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University Policy 7

Deferred Compensation for SAAOs Other than the Chancellor 

Effective Date: February 6, 2024
Technical Changes: February 7, 2024

Policy Topic: Personnel
Administering Office: Human Resources and Payroll

I. Policy Statement/Purpose

Senior Academic and Administrative Officers (SAAOs) are eligible pursuant to Section 300.2.14.1[R] of the UNC Policy Manual for deferred compensation in the form of annual contributions to a qualified executive retirement plan administered by the University of North Carolina (UNC), on recommendation of the Chancellor with the approval of the Board of Trustees of Western Carolina University (BOT). Approval to participate in the qualified executive retirement plan does not automatically constitute approval to receive contributions to the plan. To receive contributions to the plan, the Chancellor must annually recommend any such contribution for approval by the Board of Trustees. 

II. Scope of Applicability

This Policy applies exclusively to EHRA Non-Faculty SAAOs except the Chancellor.

III. Policy/Procedural Requirements 

  1. Notification to UNC System Office

    For each SAAO employee approved by the BOT to participate in the retirement plan, the University will provide written notification to the UNC that includes the following: 

    1. The source(s) of funds from which the contributions will be made and the amount of the proposed contribution(s) as a percentage of the eligible employee’s base salary;
    2. Whether the contribution(s) will be ongoing until appointment end or will expire in a specified period;
    3. The vesting period that will apply to all contributions made to the eligible employee’s qualified executive retirement plan account; and
    4. Notification of approval by the BOT

  2. Permissible Contribution Amount
    1. Contributions to any individual employee participating in the qualified executive retirement plan must occur once annually and may not exceed ten percent (10%) of the employee’s current base salary in effect at the time the contribution is made. 

  3. Entitlement to Contributions

    1. No employee, position, or group of positions is entitled to contributions to the qualified executive retirement plan. All such contributions are voluntary on the part of the University and may be suspended or discontinued at any time and for any reason by the UNC Board of Governors, the BOT, or the president of the UNC. Further, contributions are subject to availability of institutional funds, and no contribution will be made if an employee has received notice of an end of appointment and/or is no longer currently actively employed by the University regardless of prior approvals or written commitments of same.

  4. Source of Funds

    1. Contributions may be made with any source of funds, including state or non-state appropriations if the funding source permits an expenditure for this purpose. 

  5. Vesting Period

    1. The University must identify and communicate to the employee at the time of the initial contribution a specified vesting period, which may be immediate but may not exceed five (5) years.

  6. Administrative Procedures

    1. Contributions under this Policy may only be made to the applicable qualified executive retirement plan administered by the UNC using forms and procedures established by the Plan Administrator, who will provide these forms and procedures to the University’s chief human resources officer upon request. 
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