Administrative Policy HR-018 Name: Employee Tuition & Education Assistance Policy Prepared By: Renee Maiorano, Compensation Manager Human Resources

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1 Administrative Policy HR-018 Name: Employee Tuition & Education Assistance Policy Prepared By: Renee Maiorano, Compensation Manager Human Resources Approved By: Tom Morgan, Human Resources Director Signature: Corresponding Requirements: ISO Standard: Revision #:2 Revision 2/24/2017 Effective 6/10/2011 Page 1 of Purpose: To provide guidelines on the award of tuition assistance to Cape Fear Public Utility Authority employees. 2.0 Policy: It is the policy of Cape Fear Public Utility Authority to assist employees interested in career development to pursue formal education and training opportunities through an education and tuition reimbursement program. Employee education and tuition reimbursement is provided in accordance with the guidelines established below. 3.0 Guidelines 1. Requirements for participating in the education and tuition reimbursement program: a. Only full-time employees are eligible. b. The employee must have completed their initial probationary period, and have worked in a full-time capacity for the previous six (6) months. Revised 7/16/15 c. The employee must be in an actively at work status. d. The employee must not have any formal disciplinary actions with the Authority within the previous eighteen (18) months. Formal disciplinary actions are written warnings, demotions, or suspension. The employee must be working at satisfactory or better level of performance as determined by their performance appraisal or supervisor. e. Employees receiving total financial assistance from other sources such as Veteran s Administration, grants, scholarships, fellowships, etc., are not eligible for benefits provided under this program. f. Employees must have their application for reimbursement approved by their supervisor, department head, Human Resources Director, and Executive Director prior to enrollment in a course of study. g. Coursework will not be conducted during Authority work time. It is expected that educational activities not interfere with the employees work, and unsatisfactory job performance during enrollment may result in forfeiture of all benefits provided under this program. 2. Eligible reimbursable education and tuition expenses: a. Educational assistance will be provided for courses of study which are directly related to the employees present job or which will enhance the employee s potential for advancement to a position within the Authority which the individual has a reasonable expectation of achieving. b. Coursework designated by the Executive Director as professional development. c. Reimbursable courses of study are job related or other approved training and coursework at an accredited public or private business, vocational or technical school, college or university, correspondence school, accredited certification or licensing agency, or other institution approved by the Human Resources Department at the time

2 Name Employee Tuition and Education Assistance Policy- HR-018 Revision 2/24/17 Page 2 of 6 of application. Approved correspondence courses are those which at a minimum are accredited by the National Home Study Council. d. Books, study materials, and registration fees are considered reimbursable. 3. Expenses excluded from reimbursement: a. Specialized job related training, which includes short-term workshops, seminars, and conferences which are designed to update job skills, or receive certifications, registrations or licensures. These types of events are normally paid from the respective department training budget. b. Expenses related to reimbursement for testing, parking permits, travel, student ID cards, student event tickets, meals, and other miscellaneous, and expenses. c. Costs for computers, hardware or software upgrades, equipment, and internet connections required for on-line coursework. 4. Approval: In determining whether to approve a request for educational and tuition reimbursement, the following factors will be considered: a. The nature and purpose of the course of study; b. The benefits to be derived by the employee and the Authority; c. The employees standing with the Authority (conduct and performance); d. The level of responsibility and length of service of the employee. 5. Application for Participation in the Program: Prior to commencing any course of study, employees must complete a Request for Educational and Tuition form and forward it to Human Recourses with their supervisor(s) and department heads recommendation. All requests for reimbursement must be approved by the Executive Director. Employees will be notified of approval or denial of their reimbursement request in writing by Human Resources. 6. Procedure: a. Employees participating in the reimbursement program will forward a copy of the course(s) grade transcript and copies of all eligible reimbursable expense to Human Resources within 60 calendar days of completing the courses. b. Employees who fail to participate in the program for 180 calendar days must reapply for participation in the program. c. Employees will be eligible for an annual maximum reimbursement of $1,500. However, if budgeted funds for the program are unused and available, the employee may be reimbursed additional eligible expenses not to exceed a total of $3,000. To be considered for this additional reimbursement, the employee must submit a letter to Human Resources requesting additional reimbursement, along with the required documentation (see 6.a above) no later than June 15 th of the respective fiscal year. The reimbursement period will be from July 1 to June 30 of each year. Employees will have to reapply annually for participation in the program. (Revised 2/24/17)

3 Name Employee Tuition and Education Assistance Policy- HR-018 Revision 2/24/17 Page 3 of 6 d. will not be made for any grade below a D or Fail in the case of classes that are designated Pass or Fail. Nor will reimbursement be made for any course(s) the employee withdraws from, or fails to complete within 180 calendar days from the scheduled conclusion date of the course(s). e. Employees participating in a licensing, certification, or registration course of study who obtained their credentials will be considered as Pass and will be reimbursed up to 100% or $1,500. f. Employees will be reimbursed using the following criteria: Percent of Maximum Amount of (1) Grade Obtained 100% $1,500 A or B 75% $1,125 C 100% $1,500 Pass 0% $0 D,F, or FAIL g. Employees completing more than one course will be reimbursed using the following example: Course Grade Obtained Credit Hours Attempted Percent of Amount of Intro to C 3 75% $240 Statistics Economics A 3 100% $320 Total Cost for Both Courses $640 6 Total $560 The total cost for both courses is $640 ($320 for each course). The student achieved a grade of C for the first course which is reimbursed at 75% of $320 = $240. The student achieved a grade of A for the second course which is reimbursed at 100% of $320=$320. The total reimbursement is $560. h. If the employee is receiving partial assistance or funding from other sources such as Veterans Administration, grants, scholarships, fellowships, ECT., this program will help defray the cost of eligible courses and expenses over the amount of funds received by other sources. For example, if the total eligible expenses are 1,000 and the employee receives a $500 grant, this program would only consider the remaining $500 of eligible expenses for reimbursement under the schedules listed above (6.f and 6.g). If the disclosure of other financial assistance is omitted or falsified, the excess reimbursement will have to be repaid to the Authority, and the employee may be subject to disciplinary action. If an employee takes a course, or courses, at the specific direction of the Authority, the employee may be reimbursed in advance and not subject to the above grade schedule.

4 Name Employee Tuition and Education Assistance Policy- HR-018 Revision 2/24/17 Page 4 of 6 7. Continuation of employment: By implementing this program, the Authority, in good faith, is investing in its employees. There is an assumption that employees are participating in the program in good faith as well. With this in mind, employees who sever their employment or are separated involuntarily (other than reduction-in-force or job elimination) will be required to repay education and tuition reimbursements according to the schedule below: Length of time from Date of Percent of Less than 12 Months 100% From 13 months to 18 months 75% From 19 months to 24 months 50% More than 24 months 0% Employees that are separated due to reduction-in-force or job eliminations, or who are unable to complete the course(s) due to a transfer within the Authority, or due to unforeseen business reasons are requested by the Authority to cease enrollment, will be reimbursed the full amount of eligible expenses incurred up to the date of separation, transfer or request. Any employee that severs their employment or is separated involuntarily (other than reduction-inforce or job elimination) prior to completing a course(s) will not be reimbursed any eligible expenses. Employees will be required to complete the certification and authorization portion of the Request for Education and Tuition form which indicates agreement on behalf of the employee to comply with the reimbursement repayment requirement in accordance with the schedule listed above. The Authority reserves the right to employ all legal resources available to collect repayment of education and tuition reimbursements. The Executive Director reserves the right to waive the repayment requirement due to extenuating circumstances. 8. Availability of funds: All reimbursement for education and tuition expenses is made to the extent to which budgeted funds are available. Due to budget considerations, the Authority may limit the number of employees annually who participate in this program. Requests for participation will be handled on a first come-first serve basis. No waiting list will be maintained. If an employee s request for participation is rejected due to unavailability of funds the employee will be required to reapply when and if funds become available. 9. Records: All records related to education and tuition requests and reimbursements will be maintained by the Human Resources Department. 10. Tax Liability: All portions of education and tuition reimbursements may be a taxable event to the recipient depending upon the IRS regulations and guidelines that may be in effect at the time of the reimbursement. Employees are advised to contact their income tax preparer or consultant to determine how any education and tuition reimbursement will be treated in

5 Name Employee Tuition and Education Assistance Policy- HR-018 Revision 2/24/17 regard to income tax liability. Page 5 of Amendments: The Authority reserves the right to amend or terminate this program at anytime. All affected employees will be notified of any changes made to the program. Nothing in this Program is intended, or should be construed, as a guarantee or contract of employment. 4.0 Revision History: Revision Reason for Date # C/PAR # Revision 716/15 1 To clarify probationary and reduce time worked 2/24/17 2 Added verbiage to request additional reimbursement Description of Revision Revised section 3.1b. to reflect probationary completed and worked in FT position from 12 months to 6 months. Revised Section 6.c to allow employees to request additional reimbursement amount to a second 1,500 not to exceed 3,000 in one fiscal year. Must have request in writing to HR, Only eligible if funds are available.

6 Name Employee Tuition and Education Assistance Policy- HR-018 Revision 2/24/17 Page 6 of 6 Request for Education and Tuition Application Form Employee Name: Hire Department: Name of institution to Attend: Type of Degree Pursues: Number of Hours Needed to Degree: Estimated Start 1 st Course Title: Hours Total Cost Meeting Day(s) Est. Completion Date 2 nd Course Title: 3 rd Course Title: How will this course(s) or degreed program assist you in your current position or enhance your potential for advancement with the Authority? (Use extra page if necessary): Certification of Authorization I understand and agree that in exchange for reimbursement under this program, I am subject to the employment requirements under Section 7, Continuation of Employment, which can run concurrent with a multi-year degree completion program. I also understand that I may be required to repay the Authority for all or a portion of reimbursement that I have received should my employment with the Authority cease for any reason other than reduction in force of job elimination. By my signature below, I authorize payroll deduction to satisfy any repayment due and I agree to pay any outstanding amounts thereafter immediately. I further understand that the Authority may employ all legal resources available to pursue collection of any unpaid portion of this debt. Signature: Approval Signature Immediate Supervisor: Department Head: Human Resources Director: Executive Director:

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