University Business Policies and Procedures Manual

3700
EDUCATION BENEFITS
Effective Date: January 1, 2009  
Subject to Change Without Notice

This policy updates and combines Policy 3700 "Tuition Remission Program" and  Policy 3785 "Dependent Education Program"

Authorized by Regents' Policy 6.3 "Privileges and Benefits"

1. General

The University of New Mexico (UNM) recognizes the importance of an educated and competent work force.  To meet the demands of the changing workforce and the desire of employees to grow academically and professionally, UNM offers various voluntary education benefits.  UNM supports and encourages employees to develop themselves through academic, professional, and/or personal enrichment courses.  UNM also provides additional education benefits to spouses and dependent children of eligible employees.

2. Eligibility

2.1 Employee Tuition Remission Benefit 

• Regular staff working at least fifty percent (50%) or above (at least twenty (20) hours per week).
• Regular faculty members working at least fifty percent (50%) or above and have a minimum nine-(9) month contract.

2.2. Dependent Education Scholarship 

• Regular staff working at least fifty percent (50%) or above (at least twenty (20) hours per week) and have been employed in a benefits eligible job for at least one (1) year as of the last day for student registration for the applicable semester.
• Regular faculty members working at least percent (50%) or above and have a minimum nine-(9) month contract and have been employed in a benefits eligible job for at least one (1) year as of the last day for student registration for the applicable semester (A nine-(9) month academic year faculty contract fulfills the one (1) year requirement).

2.3. Retiree Eligibility 

• UNM Retirees are eligible for unlimited employee tuition remission and personal enrichment benefits, subject to restrictions outlined in Section 3.7. herein.
• Retirees are ineligible for the Dependent Education Scholarship.  However, if an employee retirees and has a dependent currently participating in the Dependent Education Scholarship Program, that dependent may continue in the program until there is either a break in semesters, the dependent obtains an undergraduate degree, or completes eight (8) semesters in the program. 

2.4. Ineligible Participants

Those individuals listed below are not eligible to participate in the education programs outlined in this policy.

• Post Doctoral Fellows
• Graduate students on assistantships.
• Temporary employees, on-call employees, and part-time employees working less than twenty (20) hours per week.

2.5. Separation of Employment

If an employee separates from the University for reasons other than retirement, the employee, spouse and/or domestic partner, and/or dependent children are no longer eligible for education benefits effective with the academic semester following the date of separation.

2.6. Death of Employee

If an employee should die while their dependent is receiving the Dependent Education Scholarship, the dependent may continue in the program as long as they meet the requirements of this policy and until there is either a break in semesters, the dependent obtains an undergraduate degree, or completes eight (8) semesters in the program. 

3. Employee/UNM Retiree Tuition Remission Benefit

The University will pay tuition for one (1) or more of the courses listed in Section 3.1.1. herein, not to exceed the equivalent of resident undergraduate tuition for eight (8) credit hours each fall or spring academic semester, and not to exceed the equivalent of resident undergraduate tuition for four (4) credit hours each summer session, subject to the restrictions listed herein.  The University will pay up to the resident graduate rate for academic graduate courses subject to the provisions of this policy.    To determine the amount of tuition available for non credit courses, first deduct all credit hours taken, then multiply the remaining credit hours by the resident undergraduate tuition rate per credit hour. If an employee exceeds the credit hour limitation, the employee must pay the difference. UNM Retirees are eligible for unlimited employee tuition remission and personal enrichment benefits, subject to restrictions outlined in Section 3.7. herein.   

3.1. Eligible Courses

• courses in any subject taken at UNM for undergraduate, graduate, or professional academic credit, or for official audit status,
• courses that are job related or related to a UNM job that the employee may reasonably aspire to and taken from the UNM Division of Continuing Education and/or University departments for professional development and improvement of work-related skills,
• courses taken by UNM employees at Central New Mexico Community College (CNM); however this applies only to courses not offered at UNM and these courses must be taken outside of the employee's work schedule (cannot be used by a spouse, domestic partner, or dependent children); and
• courses taken by UNM employees offered by New Mexico State University (cannot be used by a spouse, domestic partner, or dependent children).

3.1.1.  Personal Enrichment Courses

The University will pay the equivalent of resident, undergraduate tuition for up to two (2) credit hours per calendar year for personal enrichment courses offered through UNM Division of Continuing Education or other University departments. The calendar year total amount will be based on the tuition rate in effect at the end of the calendar year.  The personal enrichment allowance is in addition to the eight (8) credit hours available for academic and/or professional development courses.  The value of  personal enrichment courses will be included in the employee's taxable income and be subject to withholding.  Spouses, domestic partners, and dependent children are not eligible for personal enrichment courses.

3.2. Time Off

In general, employees should attempt to take courses outside of their work schedule or discuss an alternate work schedule with their supervisor to make up time lost if the course is taken during an employee’s work schedule.  However, supervisors may allow an employee to take up to one (1) course per semester using time off with pay as long as all of the following provisions are met:

• the course is taken for academic credit toward a degree program or for professional development;
• is related to the employee's job or a UNM job to which the employee can reasonably aspire, and
• is not available outside of the employee's work schedule.

Personal Enrichment courses are not eligible for time off with pay. 

In addition to the above provisions, the business needs of the department are top priority and time off with pay may not be practical. If an employee disagrees with a supervisor's denial of time off, the employee may appeal the decision to the dean, director, or department head, with the final appeal level being the applicable vice president. As with any work-related problem, the employee may also contact Dispute Resolution to seek resolution (refer to "Dispute Resolution Policy" Policy 3220, UBP for more information).

3.3. Supervisory Approval

Supervisory Approval is necessary if any of the following situations apply: 

• A credit course taken during the employee’s regular work schedule (approval is to authorize the absence from work and to approve an alternate work schedule if applicable per Section 3.2. above);
• A non credit professional development course taken during the employee’s work schedule that is related to the employee’s job or a UNM job that the employee can reasonably aspire to; (approval is to authorize absence from work and approve an alternate work schedule if applicable per Section 3.2. above); or
• A non-credit personal enrichment course taken during the employee’s work schedule (approval is to authorize the absence from work and to approve an alternate work schedule per Section 3.2. above).

The Tuition Remission benefit is a voluntary benefit  offered to employees; therefore, managers and supervisors cannot require employees to use their tuition remission benefit for work-related or management-ordered courses.

3.4. Deadlines  

To avoid late fees, the Tuition Remission form must be submitted for payment prior to the published payment deadline date for the applicable term or course. Employees or retirees registering after the published payment deadline must pay a late fee and submit the tuition remission form to the applicable office prior to registering for classes. Late fees are not covered by tuition remission and must be paid in full by the employee.  Tuition remission forms will not be accepted after the registration deadline date for the applicable term or course without prior approval from Human Resources.

3.5. Employee Responsibility for Monitoring of Tuition Remission Program

Employees are responsible for monitoring their own use of tuition remission to ensure the tuition limits are not exceeded and that they are in compliance with this policy. If it is determined that tuition paid for an employee under this program exceeds the limits of this policy, the University will bill the employee for any excess tuition costs that have been paid and.  If the bill is not paid, UNM may collect any excess through payroll deductions.

3.6 Non Academic Courses offered by UNM departments 

UNM departments may offer courses or seminars for UNM employees in which Tuition Remission may be available as a method of payment.  The Division of Human Resources must approve any course or seminar offered by UNM Departments in advance if Tuition Remission is to be used as a method of payment. 

Courses or seminars offered by UNM departments may be considered professional development if they are job-related or related to a UNM job that employees may reasonably aspire to.  If the course or seminar is not related to a UNM job, the course may be offered through Personal Enrichment provisions under this policy.  Departments who offer courses using the Tuition Remission program are responsible for keeping records of the participants for the course.

 3.7. Restrictions

Tuition Remission can only be used to pay for tuition costs and course registration costs and cannot be used to pay for other costs associated with courses including but not limited to course fees, books, supplies, or exams.  Tuition Remission cannot be used to pay for travel, food or lodging expenses.  The Tuition Remission benefit will not cover costs at other institutions other than those specifically stated in Section 3. herein.

4.  Dependent Education Scholarship

The University will pay resident undergraduate tuition for eligible spouses, domestic partners and/or dependent children for undergraduate academic courses taken at UNM for up to eight (8) consecutive semesters, not including the summer session.  The eight (8)-semester limitation applies to both full-time and part-time students. A semester's eligibility is used regardless of the number of credit hours the student takes. If there is a break in the eight (8)-semester enrollment, reapplication is required and the applicant must meet all eligibility criteria. A dependent's eligibility for the tuition benefit ceases once a total of eight (8) semesters have been covered or the dependent fails to meet eligibility requirements.

4.1. Dependent Eligibility

• Spouse or domestic partner (domestic partners must meet the requirements of "Domestic Partners" Policy 3790, UBP).
• Unmarried dependent children who have not reached the age of twenty-five (25) as of the last date to register for the applicable semester (includes natural, adopted, step-children, or legal guardianship).
• Dependents who become married or turn twenty-five (25) may continue until they have reached eight (8) semesters or there is a break in enrollment but will not be eligible to re-apply for the benefit.
• Student must meet UNM’s admission requirements and be admitted in an undergraduate degree seeking status.
• Student must maintain a UNM GPA of 2.0 or greater (the student may appeal to the Director of Student Financial Aid in cases of extenuating circumstances).

4.2. Charges Not Covered

Costs that are not covered under the Dependent Education Scholarship are listed below: 

• The mandatory student fee portion of tuition and fees.
• Tuition or other costs at an institution other than UNM.
• Approved special course fees assessed for participation in instructional academic credit.
• Costs associated with courses offered for non-academic credit.
• Non-resident tuition in excess of New Mexico resident tuition.
• Tuition and fees for courses taken in non-degree status.
• Tuition and fees for graduate, law, PharmD, and medical education programs.

4.3 Coordination with other UNM Scholarships or Financial Aid

The amount of an individual's dependent education tuition benefit, plus the amount of any need-based financial aid grants, will not exceed the cost of attendance, as defined by the University Student Financial Aid Office. The amount of the Dependent Education Scholarship tuition benefit will not exceed the tuition portion of resident tuition and fees.  The amount of an individual's Dependent Education Scholarship benefit will be reduced by the amount of tuition paid by any other tuition waiver or tuition scholarship.  

Examples of other tuition waivers include, but are not limited to, the following:  

• UNM Scholars, NM Scholars, Presidential Scholars, and Regents' Scholars
• Lottery Scholarships and Bridge to Success Scholarships
• Graduate/Teaching Assistants
• Miscellaneous Department Tuition Waivers

 

4.4.  Taxability

Under current IRS regulations, the value of tuition benefits received by domestic partners and certain dependents is considered taxable income to the employee. The value of the tuition benefit will be included as compensation on the employee's W-2 form filed with the IRS and subject to withholding once per semester in any of the following circumstances: 

• tuition paid for domestic partners;
• tuition paid for dependents who are married;
• tuition paid for dependents who are age twenty-four (24) or older any time in the tax year that the benefit is received; or
• tuition paid for dependents who are not claimed as a dependent on an income tax return.

5.  Additional Spouse/Domestic Partner Tuition Benefit 

If a spouse or domestic partner is not pursuing a degree or does not meet the criteria for the dependent education scholarship, the University will pay resident tuition for up to four (4) credit hours per semester for UNM courses taken for academic credit.  Courses taken at any other institution, non-credit professional development courses, and personal enrichment courses do not qualify for this additional spouse or domestic partner benefit.  Spouses and domestic partners may not receive both the dependent education scholarship and this additional spouse/domestic partner benefit for any given semester.   

5.1. Taxability

The value of tuition benefits for courses taken by spouses for graduate credit and courses taken by domestic partners are considered taxable income to the employee and will be included as compensation on the employee's W-2 form filed with the IRS and subject to income tax withholding once per semester.

6.  Compliance 

Questions concerning allowable use of education benefits should be referred to the Division of Human Resources.

7.  Related Links

Application forms can be found on the HR website forms page.

Comments may be sent to UBPPM@UNM.edu
http://www.unm.edu/~ubppm