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Non-Salary and Deferred Compensation for Employees Policy #620

Policy #620 Approved: February 17, 2011
UNIVERSITY OF NORTH CAROLINA SCHOOL OF THE ARTS
Non-Salary and Deferred Compensation for Employees Policy
Policy #620
Source of Authority: UNC Policy Manual § 300.2.14
Revision Authority: Board of Trustees
History: First Issued: February 17, 2011
Related Policies: UNC Policy Manual § 300.2.14;
Centers & Affiliated Entities Policy #105;
Foundation Funds Use Policy #202;
Management Flexibility Policy #617;
Mobile Communications Device Policy #504;
SAAO-II & Other EPA Employment Terms & Conditions Policy #625;
Travel Policy #310
Responsible Offices: Chancellor
Effective Date: February 17, 2011
PDF: POLICY #620

I. Purpose

In order to remain competitive with other comparable arts conservatories in its employment practices, it is the policy of the UNCSA to make available to employees exempt from the State Personnel Act (i.e. EPA employees), on a case-by-case basis and in accordance with all policies, procedures, rules and regulations of UNC, the State of North Carolina and the Internal Revenue Service, certain reasonable and customary non-salary and deferred compensation in addition to the routine fringe benefits offered to all EPA employees.

II. Scope

This policy applies to all UNCSA EPA employees.

III. Definitions

A. “Non-Salary Compensation” means all forms of compensation outside of customary wage and fringe benefits provided by UNCSA to all EPA employees.

1. Non-salary compensation may take the form of vehicles, club memberships, special campus services or benefits, and other items, all of which must be job related.

2. Non-salary compensation does not include the occupancy of housing that is required as a part of the employee’s job, reimbursement of professional or work-related travel, the provision of equipment to perform the work of the position, even if used at home, including computers, cellular phones, personal data assistants (PDA), pagers, and similar work-related items.

 B. “Delayed & Deferred Salary or Compensation” shall be broadly defined to include, but are not limited to any employer payment or contribution paid 1) directly to an employee, 2) to the employee’s account or plan, or 3) to a person acting in a capacity similar to a trustee for the employee, which is paid later than the regular or next subsequent payment cycle, except for an error that is promptly corrected upon discovery. Delayed and deferred salary/compensation also includes traditional 457 deferred compensation plans, any retirement plans or accounts, annuities, and life insurance accumulating any cash value. Delayed and deferred compensation also include both tax qualified and non-qualified plans, and any other similar form of payment, whether tax sheltered or not.

IV. Policy

A. Funding

1. Generally, state funds may not be the source for non-salary compensation.

2. An approved foundation associated with UNCSA may provide non-salary compensation directly, contingent upon the availability of funds, if otherwise permitted by this policy.

3. Non-salary compensation may be funded from State funds if approved by the Board of Trustees and only when permitted by the Office of State Budget and Management.

B. Income Tax Compliance

1. Non-salary and deferred compensation is subject to the Internal Revenue Service (IRS) regulations on taxation of income and fringe benefits.

2. UNCSA shall report any taxable non-salary and deferred compensation provided under the terms of this policy to the Internal Revenue Service and the North Carolina Department of Revenue on the employee’s W-2 form in accordance with applicable IRS regulations.

C. Selection Criteria

1. All employees who are eligible to receive non-salary compensation outlined in this policy will receive it based on availability of funding.

2. The awarding of non-salary compensation may be based on any reason or reasons considered relevant to attracting or retaining a faculty or administrator of the highest possible quality.

3. Decisions concerning non-salary compensation shall not be based, in whole or in part, upon discriminatory factors of the employee’s race, color, creed, religion, national origin, gender, age, disability, veteran status, or sexual orientation.

D. Chancellor. The Board of Governors sets all non-salary compensation for the Chancellor.

E. Non-Salary Compensation for EPA Employee, excluding the Chancellor

1. Motor Vehicles

a. Motor vehicles may be provided in extraordinary circumstances to recognize the level of position (such as a Chief Financial Officer) or the requirements of the position (such as advancement).

b. The Chancellor, subject to approval by the Board of Trustees, may offer a motor vehicle as non-salary compensation to recruit, attract, or retain Senior Academic and Administrative Officers – Tier I.

c. Provision of any motor vehicle is contingent upon the availability of vehicles from area dealers and an agreement as to use, maintenance, insurance, tags and taxes acceptable to UNCSA, the UNCSA Foundation and the dealer.

2. Moving expense payments must be approved as a part of the hiring approval process and must be in accordance with authority from the Office of State Budget and Management or paid by non-State funds.

3. Memberships

a. Civic and social club membership fees may be provided for some senior academic and administrative officers when the club membership is job related.

b. The civic or social club must have a policy prohibiting discrimination against groups protected by federal and North Carolina law.

c. These memberships are provided from non-state funds.

d. Reimbursement for business expense must be made in accordance with the guidelines of the Office of State Budget and Management.

e. The Chancellor shall present any proposal for a membership to the Board of Trustees for their review and, if appropriate, approval.

4. Temporary Housing

a. Temporary housing may be provided at the time of initial appointment as a part of a recruitment package for a Senior Academic and Administrative Officer – Tier I, subject to the approval of the Chancellor and the Board of Trustees, provided that the housing is offered only as a convenience to UNCSA and is available at no additional cost to UNCSA or to the UNCSA Foundation.

b. Any rental arrangements involving senior academic and administrative officers must be approved by the Chancellor and the Board of Trustees prior to occupancy.

c. Rental arrangements and calculations will be in accordance with UNCSA’s Facilities Use Policy as adopted and amended from time to time.

5. Delayed or Deferred Salary/Compensation

a. The State of North Carolina and the University of North Carolina offer employees options for deferred compensation and insurance.

 b. Unless expressly approved by the Board of Governors, UNCSA may not provide any other employer-paid options for deferred compensation or other delayed compensation to its employees.

F. Review & Approval

1. Changes to this policy must be submitted for review by the General Administration prior to submission to the UNCSA Board of Trustees for approval.

2. In the event of extensive revisions to this policy, the Committee on Personnel and Tenure of the Board of Governors may reconsider the revisions.

V. Revision History

A. February 17, 2011 – Adopted by Board of Trustees as part of UNCSA Policy Manual