HUMAN RESOURCES

Effective Date: 07/01/95

Policy Statement 12: Other Employee Benefits

Tax Deferred Annuity Benefits

  1. Any permanent employee employed at least 50% may enter into an agreement with any licensed company to purchase a tax deferred annuity as permitted by the U.S. Internal Revenue Office through payroll deduction. These are classified as 403(b) and 403(b)(7) according to IRS guidelines. Employees who are interested in purchasing an annuity of this kind should first acquire a Form P-71 from the Human Resources Department entitled Employee Salary Reduction Request for Tax Deferred Annuity. Form P-71 should be completed and returned to the Human Resources Department prior to the effective date of payroll deduction. Any payroll deduction change to occur thereafter must also be requested prior to the month it is to become effective.

    The University will consent to make payroll deduction for a tax deferred annuity subject to the following conditions:

    1. The employee will make all arrangements to negotiate any purchase of an annuity with a company.

    2. Any agreement for the purchase of an annuity will be between the employee and the company with regard to allowable amount of purchase within the tax laws, administrative charges, investment of funds, and return of the annuity.

    3. The University agrees only to provide payroll deduction and it does not assume any responsibility for misrepresentation or improper sales efforts by companies or their representatives. Further, the University assumes no responsibility for miscalculations by companies resulting in tax penalties for the annuitant.

    4. The annuity company will not be permitted to solicit subscribers on the University campus nor will the University officially endorse and/or promote the annuity.

    5. The employee must apply to the Human Resources Department by use of this form not later than the first of the month the salary reduction and/or change is to become effective. If the company is not already set up on ECU's payroll system, a month's notice would be required. ECU requires that at least 10 employees be set up at any time initially or to continue a payroll deduction to a tax sheltered annuity.

    6. The annuity company representatives must be licensed in the State of North Carolina and the annuity contract offered must have prior approval from the N.C. Insurance Commission.
  2. The North Carolina 457 Deferred Compensation Plan, the N.C. State Legislature approved the establishment of a deferred compensation for state employees whereby a portion of earnings could be deferred by investment in the plan that would result in a deferment of Federal and State taxes. The plan is similar to and in some ways identical to the benefit available under the Internal Revenue Code 403(b). If any employee is interested in the plan, he or she can contact the Benefits Section in Human Resources for further information; direct contact with the agent will be required to enroll in the plan.

  3. Supplemental Retirement Plan of North Carolina 401(k): The Supplemental Retirement Income Plan of North Carolina was created in 1984 for the North Carolina General Assembly to offer you a tax-deferred investment program for your retirement. The Plan is allowable and governed under Section 401(k) of the Internal Revenue Code. This plan is similar to and in some ways identical to the benefits under Internal Revenue Code 403(b). Application can be obtained from the Benefits Section in the Human Resources Department and direct contact can be made with the agent.


U.S. Savings Bonds

The University will make payroll deduction for any permanent employee working at least 20 hours per week who wishes to purchase a U.S. Savings Bond. The employee should make such arrangements with the Human Resources Department.


N.C. Dependent Care Assistance Plan

North Carolina Dependent Care Assistance Plan is commonly referred to as DCAP and offers a tax-free method to reduce your eligible dependent care costs. You determine the annual amount you spend on dependent care. Then you decide how much money should be deducted from your paycheck each pay period. This amount is deposited into the account before taxes are calculated. As you pay eligible dependent care expenses, you make tax free withdrawals to reimburse yourself. Your reimbursement requests must be for services that have already been received and for which you have paid. To enroll you must be a participant in one of the retirement plans offered by the State. This program is administered by Fringe Benefits Management Company. Open enrollment is held yearly and that is the only time enrollment can occur except for when a person initially becomes an employee of ECU. Further information may be obtained by contacting the Benefits Section in Human Resources and by calling Fringe Benefits Management Company directly.


Free Tuition Privileges

  1. General Policy

    The State of North Carolina offers a tuition waiver program (G.S. 116-143 & Administrative Memorandum #92) for the educational assistance of its employees and the employees of the sister institutions of higher learning within the U.N.C. System. This program encourages faculty and staff to utilize the academic resources of the university system for self-development.

  2. Eligibility

    Any permanent SPA or EPA employee working three-quarter time or more is eligible for this waiver. This includes military personnel assigned to ROTC programs while under orders as a permanent duty station. Employees in temporary or probationary status are not eligible for this program. Employees seeking enrollment must be academically eligible for the course. Tuition waivers will only be granted on space availability in the course.

  3. Courses Covered and Fees Paid

    An eligible employee, within the sixteen university campus system, is allowed to take one credit-bearing course, without cost of tuition or fees, during the Fall and Spring semesters. This program is not offered during summer sessions. The employee is responsible for any additional cost incurred for additional classes. Lectures and labs are considered two distinct courses unless the lecture and lab cannot be taken separate and apart.

  4. Course Scheduling

    Courses taken under a faculty/staff tuition waiver must be scheduled on the employee's own time. For SPA employees, courses may be taken during lunch period, defined to be one hour between the hours of 11:00 AM and 2:00 PM. If a course is taken during regular business/working hours, employees will be required to use annual leave or may adjust their work schedule and in both cases with the prior written approval of their Department Head and the Division Vice Chancellor. Any exceptions to this policy must be approved, in writing, by the Chancellor.

  5. Procedure

    An employee must first obtain a Faculty/Staff Tuition Waiver Form (P-50A) from the Department of Human Resources or the divisional Vice Chancellor's Office. The form must be completed which includes identifying the course(s) by title and course number. SPA employees must complete the section of the form concerning work and class schedules. Once completed, this form must be reviewed and signed by the Department Head and Division Vice Chancellor. The completed and signed form must be delivered to the University Cashier's Office (105 Spilman) on or before the published "last day to register" for processing and recording. No waivers will be considered after this date.