SBHE Policy Manual Index NDUS Procedures Index Section 700 Section 701 [Leaves] 701.1 [Leave Without Pay] V701.01 Leave Without Pay (2025) Leave Without Pay Procedure 701.2 [Developmental Leave] V701.02 Faculty Developmental Leave (2011) Section 702 [Salaries] 702.4 [Campus Administration of Salary Increase Funds] V702.04 VCSU Salary Administration Policy (2014) Section 703 [Retirement] 703.1 [Early Retirement] V703.01 VCSU Early Retirement Policy (2020) 703.2 [Benefits] 703.3 [Retirement] V703.10 Retirement Policies (2023) Section 704 [Insurance] V704 VCSU Insurance (2014) Section 705 [Perquisites and Other Fringe Benefits] 705.1 [Executive Compensation] V705.02 Employee Assistance Program (2014) Section 706 [Expense Reimbursement] 706.1 [Board Members and Advisor Per Diem Payments] 706.3 [Authorization for Travel] V706.03.01 Faculty Travel Preauthorization (2024) V706.03.02 Employee Travel Reimbursement (2024) Section 707 [Severance Pay]

State Board of Higher Education Policy 701.1 (Leave Without Pay) provides for employee leave (without pay) for professional activities (such as education, research, or temporary employment) that will improve the employee professionally and will directly or indirectly benefit the institution or North Dakota University System. Leave without pay may also be granted as a disability accommodation or as required by state or federal law, including the Family Medical Leave Act. Regular staff employees should follow Section 21 in the HR Manual, Leave without Pay. Sponsored by: Vice President for Academic Affairs Reference: Faculty Senate and Academic Policy and Affairs Council, 1983. Reviewed: Winter 1996 Revised: February 2018 Revised: February 2025

A faculty member, Administrator, or Professional Staff member at VCSU desiring to make a formal application for leave without pay for professional reasons or disabilities accommodations should follow the following process: The employee should make early and informal contact with his or her supervisor, department chair, or vice president. During this early discussion, questions regarding SBHE policy, impact to the department/program, and rational for the request should be reviewed. To make formal application, the employee should complete Form AA-15 (Request for Leave without Pay) and submit this form to his/her immediate supervisor for review and approval. The supervisor should complete the top portion of Form AA-16 (Leave Without Pay Recommendation) and submit both AA-15 and AA-16 to the appropriate Vice President for review. In cases where the supervisor reports directly to the President, the form is submitted to the President (and step 4 below is omitted). The Vice President will review the request and recommendation, add comments and recommendations as appropriate to AA-16, and forward the materials to the President. The President of the University will review the request and recommendations and will notify the applicant of his/her decision regarding the request. The employee’s Vice President and supervisor will prepare a memorandum of agreement outlining the terms of the leave, including the dates of the leave, the purposes of the leave, requirements for continuation of benefits, and any other conditions or details pertinent to the planned leave. The employee and President will both sign prior to the start of the leave. Sponsored by: Vice President for Academic Affairs Reference: Faculty Senate and Academic Policy and Affairs Council, 1983. Reviewed: Winter 1996 Revised: February 2018 Revised: February 2025

Developmental Leave is a planned, extended academic or professional activity which benefits the individual, the university, and its constituents. NDUS Developmental Leave Guidelines (SBHE Policy 701.2): Faculty may be granted developmental leave for retraining and/or professional development under the following circumstances: Institutional resources are available. Workload is absorbed within the existing staff resource allocations. A written proposal describing the planned use of the leave and its anticipated benefits to the institution, to the State, and to the employee is approved. The proposal shall also include the detail of the source of funds for the total stipend. Except as provided in Section e, the employee signs an agreement to return to the North Dakota University System upon completion of the leave for a period of time at least equal to the leave time or refund the stipend payment. To assist in retrenchment efforts, developmental leave may be granted without a signed agreement to return. The employee must execute a resignation effective at the termination of the developmental leave. Developmental leave may not exceed 12 months and the base stipend may not exceed the salary scheduled for the leave period. VCSU Faculty Developmental Leave Faculty may seek developmental leave for professional development purposes, to include training, research, or writing. If institutional resources permit and appropriate replacement personnel are available, developmental leave may be taken for a single semester or academic year, for up to full pay and benefits. The funding model for this leave may vary, depending on availability of institutional resources. The salary may be supplemented with non-appropriated funds which bring the total salary to an amount equal to but not exceeding the budgeted salary for the leave period. Funds for travel expenses, relocation, or educational costs incurred during the leave shall not be considered part of the salary. Faculty desiring developmental leaves fully funded by another entity may also seek leave under V701.1, Leave without pay. No more than two individuals will be granted developmental leave per semester. Developmental leave is available only to full-time, tenured faculty who have completed at least six consecutive years of teaching at Valley City State University. Proposals for developmental leave must be submitted to the VPAA no later than the last working day in September (for Spring semester leave) or the last working day in February (for Fall semester leave). The Faculty Advocacy Committee will review the proposals and advise the VPAA in making selections. Preference will be given to those proposals which identify a clear benefit to the University and its students. Faculty may take developmental leave no more than once every five years. Proposals should be submitted in memo format to the Chair of the Faculty Advocacy Committee or the VPAA and include: A description of the proposed activity. An explanation of the anticipated benefit to the individual, the academic program, and/or the University. A statement of the timeline and requested funding level for the leave. A statement indicating the applicant's understanding of the provisions in SBHE 701.2, section D (see above), which require the employee to return to the position for a period of time equal to the leave time. Proposals must be accompanied by a letter of support from the applicant's Department Chair which outlines how work duties will be covered during the applicant's absence. Within one month of completing a developmental leave, the faculty member must submit a written report on the completed program to the VPAA. The report should document the completion of all items identified in the original proposal and discuss the benefits achieved by the leave opportunity. In addition, the faculty member must prepare a presentation for a campus forum. Sponsor: Faculty Advocacy Committee Effective: May 17, 2011 Revised: March 2021

A. Philosophy and Objectives The primary purpose of the salary administration process at Valley City State University is to further the institution's mission by attracting and retaining qualified employees. Individuals involved in the process will strive to make decisions fairly and communicate them effectively. In an environment of limited resources, salary adjustments are particularly sensitive issues. As a result, Valley City State University is committed to an open and honest dialogue.  B. Methods and Guidelines The ability to make salary adjustments at the campus level depends on legislative action and State Board of Higher Education (SBHE) guidelines. In some years, the campus may not receive funds or authorization to exercise discretion with salary allocation.  Policy V605.3, section 3 describes a process for communicating with Faculty Senate annually in the fall regarding anticipated budget conditions for the following year. The Vice President for Business is responsible for implementing this process. Salary adjustments are divided into two main categories: annual budgeted salary adjustments and other salary adjustments.  1) When the campus is authorized to make annual salary adjustments, the decision process is as follows:  The vice president for business affairs provides the president and vice presidents with relevant information from the ND Legislature and the SBHE, including any guidelines from the Chancellor and the Cabinet. The president and the vice presidents determine priority needs of the institution that require use of salary dollars. The president and vice presidents establish the guidelines for salary distribution, including: i) Amount required to meet mandates from the legislature or State Board of Higher Education. ii) Amount to be distributed across the board for cost of living (terminology is defined in Section E, below) iii) Amounts (if any) to be distributed for any or all of the following: contribution to mission and purpose, internal equity, market or external equity, faculty promotion in rank, or achievement of degree. The director of Human Resources will make available market, retention, and internal equity data to assist in priority determination. iv) Instructions for supervisors regarding their input on individual salary adjustments The president informs the Faculty Budget and Salary Committee and Staff Senate of the guidelines, funds available, and priority needs and provides the Faculty Budget and Salary Committee and Staff Senate with an opportunity to offer relevant advice to the president and vice presidents. The president and vice presidents work with supervisors to ensure that any individual salary changes other than across-the-board are appropriate. The president considers Faculty Budget and Salary Committee and Staff Senate advice; vice presidential recommendations; market, retention, and internal equity data; and other input and approves salary increases for individuals. The president provides the faculty and staff with summary information regarding salary increase decisions. The president presents the university's budget to the SBHE. A copy of the approved budget is placed in the university library. 2) Other salary adjustments may be made during the year, including band change adjustments, changes in position, market, internal equity, workload adjustments, interim appointments, and one-time payments to individuals. Change requests are initiated by supervisors and require approval from Human Resources and the relevant vice president or president.  C. Process for Impartial Review of Salary Adjustment Decisions Current grievance policies provide an impartial review of a salary decision under certain defined conditions. The conditions and procedures are defined as follows: Banded Employees: Section 28 of the NDUS Human Resource Manual. Faculty: NDUS Policy Manual, Section 612, Grievances. VCSU Policy V605.2. All Employees: Any person who believes that an inequitable salary decision was made on the basis of race, color, religion, national origin, sex, disability, age, veteran's status, or sexual orientation may wish to refer to VCSU Policy Manual, Section V603.2, Section P, Equal Opportunity Grievance Procedures. D. Distribution and Communication of Policy The Salary Administration Policy is included in the VCSU Policy Manual, Section V702.4. The administration and appropriate committees are to disseminate information regarding this process during deliberations and public forums.  E. Definitions and Guidelines 1) Terms that apply to annual salary setting:  Cost of living adjustment – an across-the-board amount, either a fixed dollar figure or a percentage, that is related to changes in the cost of living. Cost of living adjustments become part of an employee's base salary. Cost of living adjustments are usually based on changes in the Consumer Price Index. Contribution to Mission and Purposes - Contributions to the achievement of institutional mission and purposes as currently defined. Faculty promotion in rank – tenured or tenure-track faculty receiving a promotion in rank to associate or full professor status will receive a salary increase according to a schedule approved by the Vice President for Academic Affairs. This increase becomes a part of the employee's base salary. Achievement of degrees or industry-recognized certifications – Tenured or tenure-track faculty who complete a terminal degree in their field will receive a base salary increase according to a schedule approved by the Vice President for Academic Affairs as a part of the employee's base salary. Faculty or staff who complete academic degrees or industry-recognized certifications will receive a base salary increase to be determined by the supervisor and vice president according to the circumstances. 2) Terms that apply to adjustments that may be made either during the year or through the annual salary adjustment process: Band adjustments for banded staff may result in a change in salary (NDUS Human Resource Policy Manual 5.1.4). Adjustments for changes in position – an employee who moves from one position to another with higher pay must be paid at least the minimum of the new pay range. Employees with a current salary in excess of the minimum for the new pay range may still receive a pay increase depending on availability of funds, consideration of internal equity, or other factors. A change in position with the same band is not eligible for an increase without written documentation of increased level of responsibility. A change in position may result in a salary reduction, even though no change in job band or family occurs (NDUS Human Resource Policy Manual 5.1.5). Non-banded staff may receive a salary adjustment consistent with changes in responsibility and subject to considerations of availability of funds, internal equity, and other factors, subject to approval of the appropriate supervisor, vice president, and the president. Workload adjustments – documented reassignment or changes in duties/responsibilities may be initiated with approval of the appropriate vice president and the president. Such adjustments must be independent of the process of band adjustment and may not be used to justify a band change salary adjustment (NDUS Human Resource Policy Manual 5.1.3). Adjustments for interim appointments and administrative assignments are limited to the period for which the assignments are made and do not become part of the salary base. Salary adjustments for banded interim appointments are subject to NDUS Human Resource Policy Manual 5.1.7. Internal equity – a comparison of salaries for similar positions at VCSU with consideration of previous related experience, sustained changes in workload, education, or responsibilities of the position. Internal equity adjustments become part of an employee's base salary. Market or external equity – a comparison of VCSU salaries with those of other institutions or employers. National and regional data may be used. Market or external equity adjustments become part of an employee's base salary. Typically, market considerations are part of the initial salary offer within the context of the campus salary structure. Market adjustments should be part of a campus-wide salary recommendation rather than a justification for increasing the salary of a single employee. One-time payments – payment made to an individual when supervisor, Human Resources, and relevant vice president agree that the individual has made a contribution deserving of financial recognition on a one-time basis, not to be included in the individual's base salary. 3. Part-time employees – Temporary – Temporary employees are not eligible for annual salary increases. They may be eligible for other salary increases. Regular – Regular employees are those who receive fringe benefits. They are eligible for both annual and other salary increases in accordance with relevant policies and procedures. Sponsor: President  Approved: April 2001 Revised: January 2005 Revised: May 2007 Revised: October 2007 Revised: Spring 2014

Early Retirement is governed by North Dakota State Board of Higher Education Policy 703.1, and applies to tenured faculty and officers of the institution who are responsible for a major unit and report directly to a president or vice president, and who are members of TIAA/CREF, TFFR, or TIRF. Early retirement is not an entitlement, and may be used only when the institution has documented benefits resulting from the agreement. VCSU Eligibility – Any tenured faculty member, vice president or eligible officer of the institution who has served at least five (5) years at Valley City State University shall be eligible for early retirement, providing they meet the Board policy sum of 70 provision (the sum of the age of the employee plus the total years of employment at VCSU)—SBHE 703.1, 3, b, ii—and should demonstrate anticipated savings/benefits to the University in the first year. VCSU Procedure: Any eligible personnel shall provide a written request to the President no later than October 15 of the year prior to the year in which the person plans to retire. The President may, in the best interest of the University, approve exceptions to this deadline date. The President shall provide notice of a decision on early retirement requests no later than November 15 of the same year. Upon approval from the President, the individual will work with his/her supervisor to complete the NDUS Early Retirement Agreement (see SBHE 703.1 for linked template), a contractually binding written agreement which sets forth all terms and conditions, including but not limited to the amount of payment, the payment date(s), and a waiver of all continuing and nonrenewable rights and recall rights. Both parties will seek legal review of this document before signing. VCSU Compensation. Two options for early retirement are available at VCSU: A phased retirement agreement may be negotiated to allow the employee to work part time for up to two years before retiring. An agreement may be negotiated providing a lump sum payment. In such cases, benefits to the University must be documented. Typical lump sum payments are about 25% of the employee’s final year salary; the agreement should demonstrate anticipated financial benefit to the University in the first year. In determining the lump sum, the administration may subtract 10% of the final year base salary for each employment year beyond the age of sixty-five (65). In the event a faculty member has a valid early retirement agreement as provided in this section, and dies before his/her separation date, the early retirement payment shall be made to his/her beneficiary. Sponsored by: Faculty Senate Reviewed: March 2003 Revised: April 2014 Reviewed: September 2020

VCSU regular, benefitted employees, who are at least 18 years of age, work at least 20 hours per week for 20 weeks or more, and whose positions are regularly funded and not of limited duration (i.e. permanent) participate in either a TIAA or NDPERS main retirement plan based on their NDUS broadband job classification. 1. Employees in NDUS broadband job classifications 0000-3000 participate in TIAA.    a. Employees shall be given credit for the years of service during which they accrued employer-sponsored retirement benefits under the North Dakota Public Employees Retirement System, North Dakota Teachers' Fund for Retirement, and/or TIAA. Credit for TIAA years of service shall also include credit earned at other institutions, including out-of-state institutions, provided the employee has a current TIAA contract (i.e., was not repurchased). These plans do not qualify if an employee withdrew proceeds from the employer-sponsored plan or if they were plans with employee contributions only (such as a 403b or 457b).    b. TIAA retirement plan documents: https://www.tiaa.org/public/tcm/ndus 2.  Employees in NDUS broadband job classifications 4000-7000 participate in the North Dakota Public Employees Retirement System (NDPERS). a.  NDPERS retirement plan documents: https://www.ndpers.nd.gov/active-members/retirement-plans-active-members 3.  Employees that switch between NDUS broadband job classifications 4000-7000 and 0000-3000 have an option to change retirement plans between NDPERS and TIAA.  a. Employees will have 60 days to decide to remain in or switch retirement plans following the new position effective date.   b. In absence of a written election within the qualifying event period, the employee irrevocably waives the right to remain in their current retirement plan and will be placed in the retirement plan assigned to that NDUS broadband job classification. References SBHE 703.02 NDUS HR Policy 10 Sponsor: Vice President for Business Affairs Reviewed: Winter 1996 Revised:  October 2023

GROUP HEALTH INSURANCE All eligible employees, their spouse and dependents, have the opportunity to participate in a group health insurance plan. VCSU pays the premium, which is effective the first day of the month following employment. GROUP LIFE INSURANCE All eligible employees shall be covered by a $3,500 life insurance policy. In addition to this basic coverage, employees may purchase additional life insurance up to $200,000 in increments of $5,000. Spouse and dependent coverage is available when supplemental insurance is purchased. ELECTIVE INSURANCE All eligible employees shall be given the option to purchase Dental, Vision, Long-Term Care, and other elective insurance at their own expense. WORKERS COMPENSATION & DISABILITY All eligible employees are covered by a disability plan and State Workers Compensation. ENROLLMENT & CHANGES in COVERAGE All eligible employees have the opportunity to enroll or make changes to their insurance coverage when they are hired, during annual open enrollment, or when a qualifying life event occurs. Enrollment or changes must be made within the timeline set by the insurance provider. Sponsored by: Vice President for Business Affairs  Reviewed: Winter 1996 Revised: Spring 2004 Revised: Spring 2014

The purpose of the Employee Assistance Program is to provide services for employees that deal with personal and interpersonal problems, financial concerns, addictions, marital problems and other concerns. Most employees may overcome personal problems without professional assistance, but at times, professional counseling and/or referral to appropriate community agencies may be beneficial.  The cost for assessment, short-term counseling, and referral is covered by Valley City State University. The employee is responsible for other services not covered by the Employee Assistance Program.  Below are the guidelines for utilizing the Employee Assistance Program: The program is available to all employees and their eligible household members as defined by the provider, regardless of the employee’s job title or responsibility. Employees will receive a certain number of counseling sessions per household member as defined by the provider. All employees are responsible for using this program, when appropriate, to assist in resolving job performance deficiencies related to personal problems. Supervisors and administrative representatives will be given a comprehensive orientation session to identify goals, objectives, and the mechanism for referring employees for services. Employees will receive a general orientation session to provide an overview of what services are available and how to make use of those services. A supervisor may encourage, but not require an employee to seek assistance to determine if personal problems are causing unsatisfactory job performance. If performance problems are corrected, no further action will be taken. If performance problems persist, the employee will be subject to the normal discipline procedures. When an employee voluntarily comes for assistance, no contact is made with the supervisor. When the employee comes for services at the request or referral of a supervisor, there will be a follow-up contact with the referring supervisor which will discuss whether the employee came for the appointment and whether the employee is following general recommendations relating to treatment/follow-up services. Participation in the program will not jeopardize an employee's job security or promotional opportunities. All records and discussions of the personal problem will be handled in a confidential manner by the provider. They will not be released without the expressed, written consent of the employee and they will not become a part of the employee’s personnel file. Where necessary, leave will be granted in accordance with established procedure. If a supervisor refers an individual based on performance concerns or an employee requests referral from the supervisor, sick leave will be granted. The employee may request that the supervisor attend counseling sessions with him/her. Sponsored by: Vice President for Business Affairs  Revised: Spring 2004 Revised: 2014

Faculty travel falls into two categories for preauthorization: Out-of-State and In-State. For Out-of-State travel, faculty are required to complete the 'Request for Travel' form (AA-2). This form collects information helpful in making approval decisions when travel funds are limited, and documents items eligible for reimbursement. This form must be completed prior to travel. Approval for in-state travel must be secured from the appropriate supervisor prior to scheduling the use of a state vehicle. If reimbursement will be sought for meals, mileage, or accommodations, Form AA-2 (Request for Travel) must be completed. Sponsored by: Vice President for Business Affairs & Vice President for Academic Affairs Revised: Spring 2004 Revised / Renumbered: February 2010 Revised: February 2021 Reviewed: October 2024