Faculty Handbook

Employment Benefits

• Employee Fringe Benefits
• Same Sex Domestic Partner Benefits Policy

     Members of the Faculty with the rank of Instructor, Assistant Professor, Associate Professor, or Professor who teach full-time are eligible for a number of fringe benefits.

     In order to ensure that all benefits are maintained in full, various records need to be kept current. Please notify the Personnel Office whenever any of the following changes occurs: address or telephone number, legal name, marital status, tax exemptions or insurance beneficiary, dependents on your health insurance plan (including additions and deletions because of age, graduation from college, marital status or employment).

     1. Health Benefits.
     The University offers a comprehensive health insurance program for Faculty and their families. Faculty may select either Individual membership, a membership for yourself and one legal dependent, or Family membership; 50% of the premium of the option selected is paid by the University. Family membership includes spouses and all unmarried dependent children under 19 (under 25 if a full-time student). A Faculty member’s portion of the premium cost for health and life insurance is paid with pre-tax dollars; no federal or state income taxes or Social Security (FICA) taxes are paid on these premiums.

     Health insurance participation may begin as early as the first day of employment. Coverage is not automatic if you do not enroll yourself, and/or dependents within 31 days of your eligibility for insurance. Thereafter, coverage may be added only during open enrollment periods or if there is a change in your status (marriage, divorce, death of a spouse or child, birth or adoption of a child and changes in the employment status or benefits eligibility of a spouse).

     Through a Flexible Spending Account you may pay for certain dental, optical, and medical expenses with pre-tax dollars. No federal and state income taxes and Social Security (FICA) taxes are paid on these expenses. The Internal Revenue Service requires that one forfeit any money remaining in a Spending Account at the end of a plan year, so careful thought should be given to the amount of contribution each year. Eligible expenses include:

     •Dental expenses: examinations, cleanings, X-rays, fillings, orthodontic and periodontal care.
     •Vision care expenses: examinations, prescription eyeglasses, contact lenses.
     •Health plan and prescription deductibles, co-payments and co-insurance payments.
     •Uninsured health expenses.

     2. Compensation.
     Faculty members are paid monthly on the last banking day of the month. If desired, Faculty may have their paychecks deposited directly to the bank of their choice by sending a copy of a bank deposit slip to the Business Office.

     Optional payroll deductions include purchase of United States Savings Bonds (exempt from state income taxes), United Way contributions, and purchase of voluntary life insurance.

     3. Retirement
     Considerable financial resources are required for a secure and rewarding retirement; accumulating these resources is a long-term proposition that should begin as early in a career as possible. Washington and Lee University helps in two primary ways: (a) by paying Social Security taxes and (b) by contributing to the TIAA/CREF Retirement Annuity Program.

     a. Social Security: The Social Security tax (FICA) deducted from the monthly paycheck is matched by the University. Social Security pays benefits upon retirement to covered workers; other family members may also be eligible for benefits. Monthly payments are normally adjusted each January to reflect changes in the cost of living.

     b. TIAA/CREF Retirement Annuity Program: Social Security benefits are not substantial enough to be the sole or even the primary source of retirement income; therefore, the University strongly encourages participation in the TIAA/CREF retirement annuity program.

     Participation in TIAA/CREF may begin after two years of employment. Prior employment at another academic institution immediately before working at Washington and Lee will be counted toward fulfillment of the waiting period.

     University involvement in this program takes two forms: unmatched and matching contributions. Washington and Lee contributes an unmatched 5% of salary to the plan and will also match a Faculty member’s contribution up to 5% of salary. A person taking full advantage of the program, therefore, contributes 5% and the University 10% (an unmatched 5% and a matching 5%), for a total of 15% of salary.

     Additional tax-deferred contributions to TIAA/CREF may be elected, up to federal and state limits.

     In addition, the University offers a Supplemental Retirement Annuity Plan (SRA) which complements the basic TIAA/CREF retirement plan. Although the University does not contribute to this program, the SRA plan has a number of attractive options, including no waiting period for participation, tax deferral for federal and state income tax purposes, and the opportunity to receive a lump sum payment instead of monthly annuities at retirement (and even before retirement if certain federal regulations are met).

     A further retirement benefit concerns health insurance. Social Security recipients and their spouses are eligible at age 65 for Medicare health insurance. In addition, the University provides a retiree medical benefit to Faculty members and spouses who turn 65 and have been enrolled in the University’s health insurance plan for at least ten years immediately prior to retirement.

     Children of a Faculty member who retires remain eligible for the educational grant benefit, so long as the Faculty member taught full-time at Washington and Lee for at least six consecutive years immediately preceding retirement.

     4. Survivor Benefits.
     To help protect a family from the sudden loss of a wage-earner, the University provides a comprehensive program of survivor benefits, including life insurance, accidental death and dismemberment insurance, health insurance continuation, and education grants, in addition to full payment of accumulated retirement annuity funds.

     a. Participation in the life insurance program is mandatory if a Faculty member participates in the University’s health insurance program, though life insurance may also be elected on its own. Life insurance coverage is directly related to salary, thereby protecting against inflation. When elected, coverage begins on the first day of employment, and the University pays 50% of the premium.

     Insurance coverage is one-and-one-half times salary, rounded down to the nearest $1,000 to a maximum of $100,000 of insurance. The amount of coverage decreases to 65% of this formula at age 65 and to 50% at age 70. The amount of insurance is adjusted, as appropriate, each January.

     Life insurance coverage is not automatic if not elected within 31 days of employment; after 31 days, the insurance company has the option of denying coverage based upon their review of a Faculty member’ s health history.

     Beneficiary designations must be made in writing on forms available from the Personnel Office. Beneficiary designations should be kept up to date when personal status changes, e.g. through marriage, divorce, or the birth of children.

     b. Health insurance for spouse and children may be continued by them for up to three years, with the University paying its portion of the premium for the first year.

     c. Faculty children remain eligible for the educational grant benefit, so long as the Faculty member worked full-time for six or more consecutive years immediately prior to death.

     d. The full value of any retirement annuity accumulation is payable upon death to the named beneficiary.

     5. Absences due to an Employee’s Illness or Injury and Personal Leave
     a. Sick Leave. The University has designed a flexible sick leave program that minimizes financial pressures and enables the Faculty member to concentrate on regaining health. Instead of using a traditional formula of accumulated sick leave, Washington and Lee takes a more individualized approach. Based upon such circumstances as length of service and severity of current illness, the University may continue a Faculty member’s pay for up to six calendar months.

     b. Workers’ Compensation. The University pays the entire cost of workers’ compensation insurance covering all employees who sustain work-related accidents or illnesses. If you are injured on the job, or if you believe you have a work-related illness, regardless of how minor the injury or illness, you must report this immediately to your department head. Subsequently, if you are placed on restricted or limited duty by a doctor, you must inform your department head. Workers’ Compensation insurance pays for authorized medical bills and a portion of your salary when you are absent due to a work-related injury or illness. The remainder of your salary may be paid under the University’s sick-leave policy subject to the normal provisions of that policy.

     c. Maternity Leave. The first six weeks of absence are considered to be paid sick leave. For unpaid leave for the birth and first year care of a child, see the section entitled Personal Leave and Family and Medical Leave.

     d. Personal Leave. Members of the Faculty may need to take leave for personal reasons such as care of a newborn, newly-adopted, foster, or seriously-ill child, or care of a seriously-ill spouse or parent. A request for personal leave will be recommended for approval by the Advisory Committee only upon a showing of adequate personal reasons.

     Personal leave may be full-time or part-time. Normally such leaves will be unpaid and will not affect one’s eligibility for tenure. For purposes of the personal leave policy, the term "faculty" includes not only tenured and tenure-track faculty but also instructional personnel under multi-year or renewable contracts, other than adjunct faculty.

     e. Family and Medical Leave. Faculty members should be aware that the University offers family and medical leave in accordance with the Family and Medical Leave Act of 1993 (FMLA), representing the minimum leave to which each qualifying Faculty member is entitled. The University has chosen to provide personal leave more generous than the requirements of the FMLA when approved by the Advisory Committee (see above, 5b). Nevertheless, consistent with federal law, this handbook summarizes the basic provisions of the University FMLA leave policy.

     Eligible employees are allowed up to twelve weeks of unpaid leave in a twelve-month "leave year" period for the following circumstances:

• The birth and care of an employee’s child (entitlement expires twelve months after birth);
• The placement of a child for adoption or foster care with an employee (entitlement expires twelve months after placement);
• When an employee is needed to care for a child, spouse or parent who has a serious health condition; or
• When an employee is unable to perform the essential functions of his or her position because of the employee’s own serious health condition.

     To be eligible for leave under this policy, an employee must have been employed by the University for at least twelve months and must have worked at least 1250 hours during the twelve-month period preceding the beginning of the leave. In calculating the date that a "leave year" begins, the University uses a rolling twelve-month period measured back from the date a requested leave is to begin.

     Family and medical leave is normally unpaid, although employees may substitute available paid vacation or sick leave or may apply for long-term disability benefits. If a work-related injury or occupational disease qualifies as a serious health condition under the FMLA, all absences arising out of that serious health condition will be counted against one’s twelve-week FMLA entitlement.

     When the need for leave is foreseeable, employees are to provide thirty days prior notice and make an effort to schedule the leave so that it does not unduly disrupt University operations. When the need for leave is not foreseeable, employees are to notify their supervisors as soon as possible. Leave may be taken on an intermittent or reduced-leave schedule if medically necessary or, where leave is for the birth, care or placement of a child for foster care or adoption, with the permission of the University.

     Medical certification may be required for leaves of absence due to serious health conditions. Failure to provide satisfactory medical certification may result in denial or delay of leave until appropriate medical certification is provided. Also, if an employee is returning from a medical leave for one’s own serious health condition, the employee may be required to provide satisfactory certification from his or her health care provider that the employee is capable of returning to work.

     During an approved family/medical leave, the University will maintain an employee’s health and other insurance benefits as if the employee continued to be actively employed. If one has substituted available paid leave for unpaid family and medical leave, the employee’s share of health insurance premiums will be handled by payroll deduction. If an employee is taking unpaid leave, the Personnel Department will notify the employee of the amount and date that the employee’s portion of premium payments are due while on leave. Continuation of other benefits during leave and payment of premiums for other benefits will be treated as with other unpaid leaves.

     Upon return from FMLA leave, an employee will be reinstated to the same or an equivalent position as before the leave. However, employees have no greater right to reinstatement or to other benefits of continued employment than if they had been continuously employed during FMLA leave.

     Further information regarding the University’s FMLA policy, and procedures to be followed when requesting family and medical leave, is available from the Personnel Department.

     f. Bereavement Leave. Paid leave at the time of a death of a member of the immediate family is arranged with the department head. Requests for paid leave at the time of a death of a person outside the immediate family are considered on an individual basis.

     g. Military Leave. The University continues the salary of people fulfilling their annual several week military training/reserve obligation. There is no deduction for stipends received from the military.

     h. Jury Duty. The University recognizes your civic responsibility to serve on juries and continues your compensation while you are performing this civic duty. There is no deduction for compensation received from the State.

     i. Benefits Continuation. During the types of leave described above, the University will continue to pay its share of the premiums for health, life, and disability insurance coverage if the employee elects to continue such coverage, and the employee would continue to pay his or her share of the premiums. During paid leaves the University will also continue TIAA/CREF retirement annuity and FICA contributions.

     6. Long-Term Disability.
     Should a lasting disability occur, the University’s Long-Term Disability plan provides income for as long as the disability continues or until eligibility for retirement benefits begins. The plan assures a monthly income benefit equal to 60% of pre-disability pay by supplementing disability income, if any, from Social Security and workers’ compensation. Payments begin after 180 days of disability and continue to age 65 or even later if the disability occurs after age 60.

     Faculty members are enrolled in this plan after one year of qualifying employment. The University pays the entire cost.

     If the Faculty member belongs to the TIAA/CREF retirement annuity program prior to onset of disability, the plan will, from the date disability benefits begin, contribute 15% of previous salary to the individual’s retirement annuity plan until income payments end.

     The monthly income benefit payable under this plan has an automatic 3% annual cost of living increment. Social Security has traditionally also increased its disability payments annually, but future increases in Social Security payments do not reduce the benefits payable under this plan.

     Other benefits may also remain in effect.

     a. A Faculty member may continue on the group COBRA medical insurance plan for up to twenty-nine months from the date disability benefits begin. The University will continue to pay its portion of the premium.

     b. If disability occurs before age 60, the Faculty member may apply for a disability waiver of premium which, if approved by the insurance company, continues life insurance coverage at no cost.

     7. Additional Benefits.
     a. Educational Grants. For employees of record as of June 30, 2006, the University will pay the lesser of 90% of the tuition of the institution that the dependent child is attending or 90% of Washington and Lee University’s undergraduate tuition. The benefit may be reduced by scholarship and grant assistance that the child receives outside of Washington and Lee University. There are instances where an outside scholarship would fund room, board, and fees where the University would not reduce its tuition grant benefit. In no case will the other assistance and Washington and Lee University’s grant exceed the value of tuition, room and board of the dependent’s institution. The recipient is eligible for up to 4 years, or the equivalent, of undergraduate study at an accredited institution of higher education. The recipient must be under the age of 25 in order to receive this grant. In order for a dependent to be eligible for this grant, the employee must have at least five consecutive years of full-time employment at the time the benefit is to be received.

     For employees of record beginning July 1, 2006, or later, the University will pay the lesser of 50% of the tuition of the institution that the dependent child is attending or 50% of Washington and Lee University’s undergraduate tuition. All other terms and conditions, as described above, continue to apply.

     All requests must be submitted to the Treasurer’s Office utilizing the Educational Grant Request Form. This form will identify all documents that must be submitted along with certification by the employee of all scholarship and grant assistance. When all materials are received and reviewed, the employee will be notified of the amount of the qualifying benefit. In order to allow sufficient time for processing, all information should be submitted at least two weeks prior to the due date of the billing.

     b. Housing Loans. Upon the recommendation of the appropriate Dean or Senior Administrator, the Treasurer, and the President, full time faculty members and administrative, professional and supervisory personnel who are defined as exempt personnel under the terms of the Fair Labor Standards Act of 1938, as amended, are eligible for University housing loans. These housing loans may be used to purchase, build, or improve a principal residence in the Lexington-Rockbridge County area immediately upon entering the employ of the University. (The President may, upon receiving an appeal through the Treasurer, approve as an exception a loan for a residence outside the Lexington-Rockbridge County area when, in his/her opinion, there are compelling personal circumstances.)

     Application for housing loans should be made with a letter to the Treasurer stating the amount requested, the purpose of the loan (build, buy, improve), and the location of the premises. If the loan is to build a house, attach plans, specifications, and the contractor’s bid estimate. If the loan is to buy an existing house, attach a copy of an executed purchase agreement. If the loan is to improve a house, describe the major elements of the project and attach the contractor’s bid or estimate.

     The University provides two types of loans: (a) loans to build or acquire a principal residence, and (b) loans to improve a principal residence. They differ as to terms and amounts. Complete details regarding loan terms, amounts, interest rates, and other conditions are available from the office of the Treasurer.

     c. Tuition Remission. With the approval of the faculty member and your department head, you may audit courses at Washington and Lee University. There is no charge for this privilege. Full-time faculty who are enrolled as students at the University and are taking courses for credit pay only 25% of the cost.

     8. Benefits for Part-Time Employees.
     Members of the Faculty with the rank of Instructor, Assistant Professor, Associate Professor, or Professor who teach half time or more, but less than full time, are eligible for the following fringe benefits.

• Life Insurance – You are eligible for $10,000 of life insurance coverage at the time you begin qualifying employment. The University pays 50% of the premium.
• Long-Term Disability Insurance – You are enrolled in the University’s Long-Term Disability insurance plan after one year of qualifying employment. The University pays the entire premium for this coverage.
• Retirement – You are eligible for the TIAA/CREF Retirement Annuity Program after two years of qualifying employment. The contribution structure is described in the "Retirement" section of this handbook.