5:041 Modified Fiscal Year Contracts
|Austin Peay State
|Modified Fiscal Year Contracts
||March 25, 2017
||Vice President for Finance and Administration
It is the policy of Austin Peay State University to provide staffing as appropriate
for an academic year.
The purpose of this policy is to establish the process regarding modified fiscal year
(MODFY) contracts at the University.
-MODFY Service Period
All regular full and part-time non-teaching personnel whose service period is at least
nine months, but less than twelve months.
The period when a MODFY employee is scheduled for active duty. Generally coincides
with the nine-month academic year, with off-duty during the summer months. However,
at the discretion of the institutional president or director, the actual length and
work schedule can vary to meet institutional staffing requirements.
Agreement used to employ regular non-academic staff who work less than twelve months
in a fiscal year.
- The Modified Fiscal Year (MODFY) appointment is an alternative employment base for
non-academic personnel at the University.
- The following outline of conditions and provisions is designed as a model to uniformly:
- Enable the University to convert fiscal year staff appointments to MODFY appointments
where staff work load requirements are subject to fluctuations in the academic calendar,
and therefore, can be adjusted without undue reduction of necessary support to essential
- Ensure protection against loss of benefits for staff affected by change in appointment
- Accommodate the preference of staff with interests in a MODFY work schedule.
- It is intended that all regular non-academic personnel shall be eligible for MODFY
appointments. The benefit provisions cited below principally address regular full-time
staff; however, the provisions apply to regular part-time staff, consistent with existing
policy and regulations.
- The president has the discretion to implement MODFY appointments for non-academic
personnel as deemed feasible and desirable.
- Re-designation of filled fiscal year positions may be made at the discretion of the
president. Notification of the termination of the existing 12 month contract should
be given and the incumbent offered a MODFY contract at a proportionately reduced salary.
- Each year, the University shall prepare new MODFY contracts that specify beginning
and ending appointment dates and the MODFY service period(s).
- In accordance with APSU policy, if a non-academic employee works 37.5 hours per week
during the MODFY service period, he or she is defined as full-time. If the employee
works less than 37.5 hours per week, he or she is designated as part-time.
- Staff on MODFY appointments will be considered to be employed for the entire 12-month
year. Regular employee status shall not be changed.
- Staff on MODFY appointments will be paid on a regular schedule over a 12-month period
in order to maintain eligibility status for full benefits as described below.
- As regular employees, staff on MODFY appointments maintain retirement eligibility.
They will receive a full year (12 months) of creditable service for retirement purposes.
- Employees in these positions will be eligible to participate in the State of Tennessee
Group Insurance Plan providing they work at least 30 hours per week during the MODFY
- They will make contributions through payroll deduction procedures throughout the entire
year, and coverage will extend throughout the year.
- It should be noted that the employees' amount of life insurance will be reduced due
to decreased annual salary in this appointment.
- Annual Leave
- These employees will be eligible for annual leave, which will be accrued at the appropriate
monthly rate for each month actually worked.
- Clerical and support employees will be given a full year's service credit for purposes
of monthly accrual levels.
- For example, an employee with less than five years' creditable service would accrue
7.5 hours annual leave, or the part-time equivalent, for each month worked.
- An employee with six years of creditable service would accrue 11.3 hours annual leave,
or the part-time equivalent, for each month worked.
- Each MODFY period served should be treated as a full year's service in determining
how many annual leave hours per month the employee accrues.
- An employee with four years of service at a 12-month service base plus one MODFY period
would be given five years' creditable service and begin accruing annual leave at the
rate of 11.3 hours per month worked, or the part-time equivalent.
- Sick Leave
- Employees will accrue 7.5 hours sick leave or the part-time equivalent for each month
- Employees in these appointments will receive full compensation for all University
holidays that occur during the MODFY service period.
- Academic-year MODFY appointments only.
- The work schedule of employees in these appointments shall coincide with that of 12-month
non-academic employees who work during breaks between quarters or semesters.
- Hours not worked during these periods shall be reported as leave.
- Civil Leave
- This leave will be granted when coinciding with regular scheduled work time during
the MODFY period.
- Military Leave
- Employees in these appointments will be entitled to leave of absence from their duties
for the purpose of military service, duty, or training in the event that this military
obligation occurs during their months of regularly scheduled service.
- They will be compensated in accordance with APSU policy for military leave compensation.
- Unemployment Compensation
- No unemployment compensation claims should be honored by the Tennessee Department
of Employment Security so long as the University has a reasonable expectation of requiring
the MODFY employee's services in the next MODFY period.
- APSU Grant-in-Aid and Scholarship Programs
- These employees should be eligible for participation so long as they are on the payroll.
- Longevity Payments
- Because they are considered full-year employees and paid over 12 months, these employees
are eligible for longevity payments as are faculty on academic year appointments.
- Payments should be made for a full year's employment.
- Some payroll calculations will be complicated because these employees' reduced salary
is spread over 12 months.
- All employment actions, whether mid-year hires, terminations, or promotions, will
require the calculation and payment of deferred salary. For this reason, overtime
payments should be kept to a minimum, if necessary at all, for clerical/support employees
in these appointments.
- Employees in these appointments may wish to seek outside employment during off-duty
months. In such cases, APSU policies on dual services will be followed, if applicable.
APSU Policy 5:041 – Issued: March 25, 2017
President: signature on file