The University reserves the right to make changes to thebenefits plans described herein at any time at its sole discretion,with or without prior notice.

A. Group Benefits Plans

The group benefits listed below are only a summary of the actualprograms. Employees should obtain plan documents and details fromthe Benefits Office.

1. Medical Insurance: Effective thefirst of the month following their hire date, all regular employeeswho work a minimum of twenty hours per week are eligible formedical benefits. The University pays the employee premium in fullfor full-time employees, and one-half the employee premium forpart-time employees, to the maximum MSC premium. Full-timeemployees are responsible for one-half of dependent premiums, andpart-time employees are responsible for the full dependent premiumamount.
   
   
2. Life Insurance: Effective the first of the monthfollowing their hire date, all regular full-time employees havelife insurance equal to two times their annual salary. TheUniversity pays the entire premium.
   
   
3. Dental Insurance: After one year of service, theUniversity offers dental insurance for all regular full-timeemployees. The University pays the employee premium in full.Employees are responsible for dependent premiums. Employees mayparticipate during their first year of employment and pay theentire premium.
   
   
4. Long Term Disability (LTD): After one year ofservice, the University offers group disability insurance forregular full-time employees and pays the entire premium. Long TermDisability provides two-thirds salary continuance after ninetycalendar days of continuous disability caused by a major illness orinjury.
   
   
5. Flexible Spending Plan: Effective the first ofthe month following their hire date, all regular employees who worka minimum of twenty hours per week are eligible to participate inthe Flexible Spending Plan. The plan allows employees to pay groupinsurance premiums, out-of-pocket medical/dental and dependent careexpenses with pre-tax dollars.

B. Retirement

1. Normal Retirement Age: The University does nothave a mandatory retirement age. The normal retirement age ofapproximately 65 does not apply to eligibility for withdrawals onthe University's pension plan or other benefits.
   
   
2. Pension Plan: After one year of service,employees working a minimum of 1,000 hours per year are required toparticipate in the University's Defined Contribution Pension Plan.Employees contribute 5% of their gross salary, matched by theUniversity's 5% contribution. The University's contributionincreases at six years of service to 6%, and at eleven years ofservice to 7%. Employees may make voluntary contributions beforeone year of service, and above the required contribution after oneyear of service. All contributions are tax sheltered as providedunder section 403(b) of the Internal Revenue Service Code.Employees are 100% vested in all contributions and earnings fromtheir participation date. Appendix 21 Retirement Plan
   
   
3. Retiree Medical Insurance: The University offersmedical insurance continuation to employees who choose to retireearly. Eligible employees may continue coverage in the University'smedical insurance plans by self-paying the premium to age 65.Medical benefits-eligible employees with a minimum of 10 years ofservice who are at least age 55 may participate in this plan.
   
   
   An eligible employee's spouse may also continue participation inthe plan until age 65. Dependent children may continue toparticipate until age 23, or until the last parent turns age 65,whichever comes first. Please contact the Benefits Office for moreinformation.

C. Tuition Waiver

Beginning the semester following the hire date, the Universitywill grant a tuition waiver to regular employees enrolled inselected University courses. Eligibility for spouse and dependentchildren is based on the employee's hire date. With prior approvalof their supervisor, and if time is made up weekly, employees mayattend one course during their regular work day. Associated feesand if applicable, required taxes are paid by the individual. Appendix 26 Tuition Waiver

D. Sick Leave

The University offers sick leave benefits to regular employeesworking a minimum of twenty hours per week as protection againstloss of income and benefits in the event of a bona fide illness,injury, pregnancy and/or childbirth. Sick leave may also be used tocare for an immediate family member (defined as spouse, child,mother, father, sister, brother, grandparents, grandchildren, orspouse's parents or grandparents). Sick leave accrues asfollows:

Full-time employees

earn sick leave at a rate of one-fifth of a work week for eachcalendar month of paid service to an unlimited number of hours(i.e., 37.5 hour work week = 7.5 hours of sick leave; 40 hour workweek = 8 hours of sick leave). Part-time employees earn sickleave on a pro-rated basis according to the number of hoursworked.

• Sick leave accrues with the first day of employment but isavailable for use only upon completion of six months of service.Sick time during the first six months of employment is unpaidleave.
  
  
• Employees may use a maximum of 12 weeks per occurrence, or upto the 90-day elimination period to coordinate with long termdisability benefits.
  
  
• Overruns on sick leave are deducted from personal leave, thenvacation pay, if available.
  
  
• Employees absent for four or more consecutive working days arerequired to complete a Leave of Absence Request Form and providephysician's certification. Physician certification may be requiredfor absences fewer than four (4) working days at the supervisor'sdiscretion.
  
  
• Unused sick leave is not paid out at the end ofemployment.

E. Personal Leave Days

Regular full-time and part-time (20-31 hours per week)employees, employed a minimum of six continuous months, areeligible to use two days of available sick leave per calendar yearfor personal leave. On January 1 of each year, personal leave daysare converted from sick leave for eligible employees. Personalleave should be planned in advance with supervisory approval.Employees should report personal leave hours as "B" on their timesheets. Personal leave is available as follows:

• leave can be taken in one hour increments
  
  
• personal leave days are converted at a rate of 1/5 of a workweek
  
  
• unused hours will remain in the employee's personal leave bankand only the number of hours necessary for a maximum balance oftwo personal leave days will be converted from your sick leave onJanuary 1 of each year
  
  
• overruns on personal leave will be deducted from vacation time,if available
  
  
• before January 1 of each year, employees must have a minimum oftwo days of sick leave to convert any days to personal leave
  
  
• all eligibility criteria must be met by January 1 of each yearto qualify for personal leave in that year; otherwise personalleave is not available until the following calendar year, ifeligible at that time
  
  
• employees under disciplinary action for absenteeism are noteligible for personal leave;
  
  
• unused personal leave is not paid when employment ends.

F. Vacation

1. Eligibility for Paid Vacation: Regularfull-time and part-time (20-31 hours per week) employees, employedon a regular twelve-month basis, are eligible for paid vacation.Vacation must be taken during the anniversary year following theyear it was earned and may be carried into successive years onlywith the area vice president's and Director of Human Resources'prior approval. Approval forms are available from the PayrollOffice.

Pay in lieu of vacation may be approved only by the President inwriting.

Staff - After completing twelve months continuousservice, staff employees earn ten working days paid vacation. Staffemployees with five to fourteen years of service earn fifteen dayspaid vacation. After fifteen years of service, staff employees earntwenty working days paid vacation.

Regular part-time staff employees working a minimum of twentyhours per week accrue vacation on an equivalent pro-rated basisaccording to their established work schedule.

Administrative and Professional - After completing twelvemonths continuous service in a regular position, Administrative andProfessional employees earn fifteen working days paid vacation.Those with five or more years of service earn twenty working dayspaid vacation.

Regular part-time administrative and professional employeesworking 20-31 hours per week accrue vacation on an equivalentpro-rated basis according to their established work schedule.

Associate Deans and Academic Assistant Deans - Receive animmediate twenty working days paid vacation per year.

Academic Deans and Executives - Receive an immediatetwenty-two working days paid vacation per year.

2. Vacation Scheduling: Vacations are approved andscheduled by the supervisor, considering the employee's length ofservice and request date. Employees should request vacation as farin advance as possible; every effort is made to grant the timerequested. Requests may occasionally be denied based on requestdate, prior scheduled vacations, or department workload.Supervisors should respond to vacation requests within ten workingdays of the request. Upon request, employees may use vacation aftersix months continuous employment, with supervisory approval.

All regular employees working a minimum of 20 hours per week areeligible for holiday pay upon their hire date. Holiday pay equalsone-fifth of an employee's regular work week. Part-time employeesare paid holiday pay equivalent to the number of hours regularlyscheduled on that day. Temporary employees and employees on unpaidleave of absence are not eligible for holiday pay.

Employees required to work on a holiday are paid their regularsalary for the shift worked and granted an additional day's pay orday off at their supervisor's discretion. The day off should bescheduled as soon as possible after the holiday. If a holidayoccurs while an employee is on paid sick leave or a regularlyscheduled vacation, the hours are reported and paid as a holiday.If a holiday occurs on an employee's regularly scheduled day off,the employee receives a paid day off at another time. Employeesmust be paid the day before and after the holiday to be eligiblefor holiday pay.

Human Resources publishes and distributes the annual holidaycalendar, subject to change.

I. Identification Cards

All employees are required to have a photo ID, which allowsaccess to many University-sponsored services and events and alsoserves as the University library card. Employees must have anauthorization form provided by Human Resources before obtaining theID card; a fee is charged for replacement cards.

J. Mandated Benefits

1. Social Security/Medicare: Consistent with theSocial Security Act of 1938, the University contributes one-half ofSocial Security and Medicare taxes for all employees. Employees paythe other half as an automatic payroll deduction.
   
   
2. Worker's Compensation: In compliance withWashington State law, the University provides industrial insuranceto protect employees who sustain work-related injury or illness.The University pays the majority of the premium, which is based onhours worked. Employees also pay a share of the premium.
   
   Please review Section V, Safety and Health and Appendix 1 Accident Prevention Program for a detaileddescription of the University's safety program.
   
   
3. Unemployment Compensation: As a Washington Stateemployer, the University contributes to the State EmploymentSecurity Fund. Employees who meet the legal requirements areeligible to receive unemployment compensation. Please contact thenearest Employment Security Office for complete information.
   
   
4. COBRA (Consolidated Omnibus Budget ReconciliationAct):
   
   Employees covered by the University's medical and dental insuranceplans may choose this continuation coverage if they lose groupcoverage(s) because of certain "qualifying events." Coverage isidentical to that provided to current employees and theirdependents.
   
   Qualifying Events:
   
   
   • loss of health coverage due to reduced work hours, terminationof employment (other than for misconduct);
   • death of employee or covered parent;
   • divorce or legal separation;
   • for spouse and dependent children, an employee's entitlement toMedicare benefits;
   • child ceases to be an "eligible dependent child" under theUniversity's group health plans.
   
   
   Under COBRA, employees or a family member are responsible forinforming Gonzaga University's Benefits Office of a divorce, legalseparation, or a child's loss of dependent status under theselected health plan.
   
   This is only a summary of COBRA legislation. Please contact theBenefits Office for detailed information.