A separate mailing to those not participating in the retirement plan will have additional details. The increase will enable the University to better compete in an employment market where job applicants often have several choices. Human resources consultants Melissa Durst on the Chicago campus and Vicki Pfeifer on the Evanston campus report that tuition benefits recently have proven a deciding factor for both current staff and outside applicants interviewing for positions at Northwestern. For faculty and staff taking one course in each of three quarters, the new maximum will cover most of the expense of tuition, whether the courses are undergraduate, graduate, or professional or in the School of Continuing Studies. The portion of tuition reimbursed will continue at the current levels of 75 percent or 85 percent, depending on the school.
Eligibility continues to require regular full-time faculty or staff status.
Undergraduate tuition reimbursement above that amount is considered taxable income. All graduate tuition reimbursement is taxable, a change resulting from Congress's failure to renew the temporary exemption for graduate-level tuition in Internal Revenue Code Section 127. Taxes are deducted from the employee's paycheck when tuition is billed. Tuition reimbursement is credited to the person's student account. The tuition plans for spouses and dependent children are not affected by this year's change in the benefit for faculty and staff.