1. General
   1. Internal Revenue Service Requirements
      1. It is intended that all provisions of this guideline be consistent with provisions of the Internal Revenue Code, regulations, and other authoritative issuances of the Internal Revenue Service with respect to plans permitted by Internal Revenue Code Sections 403(b), 401(k)-Traditional and Roth, and 457 as amended from time to time.
         1. Any provision of this Plan is invalid to the extent such provision is not consistent with Internal Revenue Service provisions.
      2. Unless otherwise provided in this guideline, it is intended that Internal Revenue Service provisions be controlling on such matters as limitations on contributions, withdrawal of contributions, payment of benefits, rollovers, and similar matters.
      3. Notwithstanding A.1 and A.2, the Chancellor shall be empowered to establish reasonable requirements for the administration of the guideline, so long as such requirements do not conflict with any Internal Revenue Service provisions.
      4. It is the intention of the Tennessee Board of Regents that an "excess contribution" as defined by the Internal Revenue Service provisions be returned to the participant as soon as administratively possible.
         1. Returned excess contributions would be reported as taxable income.
   2. Third Party Administrators
      1. The Tennessee Board of Regents, State of Tennessee, and/or University of Tennessee may enter into an agreement with an approved company, financial institution, or other party which offers a program qualifying as a Section 403(b), 401(k), 457, and/or Roth 401(k) plan, hereinafter referred to as Third Party Administrators (TPA’s).
      2. All participant contributions shall be paid to the approved TPA or TPA’s as selected by the employee.
      3. The Institution/System Office will not recommend or endorse a TPA or TPA’s program and will make no guarantee or assurances regarding the vendor.
   3. Investment Options
      1. Investment Options providing participants a range of diversified funding options will be maintained by the TPA or TPA’s.
      2. All responsibility for investment performance shall be between the employee and TPA.
   4. Plan Period
      1. Where a "plan year" or other official period is needed, the plan year for the institution shall be the calendar year.
   5. Participation Agreements
      1. Each employee desiring to participate in a deferred compensation plan shall complete the appropriate Participation Agreement and applicable enrollment process.
      2. All 401(k), 457 and Roth 401(k) deferral increases, decreases, or cancelations shall be performed by the participant directly with the TPA’s website or customer service call center.
      3. All 403(b) deferral increases, decreases, or cancelations shall be submitted on the appropriate form to the Human Resources Office.
      4. All forms containing changes (e.g., address, beneficiary, etc.) should be transmitted to the TPA directly.
   6. Minimum and Maximum Deferral Calculations
      1. Minimum deferral amounts:
         1. 403(b) Plan - $200.00 per year
         2. 401(k) Plan - $20.00 per month
         3. 457 Plan - $20.00 per month
      2. Maximum deferrals for 403(b), 401(k), and 457 plans are subject to applicable Internal Revenue Service (IRS) Limits.
   7. Limitations and Contributions
      1. Participants who also participate in other qualified plans sponsored by an employer in which the participant has a controlling ownership interest (this includes employee and employer contributions to 401(k), 401(a), 403(b), simplified employee pension (SEPs), and Keogh plans) are required to report to the institution contribution information.
         1. The contribution amounts to other plans must be combined with the Tennessee Board of Regents Retirement Plan contributions to determine whether the 415(c) limit has been reached. This is in accordance with Internal Revenue Service regulations.
      2. All 403(b), 401(k), and 457 contributions must be coordinated so that excess contributions are not made.
      3. Contributions (deferrals) for employees who also participate in the Optional Retirement Plan (ORP) are subject to additional limitations/restrictions.
      4. Deferrals for 403(b), 401(k) and 457 plans may be deducted from regular or longevity pay (see Section H for information regarding longevity deferrals). "Advance" deferrals are not permitted (e.g., deferrals cannot be made before the money is earned).
      5. An institution may decline to enter into any agreement that could, in the institution's opinion, cause the employee to exceed permissible contribution levels.
   8. Longevity Deferrals
      1. Participants may elect to defer regular pay and/or a portion of their longevity bonus paycheck.
         1. A deferral from the longevity paycheck may be directed to the 403(b), 401(k), and 457 plan; however, it may not be divided among the plans.
         2. Due to the required deduction of the applicable Social Security taxes, the full longevity amount may not be deferred.
         3. A participant who elects to defer any portion of the longevity paycheck will be required to complete a Participation Agreement specifically for longevity each year.
   9. Changing Deferrals
      1. Changes in the amount of regular paycheck deferrals may be made by submitting a new Participation Agreement within the timeframe established by the TPA and Institution/System Office.
   10. Changing Investment Options
       1. Changing the Investment of Future Deferrals
          1. Participants may change the investment options of future deferrals at any time by calling the TPA’s customer service department or completing the transaction on the TPA’s website.
          2. The investment of money on deposit (already in account) is not affected by initiating a future change.
          3. Employees will need to complete a separate transaction for the 403(b), 401(k), and 457 if they participate in more than one plan.
       2. Transferring Money on Deposit
          1. Participants may change the investment options of money on deposit (already in account) at any time by calling the TPA’s customer service department or completing the transaction on the TPA’s website Transfers are processed by the investment companies.
          2. The investment of future deferrals is not affected by transferring money already on deposit.
          3. Employees will need to complete a separate transaction for the 403(b), 401(k), and 457 if they participate in more than one plan.
       3. All responsibility for investment performance shall be between the employee and the vendor.
   11. Effect of a Leave of Absence on Deferrals
       1. The deferred compensation program requires payroll deductions (reductions); therefore, participants may not pay contributions directly to the TPA or Institution/System Office in order to receive matching funds that may be available.
       2. When a participant returns from an unpaid leave of absence, deferrals can restart with the paycheck following his/her return to work.
       3. The deferred compensation program does not contain a catch-up provision for employees who have been returned to a paid status retroactively.
          1. Therefore, double deductions are not permitted. Example: An employee on unpaid leave returns to work, but notification is not provided to Human Resources and/or Payroll for the affected pay period. When the next paycheck is processed, it will reflect a deferral and match (if funded) for only the current pay period.
   12. Termination/Cancelation of Deferrals
       1. An employee wishing to terminate his/her participation in a 401(k), 457 and Roth 401(k) shall complete the cancelation directly with the TPA’s customer service call center or website.
       2. All 403(b) cancelations shall be submitted on the appropriate form to the Human Resources Office.
       3. Following cancelation of participation in deferred compensation plan, administrative fees will continue to be charged for each month in which the principle is sufficient to cover the fee. Insufficient principal will result in final termination of participation in the plan.
       4. Previous deferrals may not be withdrawn unless the employee meets one of the conditions for withdrawal (see Sections II. D. and III. D.).
   13. Institutional Endorsement
       1. The administration of an Institution/System Office will not endorse or recommend in a positive or negative manner any TPA or TPA program.
       2. The Institution/System Office may make available information which could be useful in a selection decision by an employee.
       3. This provision does not prohibit recommendation or evaluation by groups of employees or representatives of groups of employees.
   14. Retirement Age
       1. For purposes of this guideline, "normal retirement" will be the age used by the Tennessee Consolidated Retirement System (TCRS).
       2. Once an employee reaches or passes the normal retirement age, for purposes of calculating limitations on contributions for purposes of this Plan, such computation should be made assuming retirement at the end of the year for which the calculation is being made.
2. Section 403(b)
   1. Institutions governed by the Tennessee Board of Regents and employees thereof may enter into agreements to participate in tax-deferred annuity plans or programs consistent with Section 403(b) of the Internal Revenue Code and related provisions of the Internal Revenue Code, regulations, rulings, etc., and subject to the provisions of this guideline and the Tennessee Board of Regents 403(b) Retirement Plan Document.
   2. 403(b) Eligibility
      1. All employees within the Tennessee Board of Regents system are eligible to participate in Section 403(b) programs.
   3. Employer
      1. For the purposes of a Section 403(b) program, the employer shall be the Tennessee Board of Regents.
   4. Withdrawals & Loans
      1. Early in service withdrawals and loans shall not be permitted consistent with the Tennessee Board of Regents 403(b) Retirement Plan Document and Internal Revenue Service provisions.
3. Sections 401(k), 457, and Roth 401(k)
   1. Institutions governed by the Tennessee Board of Regents and employees of such institutions may enter into agreements to participate in tax-deferred annuity plans or programs consistent with Section 401(k) and 457 of the Internal Revenue Code, regulations, and other authoritative issuances of the Internal Revenue Service, the Tax Reform Act of 1986, and the Employee Retirement Income Security Act of 1974 (ERISA) with respect to plans permitted by Internal Revenue Code Section 401(k) and 457 as amended from time to time.
   2. 401(k), 457, and Roth 401(k) Eligibility
      1. All employees within the Tennessee Board of Regents system are eligible to participate in the State's 401(k), 457, and Roth 401(k) deferred compensation programs.
      2. Contingent upon eligibility and appropriate funding each fiscal year, only regular full-time and regular part-time employees may be eligible to receive matching funds in addition to the employee’s 401(k) contributions. The match for eligible Roth 401(k) participants will be directed to the 401(k) account.
   3. Employer
      1. For purposes of the 401(k), 457, and Roth 401(k), the employer shall be the Tennessee Board of Regents and/or any of its institutions, the State of Tennessee, and the University of Tennessee System.
      2. The Chancellor of the Tennessee Board of Regents is empowered to set appropriate administrative guidelines and procedures necessary to coordinate administration with the State of Tennessee.
   4. Withdrawals
      1. To make a withdrawal, the participant should contact the TPA or access his/her online account to obtain instructions and the applicable withdrawal form.
      2. A request for withdrawal will be reviewed by the Human Resources Office.
      3. If the withdrawal is approved and it is for reasons other than retirement, termination of employment, death, or attainment of age 59 ½, the TPA will notify the Institution/System Office to stop deferrals.
      4. Withdrawals shall be permitted for the following reasons:
         1. Retirement
         2. Death
         3. Disability
         4. Age 59 ½ - not available for 457 deferrals
         5. Termination of employment
         6. Financial hardship (as defined by the plan)
      5. Financial Hardship:
         1. Consideration for a hardship withdrawal will be based on the following definitions:
            1. 401(k) Plan Hardship Definition - An immediate and heavy financial need caused by one or more of the following:
               1. Unreimbursed medical expenses incurred by the participant or a dependent of the participant,
               2. Purchase of the participant's primary residence,
               3. Payment of college tuition for the next year for the participant or a dependent of the participant,
               4. Funeral expenses for an immediate family member of the participant which exceed life insurance coverage, or
               5. Official notification of implementation of eviction or foreclosure proceedings regarding the participant's primary residence.
            2. 457 Plan Hardship Definition - A severe financial hardship resulting from:
               1. Sudden and unexpected illness or accident of the participant or a dependent;
               2. Loss of the participant's property due to uninsured casualty; or
               3. Other similar or extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the participant.
               4. Examples of non-qualifying circumstances shall include but not be limited to the following:
                  1. Purchase of a home or car;
                  2. Educational expenses;
                  3. Payment of child support or alimony;
                  4. Bankruptcy or wage garnishment;
                  5. Past due credit card bills; or
                  6. Payment of taxes or tax penalties.
      6. Withdrawals may not include employer contributions or earnings accrued on the account.
         1. Federal regulations require that all deferrals be canceled for the remainder of the current year and for one calendar year thereafter.
         2. An employee who qualifies for a loan in the 401(k) plan may be required to apply for such loan before applying for a hardship withdrawal from the plan.
      7. Hardship withdrawals are subject to regular income tax and may be subject to the 10% early distribution tax penalty. Such distributions are not eligible for forward income averaging tax treatment or rollover.
      8. Withdrawals Required Due to Age
         1. Per IRS regulations, employees must begin drawing benefits no later than April 1 of the year following the age of 70 ½ or retirement.
         2. If the employee does not meet the required distribution provisions, a penalty tax is imposed equal to 50% of the amount that the employee should have withdrawn that year.
      9. Withdrawals Following Termination of Employment
         1. Accounts smaller than $3,500 - A lump sum withdrawal or rollover to another tax deferred plan (if employee qualifies) is permitted for such smaller amounts.
         2. Accounts larger than $3,500 - Employee may leave account in the State's plan.
      10. Charges on Withdrawals
          1. Participants should contact the TPA to determine if there are any surrender charges on their current investment options.
      11. Taxes on Withdrawals
          1. Basic information
             1. Must be reported when payments or withdrawals are received as income in the year(s) received.
             2. Income from plan reported to both participant and IRS on appropriate tax form for each year payments are received.
          2. Withholding taxes
             1. Normally applied as payments are received. Amount of withdrawal and amount of taxes reported on W-2 statement for 457 plan and on a 1099-R form for 401(k) plan.
             2. Rate of taxation
                1. 457 plan - flat 28% rate
                2. 401(k) plan - 20% on lump sum distributions and any other type of distribution received from plan which would be eligible for rollover.
                3. Withdrawals not subject to flat withholding tax - calculated as if recipient were married with 3 dependents unless a withholding certificate has been filed for a different amount. W-4 form is used for 457 payments and W-4P form is used for 401(k) payments.
             3. Early distribution tax penalty
                1. A 10% tax penalty is assessed on 401(k) withdrawals made before age 59 ½ except when distributions meet IRS exceptions.
                2. It is the participant's responsibility to make the determination and payment of the early distribution tax penalty.
      12. 401(k) Loans
          1. Active employees who have accumulated $4,000 or more in the plan may borrow up to half of the account balance.
          2. Loans may not include employer contributions or matches.
          3. The minimum loan is $2,000; the maximum, $50,000.
          4. Employees are required to sign documents stipulating repayment via payroll deductions, normally in 5 or less years.
          5. Both the principal and interest go back into the employee's 401(k) account. Employees should contact the Company for information on loan limitations and fees or for a copy of the loan brochure.
      13. Applying for Benefits
          1. Benefits may be distributed in one of three ways:
             1. lump sum
             2. periodic payments, or
             3. in an annuity.
          2. Employees may not change the method of payment selected.
             1. Withdrawal application forms may be obtained from the TPA.
             2. Annuity payment estimates and materials describing payment options are available on request.
          3. Employees should obtain current information before selecting a payment schedule due to the fact that the provisions of this guideline may be revised by Congress.
          4. Payment Options
             1. Lump Sum Payment
                1. Used to withdraw entire account balance.
                2. May be only option available to participants with less than $3,500 in plan.
                3. May be most beneficial option for participants who have more than 5 years in the plan and qualify for forward income averaging.
             2. Periodic Payments
                1. May be withdrawn in equal annual or monthly payments for a specified number of years.
                2. Withdrawal period limited to life expectancy.
                3. May be directly deposited into checking or savings accounts.
             3. Annuity Payments
                1. Investments risks for future years assumed by insurance company.
                2. Payments made to participant or beneficiary regardless of investment returns.
                3. Types of annuity options:
                   1. Designated Period Annuity - Certain amount paid for specified period (e.g. 5, 10, 15 years).
                   2. Life Annuity - A certain amount paid to the participant for his/her lifetime. No payments made to beneficiary.
                   3. Life Annuity with Period Certain Feature - A certain amount paid to the participant's as long as he/she lives and also payments paid to a beneficiary for the "period certain" should participant's death occur prior to the end of the period.
                   4. Life Annuity with Joint & Survivor Feature - A certain amount paid to the participant for as long as he/she lives and continued payments to beneficiary after participant's death at 100% or 50% of original payment, depending on option elected.
      14. Five Year or Ten Year Forward Averaging
          1. Eligibility is contingent upon a participant receiving a qualifying lump sum distribution from a 401(k) plan after age 59 ½ and having 5 or more years in the plan. Participants born on or before 12/31/35 may be eligible for ten year averaging. Questions should be addressed to the TPA.
          2. Tax calculated as if money was received over 5 years and is calculated separately from tax on any other income.
      15. Rollovers from Other Plans
          1. Employees who previously participated in another government's Section 457 plan may apply to have the assets of the prior plan transferred to the State's 457 plan.
          2. Employees who participated in another 401(k) plan may apply to have their distribution from that plan transferred to the 401(k) plan; however, the employee must be enrolled in the State of Tennessee Plan prior to applying for the transfer.
      16. Plan to Plan Transfers and Rollovers to Other Plans
          1. Upon separation from employment, a participant may move deferred compensation into another plan under the following provisions:
             1. 457 Plan
                1. The other plan accepts such transfers.
             2. 401(k) Plan
                1. If a participant is eligible to withdraw accumulations, these may be moved to an IRA or a qualified retirement plan.
             3. A distribution is eligible for transfer unless it is:
                1. Part of a series of substantially equal periodic payments made for the participant's life or life expectancy of the participant and his/her beneficiary,
                2. Part of a series of substantially equal periodic payments made for a specified period of 10 or more years,
                3. A withdrawal a participant is required to take due to age.
          2. Money may be transferred directly to the new plan or the participant may receive a check from the 401(k) plan and make a rollover to the new plan.
          3. Participants must arrange direct transfers when an application is submitted for withdrawal from the plan.
          4. The plan must apply 20% withholding to any distribution which would have been eligible for direct transfer.
          5. Prior service in Tennessee Consolidated Retirement System (TCRS) may be purchased with a rollover from the 401(k) plan when the participant becomes eligible to make a withdrawal from the 401(k) plan. Excess amounts may be rolled into an IRA or reported as taxable income. TCRS should be contacted for additional information.
          6. Participants who move their 401(k) accounts into IRAs may want to set up special "conduit accounts" in the event they later become eligible to roll funds back into a qualified retirement account. (Withdrawals from IRAs are not eligible for income averaging.) Additional information on rollover and transfer rules may be obtained from the IRS.
      17. Non-Assignability of Benefits
          1. 457 Plan
             1. Deferrals are assets of the State of Tennessee until paid to the participant or beneficiary.
             2. Amounts cannot be assigned or attached to satisfy debts or obligations of an individual.
          2. 401(k) Plan
             1. Accumulations are part of a qualified pension plan.
             2. Assets are exempt from execution, attachment, garnishment, or other process, other than levies issued by the IRS.
             3. Benefits cannot be given to an ex-spouse as marital property or as alimony.

1. Compensation Philosophy
   1. The Tennessee Board of Regents desires to have a compensation system which is fair, equitable and accountable to the Board of Regents and the public-at-large.
      1. The Board of Regents will consider budget availability in all salary decisions.
      2. This guideline will cover compensation transactions at all TBR Institutions and the System Office.
      3. The same reportable guidelines apply to positions totally supported by restricted or auxiliary funds.
   2. Faculty
      1. Faculty salaries will be a primary objective and priority in developing and approving the overall system budget.
      2. It is the goal of the Board of Regents, within available funds, to provide competitive compensation for faculty, consistent with the market for their discipline and rank at officially recognized peer institutions and consistent with performance.
   3. Staff
      1. It is the goal of the Board of Regents, within available funds, to compensate staff within the approved compensation plan consistent with market and performance.​
2. ​​Definitions
   1. Definitions and Human Resource Information System (HRIS) codes for salary increase categories have been provided as follows:
      1. Additional Across the Board (ATB) Increase—AATB—Increases across the board recommended in addition to state mandated ATB.
      2. Additional Bonus –One time payments recommended as an addition to state mandated bonus. (Will be reported as a group total).
      3. Additional temporary duties - Increases associated with the assumption of additional duties on a temporary basis, e.g. stipend.
      4. Athletic Increase—AATH—Principles for Compensation Increases:
         1. TBR encourages all institutions to include athletic coaches and staff as part of the compensation plan for the institution.
         2. TBR encourages all institutions to award compensation increases for athletic coaches and staff at the same time as other faculty and staff in time for the Fall Quarterly Board meeting.
         3. TBR recognizes the competitive nature of athletics. Therefore, compensation increases for head coaches, other coaches, and their staff within the same discipline may be approved as exceptions.
            1. These compensation increases are considered exceptions to the previously approved compensation guideline. The Chancellor must review and approve the increases before implementation, if the position reports directly to the President.
            2. A request for approval to pay a supplement for a winning season does not require Chancellor approval.
            3. Contracts must be reviewed by the Office of General Counsel for legality and content. Any changes in salary must be processed according to the guidelines in P-043.
      5. Certified Administrative Professional (CAP) – CPSI- Increases of 9% given upon passing of all parts of the CAP examination according to state law.
      6. Counteroffers—COFF—An offer made to retain an employee who has been offered another job. Documentation of the offer must be secured (prior to the counteroffer).
      7. Critical and Special Adjustments—CSAJ—Increases may be granted in extraordinary circumstances to retain a uniquely qualified employee where the institution is in danger of losing the employee and failing to act at this time could result in harm to the institution.
         1. Evidence of another job offer is not required; however, the president must document the special circumstances which justify the recommended salary increase.
         2. Special adjustment increases for employees who assume significant new job responsibilities and whose position title remains the same may be granted. Adjustments of this type are infrequent and usually relate to significant reorganizations within the campuses. The president must document the special circumstances which justify the recommended salary increase.
      8. Degree Certification Change Increase –DGCH—Increases for educational achievement, such as completing the requirements for the Bachelors, Masters, and Doctorate programs, or certifications designated by the campus.
      9. Equity and Market Adjustments—EQIN— Individual increases intended to mitigate an internal institution inequity or a documented, proven, external inequity.
      10. Faculty Promotions—FPRM—Increases associated with faculty promotion recommendations.
      11. Merit Increases—MERT—Increases based on the employee's job performance. Requires written documentation and an adequate plan to objectively measure the employee's performance.
      12. Non-faculty promotions – PROM- Increases resulting from applying for and being selected to fill a vacant position - or increases which are provided when an employee is assigned to a position in a different class which has a higher pay grade than the employee's previous position, and the assignment is not a result of a reclassification of the employee's existing position. A promotional appointment must occur within the guidelines in TBR P-010.
      13. Percent of Employment – CFTE- Increases attributable to an increase in the percent of time worked (such as moving from 75% to 100% time).
      14. Reclassifications –RCLS—Increases given when an employee's duties and responsibilities change and may include an appropriate salary and/or title adjustment.
      15. Technical Adjustments – OOPS—Technical Adjustments and/or omissions. Any type of salary adjustment or omission to the previously approved salary for the employee.
3. ​Procedures
   1. All reportable salary increases are subject to approval by the Board.
      1. Employees receiving a salary increase governed by this Guideline must be informed that the increase is subject to review by the System Office and approval by the Board.
      2. Salary increases are not final until approved by the Board, unless otherwise provided for in this Guideline.
   2. Institutions shall develop compensation plans approved by the Board. These plans will be updated consistent with this policy.
      1. New or revised Compensation Plans that may include merit, equity, and market increases are due to the System Office in the spring.
      2. A committee comprised of representatives from Academic Affairs, Finance, Human Resources, and the TCAT Office will review the proposed compensation plans for clarity, and internal and external equity.
      3. Once agreed upon at the System Office they are submitted to the Board Personnel and Compensation Committee for approval at the summer quarterly Board meeting. A guide of what to include in the individual institution compensation plans is available on the TBR Human Resource website.
      4. Recommendations for institutional increases under the compensation plans are submitted to the System Office during the summer.
      5. Increases pursuant to the plans are approved at the fall quarterly Board meeting.
   3. An executive level, Interim Action report will be provided to the Board quarterly regarding applicable salary adjustments.
      1. Any salary increase for the following positions require System Office and Board approval:
         1. All Vice Presidents or other executives reporting directly to the President (academic, business, student affairs, etc.) including all interim appointments;
         2. Directors and chairs of the Centers of Emphasis and Excellence, including interim appointments;
         3. Any other positions which may be designated by the Chancellor.
      2. Any of the following increases require System Office and Board approval:
         1. Faculty Promotions – Included as part of the Committee on Personnel and Compensation Agenda at the Summer Quarterly Meeting.
         2. New or Revised Compensation Plans - Included as part of the Committee on Personnel and Compensation Agenda at the Summer Quarterly Meeting.
         3. Compensation Plan adjustments – Included as part of the Committee on Personnel and Compensation Agenda at the Fall Quarterly Meeting.
         4. Additional Across the Board Increases - Included as part of the Committee on Personnel and Compensation Agenda at the Fall Quarterly Meeting.
         5. Additional Bonuses - Included as part of the Committee on Personnel and Compensation Agenda at the Fall Quarterly Meeting

1. Eligibility to Participate in the Optional Retirement Program
   1. All regular academic, executive, administrative, and professional personnel except employees of the Tennessee Colleges of Applied Technology are eligible to participate in the Optional Retirement Program. In addition, visiting lecturers are eligible to participate in the ORP.
2. Election of New Employees to Participate in the Optional Retirement Program
   1. An eligible employee who is not a member of the Tennessee Consolidated Retirement System and has not accumulated creditable service thereunder as a member of a local retirement fund may elect prior to the preparation of their first salary payment either membership in the Tennessee Consolidated Retirement System or the ORP.
   2. The Notice of Election to Participate in the Optional Retirement Program or the Tennessee Consolidated Retirement System Form, which shall be used by employees in designating this election, is available on the Treasury website at: www.treasury.tn.gov/orp/index.html
   3. In addition, the Premium Distribution Specification Form that must be completed to specify the distribution of funds for the ORP is attached as Exhibit 1.
   4. If no election is made prior to the first salary payment, the employee shall be deemed to have elected the TCRS.
3. Election of Current Members of TCRS to Participate in the Optional Retirement Program
   1. An employee who is a member of the TCRS or of a local retirement fund having rights under the TCRS, and who is otherwise eligible to join the ORP, may elect to participate in the ORP in lieu of continuing contributions to and accumulating creditable service in the TCRS while employed at an institution with an optional retirement program.
      1. Any employee who elects to cease membership in the TCRS and commence membership in the ORP may transfer plans effective the first day of the month following thirty (30) days written notice to TCRS and the employee’s institution. The Election to Transfer Membership from TCRS to the Optional Retirement Program form is available at: www.treasury.tn.gov/orp/index.html
      2. As stated on the form, an employee who transfers membership from the TCRS to the ORP will thereafter be ineligible to accumulate creditable service in the TCRS during such period or periods as they are employed by an institution with an optional retirement program.
4. Transfer of Contributions to the Optional Retirement Program
   1. State Service Prior to July 1, 1981
      1. For employees who began state service prior to July 1, 1981, all employee contributions (made through payroll deduction) to TCRS plus that portion of the employer's contribution made on behalf of the employee after July 1, 1981, plus any accrued interest are fully transferable to the ORP.
      2. Only contributions made by the employee himself or herself or contributions made by the employer on behalf of the employee under the non-contributory plan are transferable.
   2. State Service Effective July 1, 1981 or After
      1. Employees hired on or after July 1, 1981, are non-contributory members only. Employer contributions are not transferable.
   3. Any employee who elects to transfer funds in the ORP must execute the Election to Transfer Funds from TCRS to the Optional Retirement Program Form at least 30 days prior to the payroll date in which the change is to be effective.
      1. This form is available on www.treasury.state.tn.us/orp/forms.htm
5. Amount of Contributions to the Optional Retirement Program
   1. Employer contributions will be paid at the rate of ten percent (10%) of monthly salary up to the social security wage base.
   2. Contributions for salary above the wage base will be paid at eleven percent (11%).
   3. For either retirement system (TCRS or ORP), the limit to employer contributions made on behalf of employees employed after July 1, 1996 is $210,000.
      1. There is no contribution limit for employees employed before July 1, 1996.
      2. Additionally, for employees enrolled in the ORP, there is also an annual aggregate contribution limit for contributions to the ORP and 401(k).
         1. This limit is defined on an annual basis.
6. Social Security Contributions
   1. The amount of social security contributions by the employee and the employer shall be the same each payroll period as if the employee were a member of the TCRS.

1. Introduction
   1. The Modified Fiscal Year (MODFY) appointment is an alternative employment base for non-academic personnel at the institutions and Tennessee Colleges of Applied Technology governed by the Tennessee Board of Regents.
   2. The following outline of conditions and provisions is designed as a model to uniformly:
      1. Enable institutions to convert fiscal year staff appointments to MODFY appointments where staff work load requirements are subject to fluctuations in the academic calendar, and therefore, can be adjusted without undue reduction of necessary support to essential services;
      2. Ensure protection against loss of benefits for staff affected by change in appointment base; and
      3. Accommodate the preference of staff with interests in a MODFY work schedule.
   3. It is intended that all regular non-academic personnel shall be eligible for MODFY appointments. The benefit provisions cited below principally address regular full-time staff; however, the provisions apply to regular part-time staff, consistent with existing policy and regulations.
2. General Conditions
   1. The president of each institution has the discretion to implement MODFY appointments for non-academic personnel as deemed feasible and desirable.
   2. Re-designation of filled fiscal year positions may be made at the discretion of the president. Notification of the termination of the existing 12-month contract should be given and the incumbent offered a MODFY contract at a proportionately reduced salary.
   3. Each year, institutions shall prepare new MODFY contracts that specify beginning and ending appointment dates and the MODFY service period(s).
   4. In accordance with Board policy, if a non-academic employee works 37.5 hours per week during the MODFY service period, they are defined as full-time. If the employee works less than 37.5 hours per week, they are designated as part-time.
   5. Staff on MODFY appointments will be considered to be employed for the entire 12-month year. Regular employee status shall not be changed.
   6. Staff on MODFY appointments will be paid on a regular schedule over a 12-month period in order to maintain eligibility status for full benefits as described below.
3. Benefit Provisions
   1. Retirement
      1. As regular employees, staff on MODFY appointments maintain retirement eligibility. They will receive a full year (12 months) of creditable service for retirement purposes.
   2. Insurance
      1. Employees in these positions will be eligible to participate in the State of Tennessee Group Insurance Plan providing they work at least 30 hours per week during the MODFY service period.
      2. They will make contributions through payroll deduction procedures throughout the entire year, and coverage will extend throughout the year.
      3. It should be noted that the employees' amount of life insurance will be reduced due to decreased annual salary in this appointment.
   3. Annual Leave
      1. These employees will be eligible for annual leave, which will be accrued at the appropriate monthly rate for each month actually worked.
      2. Clerical and support employees will be given a full year's service credit for purposes of monthly accrual levels.
         1. For example, an employee with less than five years' creditable service would accrue 7.5 hours' annual leave, or the part-time equivalent, for each month worked.
         2. An employee with six years of creditable service would accrue 11.3 hours' annual leave, or the part-time equivalent, for each month worked.
      3. Each MODFY period served should be treated as a full year's service in determining how many annual leave hours per month the employee accrues.
         1. An employee with four years of service at a 12-month service base plus one MODFY period would be given five years' creditable service and begin accruing annual leave at the rate of 11.3 hours per month worked, or the part-time equivalent.
   4. Sick Leave
      1. Employees will accrue 7.5 hours' sick leave or the part-time equivalent for each month actually worked.
   5. Holidays
      1. Employees in these appointments will receive full compensation for all institutional holidays that occur during the MODFY service period.
   6. Academic-year MODFY appointments only.
      1. The work schedule of employees in these appointments shall coincide with that of 12-month non-academic employees who work during breaks between quarters or semesters.
      2. Hours not worked during these periods shall be reported as leave.
   7. Civil Leave
      1. This leave will be granted when coinciding with regular scheduled work time during the MODFY period.
   8. Military Leave
      1. Employees in these appointments will be entitled to leave of absence from their duties for the purpose of military service, duty, or training in the event that this military obligation occurs during their months of regularly scheduled service.
      2. They will be compensated in accordance with Board policy for military leave compensation.
4. Other Considerations
   1. Unemployment Compensation
      1. No unemployment compensation claims should be honored by the Tennessee Department of Employment Security so long as the institution has a reasonable expectation of requiring the MODFY employee's services in the next MODFY period.
   2. Board Grant-in-Aid and Scholarship Programs
      1. These employees should be eligible for participation so long as they are on the payroll.
   3. Longevity Payments
      1. Because they are considered full-year employees and paid over 12 months, these employees are eligible for longevity payments as are faculty on academic year appointments.
      2. Payments should be made for a full year's employment.
      3. Some payroll calculations will be complicated because these employees' reduced salary is spread over 12 months.
   4. All employment actions, whether mid-year hires, terminations, or promotions, will require the calculation and payment of deferred salary. For this reason, overtime payments should be kept to a minimum, if necessary at all, for clerical/support employees in these appointments.
   5. Employees in these appointments may wish to seek outside employment during off-duty months. In such cases, System guidelines on dual services will be followed, if applicable.

I. Application and Scope

A. All employees of the Tennessee Board of Regents and its institutions who are considered to be full-time shall work a minimum of 37.5 hours per week throughout the year.

1. This work schedule shall include a one hour lunch/meal break and shall recognize the existence of up to two fifteen minute miscellaneous breaks during each work day as work flow permits.

2. For purposes of calculating the hours worked each week, lunch/meal breaks shall not be counted as "time worked" but miscellaneous breaks shall be counted.

3. Specific campus office hours shall remain at the discretion of the institution president.

B. It is recognized that, due to the nature of some work, certain jobs do not lend themselves to a 37.5-hour workweek schedule. In these instances, as determined by the president, exceptions to the above paragraph are permissible. Initially, the Chancellor should be notified in writing as to the particular job groups in question, the nature of the work that necessitates the exception, a description of the exception, and the approximate number of affected employees.

C. The official work day will be 7.5 hours; and therefore, all attendance records, time sheets, leave records, payroll documents and other recordkeeping instruments shall be kept only in hours and tenths of hours reflecting the actual hours worked each day and week. In most cases, these should indicate 7.5 hours per day and 37.5 hours per week. Other documents, such as employee recruiting materials, orientation sessions, and comparative salary studies, should reflect this workweek.

1. The following schedule of tenths of hours shall be followed in the documenting of time worked per day:

a. .1 hour                1 - 6 minutes

b. .2 hours               7 - 12 minutes

c. .3 hours               13 - 18 minutes

d. .4 hours               19 - 24 minutes

e. .5 hours               25 - 30 minutes

f. .6 hours                31 - 36 minutes

g. .7 hours               37 - 42 minutes

h. .8 hours               43 - 48 minutes

i. .9 hours                49 - 54 minutes

j. 1.0 hours              55 - 60 minutes

II. Compensation and Overtime Pay

A. Pursuant to the establishment of the 37.5-hour workweek, there is established a 7.5-hour normal workday and a 5 day workweek, providing that exceptions are permissible.

1. The normal fiscal work year shall be 1,950 hours.

a. For those institutions working greater than a 37.5-hour workweek prior to January 1, 1982, monthly compensation remained unchanged when the workweek was reduced, but an increase in hourly rates occurred.

b. Each institution revised its salary/wage schedule for clerical and support positions such that the increase hourly rate was reflected.

2. Compensatory time and overtime payments are available to non-exempt employees only.

a. Compensatory time shall be accrued and used in lieu of cash overtime pay, unless the institution determines otherwise, (or the Fair Labor Standards Act requires cash payment because the employee has accumulated the maximum number of compensatory time hours).

b. Both compensatory time and overtime pay will be granted at straight time for hours worked up to 40 in a workweek and at time and one-half for any hours in excess of 40 in a workweek.

c. Accrued time worked shall include hours actually worked and holiday hours. Any hours other than holiday hours and work hours are excluded from overtime compensation.

3. In accordance with T.C.A. § 8-50-801, when an employee requests annual leave and compensatory time is available, the compensatory time shall be used first, unless the accumulated annual leave balance at the beginning of the pay period is within two (2) days of the maximum accrual rate for the employee.

a. When an employee is within two (2) days of the maximum, annual leave may be used throughout the pay period.

b. Any employee whose annual leave balance is not within the two (2) day maximum at the beginning of the pay period must use compensatory time during the entire pay period.

c. Otherwise, the institution will honor an employee’s request for compensatory time off unless it would be unduly disruptive to the institution’s operations.

4. When cash payment is made for overtime, it shall be calculated at the rate earned by the employee at the time of the payment.

5. When meals and/or lodging are provided as part of the base pay, then the value of such must be included in determining the hourly overtime rate.

a. However, where cash payment is made upon termination, the employee shall be paid for accrued compensatory time at the higher of the following:

(1) The average regular rate received by the employee during the last 3 years of employment;

(2) The final regular rate received by the employee.

6. Information must be provided to every non-exempt employee explaining the overtime provisions of the Fair Labor Standards Act (FLSA), and their rights and obligations under those provisions. See Attachment A.

7. Exempt employees will be paid on a salary basis.

a. Exempt employees must be paid a set amount of money that does not change each week regardless of the quantity or quality of work performed.

b. Intermittent leave under the Family Medical Leave Act does not defeat the salary basis of an exempt employee pursuant to 29 C.F.R. Sec. 541.602 (b) (7).

III. Unpaid Disciplinary Suspensions for Violation of Workplace Conduct Rules

A. Pursuant to 29 C.F.R. Sec. 541.602(b)(5), deductions for full day disciplinary suspensions for violation of workplace conduct rules are permissible if:

1. The employee does no work for a full day;

2. Deductions are in full day increments;

3. Such deductions are carried out pursuant to a written policy that is applied uniformly to all employees;

4. The suspension is imposed in good faith.

B. Prior to imposing this action, institutions must provide in their written policies for this disciplinary option. Such suspensions must be for serious conduct violations only, and not for performance issues.

1. For instance, an employee may be placed on an unpaid suspension for violation of the sexual harassment or workplace violence policy.

2. If the employee performs any work during the suspension period, such as responds to phone calls from the office regarding work, or reads and responds to work-related emails, etc., no deductions may be taken for those days.

C. If the institution does not have such a uniformly applied written policy, it may suspend an exempt employee for part of a week with pay, or suspend the employee for an entire workweek without pay.

1. “Workweek” means the standard workweek, not just seven consecutive days.

D. With or without such a policy, any employee suspended without pay is entitled to the opportunity for an institutional hearing or a hearing held pursuant to the Tennessee Uniform Administrative Procedures Act.

IV. Improper Deductions from Pay

A. Improper deductions from an employee’s pay are prohibited. Therefore, institutions must include similar prohibitions within their policies.

B. An exempt employee who believes an improper deduction has been made from their pay may file a complaint by notifying the Director of Human Resources in writing, stating the amount of the alleged improper deduction, if possible, and the basis for believing the deduction to have been made improperly.

1. If, after a review of the appropriate records, it is determined that there was an improper deduction, the institution shall reimburse the employee in the appropriate amount.

V. Leave

A. The accrual of annual leave shall be recorded in hours and tenths of hours according to the following schedule for regular clerical and support personnel who work full-time.

B. Annual leave hours accumulated in excess of the maximum accumulation carried forward will be transferred to sick leave on July 1 each year.

C. Regular full-time executive, administrative and professional personnel, and twelve-month academic personnel shall accrue annual leave at a rate of 15 hours per month or 180 hours per year.

1. The maximum total accumulation within the fiscal year is 495 hours, and the maximum accumulation that can be carried forward to the next fiscal year shall be 315 hours.

D. The accrual of sick leave will also be recorded in hours and tenths of hours. All regular full-time employees shall accrue 7.5 hours of sick leave per month, with no maximum accumulation level.

E. Institutions shall account for and report leave usage in units of hours and tenths of hours according to the schedule under I. Application and Scope.

1. Leave balances on record for individual employees as of December 31, 1981, were converted to hours and tenths of hours and were carried forward upon implementation of the 37.5-hour workweek on January 1, 1982. They were not reduced to reflect the lower accrual rates or maximum accumulation limits.

2. The conversion to a 37.5-hour workweek did not affect various other leaves, such as maternity, military, and civil leave.

VI. Benefits

A. Retirement

1. All regular employees are, in accordance with the Board policy on retirement (no. 5:01:03:00), eligible for retirement.

B. Insurance

1. In order to be eligible for membership in the State of Tennessee Group Plan a regular employee must work a minimum of 30 hours per week.

a. This criterion did not change as a result of the 37.5-hour.

C. Longevity

1. The 37.5 hour workweek does not affect longevity payments, anniversary dates or computations.

VII. MODFY Appointments

A. The basis of a MODFY appointment is the existence of a full-time position for less than twelve months per year. Here, as in all Board policy, full-time is determined by number of hours worked per week, not months served per year. Therefore, the implementation of the 37.5-hour work week has no impact on MODFY appointments, other than to reduce the hours worked to 37.5 per week.

1. All Academic Employees

a. In conjunction with the Board's general personnel policy (no. 5:01:00:00), the specifications for the full-time workweek hours apply to all employees, including faculty.

b. The definition of "full-time teaching load" has not been altered as a result of the 37.5-hour workweek.

c. Faculty office hours will continue to be determined by the president or designee.

d. Where professional librarians maintain a standard workweek comparable to administrative employees, their work schedule should reflect 37.5-hours per week if they are to be considered full-time.

VIII. Exceptions

A. Exceptions to any of the procedural guidelines above must receive advanced approval from the Chancellor.

Attachment A

I. Rights and Responsibilities of Employees Under the Overtime Provisions of the Fair Labor Standards Act (FLSA)

A. Any hours worked between 37.5 and 40 in a workweek must be compensated at additional straight time (either by pay or compensatory time as determined by the supervisor.

B. Any hours worked beyond 40 in a workweek must be compensated at time and one-half (either by pay or compensatory time (“comp time”) as determined by the supervisor.

C. The value of meals or lodging received must be added to an employee’s regular hourly rate to determine an overtime rate of pay.

D. There should be specific permission requested and authorized each time from your supervisor before beginning work early (i.e., 7:45) or working late or during lunch. Any time worked beyond 7.5 hours per day, even if it is “just to finish up” must be paid as overtime.

E. Time cannot be volunteered. A non-exempt employee must receive pay or comp time for all hours worked.

F. A supervisor is in violation of the law if a non-exempt employee is permitted to work extra time without compensation.

G. The FLSA states that an employee does not have the right to refuse overtime.

H. A supervisor has the right to schedule comp time instead of paying overtime. If this is done within the same workweek, it is given off at equal time. If comp time is given off within the pay period, though not within the same workweek, it is at time and one-half.

I. In determining whether to pay extra hours at straight time or overtime, time actually worked plus holiday hours are counted. Examples are shown below:

1. M                 T                  W                T                  F              S

   7.5               7.5               7.5               7.5              2.5            7.5

                                                                                                    5.0 sick leave

a. In this case, an employee actually worked 32.5 hours by the end of the day Friday as 5.0 hours of sick leave was used. The employee worked 7.5 hours extra on Saturday. The total hours to be paid equal 45. Only 40 hours were actually worked. This means that the 7.5 extra hours would all be paid at straight time.

2. M                     T              W                T                 F                 S

 7.5                    7.5             7.5              7.5              10.0             2.5

(holiday)

a. In this case, an employee actually worked 32.5 hours by the end of the day Friday. The employee worked 2.5 hours on Saturday. Total hours actually worked equal 35.0. However, since holiday hours count as hours worked, extra pay would be based on 42.5 hours worked. This means that 2.5 hours would be paid at straight time and 2.5 hours at overtime.

J. Non-exempt employees have an obligation to immediately notify the Payroll/Human Resources Office if they feel these guidelines are not being followed. The employee should call [phone #] or go to [building name and room #].

1. Personnel Transactions
   1. Each president is expected to follow Board policies, affirmative action plans, and fair employment practices when making appointments.
      1. Appointments requiring the Chancellor's approval will be reviewed in light of these expectations.
      2. All appointments, regardless of salary, including promotions and transfers, must be reviewed and certified by the institutional Affirmative Action Officer prior to action.
      3. Other appointments not requiring approval of the Chancellor will be reviewed periodically by the System Affirmative Action Officer or Assistant Vice Chancellor for Human Resources or designee to ensure compliance.
      4. College of Applied Technology presidents are required to receive prior approval from the Chancellor for any change in personnel classification, compensation, job description or assignments.
   2. Appointments Requiring Approval by the Chancellor
      1. No offer of employment can be made for positions requiring the Chancellor's approval until the appointment form has actually been signed by the Chancellor or designee and the monitor, where required.
      2. All institutions must submit the following positions for approval:
         1. All vice presidents (academic, business, student affairs, etc.) or other executives reporting directly to the President including all interim appointments.
         2. Directors and chairs of the centers of emphasis and excellence, including interim appointments.
         3. Any other positions which may be designated by the Chancellor.
   3. Appointments Not Requiring Approval by the Chancellor
      1. All appointments not listed in I.B. may be approved at the institution by the the President, or any properly approved designee.
      2. The hiring procedures outlined in the following sections will be followed with the records being maintained at the institution. Records must be maintained as described in Section VI, A.2. of this guideline.
      3. The president shall be responsible for assuring compliance with the guideline.
      4. The institutional Affirmative Action Officer shall be responsible for monitoring the recruiting and employment process to assure compliance with the guideline and the institution's Affirmative Action program and objectives.
      5. For Affirmative Action purposes, institutional records will be reviewed periodically by the System Affirmative Action Officer.
      6. All promotions and transfers not requiring approval of the Chancellor must be approved by the president and reviewed and certified by the institutional Affirmative Action Officer in compliance with TBR Policy 5:01:00:00, General Personnel Policy.
   4. Minimum Requirements for All Campus and System Office Appointments
      1. The following actions or procedures are mandatory at all institutions, to:
         1. Establish an Affirmative Action Plan which sets goals for all categories of employment.
         2. Develop appropriate recruitment and selection procedures to ensure fairness in employment.
         3. Determine in a discussion with the Affirmative Action Officer whether the institution has met the affirmative action goal for the area or department (job group in which the vacant position occurs).
            1. Even if the institution has met the overall institutional goal in an employment category, i.e., executive/administrative/managerial; faculty; professional non-faculty; secretarial/clerical/technical and paraprofessionals; skilled crafts; service/maintenance, there may be a goal for the area or department (job group) in which the vacant position is located which has not been met.
               1. For example, the overall institutional faculty goal of 4.5% black representation has been met, but the vacancy is in the job group of Arts and Sciences.
               2. Availability data in Arts and Sciences supports the affirmative action plan's goal of 7.0% black representation, which is higher than the overall institutional goal.
               3. (c) In this case, the efforts to recruit for the Arts and Sciences position will be directed toward qualified black candidates since the availability data shows the applicant pool should contain some qualified black candidates.
            2. A second example relates to the availability of women in the particular job group vacancy.
               1. The total institutional faculty goal for women is 40%, but a higher number of women are available in the particular job group category.
               2. Therefore, in both examples cited above affirmative action recruitment must occur.
            3. In summary, the institution has an obligation to use the availability figures applicable to the particular vacancy to recruit qualified minorities.
      2. Prior to taking any recruitment action, the person directing the hire and/or the search committee must submit to the Affirmative Action Officer a written recruitment plan.
         1. There may be a standard plan for any EEO category which has been approved in advance.
         2. EEO categories 4, 5, 6, and 7 may be more easily standardized.
         3. There may be a need for occasional modification to this standard plan, depending on the nature of the position and the availability data.
         4. The plan includes, but is not limited to:
            1. The proposed job description, which has been reviewed by the institutional Affirmative Action Officer;
            2. Method of directing the hire, i.e., individual supervisor or search committee;
            3. Composition of the search committee and responsibilities of the members, i.e., direct contacts, references, interviews, etc.;
            4. An advertising plan, which provides the following:
               1. Advertisement of the position on bulletin boards, and/or in appropriate publications, and/or newspapers and/or professional discipline-specific journals and/or the Tennessee Employment Security Office; and/or the internet;
               2. Requests for nominations, from professional organizations, discipline-related groups, and organizations devoted to leadership training for the position;
               3. Diverse membership on all search, selection, or advisory committees, when practicable; and,
               4. Direct contacts to assure that underrepresented groups are aware of the vacancy and are encouraged to apply.
      3. Approval of the recruitment plan must be granted by the Affirmative Action Officer prior to the commencement of the recruitment process.
      4. The applicant pool must generally reflect the availability data for the defined vacancy in that discipline or field as determined by the appropriate job group in the institutional affirmative action plan. Direct contacts will be required to assure the diversity of protected groups in the applicant pool.
      5. The Affirmative Action Officer must review all applicant pools and approve their composition prior to the scheduling of interviews.Upper level hires as defined in Section I.B.2.b., require the submission of Form A-1, Certification of the Search Pool, to the Vice Chancellor for Academic Affairs or the System Affirmative Action Officer as outlined in Section III of this Guideline.
      6. After a candidate has been identified as a possible hire for positions defined in Section I.b., Form A-2, Approval of Appointment, must be submitted to the Vice Chancellor for Academic Affairs or the Assistant Vice Chancellor for Human Resource Development as outlined in Section IV of this Guideline.
      7. In the case of appointments of adjunct faculty, equal employment opportunity efforts must include advertisement to establish and build diverse pools from which adjunct employees are chosen.
      8. IMPORTANT: If an institution has met its affirmative action goals, equal employment opportunity is required. Race or sex cannot be used as a plus factor in hiring. However, affirmative action efforts are appropriate in the recruitment process to assure a representative pool. Discrimination on the basis of race, religion, color, national origin, age, handicapped status, veteran status, or other illegal basis is a violation of law.
      9. The Tennessee Board of Regents believes that it is important to check references to limit employer liability verify information and reduce cost of rehiring and retraining. Checks will produce authenticity of information as it relates to such areas as work history, credential problems and criminal backgrounds.
      10. Each campus shall conduct appropriate and timely checks in conjunction with each employment offer.
          1. As an option, a campus may choose to participate in a system wide contract with a third party vendor who conducts background screening and checks.
          2. Campuses shall develop procedures which will include the specific types of checks and specific positions included.
          3. The procedures will be forwarded to the system office for review and approval prior to implementation of the program.
          4. When using the third party vendor, the campus shall notify the applicant that a background check will be conducted prior to conducting the background check.
2.  Budgetary Considerations
   1. Pursuant to Section II.A. of the General Personnel Policy (5:01:00:00), where a transfer of funds is necessary for appointments with compensation in excess of funds available, the transfer is subject to confirmation by the Chancellor.
      1. No approval is necessary unless the transfer of funds is from one functional area to another; adjustments of line item salary amounts within a functional area may be made by the president if sufficient funds are available, subject to applicable guidelines and limitations.
      2. Where a transfer of funds between functional areas is necessary, the president should submit a letter of recommendation to the Chancellor identifying the amount and source of transfer.
   2. Pursuant to Section II.C. of the General Personnel Policy (5:01:00:00), any new administrative positions and major changes in administrative organization must be approved by the Chancellor.
      1. If the proposed position or organizational change is submitted as part of the proposed operating budget or October 31 revision, it should be identified, justified, and documented, but separate approval is not required.
      2. If the proposed position or organizational change does not coincide with the budget cycle, it should be recommended by the president in the form of a letter to the Chancellor which includes a full description, justification, fiscal implications, and other pertinent information.
      3. The colleges of applied technology follow the same basic procedure as outlined above; however, the president shall submit the recommended change and justification on TBR TCAT Form D-1 to the Chancellor.
3. Required Forms for Implementation of Procedures for Approvals
   1. Information to support transactions that require the approval of the Chancellor or designee is requested in Forms A-1 and A-2.
   2. Approval for the certification of the search pool for upper level administrative vacancies is shown on Form A-1 ( processed through DocuSign, at this link: https://www.tbr.edu/hr/paperless-workflow-forms). 
   3. Where a search committee is formed to search for a college administrator at the level of dean of higher, the search committee MUST be racially diverse.
      1.  Where a search committee is formed, candidates for hire must first be screened by the search committee before an offer can be extended.
      2. The Chair of the search committee must certify that each candidate considered by the committee meets or exceeds the criteria published in the job description. (See Form A-1).
      3. Supporting documentation for Form A-1 vice presidents and upper level academic positions must be submitted to the System Affirmative Action Officer.
   4. Approval for an appointment recommendation is shown on Form A-2 (processed through DocuSign, at this link: https://www.tbr.edu/hr/paperless-workflow-forms).
      1. Assurance by the Affirmative Action Officer that an approved process has been followed and the qualified other-race applicants have been contacted and fully considered is mandatory.
      2. Supporting documentation for vice presidents must be submitted to the Assistant Vice Chancellor of Human Resources. Upper level academic positions requiring approval must be submitted to the Vice Chancellor for Academic Affairs.
4. System Office Procedure for Processing of Form A-2
   1. The appropriate receiving office will date stamp and log all recommendation portfolios received.
      1. The appropriate office will verify that the portfolio contains the following:
         1. All information required on the A-2 form;
         2. Vitae for: the candidate recommended, all candidates interviewed, and all final candidates from which interviewees were chosen who are from an underutilized group for all institutions; and,
         3. All advertisements for the position.
      2. If a portfolio is determined to be incomplete, the respective office will communicate with the campus Affirmative Action Officer in the interest of completing it.
   2. For all appointments, if warranted because of significant omission in the portfolio, the Vice Chancellor for Academic Affairs or the Assistant Vice Chancellor for Human Resources will secure information from the campus to certify completeness of the portfolio. No action to approve the recommendation will be taken by TBR staff until the portfolio is complete.
   3. The Vice Chancellor for Academic Affairs or the Chancellor, after reviewing portfolios, will approve, disapprove, or defer decision pending some specified course of action.
   4. Once final action has been taken on the recommendation portfolio, the complete document and record of action will be transmitted for filing to the Office of Human Resources.
5. Transaction Forms, Employment Agreements, Contracts and Letters of Agreement
   1. Transaction Forms
      1. Section V.B. of this guideline provides recommended transaction forms to be used for all personnel transactions, unless alternate forms have been approved by the Chancellor.
      2. Institutions may develop internal personnel transaction forms for administrative purposes. These forms may relate to management information system and contain fiscal and personnel data deemed necessary by the institution.
   2. Employment Agreements, Contracts and Letters of Agreement
      1. Pursuant to Section II.B. of the General Personnel Policy (5:01:00:00), the Chancellor must approve employment agreements, contracts, and letters of agreement used in the appointment and employment of campus personnel.
         1. Approved provisions for personal, professional, consultant, and dual service agreements are addressed in System Guideline G-030.
         2. Each institution may modify the forms or develop alternative and additional forms; however, any forms with provisions substantially different from the recommended forms should be submitted for review and approval by the Office of the Chancellor.
      2. The EEO tagline must be included on all forms.
      3. The language concerning the Drug Free Workplace Act must be included on all initial employment contracts.
      4. In order to comply T.C.A. § 49-7-133 the following sentence must be included on all contracts:
         1. “It is a Class A misdemeanor to misrepresent academic credentials.”
   3. Attached are the following personnel transaction forms, which are recommended for the use of institutions. Forms F-1 through F-8 (Exhibit 2 through 9) are for use in connection with the employment of faculty; Form G-1 (Exhibit 10) for use in connection with the employment of graduate assistants/graduate instructors; Forms S-1 through S-4 (Exhibit 11 through 14) are for use in connection with the employment of all personnel other than faculty; and Form D-1 (Exhibit 1) is for use in requesting approval of a change in personnel status of a TCAT employee. Form E-1 (Exhibit 17) is for use in connection with the employment of all personnel. Following are explanatory notes concerning the use of the recommended forms:
      1. Form F-1, Notice of Tenure-Track Appointment and Agreement of Employment for Faculty, is recommended for the initial employment of any faculty member in a tenure-track appointment. Designate the salary rate by crossing through the word "monthly" or "annual" as appropriate, and designate whether an academic or fiscal year appointment. Also, designate the appropriate beginning and ending months for the pay period as found in paragraph 2. Paragraph 8 should include any special conditions concerning the appointment, such as the policy requirement for separate contracts or agreements with regard to patents or copyrights, or such as any credit for prior service which is agreed to by the institution [not to exceed three (3) years]. The same form may be used for the re-employment of probationary faculty who are re-appointed in tenure-track appointments following a break in service. In this situation, execution of the forms should be timed in conformance with the institutions policy on notice of non-renewal, and specification of the number of years creditable service should be included in paragraph 8.
      2. Form F-2, Notice of Renewal of Tenure-Track Appointment for Faculty, should be sent to all faculty on tenure-track appointments whose appointments will be renewed and where no new special conditions concerning the appointment are necessary. Even though renewal occurs automatically in the event a tenure-track appointee does not receive notice of renewal by the proper date, it's required that renewal occur by affirmative action rather than default, and that this notice be sent no later than the institution's last date for notice of non-renewal. A signature line for the faculty member has been added which must be signed and returned to be valid and binding. You may wish to incorporate the content of Form E-1 when issuing this form rather than sending the Notice of Recommended Salary at a later time; if so, you must make any necessary changes. Designate whether an academic or fiscal year appointment.
      3. Form F-3, Notice of Renewal of Tenure-Track Appointment and Amendment of Agreement of Employment for Faculty, should be used to renew a tenure-track appointment where an express amendment to the terms of the initial appointment, Form F-1, is deemed necessary. You may wish to incorporate the content of Form E-1 when issuing this form rather than sending the Notice of Recommended Salary at a later time; if so, you must make any necessary changes. Designate whether an academic or fiscal year appointment.
      4. Form F-4, Notice of Award of Tenure, is used to notify an employee that tenure has been awarded. A notice of tenure must be given, and Form F-4 is a model of one you may use. As indicated, you should note in which department, division, or academic organizational unit the person is awarded tenure. You may wish to develop a letter to be used in lieu of this notice without TBR approval.
      5. Form F-5, Notice of Non-Renewal of Appointment, is a notice of non-renewal. This notice must be sent prior to the required date for notice of non-renewal, and should be hand delivered or sent certified mail, return receipt requested; consult the institution or TCAT policy or practice for the method for which notice will be affected. Also, refer to TBR Policies 5:02:03:10, 5:02:03:60, and 5:02:03:70 concerning when notices should be given.
      6. Form F-6, Notice of Temporary Employment and Employment Agreement for Faculty, should be used for the employment of all full-time non-tenure track faculty on temporary appointments (Form F-8 should be used for employment of adjunct faculty and faculty for the summer term). Regular part-time faculty percentage (60% appointment) may be listed as a condition in paragraph 9. Designate the salary rate by crossing through the word "monthly" or "annual" as appropriate. Renewal or non-renewal of these appointments will not be subject to the same conditions as for tenure-track appointments, and the form expressly provides that any renewal is subject to a subsequent written agreement. The same form would be used each year for employment of temporary full-time faculty for more than one year, not to exceed three years. Note that this form contains a 30-day notice provision in paragraph 8.
      7. Form F-7, Notice of Term Appointment and Agreement of Employment for Faculty, is a term appointment for full-time non-tenured faculty and applies only to the community colleges and colleges of applied technology. This form was devised to help meet the special problems of career/vocational programs where markets are volatile and changing - examples: computer programming, legal assistant program, some allied health programs. In order to decide whether to use a temporary agreement, F-6, or a term agreement, F-7, look at the projected need for the program. The term agreement is to be used when the projected need is beyond three years, but not for a sufficient time to create a tenure-track position. Designate the salary rate by crossing through the word "monthly" or "annual" as appropriate.
      8. Form F-8 , Notice of Employment of Adjunct Faculty, will be used for the hiring of adjunct faculty and summer term faculty. Adjunct faculty are temporary appointments based on demand each semester, may be full or part-time and are not eligible for employment benefits. The method of salary payment should be specified. No notice provision has been included. For regular faculty, the institution should cross out paragraph 4 and have the parties to the agreement initial. For tenured faculty teaching during the summer, the institution should cross out paragraphs 4 and 6 and have the parties initial.
      9. Form G-1, Notice of Agreement of Employment for Graduate Assistant/Instructor, will be used for the hiring of graduate assistants/graduate instructors on a temporary basis. The method of payment, length of the appointment, and whether full or part-time should be specified.
      10. Form S-1, Notice of Appointment and Agreement of Employment, should be used for all regular staff except faculty. Notices of renewal and non-renewal are not necessary for these appointments, and the appointments are subject to termination at any time by the institution (see paragraph 4). Designate the salary rate by crossing through the word "month" or "year" as appropriate. Please note the option to add additional language to paragraph 2. Such statements need not be included if the employee is put on notice of this practice through employee orientation or other employee information documents given at the time of initial hiring.
      11. Form S-2, Notice of Modified Fiscal Year Appointment and Agreement of Employment, should be used to appoint regular administrative, clerical and support staff to modified fiscal year appointments. Fill in the blank in paragraph 3 as appropriate. Designate the salary rate by crossing through the word "month" or "year" as appropriate.
      12. Form S-3, Notice of Temporary Employment and Agreement for Non-Faculty Administrative/Professional and Clerical/Support, will be used for the hiring of non-faculty on a temporary basis for employees who will work longer than 60 days and who do not work on an "as needed" basis. The method of salary payment should be specified.
      13. Form S-4, Notice of Termination, is the form notice of termination for non-faculty personnel and provides no reason for termination whatsoever. Institutions may wish to provide notice of the opportunity for an oral statement of the reason similar to that specified in Form F-5 for faculty. It is assumed that employees should be aware of the reasons for termination under an effective personnel system. Form E-1, Notice of Recommended Salary, should be used to notify all personnel of the recommended salary for the ensuing academic or fiscal year. Notice of the recommended salary is not included in the notices of renewal for faculty since the recommended salary may not be known at the time of such notices. However, you may wish to add the language of this form to Forms F-2 and F-3.
      14. Form V-1, Statement of Understanding/Agreement between Institution and Volunteer, will be used for volunteer workers. In order for a volunteer worker in an institution supported program to be eligible for reimbursement of the costs of defense in the event of a claim arising out of their actions, the institution is required by T.C.A. § 8-42-101(3)(B) to register the name of the volunteer with the Tennessee Board of Claims (Exhibit 15). If the institution fails to register the volunteer and the state pays attorney fees or a judgment based on the volunteer's actions, cost and awards will be funded through the institution's budget. In addition, if the volunteer is a medical professional providing direct health care as a volunteer, they are only considered a "state employee" under the defense reimbursement provisions for purposes of medical malpractice.
      15. Form D-1 Request for Approval for Change in Personnel Status of TCAT Employee is addressed above.
      16. Form E-1 Notice of Recommended Salary
   4. Institutions are advised to exercise extreme caution in connection with employment letters to personnel and any cover letters which are used to transmit personnel transaction forms, to ensure against inconsistent statements or commitments. Moreover, all personnel transactions at the institutions shall comply with the principles and provisions of the Board policy on equal employment opportunity and affirmative action (5:01:02:00).​
6. Immigration Expense Allowance

   1. New employees may receive reimbursement for immigration expenses when considered to be in the interest of the institution and when such payment is a part of the employment negotiation with a new employee or the relocation of a current employee from another employer or institution.

   2.  Reimbursement/fee allowance for immigration fees must be approved in advance by the President or designee.

   3. This provision applies only to candidates who are required to pay immigration fees to work and live in the U.S.

   4. No TBR employee may receive reimbursement more than once.

   5. No payment shall be made unless the employee agrees in writing to remain in the service of the institution for a period of twenty-four (24) months following the effective date of the employment agreement, unless separated for reasons beyond their control and acceptable to the institution.

   6. The service agreement statement should be maintained in the employee’s personnel file. In case of a violation of such an agreement, any funds expended by the institution for such allowance shall be recoverable from the employee as a debt due the institution in the same manner as educational allowance payments (Exhibit 16).

   7. Reimbursement shall be in the maximum amount of $4500 and shall not exceed the employee’s actual, documented expenses. The allowance cannot be used to defray non-immigration-related costs or any costs not associated with the individual employee’s immigration expenses.

   8. Reimbursable fees include:​

      1. Fees charged by a licensed immigration attorney retained in connection with the application;

      2. Filing fee;

      3. Permanent residence fee;

      4. Fee for any application to enter the U.S.;

      5. Fee for application to remain in the U.S.; and

      6. Associated fees required in the application process, such as medical examinations, fingerprinting, photo identification, postal/courier fees, and costs of evaluating foreign academic credentials or translations of foreign documents.

   9. The employee is responsible for making arrangements for representation, completion of paperwork, assistance in the immigration process, and submission of all bills and/or invoices for which reimbursement is sought.

   10. Faculty may submit a claim for reimbursement by sending a request with original receipts to the Chief Academic Officer.

7.  Transaction Records and Reports
   1. Transaction Records
      1. Institutions shall develop and maintain adequate records to document all personnel transactions, including transactions which do not require the approval of the Chancellor.
      2. As provided in Section IX.A. of the General Personnel Policy (5:01:00:00), all transaction records for an employee must be maintained as provided in Guideline G-070, Disposal of Records.
   2. Transaction Reports
      1. All campus personnel transactions shall be incorporated as part of the institutions' proposed operating budgets and October 31 budget revisions. The Board staff shall determine the appropriate form and medium for the information.
      2. Current personnel information may be reported periodically to the staff by institutions for administrative purposes relative to the maintenance and operation of management information systems.
      3. Current personnel reports may be requested from the institutions at any time in response to requests for information for the Board staff, Board, Legislature, etc.
   3. Affirmative action compliance audit reports may be requested on an annual basis.   

1. General Policy
   1. The Board of Regents shall rely on the Chief Executive Officers of the System and its institutions and the System and institutional chief information officers to develop, adapt, and administer the information technology resources of the System utilizing methods and procedures that promote operational efficiency and the advancement of learning.
   2. Guidelines shall be developed that articulate system-wide standards, procedures, and practices for key information technology processes.
      1. The System shall review industry best practices and, to the degree appropriate and applicable, incorporate best practice into information technology guidelines.
         1. It is the Board’s expectation that information technology guidelines shall address, but not be limited to, protection of personally identifiable information, acceptable use of system information technology resources, password requirements, timeliness of system maintenance activities, and access controls.
         2. Leadership in the development of system wide information technology guidelines shall be the responsibility of the System’s chief information officer.
2. Supplementary Institutional Policies and Regulations
   1. TBR Institutions are authorized and encouraged to develop institution-specific policies and regulations relating to the use of information technology resources, provided such policies and regulations are consistent with Federal and State law and with this and other policies and guidelines of the Tennessee Board of Regents.
      1. In particular, institutions may develop policies and guidelines that are more stringent, but not less stringent, than the system policies and guidelines (e.g. required password character length may be longer than that stated in the system-level guideline but not less).
3. Conformance with State Policies
   1. TBR policies and guidelines regarding information technology are intended to conform to best practices for institutions of higher education.
   2. To the extent practicable, the policies and guidelines should also align with the State of Tennessee’s information technology policies and guidelines established by the Office of Information Resources.
4. Applicability
   1. Unless otherwise specified therein, this policy and associated guidelines shall apply to all persons and organizations accessing or using the information technology facilities and resources, including databases, owned, leased or administered by the TBR, including, but not limited to, all employees and contractors of the Tennessee Board of Regents and its constituent Institutions, and to all students enrolled at TBR Institutions.

1. Scope
   1. These procedures will apply to any case where a contested case hearing is properly requested and required by law to be offered, including:
      1. The suspension or expulsion of students, or revocation of recognition of a student organization, for misconduct or disciplinary reasons;
      2. Suspension of employees for cause, or termination of employee when the termination is potentially in violation of the employee’s contract, e.g., termination prior to expiration of the contract term;
      3. Support staff employees who are demoted, suspended without pay, or terminated and elect to pursue a UAPA hearing instead of an employee panel hearing as the final step of the grievance process; and
      4. Other matters in which the legal rights, duties, or privileges of a person are required by any statute or constitutional provision to be determined by TBR or a TBR institution after an opportunity for a hearing.
   2. This policy is not applicable to termination of faculty for adequate cause. Any such termination is subject to the provisions of T.C.A. § 49-8-302, TBR Policy 5.02.03.70, Academic Tenure for Community Colleges, and TBR Policy 5.02.03.10, Academic Freedom, Responsibility and Tenure at the Tennessee Colleges of Applied Technology: 5.02.03.10.
   3. Prior to offering any hearing pursuant to this policy, the institution shall contact the Office of General Counsel for advice on the applicability of this policy and for possible assistance in the hearing of the case.
2. Administrative Judges and Hearing Officers
   1. In any case where a contested case hearing is available, elected and properly requested, the president (or chancellor for cases arising out of the TBR System Office) or designee may make a request to the office of the secretary of state to have the contested case heard by an administrative judge or hearing officer employed in the office of the secretary of state.
   2. In lieu of asking the secretary of state to have the contested case heard by an administrative judge or hearing officer employed in the office of the secretary of state, the president (or chancellor for cases arising out of the TBR System Office) or designee may determine, in his or her sole discretion, whether the hearing shall be held before:
      1. A person who is licensed to practice law and who is not employed as an attorney for a TBR institution or TBR System Office;
      2. A former state, county, or municipal judge or a former federal judge or magistrate;
      3. An employee of a TBR institution or TBR System Office who has been trained to conduct contested cases, but who does not provide legal representation to TBR or any TBR institution; or
      4. An employee of another public institution who has been trained to conduct contested cases.
   3. Any administrative judge or hearing officer who hears a case involving sexual harassment, sexual assault, domestic violence, dating violence, or stalking shall receive training as required by federal and/or state law.
3. Procedures
   1. The UAPA and the Tennessee Department of State’s Uniform Rules of Procedures for Hearing Contested Cases before State Administrative Agencies, Tennessee Department of State Rule Chapter 1360-04-01, shall be used for contested case hearings under this rule.
   2. For purposes of review and action following issuance of an initial order, the agency head will be the president or other head of a campus out of which the contested case arises, and the chancellor or chancellor’s designee when the contested case arises out of the TBR System Office or when the president or other head of a campus is not available to serve as agency head due to a conflict of interest, recusal, disqualification, or other reason.

1. Evaluation
   1. Consistent with national standards, the Board will formally evaluate the Chancellor every two years beginning with an evaluation in 2008.
   2. The evaluation will be conducted by the Vice Chair of the Board in conjunction with the Chair of the Personnel and Compensation Committee. All members of the Board will be surveyed regarding the performance of the Chancellor. The results of the evaluation will be reported to the Board no later than the September Board meeting for the year in which the evaluation is conducted.
   3. Notwithstanding the above, in any year in which a full, formal evaluation of the Chancellor is not scheduled, any five (5) members of the Board may request such a formal evaluation by written request submitted to the Vice Chair, and the Vice Chair shall conduct the evaluation as set forth in Section B, above. The results of the evaluation shall be reported at such time as specified by the Vice Chair, but no later than the next regularly scheduled board meeting following the completion of the evaluation.