of service may be calculated on actual hours worked for hourly employees. In the case of employees who are not paid by the hour, such as part-time or full-time dedicated faculty, the IRS has determined that, until further guidance is issued, one (but not the only) method that is reasonable to determine faculty effort is to credit a part-time or full-time dedicated faculty member of an institution of higher education with (a)2.25 hours of service per week for each hour teaching in the classroom and (b)an hour of service per week for each additional hour outside the classroom the faculty member spends performing duties he/she is required to perform (such as required office hours or required attendance at faculty meetings). For example, if a faculty member teaches one, 3-credit hour course for a 10-week session and has no other required responsibilities, the hours of service per week would be calculated as: 4 hours of classroom teaching X 2.25 = 9 hours of service.

2.   Death Benefits:

If a full-time employee dies in service, the base salary will be paid to the spouse, or dependent children (as determined by most recent Federal Income Tax filing) according to the following schedule:

Years of Service Months of Salary Extension

Less than 1             0 months

1 - 2                   1 month

2 - 4                   2 months

4 - 6                   3 months

6 - 8                   4 months

8 - 10                  5 months

10 or more              6 months

The salary extension will accrue to the spouse if living or, if the spouse is not living, to the benefit of dependent children at the time of the employee's death. If there is no spouse or dependent children, the benefit will be forfeited.

3.   Group Life:

Group term life insurance is available for full-time employees 30 days after the employment date. Once the proper forms are completed, Amberton University will pay the premium for the employee only. No proof of insurability is required if the employee elects coverage within 15 days of the eligibility date. Proof of insurability may be required if application is made at a later date. Information on the group life policy is available in the Business Office.

4.   Short-Term Disability:

If a full-time employee becomes totally disabled, the employee will receive one-month base salary up to a maximum of 6 months for every year of full-time employment. After 6 months of total disability, the employee may apply for long-term disability benefits through the insurance carrier. Total disability is defined as: due to injury or sickness, the employee cannot perform the duties of his/her occupation, is under the regular care of a physician, and does not work at all.

When an employee is absent as a result of injury or sickness compensable under the Workers' Compensation Act, the University will pay the employee's salary according to the provisions of the short-term disability benefits; however, combined Workers' Compensation and University benefits shall not exceed the employee's usual pay.

GENERAL BENEFITS (AVAILABLE TO ALL EMPLOYEES)

1.   General Liability:

Amberton University carries general liability insurance to protect its employees and the public from any damage or injury due to the negligence of the University. In case of such damage or injury, the Business Office should be notified immediately. In no case should an employee or supervisor assume liability for the University.

2.   Workers' Compensation:

Workers' Compensation Insurance is carried to protect all employees who might be injured in the course of their employment. In the event of any injury, the employee should notify the Business Office immediately. Either the employee or the supervisor should report to the Business Office and file an Employer's First Report of Injury report.

3.   Social Security and Medicare (FICA):

All employees of the University participate in Social Security and Medicare. Deductions are made from each paycheck in the amount prescribed by law. In addition, the University contributes the amount currently required by law on the employee's behalf.

EMPLOYEE LEAVE AND HOLIDAYS

1. Employee Leave: (Full-Time, Non-Faculty Status)

Full-time employees (see note below) classified as operational staff or professional staff and who are employed as of June 1 of the fiscal year will receive up to but no more than 15 days employee leave during that fiscal year (June 1 - May 31). Employee leave may be taken as vacation, sick days, or personal time off. Employee leave is granted at the supervisor's discretion with any part of a day taken counted as a whole day of leave. Employee leave is intended to provide paid, personal time away from the work place and is to be used for relaxation, recuperation, etc. Employee leave does not accumulate. Time not taken is lost at the end of the fiscal year or at the time of termination. The University may, at its discretion, require an employee to take leave if it is determined the employee's job performance is impaired due to fatigue.

For the safety and well being of all employees and students, the University reserves the right to require an employee to leave the facility if it is determined the employee has an illness or disorder (physical or psychological) that might disrupt the normal work place setting. Depending on the severity of the illness/disorder, the University may require a medical release before allowing the employee to return to work.

Note: The employee leave policy is not applicable to faculty members or administrators who have faculty status. Faculty are expected to use the time between sessions (approximately 10 weeks annually) for personal relaxation and professional enrichment. For administrative classified employees, the CEO determines both leave and holiday benefits, but under no circumstances will the benefits exceed those of the faculty.

2.   Holidays:

All full-time staff employees are entitled to seven paid holidays each year (a holiday falling on a weekend or day off will be forfeited). Employees who are required to work on a holiday will be granted time off as scheduled with the supervisor. However, all holidays must be taken before the end of the fiscal year in which they are awarded. The University's President may declare additional holidays during the year.

Normally, all offices will be closed on the following holidays:

Independence Day

Thanksgiving Day

Friday following Thanksgiving Day

Christmas Eve

Christmas Day

New Year's Eve

New Year's Day

OTHER BENEFITS

1.   Jury Duty:

The University will grant leaves of absence with pay to employees for time spent on jury duty. If the time covered is for only a day, the employee may keep any compensation paid by the court. If it is for more than a day, the employee will give to the University any compensation paid by the court that exceeds expenses.

2.   Parking:

The University will provide free parking for all employees.

3.   COBRA:

The federal Consolidated Omnibus Budget Reconciliation Act (COBRA) gives employees and their qualified beneficiaries the opportunity to continue health insurance coverage under Amberton University's health plan when a "qualifying event" would normally result in the loss of eligibility. Some common qualifying events are resignation, termination of employment, or death of an employee; a reduction in an employee's hours or a leave of absence; an employee's divorce or legal separation; and a dependent child no longer meeting eligibility requirements.

Under COBRA, the employee or beneficiary pays the full cost of coverage at Amberton University's group rates plus an administration fee. Amberton University provides each
eligible employee with a written notice describing rights granted under COBRA when the employee becomes eligible for coverage under Amberton University's health insurance plan. The notice contains important information about the employee's rights and obligations.

4.   Rest and Meal Periods:

Each workday, full-time non-faculty status employees are provided with two rest periods of 15 minutes in length. To the extent possible, rest periods will be provided in the middle of work periods. Since this time is counted and paid as time worked, employees must not be absent from their workstations beyond the allotted rest period time.

All full-time employees are provided with one meal period of 60 minutes in length each full workday (a work period of 8 hours or more). Supervisors will schedule meal periods to accommodate operating requirements. Employees will be relieved of all active responsibilities and restrictions during meal periods and will not be compensated for that time. All meal and rest periods will be taken away from the work area. Employees are not to eat or lounge in their work area.

SUBSTANCE ABUSE TESTING

Amberton University is concerned with the safety, health and well-being of all its employees. The use or misuse of alcohol, drugs, narcotics and/or controlled substances is inconsistent with Amberton University’s conduct statement. Therefore, employees may be required to submit to a drug test if the University has a reasonable suspicion that the employee is under the influence of drugs or alcohol. Any required testing or examination will be conducted at the University’s expense.

In accepting employment with Amberton University, the employee gives his/her consent to such examinations and testing and authorizes the release of the results of any examination or drug test to Amberton University.