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Education Benefits Policies

Undergraduate Benefits for Faculty & Staff
Graduate Benefits for Faculty & Staff
Benefits for Partners & Dependent Children

Undergraduate Education Benefits Policy for Faculty & Staff

1. Preamble

The University of Puget Sound Undergraduate Education Benefits Policy (the "Plan") provides reasonable undergraduate education benefits for full-time faculty and staff members. Temporary and part-time faculty and staff members are not eligible for education benefits unless stipulated in writing and with approval of the Director of Human Resources and Affirmative Action.

The general conditions outlined in this policy are intended to be guidelines defining eligibility for undergraduate education benefits for faculty and staff members. They are intentionally written in easily understood terms rather than in complex legal terminology. These conditions may be changed when deemed to be in the best interest of the University of Puget Sound. Internal Revenue Service rulings may result in undergraduate education benefits for faculty and staff members being considered as earned income. If the Internal Revenue Service levies a tax claim against the value of tuition scholarships as earned income, the faculty or staff member agrees to reimburse the University of Puget Sound to the extent of such tax claim against the University of Puget Sound.

The Plan does not apply to undergraduate tuition scholarships granted to faculty and staff members' spouses and dependent children under Section 117 of the Internal Revenue Code or to graduate tuition scholarships granted to faculty and staff members under Section 127 of the Internal Revenue Code.

Tuition scholarships available under the education benefits policies are in the form of tuition remission scholarships at the University of Puget Sound and tuition exchange scholarships at Seattle University.

2. Effective Date

The Plan was adopted by the University Board of Trustees Finance Committee on January 30, 1975, and by the Board of Trustees on February 12, 1975, to be effective September 1, 1975. The Plan has been amended from time to time since its initial adoption. It has now been restated to incorporate all prior amendments, and to comply with any applicable provisions of the Internal Revenue Code. The effective date of this amended and restated Plan is September 23, 2004.

3. Eligibility

A full-time staff member, for the purpose of this Plan, is defined as one who is scheduled to work at least 1,560 hours per year (i.e., a 3/4 time appointment). A full-time faculty member is defined as one who has a contract to teach six units of coursework or the equivalent during an academic year. If a part-time faculty or staff member is subsequently appointed to a full-time position, the faculty or staff member will be eligible for a 100% tuition scholarship on the effective date of the appointment to the full-time position.

Faculty and staff members are eligible for tuition scholarships at the time that they assume their positions. The student account for an eligible faculty or staff member will be credited with the tuition scholarship at the beginning of the term (i.e., the first day of scheduled classes) following the date of the faculty or staff member's eligibility.

All undergraduate education benefits are based on the faculty or staff member's continuous employment during the term of the benefit. If the faculty or staff member terminates employment for any reason during the term, the Plan benefits cease. Any tuition not covered by the benefit, to be determined on a prorated basis, will be due and payable.

4. Amount of Education Benefits

Full-time faculty and staff members are eligible to receive 100% tuition scholarships when enrolled for credit in undergraduate courses at the University of Puget Sound. The value of tuition scholarships for undergraduate coursework is not considered taxable income, in accordance with Section 117 of the Internal Revenue Code.

Full-time faculty and staff members are also eligible for tuition exchange scholarships at Seattle University. Full-time faculty and staff members are eligible to receive 100% tuition exchange scholarships when enrolled for credit in undergraduate courses at Seattle University. If the number of faculty/staff members applying for tuition exchange scholarships exceeds the number that the university can certify for scholarship eligibility, tuition exchange scholarship applications will be certified based on the faculty/staff members' length of service with the university. Faculty and staff members interested in applying for tuition exchange scholarships do so through the Human Resources Department. Whether or not tuition exchange scholarships will be granted is dependent on participation statistics for both Seattle University and the University of Puget Sound.

Individuals who were employed on a regular, full-time basis for at least twenty (20) years immediately preceding their retirement at age 55, or their earlier retirement because of total disability, shall be eligible to receive tuition scholarships equivalent to, and on the same conditions as those for which they would have been eligible if they were not retired or disabled. Retirement means the faculty or staff member leaves the regular, full-time work force.

The tuition scholarship applies only to instructional costs. The tuition scholarship does not apply to the non-tuition expenses associated with study abroad programs, occupational therapy and physical therapy affiliation fees, laboratory fees, meals, housing, physical education activity fees, student government fees, material fees, travel expenditures, applied music lesson costs, etc.

5. Conditions Applicable to Education Benefits

Tuition scholarships for faculty and staff members are subject to the following conditions:

Eligible faculty and staff members will be enrolled in classes if space in the classes is available after the enrollment of regular, tuition-paying students.

If space is limited in any class, faculty and staff members eligible for tuition scholarships will be enrolled in the order in which they registered for the class.

Staff members may take courses during their normal working hours with prior approval of their supervisors, if absence during course meeting times does not significantly impair normal department routine or burden other staff members. Absence for classes during normal working hours must be made up at times mutually agreed upon with the supervisor.

Faculty and staff members eligible for tuition scholarships are subject to applicable admission requirements and, once admitted, to the same policies and procedures to which other students are subject, including the immunization policy.

Students receiving 100% tuition scholarships will not be able to receive additional University of Puget Sound grant or scholarship assistance from programs including, but not limited to: Puget Sound Grant-in-Aid; Trustee and President's Scholarships; athletics, music, art, theatre, forensics and other special scholarship programs; departmental and university-endowed scholarships; departmental and university-administered gifts; and Puget Sound Merit Scholarships. Students receiving less than 100% tuition scholarships may receive additional University of Puget Sound grant or scholarship assistance as long as all such assistance (including the tuition scholarship) does not exceed 100% of the university's tuition level. Any questions about this policy should be directed to the Office of Student Financial Services.

Faculty and staff members eligible for tuition scholarships must submit a Tuition Scholarship Application form to the Human Resources Department ten (10) days prior to the beginning of each term. The form must be received and authorized by the Human Resources Department before a tuition scholarship will be credited by the Student Accounts office. In addition, the scholarship recipient must follow standard registration validation procedures as outlined in the university Bulletin.

6. Plan Administrator

The Plan is administered by the University of Puget Sound (the Plan Administrator). The Plan Administrator will have discretionary authority (a) to determine whether and to what extent Participants and beneficiaries are entitled to Plan benefits, and (b) to construe the Plan terms. The Plan Administrator will be deemed to have properly exercised such discretionary authority unless the Plan Administrator has abused his or her discretion hereunder by acting arbitrarily and capriciously.

Inquiries to the Plan Administrator should be addressed to the Human Resources Department, University of Puget Sound, 1500 North Warner Street #1064, Tacoma, Washington 98416-1064.

7. Plan Sponsor

The sponsor of this Plan is the University of Puget Sound, 1500 North Warner Street, Tacoma, Washington 98416.

8. Plan Year

The Plan Year is the fiscal year July 1 through June 30. All records of the Plan are maintained on the Plan Year.

9. Claims Procedure

If a Participant disagrees with a response to a claim for benefits under this Plan, the Participant may make a claim to the Plan Administrator. This claim should be in the form of a letter stating why the Participant disagrees and should include all facts and information the Participant wants the Plan Administrator to consider.

In the event the Participant's claim is denied, the Participant may appeal the denial in accordance with the grievance procedures for faculty or the appeal procedures for staff.

10. Right to Amend or Terminate Plan

The university intends this Plan to be a continuing program but reserves the right to amend or terminate this Plan at any time and to terminate benefits hereunder.

In witness whereof, the University of Puget Sound has caused this amended and restated Undergraduate Education Benefits Policy for Faculty & Staff to be executed this 23^rd day of September, 2004.

University of Puget Sound
By Sherry Mondou,
Vice President for Finance and Administration

Graduate Education Benefits Policy for Faculty & Staff

1. Preamble

The University of Puget Sound Graduate Education Benefits Policy (the "Plan") provides reasonable graduate education benefits for full-time faculty and staff members. Temporary and part-time faculty and staff members are not eligible for education benefits unless stipulated in writing and with approval of the Director of Human Resources and Affirmative Action.

The general conditions outlined in this policy are intended to be guidelines defining eligibility for graduate education benefits for faculty and staff members. They are intentionally written in easily understood terms rather than in complex legal terminology. These conditions may be changed when deemed to be in the best interest of the University of Puget Sound. Internal Revenue Service rulings may result in graduate education benefits for faculty and staff members being considered as earned income. If the Internal Revenue Service levies a tax claim against the value of tuition scholarships as earned income, the faculty or staff member agrees to reimburse the University of Puget Sound to the extent of such tax claim against the University of Puget Sound.

The Plan does not apply to undergraduate tuition scholarships granted to faculty and staff members, their spouses, and their dependent children under Section 117 of the Internal Revenue Code.

2. Effective Date

3. Eligibility

All graduate education benefits are based on the faculty or staff member's continuous employment during the term of the benefit. If the faculty or staff member terminates employment for any reason during the term, the Plan benefits cease. Any tuition not covered by the benefit, to be determined on a prorated basis, will be due and payable.

4. Amount of Education Benefits

Full-time faculty and staff members are eligible to receive 100% tuition scholarships when enrolled for credit in graduate courses at the University of Puget Sound. The value of tuition scholarships for graduate coursework may be considered taxable income, in accordance with Section 127 of the Internal Revenue Code.

Full-time faculty and staff members are also eligible for tuition exchange scholarships at Seattle University. Full-time faculty and staff members are eligible to receive 100% tuition exchange scholarships when enrolled for credit in courses at Seattle University. Coursework may be either graduate or undergraduate except that University of Puget Sound faculty and staff will not be eligible for tuition exchange scholarships to pursue the J.D. or Ed.D. degrees at Seattle University. If the number of faculty/staff members applying for tuition exchange scholarships exceeds the number that the university can certify for scholarship eligibility, tuition exchange scholarship applications will be certified based on the faculty/staff members' length of service with the university. Faculty and staff members interested in applying for tuition exchange scholarships do so through the Human Resources Department. Whether or not tuition exchange scholarships will be granted is dependent on participation statistics for both Seattle University and the University of Puget Sound.

5. Conditions Applicable to Education Benefits

Tuition scholarships for faculty and staff members are subject to the following conditions:

Eligible faculty and staff members will be enrolled in classes if space in the classes is available after the enrollment of regular, tuition-paying students.

If space is limited in any class, faculty and staff members eligible for tuition scholarships will be enrolled in the order in which they registered for the class.

Students receiving 100% tuition scholarships will not be able to receive additional University of Puget Sound grant or scholarship assistance from programs including, but not limited to: Puget Sound Grant-in-Aid; Trustee and President's Scholarships; athletic, music, art, theatre, forensics and other special scholarship programs; departmental and university-endowed scholarships; departmental and university-administered gifts; and Puget Sound Merit Scholarships. Students receiving less than 100% tuition scholarships may receive additional University of Puget Sound grant or scholarship assistance as long as all such assistance (including the tuition scholarship) does not exceed 100% of the university's tuition level. Any questions about this policy should be directed to the Office of Student Financial Services.

Faculty and staff members eligible for tuition scholarships must submit a Tuition Scholarship Application form to the Human Resources Department ten (10) days prior to the beginning of each term. The form must be received and authorized by the Human Resources Department before a tuition scholarship will be credited by the Student Accounts Office. In addition, the scholarship recipient must follow standard registration validation procedures as outlined in the university Bulletin.

6. Plan Administrator

Inquiries to the Plan Administrator should be addressed to the Human Resources Department, University of Puget Sound, 1500 North Warner Street #1064, Tacoma, Washington 98416-1064.

7. Plan Sponsor

The sponsor of this Plan is the University of Puget Sound, 1500 North Warner Street, Tacoma, Washington 98416.

8. Plan Year

The Plan Year is the fiscal year July 1 through June 30. All records of the Plan are maintained on the Plan Year.

9. Claims Procedure

In the event the Participant's claim is denied, the Participant may appeal the denial in accordance with the grievance procedures for faculty or the appeal procedures for staff.

10. Right to Amend or Terminate Plan

The university intends this Plan to be a continuing program but reserves the right to amend or terminate this Plan at any time and to terminate benefits hereunder.

In witness whereof, the University of Puget Sound has caused this amended and restated GRADUATE Education Benefits Policy for Faculty & Staff to be executed this 23^rd day of September, 2004.

University of Puget Sound
By Sherry Mondou
Vice President for Finance and Administration

Education Benefits Policy for Partners & Dependent Children

1. Preamble

The University of Puget Sound Education Benefits Policy for Partners (see definition on page 5) and Dependent Children (the "Plan") provides reasonable education benefits for full-time faculty and staff members' partners and dependent children. Temporary and part-time faculty and staff members are not eligible for education benefits unless stipulated in writing and with approval of the Director of Human Resources and Affirmative Action.

The general conditions outlined in this policy are intended to be guidelines defining eligibility for education benefits for faculty and staff members' partners and dependent children. They are intentionally written in easily understood terms rather than in complex legal terminology. These conditions may be changed when deemed to be in the best interest of the university. Internal Revenue Service rulings may result in education benefits for faculty and staff members' partners and dependent children being considered as earned income. If the Internal Revenue Service levies a tax claim against the value of tuition scholarships as earned income, the faculty or staff member agrees to reimburse the university to the extent of such tax claim against the university.

The Plan does not apply to undergraduate tuition scholarships granted to faculty and staff members under Section 117 of the Internal Revenue Code or to graduate tuition scholarships granted to faculty and staff members under Section 127 of the Internal Revenue Code.

Tuition scholarships available under the education benefits policies are in the form of tuition remission scholarships at The University of Puget Sound, tuition exchange scholarships at other colleges and universities, and tuition cash grant scholarships issued by The University of Puget Sound to other colleges and universities.

2. Effective Date.

The Plan was adopted by the University Board of Trustees to be effective September 1, 1963. The Plan has been amended from time to time since its initial adoption. It has now been restated to incorporate all prior amendments, and to comply with any applicable provisions of the Internal Revenue Code. The effective date of this amended and restated Plan is September 23, 2004.

3. Eligibility.

A full-time staff member, for the purpose of this Plan, is defined as one who is scheduled to work at least 1560 hours per year (i.e., a 3/4 time appointment). A full-time faculty member is defined as one who has a contract to teach six units of coursework or the equivalent during an academic year. If a part-time faculty member is subsequently appointed to a full-time position, the faculty member will be eligible for a 100% tuition scholarship for his or her partner or dependent child if, while working part-time, the faculty member taught 12 or more units of coursework, the part-time equivalent of two academic years of full-time teaching. If a part-time staff member is subsequently appointed to a full-time position, the staff member will be eligible for a 100% tuition scholarship for his or her partner or dependent child if, while working part-time, the staff member worked 3,120 hours or more, the hourly equivalent of two years of full-time, academic year employment.

Faculty and staff members are eligible for the education benefits at the time that they assume their positions. The student account for an eligible partner and/or dependent child will be credited with the tuition scholarship at the beginning of the term (i.e., the first day of scheduled classes) following the date of the faculty or staff member's eligibility.

All education benefits are based on the faculty or staff member's continuous employment during the term of the benefit. If the faculty or staff member terminates employment for any reason during the term, the tuition scholarship benefit ceases. Any tuition not covered by the benefit, to be determined on a prorated basis, will be due and payable.

4. Amount of Education Benefits.

Partners of full-time faculty and staff members are eligible to receive 50% tuition scholarships when enrolled for credit in undergraduate courses or graduate courses at The University of Puget Sound. The scholarship level increases to 100% after the faculty or staff member has completed two (2) years of full-time service. Undergraduate tuition scholarships are granted to faculty and staff members' partners under Section 117 of the Internal Revenue Code. The value of undergraduate scholarships is not taxable. The value of the tuition scholarship for a partner's graduate coursework is taxable income to the faculty or staff member, in accordance with federal law.

Partners of full-time faculty and staff members may attend any regularly scheduled class offered for credit at The University of Puget Sound, without cost, on an informal non-participating, no-credit basis when space is available and with permission of the instructor of the class.

Faculty and staff members whose partners are eligible for 100% tuition scholarships at The University of Puget Sound are also eligible for tuition exchange scholarships at Seattle University. Partners of University of Puget Sound faculty and staff members are eligible to receive 100% tuition exchange scholarships when enrolled for credit in undergraduate courses or graduate courses at Seattle University except that partners of University of Puget Sound faculty and staff members will not be eligible for tuition exchange scholarships to pursue the J.D. or Ed.D. degrees at Seattle University. Faculty and staff members interested in applying for tuition exchange scholarships for their partners do so through the Human Resources Department. Whether or not tuition exchange scholarships will be granted is dependent on participation statistics for both Seattle University and The University of Puget Sound.

Dependent children of full-time faculty and staff members are eligible to receive 50% tuition scholarships when enrolled for credit in undergraduate courses during a full period of four (4) academic years or the equivalent (34 units of coursework) or the attainment of a baccalaureate degree, whichever comes first. The scholarship level increases to 100% after the faculty or staff member has completed two (2) years of regular, full-time service. If a student withdraws from a course after the last day to withdraw without record, the course will be counted toward the 34 unit limit. Courses a student has failed or repeated will also be counted toward the limit. In other words, the tuition scholarship covers units attempted, to a total of 34. Activity units in excess of the 1.5 allowed in the degree will not be counted toward the 34 units unless they would have triggered an extra tuition charge beyond the full-time rate.

Individuals who were employed on a regular, full-time basis for at least twenty (20) years immediately preceding

retirement at or after age 55,
earlier retirement because of total disability, or
death

shall be eligible to receive, for their partners and dependent children, tuition scholarships equivalent to, and on the same conditions as those for which they would have been eligible if they were not retired, disabled, or deceased.

The partners and dependent children of disabled or deceased faculty and staff members who become disabled or die after ten years of service will continue to be eligible for tuition remission scholarships at the University of Puget Sound.

Retirement means the faculty or staff member leaves the regular, full-time work force.

Disability means either

for the first 24 months of the faculty or staff member's disability, being completely unable to perform the material and substantial duties of his or her normal occupation and not performing any other occupation; and
after that 24 months, being unable to perform the material and substantial duties of any occupation for which the faculty or staff member is reasonably qualified by education, training or experience. The disabled faculty or staff member must be under the regular care of a physician, other than himself or herself or a member of his or her family.

Faculty and staff members in exempt positions who were eligible for education benefits during fiscal year 1974-75, and who continue in the employ of The University of Puget Sound, are entitled to a benefit for their dependent children in the form of a tuition cash grant scholarship when the dependent children are enrolled at other educational institutions. The amount of the tuition cash grant scholarship will be equal to the actual cost of the undergraduate tuition at the institution, but will not exceed the then applicable tuition charge at The University of Puget Sound. Faculty and staff members in exempt positions who commenced employment in fiscal year 1975-76 or thereafter are not eligible for tuition cash grant scholarships for their dependent children at other educational institutions.

Undergraduate tuition scholarships are granted to faculty and staff members' dependent children under Section 117 of the Internal Revenue Code. The value of undergraduate scholarships is not taxable. Faculty and staff members' dependent children are not eligible for the tuition scholarship when enrolled in graduate courses.

Faculty and staff members whose dependent children are eligible for 100% tuition scholarships at Puget Sound are also eligible to apply for tuition exchange scholarships at other colleges and universities affiliated with Tuition Exchange, Inc., the Northwest Independent Colleges Tuition Exchange Program, or The University of Puget Sound/Seattle University Tuition Exchange Program. However, the college or university that a faculty or staff member's dependent child chooses to attend may not be on the list of participating institutions. If the college or university a faculty or staff member's dependent child wants to attend is on the list, a tuition exchange scholarship will not automatically be granted. If a tuition exchange scholarship is granted, it may not be a full tuition scholarship. If the number of dependent children applying for tuition exchange scholarships exceeds the number that the university can certify for scholarship eligibility, tuition exchange scholarship applications will be certified based on the faculty/staff members' length of service with the university. Faculty and staff members interested in applying for tuition exchange scholarships for their dependent children under these programs do so through the Human Resources Department. Whether or not tuition exchange scholarships will be granted is dependent on participation statistics for both the receiving institution and The University of Puget Sound.

5. Conditions Applicable to Education Benefits.

Tuition scholarships for faculty and staff members' partners and dependent children are subject to the following definitions and conditions:

A dependent child is defined as one who is claimed as a dependent child on the faculty or staff member's or the faculty or staff member's partner's previous year's income tax return and who is the faculty or staff member's natural or adoptive child or the natural or adoptive child of the faculty or staff member's partner living permanently in the faculty or staff member's home. A divorced faculty or staff member's dependent children, for the purposes of this policy are treated as the dependents of both parents. Court-appointed legal wards and foster children are not eligible for tuition scholarships.

A partner is defined as one to whom a faculty or staff member is legally married or as one with whom the faculty or staff member is in a same-sex domestic partnership (not being legally permitted to marry) demonstrated by sharing the same regular and permanent residence; sharing an ongoing, personal and committed relationship which they have with no other and which is comparable to marriage; being jointly responsible for each other's welfare and the maintenance of their household. Marriage or domestic partnership will be certified through an Affidavit of Marriage or Domestic Partnership.

Faculty and staff members' partners and their dependent children are subject to applicable admission requirements and, once admitted, to the same policies and procedures to which other students are subject, including the immunization policy.

Students receiving 100% tuition scholarships will not be able to receive additional University of Puget Sound grant or scholarship assistance from programs including, but not limited to: Puget Sound Grant-in-Aid; Trustee and President's Scholarships; athletic, music, art, theatre, forensics and other special scholarship programs; departmental and university-endowed scholarships; departmental and university-administered gifts; and Puget Sound Merit Scholarships. Students receiving less than 100% tuition scholarships may receive additional University of Puget Sound grant or scholarship assistance as long as all such assistance (including the tuition scholarship) does not exceed 100% of the university's tuition level. Any questions about this policy should be directed to the Office of Student Financial Services.

Faculty and staff members whose partners and dependent children are eligible for tuition remission, tuition exchange, or tuition cash grant scholarships must submit a Tuition Scholarship Application form to the Human Resources Department prior to the beginning of each academic year. The form must be received and authorized by the Human Resources Department before a tuition remission scholarship will be credited by the Student Accounts Office, before a tuition exchange certification form will be forwarded to the participating institution, or before the Office of Financial Services will issue a tuition cash grant scholarship check. In addition, the faculty or staff member whose dependent child is receiving education benefits must complete and submit IRS Verification of Dependency Status annually to the Internal Revenue Service requesting verification of the child's tax return dependency. Upon receiving the verification from the IRS, the faculty or staff member must submit the form to the Human Resources Department. The tuition remission scholarship recipient must follow standard registration validation procedures as outlined in the university Bulletin.

6. Plan Administrator.

The Plan is administered by The University of Puget Sound (the Plan Administrator). The Plan Administrator will have discretionary authority (a) to determine whether and to what extent Participants and beneficiaries are entitled to Plan benefits, and (b) to construe the Plan terms. The Plan Administrator will be deemed to have properly exercised such discretionary authority unless the Plan Administrator has abused his or her discretion hereunder by acting arbitrarily and capriciously.

Inquiries to the Plan Administrator should be addressed to the Human Resources Department, University of Puget Sound, 1500 North Warner Street #1064, Tacoma, Washington 98416-1064.

7. Plan Sponsor.

The sponsor of this Plan is The University of Puget Sound, 1500 North Warner Street, Tacoma, Washington 98416.

8. Plan Year.

The Plan Year is the fiscal year July 1 through June 30. All records of the Plan are maintained on the Plan Year.

9. Claims Procedure.

In the event the Participant's claim is denied, the Participant may appeal the denial in accordance with the grievance procedures for faculty or the appeal procedures for staff.

10. Right to Amend or Terminate Plan.

The university intends this Plan to be a continuing program but reserves the right to amend or terminate this Plan at any time and to terminate benefits hereunder.

In witness whereof, The University of Puget Sound has caused this amended and restated Education Benefits Policy for Partners & Dependent Children to be executed this 23^rd day of September, 2004.

University of Puget Sound
By Sherry Mondou
Vice President for Finance and Administration

Origination Date: 1963
Revised: 9/2004
Owner: Human Resources
Contact Director Human Resources Affirmative Action

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