Policies, Union Contracts, Handbooks > Support Staff Policies and Procedures

Educational Assistance Program

Policy

Applies to:

Regular, full-time (90 - 100%) University support staff and flexible appointees

Regular, part-time (50 - 89.9%) University support staff are entitled to benefits on a proportional basis of employment status

Regular, non-union, off-campus or MSU Extension support staff employees are entitled to the same benefits and provisions of the program as their on-campus bargaining unit counterparts

The University provides financial assistance to help employees achieve educational and career development goals.

1. Maximum courses/benefits:
   

2. Credit: 14 semester credits or 20 term credits per academic year (VARIES: FOP, AP confidential may take 16 semester credits per academic year).

   • Non-credit: Job-related courses from an approved institution/program, with reimbursement not to exceed $800 per academic year.
   • Rates: Reimbursement/waiver rates are established by the MSU Board of Trustees. Credit courses are paid at the rate corresponding to the employee's student academic level for both on-campus and Lifelong Education courses. When charged, the MSU matriculation fee is also considered eligible for waiver/reimbursement. The maximum varies, depending on employee group, and is established based on the number of credits an employee may take in an academic year. Non-credit course reimbursement is also subject to an $800 maximum per academic year.
   • Coordination of benefits: Credit and non-credit waiver/reimbursement benefits are coordinated and may not exceed a specified dollar amount. The maximum is equal to 14 credits at the prevailing MSU resident Lifelong Education rate. Tuition costs in excess of this amount are the employee's responsibility (VARIES: FOP and AP confidential dollar maximum is calculated on 16 credits).
3. Eligible types of courses:
   • job-related pertaining to employee's current work or in preparation for a higher level MSU position,
   • degree-related, or
   • career/professional development-related, reasonably pertaining to an employee's stated goals at MSU.
4. Which institutions are covered: Credit courses may be taken from any accredited educational institution such as MSU or Lansing Community College. In addition, the Educational Assistance Program recognizes institutions approved under such government training programs as the G.I. Bill of Rights. Non-credit courses may be taken from any employer-approved institution/program. For definitions of approved non-credit programs, see #12  - Definitions.
5. Employer approval: All employees are required to obtain employer approval prior to the start of any credit or non-credit course taken through the Educational Assistance Program. Employer approval is contingent upon authorization of the course by the employee's supervisor and/or department/unit administrator and final approval by MSU Human Resource Development (MSU HRD). Audited or visited courses are not eligible (VARIES: For 547, employer approval is contingent upon authorization by the Director of Power and Water and final approval by MSU HRD).
6. Tuition waiver: All MSU credit courses approved for Educational Assistance benefits and billed through the Registrars Office (including Lifelong Education courses) will be processed as tuition waiver. This benefit allows the employee to waive payment of tuition and matriculation fees at the time of registration.
7. Tuition waiver is available for all eligible employee groups, except 547.
8. If an employee drops a class, the waiver account is credited and the student is billed for any balance due.
9. If an employee does not successfully complete a course (a grade of 2.0 or better) for which waiver funds have been expended, the amount of tuition waiver will be deducted from the employee's paycheck(s).
10. Tuition reimbursement:
    • Non-MSU credit courses: Upon completion of a non-MSU credit course, the employee must forward proof of successful course completion (a copy of their grade of 2.0 or better) and proof of course cost (a receipt) to MSU Human Resource Development. Reimbursement for successfully completed courses will be sent to the department address.
    • Non-credit courses: Upon completion of a non-credit course, the employee must send proof of successful course completion (a copy of course certificate signed by the instructor, or the Non-Credit Course Certification of Successful Completion form available through HRD), and proof of course cost (an itemized receipt) to MSU Human Resource Development. Reimbursement for successfully completed courses will be sent to the department address.
    • Release time: Eligible employees may request release time up to five hours per week for credit courses. Eligible employees may also request release time to attend approved non-credit courses. All release time is subject to departmental approval.
11. Taxation: Internal Revenue Code (IRC) Section 127 provides an exemption of up to $5,250 in a tax (calendar) year for graduate-level, degree-related courses reimbursed/waived through employer educational assistance programs. The benefit includes tuition and matriculation fees, if such fees are also provided. Any amount of the benefit in excess of the $5,250 exclusion for degree-related graduate-level courses is considered taxable income. Waived fees for MSU courses are considered received at the time classes begin at MSU.  Reimbursed fees for courses taken at other institutions are considered received at the time the reimbursement check is issued.  Once the receipt of benefits over the $5,250 exclusion is determined, appropriate tax withholdings will be made and the amount added to the employee's gross wages.  
12. Definitions (for non-credit courses):

• Approved institutions/programs - Former MSU Lifelong Education Programs (Continuing Education, Evening College), MSU Libraries, Computing and Technology Training Programs, Davenport University, Lansing Community College, and High School Adult Education Programs.
• Other employer approved programs - MSU Human Resource Development maintains, and makes available, a list of institutions/programs from which employees may take non-credit courses through this program.

1. be admitted to an approved institution(s) where the course(s) are offered, and
2. meet the minimum requirement of 12 full-time equivalent (FTE) service months (VARIES: 547 employees are eligible the first day of full-time continuous employment).

Effective date: Educational Assistance benefits become available the day an employee accumulates 12 FTE service months.
 

Procedure

Initiating application for educational assistance: 

Employee: Obtains Employee Educational Assistance Application.

Applying for waiver of MSU credit courses:

Employee:

1. Completes application and obtains course authorization from supervisor and/or department/unit administrator.
2. Submits waiver application to MSU Human Resource Development (signed by the department) for approval. For waiver credit to appear on the registration bill, the application must be submitted to MSU HRD 30 days prior to the billing deadline set by the Fees and Scholarships Office (as published in Source). Applications will continue to be accepted up to 15 days before regular MSU classes begin and approved waivers processed as time permits. Applications received after regular MSU classes begin are not eligible and will not be processed.

MSU Human Resource Development:

1. Applications are reviewed for final course employer approval.
2. The employee is notified within 15 days (after receipt of the application in MSU HRD) if the request has been approved or denied.
3. All applications are retained in MSU HRD.

Verifying successful completion of MSU credit courses:

MSU Human Resource Development: At the end of each semester, MSU HRD will verify successful completion of approved MSU course work (a grade of 2.0 or better) through the Registrars Office, and complete the processing of the waiver for approved courses.

Employee: If applicable, taxes on excess of the maximum exclusion of $5,250 in a tax (calendar) year provided for graduate-level, degree-related courses will be withheld from the employee's paycheck(s).  

Applying for reimbursement of non-credit and non-MSU credit courses:

Employee:

1. Completes application and obtains course authorization from supervisor and/or department/unit administrator.
2. Submits the application to MSU HRD (signed by the department) for approval 30 days prior to the first day of class.

MSU Human Resource Development:

1. Applications are reviewed for final course employer approval.
2. The employee is notified within 15 days (after receipt of application in MSU HRD) if the request has been approved or denied.
3. All applications are retained in MSU HRD.

Verifying successful course completion of non-credit and non-MSU credit courses:

Employee: Within 15 days of course completion or receipt of grades, the employee submits proof of successful course completion for credit courses (a grade of 2.0 or better) or non-credit courses (a copy of course certificate or Non-Credit Course Certification of Successful Completion form #140-2567) and course cost (an itemized invoice) to MSU HRD.

MSU Human Resource Development: Processes reimbursement for approved courses.

1. Reimbursement for degree-related, graduate-level credit courses is processed through the Payroll Office and included in the employee's paycheck. Applicable taxes are deducted at that time.
2. Reimbursement of non-degree-related graduate courses, undergraduate or non-credit courses will be sent to the department address.

Finalizing incomplete and deferred courses:

MSU Human Resources:

1. Maintains a file of Incomplete and non-dissertation Deferred courses.
2. The employee is responsible for presenting verification of successful course completion of Incomplete courses within 90 days of the Incomplete.
3. If the Incomplete is not satisfied, the cost of the waived course is deducted through the Payroll Office.
4. Verification of Deferred courses must be submitted to MSU HRD by the employee within two years of the applicable semester, or the cost waived is deducted through the Payroll Office (VARIES: Deferred dissertation credits [899 or 999] are considered successfully completed).