Navient Tuition Reimbursement Plan. SUMMARY PLAN DESCRIPTION May 1, 2017

Transcription

1 Navient Tuition Reimbursement Plan SUMMARY PLAN DESCRIPTION May 1, 2017

2 INTRODUCTION The Navient Tuition Reimbursement Plan (the Plan ) is designed to provide you with the opportunity to continue your education by providing you with assistance in paying for job related courses or courses taken in pursuit of a job related degree. The Plan is maintained by Navient Corporation (the Company ) and other subsidiaries that have adopted the Plan with the approval of the Company (an Employer 1 ). This Plan has been established to provided qualified educational assistance under Section 127(b) of the Internal Revenue Code (the Code ), and for benefits to be paid on a tax-free basis (although some states require taxation of this benefit) to you under Code Sections 127(b). This booklet constitutes the summary plan description ( Summary ) called for by the Employee Retirement Income Security Act of 1974 ( ERISA ). This Summary explains key features of the Plan in an easy-to-read format and style. This Summary is intended only as a general overview of the basic provisions of the Plan and is not a substitute for the official Plan Document, nor does it describe every provision found in the Plan Document. The official Plan Document, as may be amended from time to time, contains the complete and official terms of the Plan and legally governs the operation of the Plan. If there are any inconsistencies or conflicts between this Summary and the Plan Document, the Plan Document always governs. You 2 are welcome to examine the complete Plan Document at the office of your Employer during regular business hours. The Company (or its delegate) is the Plan Administrator. The Plan Administrator has delegated authority to Scholarship Management Services to provide certain administrative functions, such as claims application and processing. Benefits under the Plan will be paid only if the Plan Administrator determines, in its discretion, that the applicant is entitled to them. Please set aside some time to read this booklet. If you have any questions about the Plan, please contact the Navient Human Resources Services Center by calling ELIGIBILITY You are eligible to participate upon your date of hire, provided that you are regularly scheduled to work at least twenty-four (24) hours per week for the Company or an Employer. 1 The term Employer as used in this Summary refers to both the Company and any adopting subsidiary, unless a different meaning is plainly required by the context. 2 The term you as used in this Summary refers to an employee of an Employer who otherwise meets all the eligibility and participation requirements under the Plan. Receipt of this Summary does not guarantee that the recipient is in fact a Participant under the Plan and/or otherwise eligible for benefits under the Plan. 1

3 You are not eligible to participate if you are: (1) Any person who is a member of a unit of employees covered by a collective bargaining agreement where educational assistance benefits have been the subject of good faith collective bargaining between the collective bargaining agent and an Employer, unless the agreement expressly provides that such persons are eligible to participate in the Plan; (2) Any person who is a Leased Employee; (3) any person who is treated by an Employer as a Leased Employee, independent contractor, temporary employee or employee of a third party other than the Employer, even if such person is later determined to have a been a common law employee of the Employer; (4) any person who is hired in order to participate in a training program established for the purpose of training and recruiting future full-time Employees, such as an intern, co-op, mentor or any other similar program that may be implemented by the Employer; (5) any person who applies for pre-approval while on a leave of absence from employment. Employees who receive pre-approval prior to an approved leave of absence shall still be eligible; (6) and person who is classified by an Employer as a temporary employee; and (7) any person who is a resident of Puerto Rico or any other U.S. territory. You will no longer be a Participant as of the earlier of: (a) the date on which the Plan terminates or (b) the date on which you no longer satisfy the requirements stated above. If you terminate your employment with an Employer, you will be treated as a new employee upon your rehire and will again become eligible to be a Participant upon satisfying the requirements stated above. BENEFITS The Company will provide benefits of 100% of Covered Costs of up to $5,250 for fulltime employees (scheduled to work at least 40 hours per week) per calendar year and up to $2,625 per calendar year for part-time employees (scheduled to work at least 24 hours per week). Covered Costs include but are not limited to tuition, course-specific fees, and books, supplies and equipment (excluding shipping expenses). 2

4 Job-related In general, a degree or certificate will be considered work related if it relates to your current position, or will prepare you for another position with the Company or an Employer. The determination of whether the degree program is work related or nonwork related will be made by the Plan Administrator in the Plan Administrator s sole discretion. For example, if you are currently working as a collections analyst, and wish to pursue a degree in human resources administration, this would be considered work related. If you were working towards a degree in nursing, this coursework would be considered non-work related. The determination of whether a degree or certificate program is job-related is in the sole discretion of the Plan Administrator. HOW THE PLAN WORKS Application for and Reimbursement of Plan Benefits There are two payment models - reimbursement and direct pay to school. Reimbursement requires you to pay for expenses out of your own pocket and request reimbursement upon completion of the course. The direct pay model provides payment directly to the school upon you providing the required supporting documentation. Below highlights the process for both models: Reimbursement process: 1. Complete an online application for classes you plan to take at least seven (7) calendar days before the course start date through the Scholarship Management Services secure website a. Select client payroll as payment method 2. Your manager approves/rejects your application 3. You pay for your Covered Costs 4. You complete your course with a grade of C or better for undergraduate course, and B or better for graduate course 5. Within 45 days of completion, log onto Scholarship Management Services s secure website to request payment a. Edit course with final grade 6. After payment has been requested, retrieve the request reimbursement form 7. Fax, , or mail this form and required documentation to Scholarship Management Services for review 8. Scholarship Management Services approves/rejects your request for tuition payment 9. Payment is made through payroll 3

5 Direct pay to school process: 1. Complete an online application for classes you plan to take at least five (5) calendar days before the course start date through the Scholarship Management Services secure website a. Select pay institution as payment method (most schools require you to sign a deferment agreement to choose this option, please check with your school) 2. Your manager approves/rejects your application 3. You complete your course with a grade of C or better for undergraduate course, and B or better for graduate course 4. Within 45 days of completion, log onto Scholarship Management Services secure website to request payment a. Edit course with final grade 5. After payment has been requested, retrieve the request reimbursement form 6. Fax, , or mail this form and required documentation to Scholarship Management Services for review 7. Scholarship Management Services approves/rejects your request for tuition payment 8. Scholarship Management Services sends payment directly to school Please note: Employees will not be eligible for reimbursement for a course if they: (a) (b) (c) have been subject to progressive discipline during the course or the ninety (90) days prior to the course s first session; have engaged in gross misconduct during the course or while reimbursement is pending; or are not actively employed at the time payment is to be distributed. Eligible Covered Costs If your pre-course and post-course applications are approved, you will be eligible to receive education assistance benefits. Covered costs that are eligible for reimbursement under the Plan include expenses incurred for an undergraduate or graduate degree program, or certification program or course taken at an accredited degree granting institution (or other approved institution) only if the degree program is job-related. Eligible covered costs for undergraduate and graduate degree programs and courses and certification programs and courses include, but are not limited to, tuition, course-related fees, and books, supplies and equipment (excluding shipping expenses). Non-eligible covered costs include: tools or supplies (other than books) which may be retained after the end of the course; meals, lodging or transportation; or expenses with respect to any course or other education involving sports, games or hobbies. 4

6 Expense Plan Benefit Limits Eligible covered cost reimbursement is limited to $5,250 in one calendar year to an employee regularly scheduled to work full-time (at least 40 hours per week), or $2,625 in one calendar year to an employee regularly scheduled to work part-time (at least 24 hours per week). Reimbursements will count toward calendar year limits of the plan year in which reimbursement is made. No plan benefits will be paid for expenses that are reimbursed by any scholarship, fellowship, governmental or non-profit program or other financial aid. Grade Requirements for Plan Benefits In order to receive Plan Benefits, you must receive a grade of C or better for an undergraduate course or a B for a graduate course (or its equivalent as determined by the Company). If no grading system is used, you must submit evidence of having satisfactorily completed the course within 45 days after the course or program is completed. If you fail to do so, the course or program will not be reimbursed. You are also subject to the following reduction in reimbursement amounts depending on the grade attained: Undergraduate course o 100% reimbursement with an A grade o 90% reimbursement with a B grade o 80% reimbursement with a C grade o 0% reimbursement with a grade lower than a C Graduate courses o 100% reimbursement with an A grade o 90% reimbursement with a B grade o 0% reimbursement with a grade lower than a B Certifications/Professional Exams/Review Courses o 100% reimbursement with a passing grade o 0% reimbursement without a passing grade o If an actual grade is issued ( A, B, C or lower) as opposed to pass/fail, then reimbursement will be treated the same as with an Undergraduate course. Taxation of Plan Benefits Any Plan Benefits you receive may be subject to income tax and withholding may be required. The Company will withhold all local, state and federal taxes, as required by law, for any Plan Benefits paid to you as through payroll. Because the Company and its representatives cannot provide you with tax or financial advice, we suggest that you contact your tax advisor for assistance on how these requirements may impact you. Limitations on Plan Benefits 5

7 There are certain circumstances for which you may not be eligible to receive benefits under the Plan: If you fail to attain a grade C (or its equivalent) in any undergraduate course, a grade B (or its equivalent) in any graduate course, or a Pass in any course that is graded on a pass/fail basis, you will not be eligible to receive benefits under the Plan. If the college or university you are attending is not an accredited degree granting institution or other approved institution you will not be eligible to receive benefits under the Plan. In no event will you be entitled to receive any benefit under this Plan in lieu of any other compensation you might otherwise be entitled to from the Company. You may not receive more than $5,250 in benefits under this Plan in any calendar year. Benefits under this Plan will not be paid for tools or supplies (other than textbooks) which may be retained by you after completion of the course; meals, lodging or transportation; or expenses with respect to any course or other education involving sports, games, or hobbies. Qualifying Educational Expenses for non-credit undergraduate courses and certification/professional exams are limited to job-related courses and programs. No benefits will be paid for any course that you voluntarily drop prior to completion, except as noted above in the case of withdrawal for business reasons or your transfer of employment. If you resign from employment with the Company or an Employer, or you are discharged for cause, you will be required to reimburse the Company immediately upon your termination of employment for all benefits paid to you under the Plan during the 6 months prior to your date of termination of employment, and you will not be entitled to receive any benefits that have been approved and are pending reimbursement. When Participation Ends Your coverage under the Plan ends on the first to occur of the following: You terminate employment, You are no longer eligible for the Plan, or The Company amends or terminates educational assistance benefits. If you cease to be a Participant under this Plan for any reason, no benefits will be paid to you for expenses incurred after the date that your participation ceases. Appealing a Denied Claim If your application or claim for benefits under the Plan is wholly or partially denied, notice of the decision will be furnished to you within a reasonable time after receipt of the application or claim by the Plan Administrator. 6

8 You have the opportunity to appeal a denied claim by requesting a full or fair review by the Plan Administrator. Upon this appeal you may: Request review upon written application to the Plan Administrator, Review pertinent Plan Documents, and Submit issues and comments in writing. The Plan Administrator s decision on review shall be provided to you within a reasonable time after receipt of request for review. ADDITIONAL PLAN FACTS Plan Name The official name of this Plan is the Navient Tuition Reimbursement Plan. Plan Sponsor The Plan is sponsored by Navient Corporation. Plan Administrator The Company (or its delegate) is the Plan Administrator for the Plan. The Plan Administrator is located at 123 Justison Street, Wilmington, DE 19801, The Plan Administrator has delegated certain administrative duties to Scholarship Management Services. In general, the Plan Administrator is the sole judge of the application and interpretation of the Plan, and has the discretionary authority to construe the provisions of the Plan, to resolve disputed issues of fact, and to make determinations regarding eligibility for benefits. The decisions of the Plan Administrator in all matters relating to the Plan (including, but not limited to, eligibility for benefits, Plan interpretations, and disputed issues of fact) will be final and binding on all parties and generally will not be overturned by a court of law. Plan Year For administration and reporting purposes, the Plan Year for the Plan begins on January 1 and ends on December 31. Absence of Guarantee The Company does not guarantee payment to any person. The liability of the Company is limited to the available assets of the Company. 7

9 Amendments and Termination While the Company generally expects to continue the Plan, the Company reserves the right to amend, discontinue, or terminate the Plan in whole or in part at any time, and from time to time (and retroactively if deemed necessary or appropriate), for any reason including but not limited to the need to comply with changes in the law or future circumstances. Plan Not a Contract of Employment Under no circumstances does the maintenance of the Plan constitute a contract of employment or alter or affect the terms of your employment. In addition, the provisions of this Summary Plan Description do not constitute a contractual agreement as to the terms and conditions of your employment with the Company. 8