Fill - Free fillable Section IV.D.1.(i). Human Resources Faculty Leave Banking Program (Lone Star College System) PDF form

Page 1 of 11

Section IV.D.1.(i). Human Resources

Faculty Leave Banking Program

The Chancellor adopts these procedures in accordance with Section IV.D.1.(i). of the Lone

Star College System District Policy Manual (“Policy Manual”) last revised by the Board of

Trustees on February 1, 2018 which provides that the Chancellor shall establish a faculty

leave banking program to permit teaching faculty members to accrue entitlement to

extended leaves of absence through the completion of extra service assignments (the

“Program”).

These procedures (“Procedures”) supplement and clarify the terms of the Program as set

forth in Section IV.D.1.(i) of the Policy Manual. All matters concerning the Program are

governed by the terms of the Policy Manual and these Procedures. In the event of a conflict

between the Policy Manual and these Procedures, the Policy Manual will control. These

Procedures supersede and replace all other written documentation concerning the Program

including but not limited to the Faculty Handbook, Faculty Workload Guidelines, etc. The

terms of these Procedures can only be amended by formal action of the Chancellor pursuant

to sections I.C.1.03 and I.D.1.10 of the Policy Manual. These Procedures cannot be amended

by the oral or written statements of any other persons or entities.

The Board and the Chancellor may amend or end this Program at any time and for any reason

as allowed by Board Policy.

These procedures were last updated on February 1, 2018. The notice and comment period

was open online to the public from September 5, 2017, to October 28, 2017.

1. Key Definitions. For purposes of the Program, the following defined terms will

apply:

a. Eligible Faculty Member or Member means a member of the College’s full-time

teaching faculty with a current multi-year employment contract. Adjunct

instructors, part-time teaching faculty members, administrative staff, and all

other College personnel who are not employed by the College on a full-time basis

as teaching faculty are excluded from participation in the Program.

b. Extra Service Assignment means any teaching assignment in excess of an Eligible

Faculty Member’s normal teaching load for a particular academic semester,

including both fall and spring semesters, mini-mester or intersession courses, and

summer session courses.

c. Leave Bank Account means the notional account which is used to determine, in

part, the amount of compensation payable to a Leave Eligible Member during a

Leave Semester in accordance with Section 5 below. A Leave Eligible Member’s

Leave Bank Account shall be for bookkeeping purposes only.

d. Leave Bank Fund means the funding source for compensation and payouts made

by the College to Eligible Faculty Members and Leave Eligible Members during

Page 2 of 11

Leave Semesters, as provided by Section 5 below or otherwise, as provided by

Section 6 below.

e. Leave Eligible Member means an Eligible Faculty Member whose Leave Bank

Account balance has reached the cap specified in Section 3.C below.

f. Leave Semester means a full academic semester during which a Leave Eligible

Member is on leave pursuant to the Program and eligible to receive compensation

as provided in Section 5 below.

g. Supplemental Pay means the difference between the faculty member’s would-be

Leave Semester salary and their Total Accrued Deferred Compensation.

h. Supplemental Pay Fund means the funding source for supplemental

compensation paid by the College to Leave Eligible Members during Leave

Semesters, as provided by Section 5 below.

2. Eligibility and Participation.

a. Eligibility to Defer. Eligible Faculty Members who successfully complete Extra

Service Assignments may elect to defer payment of compensation for such

assignments and accrue additional leave time through the Leave Bank established

under the Program. All additional leave time allocated to the Leave Bank must be

used by the Eligible Faculty Member in accordance with the procedures described

in this document.

b. Procedures for Deferral Elections. Eligible Faculty Members who wish to

participate in the Program by deferring compensation due for an Extra Service

Assignment must complete Form IV.D.1 and return it to the applicable Dean of

Instruction before the first day of the Extra Service Assignment. Election forms

that are not timely submitted to the Dean of Instruction will not be honored.

Timely completion and submission of the election form will allow the Dean of

Instruction to verify its completeness and ensure that the College’s Payroll

Department will have adequate time to implement the election.

c. Changes to Deferral Elections. Eligible Faculty Members cannot change their

election to defer Extra Service Assignment compensation once the Extra Service

Assignment begins (i.e., the course’s first day). Eligible Faculty Members must

make a new deferral election for each Extra Service Assignment.

3. Leave Bank Accruals.

a. Leave Bank Account Balances. Compensation deferred under the Program by

each Eligible Faculty Member will be allocated in a bookkeeping account in his or

her name. The balance of an Eligible Faculty Member’s Leave Bank Account will

be equal to (1) the cumulative amount of compensation he or she elects to defer

less (2) any deductions relating to compensation paid during Leave Semesters or

Page 3 of 11

for mandatory payouts, and subject to the limitation on account accruals

described in Section 3.C below. No interest will be credited to Leave Bank Account

balances, and no contributions by the College will be required.

b. Vesting of Leave Bank Account Balances. Amounts accrued by an Eligible

Faculty Member in his or her Leave Bank Account will be fully vested and

nonforfeitable at all times.

c. Maximum Accrual Permitted. An Eligible Faculty Member may accrue a

maximum balance in his or her Leave Bank Account equivalent to a regular full-

time faculty teaching assignment for one academic semester plus one extra

service assignment. Absent special approval by the applicable Dean of Instruction,

this will mean that an Eligible Faculty Member may maintain accrued credit for

up to six (6) courses for most disciplines through the Program at any one time

(this course number will vary depending on the faculty member’s primary

discipline). Once an Eligible Faculty Member reaches his or her maximum accrual,

the Eligible Faculty Member will become a Leave Eligible Member and must

either: (1) take a Leave Semester (discussed below), or (2) receive an automatic

cash payout of his or her accrued Leave Bank Account balance in accordance with

the procedures described below. Any sums that are inadvertently allocated to an

Eligible Faculty Member’s Leave Bank Account in excess of the limitation

described above will be cashed out and paid to the Eligible Faculty Member as

soon as administratively practicable after the excess allocation is discovered.

4. Application Procedures for a Leave Semester.

a. Application for a Leave Semester. An Leave Eligible Member who has accrued

the maximum balance in his or her Leave Bank Account permitted under Section

3 above and who wishes to take a Leave Semester in lieu of receiving a cash payout

of his or her account balance should complete and submit Form IV.D.2 to his or

her Dean of Instruction at least two semesters before the requested Leave

Semester. Timely requests for Leave Semesters will be reviewed by the Vice

President of Instruction and, in consultation with the applicable College President,

the Vice President of Instruction may approve or deny the request using Form IV.

D.3. All Leave Semester approvals will be forwarded to the College’s Payroll

Department no later than thirty (30) days before the start of the approved Leave

Semester.

b. Deadline for Use of Leave Bank Account Balances. All Leave Eligible Members

must take a Leave Semester within ten (10) regular semesters of first becoming

Leave Eligible. For example, if an Eligible Faculty Member becomes Leave Eligible

in the Fall 2017 semester, the Leave Semester must be taken no later than the Fall

2022 semester. If the Leave Semester is not taken by the tenth (10

th

) semester of

leave-eligibility, the Eligible Faculty Member will receive an automatic cash

payout equaling their accrued Leave Bank Account balance. No Supplemental Pay

will be provided in connection with any such cash payout.

Page 4 of 12

5. Pay During Leave Semesters. During a Leave Semester, a Leave Eligible Member’s

compensation will consist of the following amounts: (1) the Eligible Faculty Member’s Leave

Bank Account balance, plus (2) the Eligible Faculty Member’s Supplemental Pay. The Leave

Eligible Member’s compensation will be paid in periodic installments in accordance with the

College’s standard payroll practices and procedures, as described in the example below. A

Leave Eligible Member’s Leave Bank Account balance will be paid from the Leave Bank Fund.

Supplemental Pay will be paid from the Supplemental Pay Fund.

EXAMPLE:

A Leave Eligible Member in the English Department whose current annual compensation is

$60,000 will receive the following Leave Semester compensation:

Pay Type

Calculation

Example ($60,000 salary)

Leave Bank Account

Balance



 

6 courses

× $2,000 =

$12,000

Supplemental Pay





Leave Bank Payments

1

$22,500

– $12,000 =

$10,500

Total Leave Semester

Compensation

Leave Bank Payments + Supplemental Pay

$12,000

+ $10,500 =

$22,500

Note this example only illustrates gross annual compensation and does not reflect withholding of the applicable

income and payroll taxes.

6. Cash Payouts.

a. Elective Payouts. An Eligible Faculty Member may request a full or partial cash

payout of his or her accrued Leave Bank Account at any time. An Eligible Faculty

Member who wishes to request a cash payout should complete Form IV.D.4 and

submit it to the College’s Payroll Department for processing. No Supplemental Pay

will be provided in connection with any such cash payout.

b. Termination Payouts. In the event of an Eligible Faculty Member’s termination

of service with the College for any reason (including, without limitation, due to his

or her death), the Eligible Faculty Member’s accrued Leave Bank Account balance

will be paid to him or her (or to his or her surviving spouse or estate, as applicable)

in a lump sum cash payout. No Supplemental Pay will be provided in connection

with any such cash payout.

7. Tax Matters. Compensation deferred under the Program will be subject to income

and applicable employment tax withholding and reporting for the calendar year during

which it would otherwise be due and payable (i.e., during the calendar year when the Extra

1

This formula was initially posted incorrectly. It has now been corrected. The Procedures were not posted for notice and comment or re-

signed as this was a typographical error and not substantive. The correct formula was posted as of May 16, 2018.

Page 5 of 11

deferred compensation will be reported on the Eligible Faculty Member’s Form W-2 issued

for 2018.

8. College/State Retirement Contributions. Supplemental Pay and any compensation

deferred under the Program is not taken into account for purposes of determining any

retirement contributions or benefit accruals, including under the College’s retirement plans

and the Texas Teacher Retirement System (TRS) and the Texas Optional Retirement

Program. Eligible Faculty Members should also be aware that taking a Leave Semester

during the regular spring semester could exclude that entire school year as a year of service

for retirement purposes. This is a TRS determination made on a case-by-case analysis. The

College does not make such determinations and encourages faculty members who have

questions to contact TRS directly to ensure they understand how, if at all, years of service

will be affected. TRS member services can be reached at 1 (800) 223-8778.

9. Administrative Provisions.

a. Administration of Program. The Program will be administered by the

Chancellor or his or her delegate; references to the “Chancellor” in the Program

shall be deemed to refer to his or her delegate, if any. As Administrator of the

Program, the Chancellor shall have sole discretionary responsibility for its

operation, interpretation, and administration and for determining eligibility for

any benefits or payments to be made under its terms. Any action taken on any

matter within the discretion of the Chancellor shall be final, conclusive, and

binding on all parties. The Chancellor shall have full discretionary power and

authority to interpret, construe and administer this Program and to promulgate

rules and regulations for its administration. Subject to the requirements of

sections I.C.1.03 and I.D.1.10 of the Policy Manual, the Board and the Chancellor

shall have the right to amend the Program, at any time and from time to time, in

whole or in part.

b. Dispute Resolution.

i. Claims. Should any Eligible Faculty Member or other individual believe he or

she is entitled to a benefit from the Program (including a benefit which differs

from the benefit offered under the Program), such individual may file a written

claim for benefits with the Chancellor or his or her delegate. Such a claim must

be submitted no later than the earlier of (a) one (1) year after the date the

Member contends he or she should have received a payment under the

Program or (b) the date the Member’s employment with the College is

terminated. Upon receipt of a claim, the Chancellor shall review the claim and,

if the Chancellor determines that the claim should not be allowed, shall

respond within thirty (30) days of receipt of the claim. Such response shall be

in writing and shall include the specific reason or reasons for the denial,

specific references to pertinent Program provisions on which the denial is

based, a description of whatever additional material or information, if any,

must be supplied by the claimant to perfect the claim, and an explanation of

Page 6 of 11

the Program’s review procedure. If notice of the denial of a claim is not

furnished within thirty (30) days of receipt by the Chancellor, the claim shall

be deemed denied.

ii. Review. Within sixty (60) days after receipt of notice of denial of the claim or

when the claim is deemed to have been denied, the claimant (or his or her

representative) may respond to the denial by requesting, in writing, a review

of the decision and a review of pertinent documents. If the claimant responds

and seeks a review of the decision to deny benefits, issues and comments must

be submitted in writing to the Chancellor. Such issues and comments shall

specify the reasons that the decision of the Chancellor is claimed to be

erroneous. The Chancellor shall review the contentions regarding the denial

of the claim and shall, within sixty (60) days from the Chancellor’s receipt of

the request for review, respond to said request. If the Chancellor, in his or her

sole discretion, determines that special circumstances warrant the holding of

a hearing, it shall promptly be held and a decision shall be rendered within one

hundred twenty (120) days from the date the Program received the request

for review. Any decision on review shall be in writing and shall state the

specific reasons for the decision, and shall make specific references to the

Program provisions on which the decision is based.

iii. Claimant cannot bring any legal action against the Program, the Administrator

or the College for any other reason unless the claimant first completes all the

steps in the dispute resolution process described in this section. After

completing that process, if the claimant wants to bring a legal action against

the Program, the Administrator or the College, the claimant must do so within

one year of the date the claimant is notified of the final decision on review or

lose rights to bring such an action against the Program, the Administrator, or

the College.

c. Status of Program. The Program is intended to operate as a “bona fide vacation

leave plan” within the meaning of Code Section 457(e)(11) and Sections 1.457-

11(c)(1) and 11(f) of the proposed Treasury regulations and will be administered

in accordance with this intent. The Program does not provide for any “deferrals

of compensation” within the meaning of Code Sections 409A or 457(f) and all

deferrals and payments made under the Program are intended to be exempted

from such Code sections. The Program is not subject to and is exempted from the

Employee Retirement Income Security Act of 1974 (“ERISA”) as a governmental

plan under ERISA Section 4(b)(1).

d. Notices. Any notices or other communications required or contemplated under

the provisions of this Program shall be in writing and delivered in person or

mailed by certified mail, return receipt requested, postage prepaid.

e. Choice of Laws. This Program shall be construed in accordance with and

governed by the laws of the State of Texas and in courts situated in that state.

Page 8 of 11

Form IV.D.1: Overload Course Deferral Request

Use this Form to request that your compensation be deferred for any overload courses. This form

must be submitted before the first day of class of the overload course.

Name:

Last First Middle Initial

Employee ID:

OVERLOAD COURSE INFORMATION

Course Number: Location:

Course Name:

Semester: Year: Date Class Begins:

I consent to the deferral of all compensation for the above-indicated courses. I understand that any

changes to my election to defer compensation for the above course must be submitted prior to the

first day of class. I have read and agree to follow the policies and procedures found in the Board

Policy Manual Section IV.D.1.(i). and applicable Chancellor Procedures.

Signature Date

For Office Use Only

DEAN OF INSTRUCTION:

Date Request Received:

 Approved  Denied

Signature Date

PAYROLL:

Date Request Received:

Date Deferral Effective:

Signature Date

Printed Name

click to sign

signature

click to edit

click to sign

signature

click to edit

click to sign

signature

click to edit

Page 9 of 11

Form IV.D.2: Leave Semester Request

Use this Form to request a Leave Semester. This form must be submitted at least two semesters

prior to the requested leave semester.

1

This form may be submitted alongside the faculty member’s

final overload course deferral request, making them Leave Semester-eligible.

Name:

Last First Middle Initial

Employee ID:

Semester Requested:

Term: Year:

Signature Date

For Office Use Only

DEAN OF INSTRUCTION:

Date Request Received:

Signature Date

VICE PRESIDENT-INSTRUCTION

Date Request Received:

 Approved  Denied

Signature Date

PAYROLL:

Date Request Received: Date Processed:

Signature Date Printed Name

1

This Form and the Faculty Member’s request to defer their last extra course assignment to become Leave Eligible

may be submitted simultaneously.

click to sign

signature

click to edit

click to sign

signature

click to edit

click to sign

signature

click to edit

click to sign

signature

click to edit

Page 10 of 11

Form IV.D.3: Leave Semester Approval

Date

Dear ,

I hereby  Approve  Deny your request to take a Leave Semester in

Date Received

.

Term Year

Signature of Vice President of Instruction

Page 11 of 11

Form IV.D.4: Payout Request

Use this Form to request a cash payout.

Name:

Last First Middle Initial

Employee ID: Requested Payout Amount: $

I am requesting a cash payout in the above amount, to be paid out of my Leave Bank Account with

my next regularly scheduled paycheck after processing is complete.

Signature Date

For Office Use Only

PAYROLL:

Date Request Received: Date Processed:

Signature Date Printed Name

Fill Online, Printable, Fillable, Blank Section IV.D.1.(i). Human Resources Faculty Leave Banking Program (Lone Star College System) Form

Related forms

Fillable Section IV.D.1.(i). Human Resources Faculty Leave Banking Program (Lone Star College System)

Fill Online, Printable, Fillable, Blank Section IV.D.1.(i). Human Resources Faculty Leave Banking Program (Lone Star College System) Form

Related forms

First 20 documents completely FREE!