VII. FINANCIAL ARRANGEMENTS AND BENEFITS FOR EMPLOYMENT

University faculty, professional staff, and administrators are paid on a fixed annual salary. Salaries are approved by the Board of Trustees, upon recommendation by the president after consultation with the appropriate university officers. The salary depends upon academic rank, years of experience, education, other experience and prevailing salary scales in the academic community. In addition to salary, certain benefits and reimbursements are provided as described elsewhere in this chapter.

Salary is paid bi-weekly. The payroll period covers the two weeks that end on Saturday prior to payday.

Employees are required to use Direct Deposit or a Pay-card for receipt of their bi-weekly pay. The monies may be deposited in any financial institution and may be deposited in savings, checking, or loan accounts.

Paystubs normally include the following items (whichever applicable):

Each faculty member has a personal account for items other than regular payroll. This account cares for such items as the following:

Statements for these accounts are issued each month.

Faculty members are expected to pay any balance owed by the 25th of the month. When a credit balance results, a remittance check (non-payroll) will be issued.

Reportable expenses not received by the 25th of any month will be credited and reimbursed in the following month.

An employee of the university is automatically covered by Social Security. As required by law, the university and the employee contribute equally, the employee’s portion being withheld from the paycheck. An employee who is an ordained or licensed minister may opt out of the Social Security program. Ministers are classified by law as self-employed and may benefit from the Social Security Act by payment directly to the Internal Revenue Service as self-employed individuals. Details on the benefits available under the Act may be obtained at the offices of the Social Security Administration.

A comprehensive health care assistance program is provided for qualified employees of the university. Employees pay a portion of health care plan expenses through a monthly payroll deduction. Certain plan benefits require a co-payment by the employee. Information in booklet form on health care assistance can be downloaded from the Human Resources website http://www.andrews.edu/HR/benefits.html.

Section 2:718 is under revision. Please consult Human Resources for current policy.

Full-time salaried faculty and employees may be reimbursed for moving and related travel expense in harmony with the following provisions:

1. Before any expense is incurred, the director of Human Resources must approve such expenses.
2. The actual cost of moving van and other expenses directly connected with moving a normal amount of household goods to Berrien Springs may be reported. (This does not include the cost of moving a third car, recreation vehicles, tractors or excessive weight loads above those prescribed by General Conference policy.)
3. Coach air fare or automobile mileage reimbursement at current rates, whichever is less, and actual reasonable motel expenses incurred en route may be reported. (A day’s travel is normally 500 miles; thus, for a trip of 2,500 miles, five days would be the basis for calculating allowances).
4. A per diem allowance for an employee traveling alone or with spouse and child(ren) may be reported according to policy.
5. In addition to actual moving expenses as approved, a flat allowance for packing and other moving costs is paid to the employee (see the Benefits Coordinator in Human Resources).
6. The university pays for any moving from one university house to another at the request of the university, and for the first move into an employee’s own home from a rented or university house.
7. Duplicate Housing Assistance may be granted for a period of not more than six months when a worker moving to Andrews University is obliged to make duplicate house payments. The director of Human Resources will provide information regarding this policy.
8. The Internal Revenue Service has determined that some reimbursed moving expenses, or moving expenses paid to a third party on behalf of an employee, are taxable fringe benefits to the employee.

A full-time salaried employee and his/her spouse may apply for admission to a school within the university for non-doctoral study if prior approval has been obtained from the department chair and dean of the school in which the individual holds primary membership. Employees or spouses admitted to enroll on this basis shall pay the regular application fee or late registration fee.

An employee or spouse who qualifies for admission is eligible for free tuition up to four (4) credits each semester (except private lessons, independent study or similar individual instruction, and doctoral work). He/she may be admitted to a course to which enrollment is limited only if space remains after tuition- paying students are accommodated. A course shall not be offered for an employee or spouse when the number of tuition-paying students does not justify offering the course.

An enrollee may not take courses in this way during regularly scheduled work responsibilities unless satisfactory arrangements are made with the appropriate work supervisor to accomplish the expected responsibilities.

This policy may apply to the employee’s spouse for four (4) credits per semester (regardless of the number of classes) through the master’s level. In addition to the free credits, the employee’s spouse is eligible for 50% discount for the remainder of credits taken.

Graduate tuition assistance provided by the university, must be treated as taxable income by the employee unless requested by the university for the specific fulfillment of employee job duties.

Educational scholarship assistance in the form of tuition grants are available for unmarried dependent child(ren) under twenty-four years of age of a full-time, salaried university faculty and professional staff. The student must be enrolled in a Seventh-day Adventist elementary school, secondary school, or college or university. (Exceptions may be made to the age requirement if education has been interrupted due to compulsory military service, volunteer service for the church, or a documented medical condition.)

If the child of such an employee wishes to attend a Seventh-day Adventist school other than Andrews University because a desired program is not available at the university, assistance may be given only on prior authorization of the University’s Compensation Committee.

Scholarship assistance will be granted for tuition and fees only up to the maximum provided for attendance at Andrews University. The amount will be based on actual net tuition expense and general fees of the specific school when charged separately, and does not include charges for music lessons, except that fees for required private music lessons, may be included for music majors and minors.

If the student qualifies for financial assistance from any other source, that assistance must be applied for before scholarship grants are given. In certain instances federal and state laws governing the awarding of financial aid may restrict the total number of dollars that can be granted an individual student. This may reduce the amount of aid under this policy. Qualification may be determined by contacting the university’s financial aid officer who will assist in making an application for financial assistance.

Scholarship grants shall be computed according to the formulae outlined in the Working Policy for the North American Division of Seventh-day Adventists (see NAD policy X24 05 #8). This provides for 35% of the tuition costs if the student is living in the community, or for 70% tuition if the student is living on- campus in a residence hall.

A full-time, regular employee who adopts a child will receive up to 75% of the medical and legal expenses associated with the adoption. The maximum expense on which assistance is granted is the equivalent of up to three times the current monthly remuneration factor. This is in lieu of any other assistance associated with the adoption.

An optional personal accident insurance plan is available to all employees. Coverage under this insurance plan may include the employee and his/her family. The premium is deducted from 24 paycheck per year. Further information on this program is available from the Human Resources benefit office.

A program for deducting a portion of one’s earnings and investing in a tax sheltered plan is available. Further information may be obtained at the payroll office.

Employees of the university may be eligible for unemployment compensation. If determined to be eligible by the Michigan Employment Security Commission, the university reimburses the State of Michigan for actual claims paid.

Employees are covered by worker’s compensation insurance. Any injury, which occurs in connection with assigned work, must be reported immediately to the department head.

Within twenty-four hours the injury must be reported to the Human Resources Office on the proper foreman’s report forms. The insurance covers required medical and hospital bills and may also cover a portion of lost salary or wages if the employee cannot continue working. Injuries that may not lead to an actual claim for reimbursement must be reported nevertheless.

An employee survivor benefit shall be paid to the survivor(s) of full-time denominational and/or to the survivor(s) of the spouse thereof, or a benefit for a dependent as defined in the health care assistance policy. Benefits provided on behalf of unmarried employees without surviving dependents shall be paid to the estate of the deceased unless there is a designated beneficiary who takes responsibility for applying the benefit as needed to the final illness and funeral expenses. Details of benefits paid are available from the Human Resources benefits specialist.

With respect to the benefits paid, the following criteria pertain:

1. Benefits are paid by the university, and all eligible employees are covered.
2. Employees who discontinue employment as a result of illness or injury but who lack sufficient years of denominational service to qualify for retirement benefits, and who are not otherwise employed shall be eligible for the benefit for a period of six months after leaving the payroll. Spouses of such employees, as well as their eligible dependents, are also covered under this plan during the six-month period.
3. If more than one family member is denominationally employed only one benefit per death will be made.
4. Additional amounts of coverage may be purchased on a voluntary basis at a nominal charge. See the Human Resources office for details.

Faculty and staff members may dine in the university Dining Services or snack shop. Cash or employee ID cards may be used for meals. A 25% discount is available for faculty-staff and their families upon presentation of their employee ID card. Use of special rooms and facilities by faculty or staff groups may be arranged with the Dining Services secretary.

Sections 2 :748 through 2 :762 are under REVISION. Please check with the Office of the Controller if you have questions.

Certain buildings and other facilities are available for use by university faculty or staff members and their families, such as the gymnasiums, recreational facilities, and certain auditoriums and rooms in buildings. There is a nominal charge for the use of public areas such as auditoriums and chapels in order to cover expenses involved. Information concerning these facilities may be obtained from the building manager or the dean of the relevant school. An additional charge is made when an instrument such as a piano is to be moved to a facility. Students who are currently enrolled or who enrolled the preceding term, may be granted the use of these facilities at a reduced rate. (See also policy #1:740)

When departments or organizations (including sponsored student organizations) of the university receive funds from the sale of tickets, collections, offerings, dues, etc., the full amount is to be deposited in the proper cost center account at the financial records office. Expenses for such programs or projects will also be authorized and charged to the appropriate cost center in the same way as other departmental items. (See purchasing procedures).

Equipment will be listed in detail in inventory records kept in the accounting office. Unless otherwise specified in a research grant or contract, all equipment purchased will be the property of the university.

Equipment and furniture in an office or classroom remains in that room and may not be moved to other rooms and offices without approval of the Purchasing Office and notification of the Accounting Office.

Supplies for use or resale in academic or service departments will be inventoried annually, or at such other periods as requested by the controller/chief accountant. Consumable supplies are carried on inventory records at purchase cost or market value; whichever is lower. Total inventory value of supplies carried by an instructional, ancillary, auxiliary or support department should not be increased by any substantial amount without prior approval of the appropriate dean or the controller.

1. Departments procure materials, supplies, services, and equipment by using standard order requisitions.
2. Order requisitions from departments, must be approved by the department chair or head. These requisitions go to the controller’s office for clearance in harmony with budget provisions.
3. Purchase orders in triplicate are issued by the controller for all requisitions as authorized: (a) original copy: mailed to the firm; (b) second copy: retained by the Purchasing Office; and (c) third copy: returned to the department.
4. In the case of non-budgeted items requested by instructional departments, the decision must be referred to the appropriate dean for recommendation to the controller. When such requests involve auxiliary or other departments, the decision may be referred to the vice president for financial administration.
5. Requests for which no specific budget provision has been made may be presented to the appropriate officer.

As invoices are received by Accounts Payable; they are cleared against purchase orders and sent to the departments for approval. Chairs and heads of departments are authorized to approve invoices for payment. After approval by the department, the invoices are returned to Accounts Payable for further checking and processing.

Services and materials of various campus departments are available on an interdepartmental basis.

Ordering procedures: the ordering procedure is the same as for off-campus purchases with the exception that items or services costing less than $100.00 may be handled directly between departments without clearance through the controller. In such cases a requisition form should be issued between the departments.

Approval of inter-departmental bills: the department being charged will be notified as to the cost of the item when the controller’s office sends out a copy of the charge slip issued by the department providing service.

Some academic and service departments purchase regular operating supplies or supplies for resale (such as Dining Services, store, plant services,) and may not be required to pass requisitions through the controller. These departments frequently deal with salesmen and follow up orders directly. However, this exception does not apply to purchase of unusual items or unusual quantities, nor for equipment or other capital expenditures. Special purchasing arrangements need to be made through the controller’s office.

The university reimburses employees for approved travel. Expenses associated with set costs such as convention registration fees or airline tickets may be charged directly to the appropriate travel account.

Cash advances for variable travel expenses may be obtained from the treasurer’s secretary on presentation of travel authorization. This is treated as a cash withdrawal from one’s personal account.

Approved travel expenses are reportable by the 25th of each month on the form provided. Reimbursement is made in accordance with instructions available at the treasurer’s office. The ticket stub or copy for such expenses, including those charged directly to a travel account, should be attached to the travel expense report as voucher reference.

Mileage costs are provided as reimbursement to an employee for use of a personal automobile on approved travel for the university at a rate determined annually in harmony with denominational policy. Charges for toll bridges, ferries, tunnels, and toll roads used on the most feasible route of travel may be reported in addition to the authorized mileage rate. Actual parking fees may also be reported. Approval of the expense report by the department head, dean, and the appropriate vice-president is required. See also policy #2:770.

Travel accident insurance is provided for university employees and spouses while traveling on university business.

Travel is authorized for professional, public relations, or service purposes by the appropriate administrator within the available budget provided for such purposes. For faculty such travel is permitted in harmony with policy #2:167:7. Expenses of travel are reimbursed only if the travel has been authorized in advance and reimbursement requires the signature of the supervising administrator(s). See policy # 2:764.

Visiting professors who work for the university and who are not on salary at another Seventh-day Adventist institution or organization, may be paid a contract rate as determined by the provost. These individuals must meet all legal requirements for obtaining employment under Federal and State guidelines prior to their employment, whether as an honorarium or as contractual employment. In addition visiting professors may receive the following benefits, depending on individual circumstances:

1. Travel allowance (unless cared for by the employer) if 500 miles or less at the, standard mileage rate according to policy; otherwise, round trip air coach fare or the equivalent; per diem and lodging as arranged with the provost.
2. Free lodging for individual and spouse if necessary and arranged for in advance.
3. Food allowance: Dining Services meal card or one-half regular per diem per day.
4. Academic rank at the level currently held by the individual. If the visitor is from a non-academic organization, an appropriate special rank shall be assigned in harmony with this Working Policy. (See policy #2:306:1 and #2:310:2:3.)
5. Faculty privileges in the use of university facilities during the period of teaching.
6. An individual who teaches for at least one semester is also eligible for a telephone (if requested, and for free tuition for one course per semester. Spouses also receive the free tuition benefit.

Note: These individuals must meet all legal requirements for obtaining employment under federal and state guidelines prior to their employment whether it is as an honorarium or contract employment.

See also Appendix 2-H.

Sections 2 :789 through 2 :792 are under revision. Please check with Human Resources if you have questions.

A university employee who has retired with at least ten years of service credit and who has at some time during his/her denominational employment been moved at denominational expense is entitled to assistance with moving expenses. Assistance can be applied to one move anywhere in North America within five (5) years after retirement. Full assistance is provided for those retiring with thirty or more years of denominational service. A proportional share of the costs is provided for retirees with less than 30 years of service. The retiring employee is responsible for the tax obligation on the moving benefit.

A person who has retired and has reached age 65 may receive a 50% tuition discount for up to three courses (undergraduate or graduate) annually.

Former Andrews University employees who have retired may receive a 75% tuition discount for up to three courses annually. Admission to limited enrollment courses is contingent upon space available in the class, with preference being given to students paying regular tuition rates. Any additional class fees and/or supply costs are the responsibility of the student.

This discount applies to credit, audit, or non-credit classes. The discount does not apply to independent study, directed reading, private music lessons, practica, clinical experiences or any instruction provided outside of the normal classroom setting.

Application for these discounts should be made to the dean of the school involved who will then authorize the appropriate discount.

The Andrews University policy for farewell gifts (which are subject to tax) is based on length of service at the university and the remuneration percentile of the employee. The farewell gift, which is subject to a number of conditions, is arranged through the Office of Human Resources in consultation with the appropriate vice president.

When Andrews University hires faculty who have completed a terminal degree at their own expense within the previous 5 years, such new faculty employees are eligible for partial reimbursement of their educational costs. Reimbursement is determined in harmony with the following guidelines and requires the recommendation of Human Resources and the provost.

1. In harmony with the NAD Policy FH 05 35 total reimbursement shall not be more than 100% of the annual salary of a Full Professor in the first year of appointment.
2. Reimbursement is taxable income. It is usually distributed over five years at 20% per year. Upon request and recommendation of the dean, half of the reimbursement may be made in a lump-sum payment in the initial year with the remaining amount amortized over the following four years.
3. The total amount paid may be reduced by 20% per year for each year that elapses between the awarding of the degree and the initial employment by Andrews University.
4. Exceptions to this policy will be made by the Compensation Committee of Andrews University upon the recommendation of the provost.

Section 2 :796 is under REVISION. Please check with Human Resources if you have questions.

At the beginning of each employment year (July 1) the Office of Human Resources supplies each faculty member with data concerning the yearly salary figure, vacation time allowed, and other pertinent information.