102.6 - Non-Salary and Deferred Compensation Policy
University Group Policy #102.6
I. Policy Statement
The UNC Board of Governors (Policy 300.2.14) requires each constituent institution to develop a policy on non-salary and deferred compensation. This policy establishes guidelines and procedures for Winston-Salem State University employees who are exempt from the State Human Resources Act (EHRA).
"Non-salary compensation" - all compensation of monetary value other than (a) base salary; (b) salary supplements for additional temporary, acting, interim, or administrative responsibilities beyond base salary; (c) honor supplements that are part of formally-established programs at the departmental, college, university, or UNC level, such as stipends associated with named or endowed professorships; or (d) one-time award recognition programs established and administered at the college/division, university, or UNC level, such as the university’s annual recognition programs. Any other awards of non-salary compensation at the departmental or unit level require advance BOT approval.
Non-salary compensation also includes, but is not limited to, payment of moving expenses, provision of a motor vehicle or motor vehicle allowance, provision of housing or housing allowances, club memberships, or other special benefits provided for job-related reasons.
"Deferred Compensation" - deferred (or delayed) compensation (or salary) which is broadly defined to include, but not be limited to, any employer payment or contribution paid directly to an employee, to the employee's account or plan, or 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 compensation also includes any retirement plans or accounts, annuities, life insurance that accumulates any cash value, and traditional 457 deferred compensation plans. This definition includes both tax qualified and non-qualified plans, and any other similar form of payment, whether tax sheltered or not.
A. Purpose and Criteria for Awarding
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 discriminatory factors of the employee's race, color, national origin, sex, age, religion, creed, disability, or veteran status.
B. Excluded Items
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, are all permissible and are not considered "non-salary compensation" as used in this Policy. Such equipment includes but is not limited to: computers, cellular phones, personal data assistants (PDAs), internet connectivity (e.g., cable modem, DSL), pagers and similar work related items.
C. Approval Requirements
Upon the advice of the Provost and Vice Chancellor for Academic Affairs, or other appropriate Vice Chancellor, and submission of the appropriate documentation as required under this policy, the Chancellor shall consider requests for non-salary compensation of any EHRA employee covered by this policy. If endorsed by the Chancellor, such compensation must be subsequently approved by the WSSU Board of Trustees before the employee is eligible to receive the requested non-salary compensation.
D. Moving Expenses Paid as Part of the Hiring Process
The Faculty and EHRA non-faculty hiring approval process may include payment of moving expenses in accordance with authority from the Office of State Budget & Management (OSBM) and consistent with the WSSU Policy on Moving Expenses.
E. Motor Vehicle Usage
A motor vehicle is assigned for the exclusive use of the Chief of Campus Police. The University provides motor vehicles for use by other senior academic and administrative officers and staff members only as needed, as part of the requirements of their positions associated with fund raising, recruitment activities, athletics, emergency management and other University business.
Eligible University employees include the Provost and Vice Chancellor for Academic Affairs, Vice Chancellor for Advancement, Associate/Assistant Vice Chancellor for Advancement, Executive Director of the Foundation, Development officers, Executive Director for Marketing, Alumni and Community Relations, academic Deans, Athletic Director and Athletics staff. The use of motor vehicles is subject to the Internal Revenue Service regulations on taxation and fringe benefits.
Vehicle for all categories of EHRA employees must be authorized in advance on a case-by-case basis by the Board of Trustees. Any personal use of such vehicles must be reported and is considered taxable income.
F. Incentive Compensation
Incentive-based compensation beyond base salary provided to any Athletics employee (other than the athletic director and head coaches with contracts covered by UNC Policy 1100.3, who are exempt from this policy), for reasons including, but not limited to, reaching performance goals such as post-season playoffs or student academic achievement levels, must be approved on a case-by-case basis by the Board of Trustees and may only be granted if otherwise consistent with University policy and state law.
G. Source of Funds and Reporting of Compensation
Unless permitted by the Office of State Budget & Management and approved by the Board of Trustees, State funds shall not be used to provide non-salary compensation. Non-salary compensation funding may be provided directly by a University-associated foundation, if permitted by foundation policy. [Note: University policy does not however permit the payment of salaries from University-associated foundations, only non-salary compensation as provided under this policy.]
H. Other Provisions
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 for any employee must be reported appropriately to federal and state tax agencies.
The State of North Carolina and The University of North Carolina offer employees options for deferred compensation, including insurance programs. Unless expressly approved by the Board of Governors, WSSU may not provide any other employer-paid or privately-paid options for deferred compensation to its employees.
A. Non-Salary Compensation Approvals
Any proposed non-salary compensation must be documented using the "Request for Approval of Non-Salary Compensation" form. The approval process for such compensation must be fully completed prior to the provision of non-salary compensation to an employee. Requests from units reporting to the Provost and Vice Chancellor shall be routed through the Assistant Provost for Budget and Planning. Requests from units with other reporting relationships shall be routed through the appropriate Vice Chancellor to the Assistant Vice Chancellor for Human Resources. Upon approval and recommendation by the Chancellor, all requests for non-salary compensation must be approved by the Board of Trustees.
B. Deferred Compensation Approvals
Any written request submitted by a Dean/Division Head to the Provost & Vice Chancellor for Academic Affairs, the Chancellor shall consider such requests for deferred and non-salary compensation. If endorsed by the Chancellor, such requests shall be submitted for approval from both the Board of Trustees and the Board of Governors prior to the commitment or provision of such compensation.
Exempt from this policy are the Athletic Director, Head Coaches in Athletics (subject to Board of Governors Policy 1100.3 and its guidelines) and the Chancellor. Board of Governor's Policy 300.2.14 addresses separately non-salary and deferred compensation for the Chancellor.
Responsible Division: Vice Chancellor and Chief of Staff
Authority: Board of Trustees
- Adopted: December 6, 2013