POLICY 06:12:06

MODIFIED FISCAL YEAR APPOINTMENTS

Please refer to Tennessee Board of Regents Guideline P-030

Purpose

The purpose of this guideline is to establish the process regarding modified fiscal year (MODFY)
contracts at Pellissippi State Community College.

Definitions

MODFY Employees – All regular full and part-time non-teaching personnel whose
service period is at least nine months, but less than twelve months. (See TBR Policy
5:01:01:00 Employee Classification, PSC Policy 06:07:00 Employment Classification
and Board and College Leave Policies.)
MODFY Service Period – The period when a MODFY employee is scheduled for active
duty. It generally coincides with the nine-month academic year, with off-duty during the
summer months. However, at the discretion of the president, the actual length and work
schedule can vary to meet college staffing requirements.
MODFY Appointment/Contract – Agreement used to employ regular non-academic staff
who work less than twelve months in a fiscal year. (See TBR Guideline P-010, Form S-2
Notice of Modified Year Appointment and Agreement of Employment.)

Policy/Guideline

Introduction
1. The Modified Fiscal Year (MODFY) appointment is an alternative employment
  base for non-academic personnel at the Pellissippi State Community College.
2. The following outline of conditions and provisions is designed as a model to
  uniformly:
  1. Enable the college 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 services;
  2. Ensure protection against loss of benefits for staff affected by change in
    appointment base; and
  3. Accommodate the preference of staff with interests in a MODFY work
    schedule.
3. 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.
General Conditions
1. The president has the discretion to implement MODFY appointments for nonacademic personnel as deemed feasible and desirable.
2. 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.
3. Each year, the college shall prepare new MODFY contracts that specify beginning
  and ending appointment dates and the MODFY service period(s).
4. In accordance with TBR Board policy, if a non-academic employee works 37.5
  hours per week during the MODFY service period, they are defined as full-time.
  If the employee works less than 37.5 hours per week, they are designated as parttime.
5. Staff on MODFY appointments will be considered to be employed for the entire
  12-month year. Regular employee status shall not be changed.
6. 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.
Benefit Provisions
1. Retirement
  1. As regular employees, staff on MODFY appointments maintain retirement
    eligibility. They will receive a full year (12 months) of creditable service
    for retirement purposes.
2. Insurance
  1. 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 service period.
  2. They will make contributions through payroll deduction procedures
    throughout the entire year, and coverage will extend throughout the year.
  3. It should be noted that the employees’ amount of life insurance will be
    reduced due to decreased annual salary in this appointment.
3. Annual Leave
  1. These employees will be eligible for annual leave, which will be accrued
    at the appropriate monthly rate for each month actually worked.
  2. Clerical and support employees will be given a full year’s service credit
    for purposes of monthly accrual levels.
    1. 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.
    2. An employee with six years of creditable service would accrue
    11.3 hours’ annual leave, or the part-time equivalent, for each
    month worked.
  3. 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.
    1. 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.
4. Sick Leave
  1. Employees will accrue 7.5 hours’ sick leave or the part-time equivalent for
    each month actually worked.
5. Holidays
  1. Employees in these appointments will receive full compensation for all
    college holidays that occur during the MODFY service period.
6. Academic-year MODFY appointments only.
  1. 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.
  2. Hours not worked during these periods shall be reported as leave.
7. Civil Leave
  1. This leave will be granted when coinciding with regular scheduled work
    time during the MODFY period.
8. Military Leave
  1. 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.
  2. They will be compensated in accordance with TBR Board policy for
    military leave compensation.
Other Considerations
1. Unemployment Compensation
  1. No unemployment compensation claims should be honored by the
    Tennessee Department of Employment Security so long as the college has
    a reasonable expectation of requiring the MODFY employee’s services in
    the next MODFY period.
2. Board Grant-in-Aid and Scholarship Programs
  1. These employees should be eligible for participation so long as they are on
    the payroll.
3. Longevity Payments
  1. 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.
  2. Payments should be made for a full year’s employment.
  3. Some payroll calculations will be complicated because these employees’
    reduced salary is spread over 12 months.
4. 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.
5. Employees in these appointments may wish to seek outside employment during
  off-duty months. In such cases, TBR System guidelines on dual services will be
  followed, if applicable.

Sources: TBR Guideline P-030; T.C.A. § 49-8-203

Adopted by TBR: February 18, 1981
Revised by TBR: July 1, 1984
Revised by TBR: November 14, 1984
Revised by TBR: May 20, 2003
Revised by TBR: May 18, 2004
Reviewed/Recommended: President’s Council, November 27, 2023
Approved: President L. Anthony Wise, Jr., November 27, 2023