Department Owner: Human Resources GENCO All Operations Last Update: 01 January 2017 Overview GENCO provides an Educational Reimbursement Program for all full and part-time teammates who want to continue their education in an area that will complement their GENCO careers. Interns and Co-op students are not eligible to participate in the program. Audience All GENCO teammates must adhere to the content described in this document. Teammate Eligibility To be eligible for educational reimbursement, teammates must have completed one year of service prior to beginning courses. Service time for teammates who join GENCO from another FedEx operating company is included in the service eligibility requirements. Teammates 1. must be performing at a satisfactory level based on their most recent performance review and 2. must receive approval from their Department Manager and GENCO s Senior Manager, Benefits & Corporate Programs. Educational Expense Reimbursement Educational expense reimbursement is provided as follows. Full-time Teammates (Hourly or Salaried) Reimbursement Requirements There is no limit to the number of courses or credits taken during any semester or academic year. Reimbursement is limited to $5,000.00 per calendar year (January 1 through December 31). Reimbursement is based on when the reimbursement is paid and not when the classes took place. Page 1 of 6
Educational Expense Reimbursement Example: Final grades for classes taken from September 2015 to December 2015 may be submitted to the Human Resources department at the end of December. A check for the reimbursement is issued in January 2016. The amount of the reimbursement will be applied to the 2016 calendar year limit even though the courses were completed in the calendar year 2015. Part-Time Teammates Reimbursement Requirements There is no limit to the number of courses or credits in a semester. Reimbursement is limited to $1,500.00 per calendar year (January 1 through December 31). Reimbursement is based on when the reimbursement is paid and not when the classes took place. See the example above. Status Change If a teammate is transitioned from part-time to full-time or vice versa, the reimbursement amount received under the previous program will be deducted from the eligible amount under the new program for the calendar year in which the transition occurs. Example: If a part-time teammate receives $1,500.00 under the Part-Time category and then is transitioned to a full-time position, the $1,500.00 will be deducted from the $5,000.00 full-time maximum for that calendar year. The teammate will be eligible to apply for reimbursement of up to an additional $3,500.00 that calendar year for new courses that begin after the transition. Note: Courses are processed and paid according to the job position the teammate is in when the courses begin. Example: A part-time teammate begins courses in June, and then is transitioned to a full-time position in July. The courses in progress are processed according to the part-time reimbursement guidelines (i.e., at the $1,500 reimbursement maximum, not the $5,000 maximum) Academic Grade Requirement Reimbursement for tuition, books, and fees will be provided on the following grade and degree level schedule: Grade Undergraduate Percentage of Reimbursement A 100% B 100% C (or pass on a pass/fail course) 100% D and below 0% Graduate A 100% B 100% C and below 0% Last Update: 01 January 2017 Page 2 of 6
Payback Agreement Payback Agreement Participating teammates must sign the Educational Reimbursement Application, which includes the Tuition Payback Agreement. This document will remain with the company for at least one year after completion of the last reimbursed course to avoid repayment of reimbursements. If the teammate resigns voluntarily, or if the teammate s employment is terminated by GENCO, the teammate will be responsible to repay all amounts that were reimbursed by the company on the teammate s behalf during the last 12 months of his or her employment. Where permitted by law, repayment will be deducted from the teammate s final checks with any further balance due to the company within 90 days of the termination date. Exception If a teammate unilaterally elects to transfer to another FedEx operating company and is unable to complete a course as a result, tuition reimbursement will not be granted for the incomplete course. Additionally, if a teammate transfers to another FedEx operating company, no educational reimbursement monies will need to be returned to GENCO from the prior 12 months payment, if applicable. If a teammate leaves GENCO, is rehired, and bridging of service applies, any remaining tuition balance owed (up to $1,000.00) by the teammate to GENCO will not be subject to repayment. Note: Monies paid back while the teammate was no longer working for GENCO will not be refunded to the teammate. Exclusions The Company reserves the right to approve or disapprove reimbursement for any degree program that, in the judgment of management, may or may not serve the business interest of the company. Reimbursement for all advanced degrees in the field of law, and doctorate degrees, are specifically excluded from this program unless the following guidelines are met: The course of study must relate directly to the teammate s current career path/progression The manager and teammate have engaged in discussions about the teammate s career progression and agree that acquiring the degree will both create value for the individual and the Company The teammate demonstrates ownership and ongoing commitment to his or her personal development on the job (i.e., continuously seeks feedback, enhances self-awareness, applies new learning) The manager submits, in writing to his or her senior manager/managing director, the business rationale in support of teammate entering into the advanced degree program Upon manager/managing director approval, the request shall be submitted to GENCO Benefits and the VP Human Resources for final approval Reimbursement for any nontraditional programs must be pre-approved by GENCO Benefits Note: If approved, reimbursement levels will remain at graduate level grade payout percentages. Last Update: 01 January 2017 Page 3 of 6
Eligible Courses Eligible Courses Courses eligible for reimbursement are as follows: Credit courses in an accredited degree program as a requirement toward an associate, a bachelor, or graduate degree, which relates to the teammate s current job or potential position within GENCO Credit courses at a college, university, trade, or technical school that directly relate to the employee s current job assignment, if approved by GENCO Benefits. Up to $1,500.00 of the maximum education reimbursement amount for full-time teammates and up to $750.00 for part-time teammates will be reimbursed for the above described courses that are outside the teammate s current job or potential position within GENCO. This amount will count toward and accordingly reduce the maximum benefit of $5,000.00 for full-time or $1,500.00 for part-time teammates per year. Note: Certificates are eligible provided the teammate earns college credits. Certification classes and continuing education classes that do not earn college credit are not eligible for reimbursement. Certifications and continuing education that may be required for the teammate s position may be approved by the department s Managing Director and reimbursed through GENCO s expense procedure. Reimbursement Application Process Teammate Responsibility 1. Prior to beginning classes, the teammate completes the Educational Reimbursement Application, which includes the Tuition Payback Agreement, and submits it to Department Manager. 2. The Educational Reimbursement Application with the Department Manager s review/comments is routed to GENCO Benefits for final approval. IMPORTANT: If GENCO Benefits does not receive the completed application and agreement prior to the course starting, or does not approve the application, GENCO will not reimburse the course. 3. If the teammate is taking a pass/fail course, the teammate is responsible for providing documentation of the requirements for the course to receive a pass/fail grade. GENCO Benefits Responsibility 1. Upon receipt of the Educational Reimbursement Application, GENCO Benefits reviews and approves or disapproves the educational reimbursement request, based on eligibility of courses, proper approvals, timeliness of receipt, and the inclusion of other documentation, if applicable. 2. Once approved by GENCO Benefits, the teammate is sent notification of the approval or disapproval. Last Update: 01 January 2017 Page 4 of 6
After Course Completion 3. The Educational Reimbursement Application will be retained, pending the receipt of the teammate s grade report and receipts at the completion of the course, and then be retained in the teammate s personnel file. After Course Completion Teammate Responsibility 1. Submit the following to GENCO Benefits within 90 days of the completion of the course: Copy of the course grade report or proof of satisfactory completion Tuition receipt Receipt of covered fees Proof of payment type (e.g., loan, check, credit card, etc.) 2. To expedite the reimbursement, fax the documentation to GENCO Benefits. The date stamp on the fax pages are used as the receive date. IMPORTANT: If GENCO Benefits does not receive the receipts and proof of payment within 90 days of the completion of the course, the courses will not be reimbursed. GENCO Benefits Responsibility 1. Upon receipt of the course grade report or proof of satisfactory completion, and all applicable receipts and proof of payment, GENCO Benefits will calculate reimbursement for the employee. 2. Submit the reimbursement amount to the GENCO Payroll department. Payroll Responsibility The Payroll department prepares and forwards the reimbursement check to the teammate. Note: Requests for reimbursement are subject to the year-end payroll cutoff date. Any applications that cannot be processed for payment prior to December 15 will be applied towards the following calendar year maximum. Reimbursement from Other Sources GENCO educational reimbursement for teammates who are receiving financial aid from other sources is limited to the difference between the total amounts of eligible expenses, less the amount of financial aid received. No GENCO reimbursement is provided when the financial aid received from another source is equal to or greater than 100% of eligible program expenses. Note: Financial aid in the form of student loans is reimbursable. Last Update: 01 January 2017 Page 5 of 6
Taxation of Reimbursement Taxation of Reimbursement Taxation of educational reimbursement is regulated by the federal, state/provincial, and local governments, and is subject to change. Non-Accredited Training Training at non-accredited conferences, seminars, and institutes is not covered under the scope of the Educational Reimbursement Program. Attendance at conferences, seminars, or institutes may be approved by the department manager or managing director and reimbursed through GENCO s expense procedure. Non-accredited training should be for the improvement of skills in the teammate s current job, or as a GENCO requirement as a condition of employment in the current job. Related Documents Further information is located in the documents listed below. Teammate Benefits Policy (governing policy) Educational Reimbursement Application Form Last Update: 01 January 2017 Page 6 of 6