The UNC
Policy Manual
300.2.14
Adopted
09/08/05
Amended
06/09/06
Amended
01/16/15
A. Non-salary Compensation
1. Irrespective of the campus’ status
regarding management flexibility in personnel, all constituent institutions and
the General Administration shall have a policy concerning the granting of non-salary
compensation for all personnel exempt from the State Personnel Act except for
the chancellor and the president. The
policy shall either provide specified non-salary compensation to a defined
category of employees uniformly or shall require approval by the board of
trustees or Board of Governors upon recommendation by the chancellor or
president, respectively, regarding non-salary compensation granted to an
individual employee before non-salary compensation is provided.
Each
policy that provides specified non-salary compensation to a defined category of
employees shall set out what types of non-salary compensation the campus or General
Administration will provide, and the criteria for awarding such
compensation. The awarding of non-salary
compensation may be based on any reason or reasons considered relevant to
attracting or retaining a faculty and staff of the highest possible
quality. Decisions concerning non-salary
compensation shall not be based in whole or in part upon any of the protected
statuses included in Section 103 of The
Code.
2. The funding source for non-salary
compensation shall not be State funds,
and non-salary compensation may be provided directly by an associated
foundation if permitted by policy. An
exception permitting non-salary compensation to be funded from State funds may
be approved by a board of trustees or the Board of Governors only when
permitted by the Office of State Budget and Management. Any club membership for an employee or the
granting of special campus services or benefits must be job related, and the
club must have a policy prohibiting discrimination against groups protected by
federal and North Carolina law. Non-salary
compensation shall be appropriately reported to federal and state tax agencies.
The
hiring approval process may include payment of moving expenses in accordance
with authority from the Office of State
Budget and Management. The decision of whether to include payment of
moving expenses in an employment offer may be delegated no lower than the provost/vice
chancellor level or vice president level.
3. Provision of housing, when occupancy
of the housing is required as a part of the job, reimbursement of professional-
or work-related travel, and 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, are
permissible and are not considered “non-salary compensation” as used in this policy.
B. Delayed
or Deferred Salary/Compensation
The
State of North Carolina and the University of North Carolina offer employees
options for deferred compensation and insurance. Unless expressly approved by the Board of
Governors, constituent institutions and the General Administration may not
provide any other employer-paid options for deferred compensation or other
delayed compensation to its employees.
For
purposes of this policy, delayed and 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.
This
policy does not prohibit a campus from making any permitted employer
contribution to the Optional Retirement Program or the Teachers’ and State
Employees’ Retirement System.
C. Non-salary or deferred compensation
of Chancellors and President
Other
than a State provided car or a car of comparable value, a chancellor’s or the
president’s residence as provided for in Policy 300.1.5, work related club
memberships, reimbursement of moving expenses upon initial employment as a
chancellor or president, and benefits uniformly provided to all employees
exempt from the State Personnel Act, only the Board of Governors may approve non-salary
or deferred compensation for a chancellor or the president. The funding source
for non-salary compensation for a chancellor or the president, other than that
specified in this paragraph, shall not be State funds, but an exception may be approved by the Board
of Governors. Club memberships
may never be paid using State funds.
D. Employees exempt from this policy
Members
of faculty medical practice plans, such as physicians, dentists, and
veterinarians, are exempt from this policy.
Athletic directors and head coaches remain subject to Policy 1100.3 and
its guideline, and are exempt from this policy.
E. Review and Approval
Campus
policies on non-salary and delayed/deferred salary/compensation must be
submitted as a part of the campus request for management flexibility to appoint
and fix compensation. Campuses already granted management flexibility in
personnel shall submit their policies to the General Administration for
review. Subsequent changes to the
policies must be submitted for review by the General Administration prior to
submission to the campus Board of Trustees for approval. In some cases,
policies with extensive revisions will be reconsidered by the Committee on
Personnel and Tenure of the Board of Governors.