Faculty Council on Retirement, Insurance, and Benefits Dependent Tuition Benefit Proposal October 2004

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1 Faculty Council on Retirement, Insurance, and Benefits Dependent Tuition Benefit Proposal October 2004 Background: UW Faculty and staff currently have a UW Tuition Exemption Program benefit: The University of Washington Tuition Exemption Program, established under the authority of RCW 28B , enables University of Washington employees, state of Washington employees and members of the Washington State National Guard who have been admitted to the University of Washington, to have tuition waived for up to six credits when enrollment is on a "space-available" basis. The Tuition Exemption Program is available at the University of Washington Seattle, Bothell and Tacoma campuses. Reference: Current eligibility for the program is as follows: Professional staff, faculty, librarians, and permanent classified staff who meet all of the following criteria are eligible to participate in the Tuition Exemption Program: Employed half-time or more; Employed on the first day of the quarter; Paid monthly (except for employees in the Print Plant Craft Bargaining Unit) and not hourly; and For classified staff new to the University, have completed the probation period prior to the first day of the quarter. Proposed Tuition Waiver Benefit A. Tuition Waiver Benefit developed within the Faculty Council on Retirement, Insurance and Benefits (FCRIB) would build on the current program and provide an expanded benefit: UW Staff, Faculty and Librarians get the current 6-credit tuition benefit at space available status; and Dependent student/spouse/same-sex domestic partner receives a quarterly tuition waiver equivalent of up to 50% of the full-time, standard, resident, undergraduate tuition at the UW (benefit is linked to undergraduate standard tuition rate, regardless of the program in which dependent is enrolled). The proposed new benefit would be a recruiting and retention tool that could be very attractive to a wide range of both faculty and staff because of its flexibility for use with dependents. It serves as a recruitment benefit by offering prospective faculty, librarians and staff the security of knowing that their service at UW will be rewarded by offering support for their family s education. It serves as a retention benefit because the proposal recommends that the dependent benefit be made available for most employees after 1, 3, or 5 years of employment. This rewards commitment and longevity in one s position. Parameters of the Benefit Student Status 50% waiver benefit recipients would have full student status (not space available) and must qualify for admission through standard guidelines (no special admission status for these students). o Enrollments would count against UW enrollment cap.

2 Parameters of the Benefit (cont d) Dependent Status Definitions match current PEBB medical/dental dependent eligibility: o Spouse or same-sex domestic partner o Dependent children through age 23 Employment service requirement Proposed eligibility requirement is for 1, 3 or 5 years Faculty offered tenure at employment, and newly hired senior administrators (grade 10 or above?) receive benefit immediately on employment. Restrictions: Benefit may only be used by one eligible dependent at a time. Benefit cannot be additive between two married/same-sex partner employees, but each could support a different eligible dependent. Benefit would be taxable. Peer Institutions Funding HECB list: 58% offer some tuition benefit ranging from 50% 100% of tuition costs o Includes Ohio State, Michigan State, University of Pittsburgh. OFM Peer list: 50% offer tuition benefit ranging from 50% 75% o Includes University of Oregon, University of Arizona, University of Illinois See attachments for detailed peer summary documents 1 year total cost estimate $ million 3 year total cost estimate $ million 5 year total cost estimate $ million See attachments for detailed estimates. Decision Point Should this proposal include a 12 quarter limit per dependent?

3 vember 15, 2003 SEC Agenda 3 Based on Current Enrollment of Eligible Family Members of Employees of >= 1 Year Eligible Family Members Currently Enrolled Year Quarter FT PT credits 2003 SUMMER AUTUMN WINTER SPRING Cost at Rates Year Quarter FT PT Total FT PT Total FT PT Total 2004 SUMMER $80,295 $102,911 $183,206 $45,315 $66,339 $111,654 $34,980 $36,572 $71, AUTUMN $448,380 $77,598 $525,978 $315,615 $26,717 $342,332 $132,765 $50,882 $183, WINTER $418,170 $84,075 $502,245 $290,970 $35,156 $326,126 $127,200 $48,919 $176, SPRING $397,500 $78,606 $476,106 $277,455 $35,482 $312,937 $120,045 $43,124 $163, AY $1,344,345 $343,190 $1,687,535 $929,355 $163,693 $1,093,048 $414,990 $179,497 $594,487 Suppose 25% increase: $1,680,431 $428,988 $2,109,419 $1,161,694 $204,617 $1,366,311 $518,738 $224,371 $743,108 Suppose 50% increase: $2,016,518 $514,785 $2,531,303 $1,394,033 $245,540 $1,639,573 $622,485 $269,245 $891,730 1/2 of quarter tuition for full-time student: $795 1/2 of cost per credit for part-time student: $88 ($81 for summer)

4 vember 15, 2003 SEC Agenda 4 Based on Current Enrollment of Eligible Family Members of Employees of >= 3 Year Eligible Family Members Currently Enrolled Year Quarter FT PT credits 2003 SUMMER AUTUMN WINTER SPRING Cost at Rates Year Quarter FT PT Total FT PT Total FT PT Total 2004 SUMMER $70,755 $91,433 $162,188 $43,725 $62,208 $105,933 $27,030 $29,225 $56, AUTUMN $379,215 $72,046 $451,261 $293,355 $25,907 $319,262 $85,860 $46,138 $131, WINTER $352,980 $76,310 $429,290 $270,300 $34,408 $304,708 $82,680 $41,902 $124, SPRING $334,695 $69,120 $403,815 $258,375 $32,525 $290,900 $76,320 $36,596 $112, AY $1,137,645 $308,909 $1,446,554 $865,755 $155,048 $1,020,803 $271,890 $153,861 $425,751 Suppose 25% increase: $1,422,056 $386,136 $1,808,192 $1,082,194 $193,810 $1,276,004 $339,863 $192,326 $532,189 Suppose 50% increase: $1,706,468 $463,363 $2,169,831 $1,298,633 $232,572 $1,531,205 $407,835 $230,791 $638,626 1/2 of quarter tuition for full-time student: $795 1/2 of cost per credit for part-time student: $88 ($81 for summer)

5 vember 15, 2003 SEC Agenda 5 Based on Current Enrollment of Eligible Family Members of Employees of >= 5 Year Eligible Family Members Currently Enrolled Year Quarter FT PT credits 2003 SUMMER AUTUMN WINTER SPRING Total Cost at Rates Spouse/Partner Year Quarter FT PT Total FT PT Total FT PT Total 2004 SUMMER $59,625 $82,889 $142,514 $42,930 $59,989 $102,919 $16,695 $22,900 $39, AUTUMN $312,435 $59,660 $372,095 $259,170 $22,176 $281,346 $53,265 $37,484 $90, WINTER $292,560 $61,420 $353,980 $236,115 $32,471 $268,586 $56,445 $28,949 $85, SPRING $275,865 $57,627 $333,492 $224,985 $29,910 $254,895 $50,880 $27,717 $78, AY $940,485 $261,596 $1,202,081 $763,200 $144,546 $907,746 $177,285 $117,050 $294,335 Suppose 25% increase: $1,175,606 $326,995 $1,502,601 $954,000 $180,682 $1,134,682 $221,606 $146,313 $367,919 Suppose 50% increase: $1,410,728 $392,394 $1,803,121 $1,144,800 $216,818 $1,361,618 $265,928 $175,576 $441,503 1/2 of quarter tuition for full-time student: $795 1/2 of cost per credit for part-time student: $88 ($81 for summer) Child

6 vember 15, 2003 SEC Agenda 6 HECB Peers, Summary of Tuition Waivers for Spouses, Partners, and Dependent Children Institution % Waiver Cap Cornell University, Statutory Colleges Michigan State University Ohio State University Texas A&M, College Station 50% of tuition and admin. fees 50% of resident undergrad course fees 50% of undergraduate fees (instructional and general fees only), but can be used for courses at any level waiver; do have need- and merit-based scholarships University of Arizona 75% of resident tuition ne University of California, Davis University of California, Irvine University of California, Los Angeles University of California, San Diego To baccalaureate degree or 10 terms, whichever comes first For first bachelor's degree, through semester in which 120th credit is attempted Use for a total of 12 quarters of 200 credit hours per dependent, whichever is greater Length of Continuous Employment Required for Eligibility 4 Years 5 Years 3 Years; tenured or senior staff, immediate Retirement, Death, Disability Continues if employee eligible at time of event. Continues if employee eligible at time of event. Spouse - 1 year; Dependents - Retired - continues if 5 or 3 years more years. Eligible immediately if employment is expected to continue for 6 months or more. Continues if at least 5 years service before event Only applies if employee is University of Cincinnati represented by AAUP. Full ne specified; only for Continues if employee eligible ne specified tuition remission less "general AAUP employees at time of event. fee" ($225/quarter) waiver; do have 50 University of Florida scholarships, randomly selected. University of Hawaii Spouses/domestic partners of faculty only University of Illinois, Chicago Children only - 50% of tuition 7 years University of Iowa waiver University of Kentucky waiver; under consideration University of Michigan, Ann Arbor waiver University of Minnesota, Twin Cities waiver; recommended by Faculty Senate. University of Missouri, Columbia 50% of educational fees for undergraduate resident; can be used for courses at any level. Up to 140 credits/person 5 yrs University of New Mexico UC System was ready to institute policy but did not as a result of budget issues Full waiver, for undergrad coursework only. Up to 8 consecutive semesters, no more than two dependents at any one time. Transferable? Yes, with various limitations University of rth Carolina, Chapel Hill University of Pittsburgh University of Virginia University of Wisconsin, Madison University of Utah waiver. Full scholarships, competitive (about 20/year) Full waiver for dependent children, 6 credits/term for spouse. waiver waiver 50% of resident or nonresident rate Up to 12 terms of full-or parttime study in an undergrad program leading to a first baccalaureate degree. Children - as soon as probationary period is over; spouses after one year. All benefits depend on 1 year for spouse, 3 years for availability of class enrollment dependent children space; no cap specified. Continues if employee eligible at time of event if person enrolled at time of leaving event Continues if at least 5 years service before event For children of employees hired prior to Sept 1, 1989.

7 vember 15, 2003 SEC Agenda 7 OFM Peers, Summary of Tuition Waiver Benefit for Spouses, Partners, and Dependent Children Institution % Waiver Cap University of Arizona 75% of resident tuition ne University of California, Berkeley University of California, Los Angeles University of Illinois, Urbana/Champaign University of Iowa University of Michigan, Ann Arbor University of rth Carolina, Chapel Hill University of Oregon with Oregon Health Sciences Center UC system was ready to institute policy but did not as a result of budget issues Children only - 50% of tuition waiver waiver waiver. Full scholarships, competitive (about 20/year) Employee can transfer own waiver to family member - reduced rate for up to 12 units (appears to be about a 75% waiver) Limit of 12 units per term; only one family member per employee per term can benefit. Length of Continuous Employment Required for Eligibility Eligible immediately if employment is expected to continue for 6 months or more. 7 years ne specified. Retirement, Death, Disability Continues if at least 5 years service before event Continues if employee eligible at time of event. Transferable? To other Oregon University System schools.

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