The UNC
Policy Manual
300.2.14
Adopted
09/08/05
Amended
06/09/06
Amended
01/16/15
Technical
Corrections 09/22/21
Amended 11/17/22
I. Non-salary Compensation
A. Irrespective of the campus’ status
regarding management flexibility in personnel, all constituent institutions and
the UNC System Office shall have a policy concerning the granting of non-salary
compensation for all personnel exempt from the North Carolina Human Resources 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 the appropriate approval by the board of trustees, Board of
Governors chancellor, or president, respectively, and as provided in this
policy, regarding non-salary compensation granted to an individual employee
before non-salary compensation is provided.
B. 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 UNC System Office 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.
C. 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 (OSBM). 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.
D. 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.
E. 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.
F. Sign-on, Retention, and
Performance-Based Bonus Compensation.[1] The Board of Governors delegates authority to the constituent
institution boards of trustees to administer sign-on, retention, and
performance-based bonus programs for employees exempt from most provisions of the North Carolina Human Resources Act. Equivalent authorities are granted at the direction
of the president to administer such programs for UNC System
Office employees exempt
from most provisions of the North Carolina Human Resources Act.
1. A sign-on bonus may not exceed the
lesser of $25,000 or 20 percent of the annualized base salary of the new position without
seeking the approval
of the president or the
president’s designee.
2. A retention bonus may not exceed the
lesser of $25,000 or 20 percent of the employee’s
current base salary without seeking the approval of the president or the president’s designee.
3.
Performance-based bonus
compensation awarded in a single fiscal year that exceeds either 20 percent of an individual employee’s current
base salary or $50,000 must receive
approval from the president and the Committee
on University Personnel
of the Board of Governors.
4. An employee may receive either a
sign-on bonus or a retention bonus, but not both, within any
24-month period.
The award of performance-based bonus compensation shall be administered independently from
any sign-on or retention bonus program and shall
be tied to an annual performance review for non-faculty employees and to the provisions of a written incentive
compensation plan for covered faculty. Performance- based pay for clinical faculty is subject to the relevant
approved clinical incentive pay plans and is exempt
from these provisions. When applicable, and in accordance with Plan documents, performance-based bonus awards
for Plan-eligible employees may be directed to an executive retirement plan administered by the UNC System Office,
in lieu of a cash payment.
5. The boards of trustees may delegate
authority to approve sign-on, retention, and/or
performance-based bonuses to the chancellor and/or chancellor’s designee(s) with the exclusion of such bonuses for
Tier I SAAOs, which may not be delegated. For
employees of the UNC System Office, the president has authority to
approve sign-on, retention, and
performance-based bonuses, including such bonuses for Tier I SAAOs.
6. Institutions may establish rules to require
an employee to pay back all or part of sign-on
or retention bonus payments already received if the employee separates from the institution fewer than 12 months after
payment of the bonus award.
7. Bonuses may
be provided using either state funds or non-state funds. For State funds, such use must be permissible under
the policies of OSBM.
8. Institutions
must establish specific procedures for reviewing and monitoring sign-on,
retention, and performance-based bonuses.
9. The
president may establish
guidelines for periodic
reporting on these bonus compensation programs.
II. Delayed
or Deferred Salary/Compensation
A. The State of North Carolina and the
University of North Carolina System offer employees options for deferred
compensation and insurance. Unless
expressly approved by the Board of Governors, constituent institutions and the UNC
System Office may not provide any other employer-paid options for deferred
compensation or other delayed compensation to its employees.
B. 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.
C. 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.
III. 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 Section 300.1.5 of
the UNC Policy Manual, 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 North Carolina Human
Resources 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.
IV. 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 Section 1100.3 of the UNC Policy Manual
and are exempt from this policy.
V. 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 UNC
System Office for review. Subsequent
changes to the policies must be submitted for review by the UNC System Office
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 University Personnel of the Board of Governors.
VI. Other Matters
A.
Effective
Date. The requirements of this policy shall be effective on the date of
adoption of this policy by the Board of Governors.
B. Relation
to State Laws. The foregoing policy as adopted by the Board of Governors
is meant to supplement, and does not purport to supplant or modify, those
statutory enactments which may govern or relate to the subject matter of this
policy.
C. Regulations and Guidelines. This
policy shall be implemented and applied in accordance with such regulations and
guidelines as may be adopted from time to time by the president.