1. Employee Education Benefit Program

2. Eligibility  Employee must be:  Accepted as UTSA Student  Currently employed in Benefits Eligible position and have been for the last 6 consecutive months  Meet successful class completion standards  Degree program, or classes if non-degree student  Must be related to current or prospective job duties  Requires approval from Supervisor Checkmark denotes items that have not changed.

3. Degree Program Related to Job  May relate to current job duties  May relate to prospective job duties or position that can reasonably be attained in the future.  Per State Government Code 656, program will allow an employee to:  Prepare for technical or legal developments  Increase work capabilities  Increase employee competence Checkmark denotes items that have not changed.

4. Classes Scheduled During Normal Work Hours  Allowed up to three (3) hours per week  Only during Fall and Spring Semesters  Must obtain supervisor approval BEFORE enrolling in courses  Supervisor may approve the degree program and deny request for classes during normal work hours  Does not deduct from any paid leave balances  Does not require a flex schedule  Can be listed as training on the timesheet Checkmark denotes items that have not changed.

5. Successful Completion Standards  Classes are completed, not dropped or listed as incomplete  Employee receives a letter grade of C or above  Specific programs may require higher grade.  Employee remains in a benefit eligible position through the semester  If standards are not met  Funds requested under the EEB Program will be revoked.  Employee will be responsible for any funds due. Checkmark denotes items that have not changed.

6. The To-Do List  HOP 4.08 Employees as Students will be updated.  Website under the Human Resource Department main site  Form with directions  FAQ’s  http://www.utsa.edu/hr/EEB/ http://www.utsa.edu/hr/EEB/  Human Resources and Financial Aid departmental procedures updated. Checkmark denotes items that have not changed.

7. Tax Implications Program Summary Employee Educational Benefit ProgramCurrent ProgramPrevious Program Plan Effective DateSeptember 1st 2015 (Fall 2015)Prior to September 1st, 2015 (Spring 2015) IRS Authority 127 Qualified Educational Assistance Program 177 (d) Qualified Tuition Reduction Plan Statutory Tuition Employees will continue to pay the Statutory Tuition rate Employees pay statutory tuition as the State does not allow waiver of this portion of tuition Designated Tuition12 Semester Credit Hours (SCH) Course FeesPaid by the Student/Employee Taxation ImplicationsEmployers to exclude from employees’ wages up to $5250 per calendar year Requires the benefit to be reported as taxable income for graduate students only Checkmark denotes items that have not changed.

8. Tax Implications (127 Qualified Educational Assistance Program)  Previous Guideline 177 (d) Qualified Tuition Reduction Plan  Previous tax implication required the tuition benefit to be reported as taxable income for graduate students  Non-taxable for undergraduate students  Current Guideline 127 Qualified Educational Assistance Program  Educational Benefit becomes taxable income after the threshold of $5250 is met for the employee  Undergraduate/Graduate status does not matter  Based on 2015/2016 Employee Education Benefit Rates, the maximum award of 12 semester credit hours benefit amount is < the $5250 maximum benefit  http://www.utsa.edu/fiscalservices/EBB.html http://www.utsa.edu/fiscalservices/EBB.html  Employee will receive the reimbursement under this Plan as a tax-free fringe benefit as long as benefit remains under $5250 Checkmark denotes items that have not changed.

9. Employee Tax Implications by Plan Spring/Summer 2015  An employee enrolled for Undergraduate courses in the Plan  Previous Plan 177 (d), tuition benefit is not reported as taxable income  An employee enrolled for Graduate courses in the Plan  Previous Plan 177 (d), tuition benefit reported as taxable income Fall 2015  An employee enrolled for Undergraduate courses in the Plan  Current Plan 127, tuition benefit is not reported as taxable income up to $5250  An employee enrolled for Graduate courses in the Plan  Current Plan 127, tuition benefit is not reported as taxable income up to $5250 Checkmark denotes items that have not changed.