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BUSINESS PRACTICE 18

Tuition Reimbursement

 

WHAT

As part of continuous learning, TVA seeks to support employee education activities so that employees can fully contribute their talents to achieve TVA's vision and business objectives and to provide employees with lifelong learning. In keeping with this objective, TVA offers a Tuition Reimbursement Program to eligible employees. This business practice establishes the process for requesting, approving, and reimbursing allowable expenses for all employees who participate in this program and who receive reimbursement.

The Tuition Reimbursement Program refers to the academic activities offered by accredited academic institutions and programs, and upon completion, the employee receives an academic grade (A, B, C) or a Pass if the course has a Pass/Fail grade.

Tuition Reimbursement covers degrees and individual courses for professional development that:

  • Relate to current or future core business and workforce needs as indicated in the TVA Integrated Staffing plan and the tuition reimbursement Supervisor's Decision Model.
  • Are offered by colleges/universities accredited by an agency or association recognized by the U.S. Department of Education. For a complete listing of accrediting agencies/associations go to http://www.ed.gov/admins/finaid/accred/accreditation_pg4.html.

WHO

This program applies to full-time annual employees.

WHY

  • Enhances the competitiveness of TVA's workforce by increasing skills and knowledge.
  • Promotes continuous improvement and lifelong learning.
  • Ensures TVA's financial resources are directed toward specific learning strategies.
  • Supports TVA's talent management and succession planning goals.
  • Supports TVA's efforts to retain a highly qualified workforce.

HOW

Preparing for Approval

  • Employee must discuss developmental/educational needs with supervisor/manager.
    • Identify degree or professional development courses and an accredited college or university.
    • Employees who are on the manager/specialist schedule and have been approved for any degree are required to sign a two-year service agreement. ( Employees on the excluded schedule may be required by their organization to sign a two-year service agreement.)
    • Ensure scheduling of academic activities will not adversely affect employee's work performance or work schedule.
  • Employees who are requesting approval for a bachelor's degree are strongly encouraged to pursue credit for prior learning.

Approving Participation (Form 17404 must be completed in all cases):

  • Employee fully completes form TVA 17404, Request for Tuition Reimbursement Program Participation.
  • Manager, utilizing the tuition reimbursement Supervisor's Decision Model as an aid or guide, approves and forwards to the employee's Business Unit Vice President for approval.
  • Business Unit Vice President approves and forwards to Shared Resources.
  • Human Resources Vice President authorizes final approval for all graduate degrees to align with TVA's talent management and succession planning goals.

Inherent judgment is an element of the approval process. Managers are expected to use this judgment in evaluating participation requests to ensure it is business aligned and there is an anticipated return on investment for TVA. Approval is solely at the discretion of TVA management.

Denying Participation (Form 17404 must be completed in all cases):

  • Manager, utilizing the tuition reimbursement Supervisor's Decision Model, determines the request does not meet the criteria established in this practice, manager signs and indicates the reason for denying participation and forwards to the Business Unit Vice President.
  • If the Business Unit Vice President and/or Human Resources Vice President deny employee participation, the vice president(s) sign and forward to the Manager of Education & Outreach, Shared Resources.
  • The submission of a denied TVA 17404 to TVA's Manager of Education & Outreach is only for tracking purposes. It is not to be considered or used as an appeal process.
  • Allowable Expenses

Allowable Expenses

  • A total of $25,000 for an undergraduate (bachelor's) degree, including any reimbursements for an associates degree and/or professional development coursework.
  • A total of $21,000 for a graduate (master's and beyond) degree.
  • The provisions of the Internal Revenue Code covering Employer-Provided Educational Assistance allow employers to reimburse tax-free up to $5,250 per calendar year. Any reimbursements in excess of this limit generally will have to be included in the employee's taxable income.
  • Reimbursable expenses
    • Tuition (Both traditional and nontraditional)
    • Registration fees
    • Laboratory fees
    • Equivalency examinations resulting in credit received
    • Cost of recording credits
    • Activity fees
    • Graduation fees
    • Textbooks
    • Other fees as approved by employee's manager (refer questions to Manager of Education & Outreach, Shared Resources)

Request Tuition Reimbursement (Form 17404A must be completed in all cases):

  • An employee may request reimbursement for tuition expenses if:
    • The course has been completed with a grade of:
      • "C" or better for an undergraduate course
      • "B" or better for a graduate course
      • "Pass" if the course has a Pass/Fail grade
    • Has not received payment through other means.
    • Is a full-time annual employee at the time of successfully completing the course.
  • TVA will reimburse tuition expenses for employees who are:
    • Voluntarily or involuntarily reduced-in-force and leave TVA before completing an approved course.
    • Given a direct transfer or a reduction-in-force notice and then transfer to another location that is not within a reasonable commuting distance of the training facility.
    • Given new work assignments that prohibits them from completing courses for which they have already registered and paid. A memorandum stating the circumstances from the employee's manager is required for reimbursement.
  • Employee submits form TVA 17404A, Request for Tuition Reimbursement Payment, and receipts for all allowable expenses, and an official grade report to manager for approval. Forms must be submitted within six months.
    • Upon approval, manager sends form TVA 17404A and copies of all allowable expenses and official grade report to Shared Resources.
    • The only approved reimbursement method for academic expenses is through Shared Resources. TVA credit cards or other forms of payment may not be used for tuition reimbursement.
    • Managers will verify the accuracy of the total amount requested for reimbursement. Based solely on this approved amount Disbursement Services will effect payment through the payroll system to be included in the next payroll check which falls at least two weeks after submission of approved forms to Shared Resources.

Prepayment under "financial hardship" (Forms 17404 and 17404A must be completed in all cases):

Prepayment of tuition and other expenses are allowed only in rare financial hardship cases. Managers may petition for prepayment in the form of a memorandum to the employee's Business Unit Vice President identifying circumstances of financial hardship and requesting approval.

  • Upon required approval, the vice president submits forms TVA 17404 and 17404A with documentation from the institution that supports the prepayment amount, and a copy of the approval memorandum to Shared Resources.
  • Disbursement Services will effect payment through the payroll system to be included in the next payroll check which falls at least two weeks after submission of approved forms to Shared Resources.

Curriculum Updates and Revisions

  • As curriculum changes may occur from what was originally approved on form TVA 17404 (course substitutions, dates, etc…), the employee must notify Shared Resources of such changes to keep their academic plan current.
  • If such changes result in the pursuit of a different degree, substantially increased forecasted expenses, or transferring to another college, then the employee must complete a revised form TVA 17404, and obtain their supervisor and vice presidential approval.

Demonstrate Progress

Employees must show progress in completing their degrees.

  • An employee who has not successfully completed a course in 12 consecutive months will be dropped from the program, unless there is a compelling reason for the lack of progress, such as personal illness, family crisis, work related, etc. This decision will be made in consultation with the employee, supervisor, and human resource consultant. The employee may reapply at a later date.

Graduates

  • Employee must send a copy of their diploma or other official documentation from the academic institution that supports graduation to Shared Resources and their Human Resources consultant.
  • Employees who wish to pursue another degree must reapply for approval for the new degree.

Employment Status and Work Schedule

Courses should generally take place during employee's own time. Employees must use annual leave or work a flexible schedule to attend courses except when they are (a) participating in official TVA-required courses or (b) attending at management's direction. The manager must approve any change in work schedule.

Use of TVA Computers

The use of TVA computers and Internet services to support course work and to correspond with instructors and classmates must be in accordance with TVA's Business Practices, including Internet and E-Mail Use, Business Practice 7; Off-Site Use of Business Equipment, Business Practice 20; and other TVA Business Practices that might apply to computer, Internet and Intranet use.

ROLES

Employee

  • Complies with this practice.
  • Discusses developmental needs with supervisor/manager .
  • Fully completes form TVA 17404.
  • Submits form TVA 17404A with copy of grade and receipts for all allowable expenses.
  • Maintains a current curriculum with Shared Resources.
  • Shows steady progress in completing degree.
  • Provides proof of graduation to Shared Resources.

Supervisors/Managers

  • Ensure employees comply with this practice.
  • Answer questions from employees about TVA's Tuition Reimbursement Program.
  • Discuss with employee developmental needs.
  • Utilize the tuition reimbursement Supervisor's Decision Model as an aid or guide in approving or denying employee participation. Use judgment to ensure business alignment and TVA return on investment.
  • Verify/approve allowable expenses and accuracy of requested amount of reimbursement.
  • Request approval for prepayment of tuition and other allowable expenses from organizational vice president.

Human Resource Consultants

  • Provide assistance to managers in approval process.
  • Consult with Shared Resources when employee may need to be dropped from the program for lack of progress.

Vice President – Business Unit

  • Grants final approval of employee's participation in TVA's Tuition Reimbursement Program at the undergraduate or professional development level.
  • Grants approval of prepayment in "financial hardship" cases.
  • Grants approval for flexible funding considerations within affected business unit that may exceed tuition spending caps as defined by the Tuition Reimbursement business practice.

Vice President – Human Resources

  • Grants final approval of employee's participation in TVA's Tuition Reimbursement Program when pursuing a graduate degree.
  • Grants approval of prepayment in “financial hardship” cases.

Disbursement Services

  • Reimburse employee for allowable expenses through TVA's payroll system.
  • Prepay academic expenses, when authorized, through TVA's payroll system.

TVA Manager of Education and Outreach, Shared Resources

  • Answers questions from employees about TVA's Tuition Reimbursement Program.
  • Monitors and tracks expenses and uses of the Tuition Reimbursement Program.
  • Tracks denied participations.

TVA Chief Officers and Executive Vice Presidents

  • Strongly advocate consistent implementation of the Tuition Reimbursement Business Practice.

RESOURCES

  • Tuition Reimbursement Supervisor's Decision Model
  • Tuition Reimbursement Responsibility Chart
  • Shared Resources Staff
  • Human Resource Consultants
  • Disbursement Services

 

BUSINESS
PRACTICE 18

Tuition Reimbursement

Last Revised 11/07

 

 

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