OP 62.40: Graduate Employee Benefits

[Major revision–posted 7/2/26 (replaces 5/9/16 edition)]

Texas Tech University Double T

Operating Policy and Procedure

OP 62.40: Graduate Employee Benefits

DATE: July 2, 2026

PURPOSE: The purpose of this Operating Policy/Procedure (OP) is to set forth the institutional policy for graduate tuition, fee, and student health payment benefits.

REVIEW: This OP will be reviewed every two years after publication by the Assistant Vice President and Chief Payroll Officer, the Assistant Vice President and Controller, and the Senior Managing Director of Student Business Services (SBS) with substantive revisions forwarded through administrative channels to the Senior Vice President for Administration & Finance and Chief Financial Officer.

POLICY/PROCEDURE

1. Policy Statement

It is the policy of Texas Tech University (TTU) to apply graduate tuition and fee benefits and student health payments (SHP) in accordance with federal regulations, state law, and institutional policy. In the event there are federal or state law changes, or there is a discrepancy between this OP and federal or state laws, any laws that are more restrictive than this OP will prevail.

2. Regulations

3. Definitions

a. Teaching Assistant (TA) – A graduate student who is enrolled full time and employed in support of the teaching mission who is responsible for, or in charge of, a class or class section or a quiz, drill, or laboratory section. The position of teaching assistant is intended for graduate students employed in teaching activities. A TA may not serve as the instructor of record. The source of funds is ordinarily an academic FOP (fund-organization-program).

b. Research Assistant (RA) – A graduate student who is enrolled full time and employed in support of the research mission of the department to perform laboratory, library, field, computer, or other such activities as may assist the department’s research effort. The position of research assistant is intended for graduate students employed to perform research activities. An RA may not be attached to a section for any reason. The source of funds is ordinarily a grant, contract, or fellowship FOP.

c. Graduate Part-Time Instructor (GPTI) – A graduate student who is enrolled full time, employed in support of the teaching mission of the unit, and who serves as the instructor of record. The graduate student must have at least 18 graduate hours in the teaching field.

d. Graduate Coaching Assistant – A graduate student who is enrolled full time (with limited exceptions authorized by the Dean of the Graduate School) and employed in support of the Athletics Department, serving in a coaching capacity.

e. Enrolled Full Time – The Graduate School is responsible for determining full-time enrollment status for graduate students. It is generally nine hours in the fall/spring terms and six hours in the summer term with limited exceptions (see OP 64.02, Graduate Enrollment Policy).

f. Tuition Remission – Compensation paid to students as, or in lieu of, wages. Unlike scholarships, tuition remission is generally allowed on sponsored projects provided:

The student is conducting activities necessary to the project;
It is reasonable compensation for the work performed;
It is provided in accordance with established policy and in a like manner to students in return for similar work conducted under both sponsored and non-sponsored activities;
The student is enrolled in an advanced degree program; and
The work performed in relation to the sponsored project is related to the degree program.

Tuition and fee benefits discussed below, excluding waiver of non-resident tuition rates, are considered tuition remission if all deadline and eligibility requirements outlined in this OP are met. If requirements are not met, benefits will be considered scholarships that must be processed in Scholarship Universe or as otherwise prescribed by SBS.

g. Sponsored Project – A project funded by a grant, contract, or cooperative agreement under which TTU agrees to perform a certain scope of work, according to specified terms and conditions, and for specific budgeted monetary compensation. Sponsored projects include funds from federal, state, and private sources. Throughout this policy, any reference to sponsored project is intended to apply equally to cost share (see OP 65.07, Cost Sharing on Sponsored Projects) and program income (see OP 65.03, Program Income) funds.

h. Exemption – A program that allows special groups of Texas residents or non-residents to enroll and pay a reduced amount of tuition and/or fees. Exemptions outlined in this OP are excludable from gross income in accordance with IRC § 117(d).

i. Waiver – A program that allows special groups of non-residents to enroll and pay a reduced non-resident tuition rate. Waivers outlined in this OP are excludable from gross income in accordance with IRC § 117(d).

j. Student Health Payment (SHP) Support – Increased compensation to offset health insurance costs. SHP support for eligible graduate students is a taxable benefit included in gross income and issued on the individual’s paycheck.

k. Non-Resident Distance Education (NRDE) – A classification of a non-resident student, living outside the state of Texas, enrolled in a fully online approved program, and registered in only distance education courses.

4. Eligibility

Students must meet the following criteria to be considered a qualifying graduate student:

a. Fall/Spring Terms

(1) Students on Leave Without Pay (LWOP) status are not eligible for exemptions and waivers, including those benefits outlined in this OP.

(2) Appointed at least one-half time (0.5 FTE) to a TA, RA, Graduate Coaching Assistant, or GPTI position related to their degree program during the respective term.

(3) Job begin date on or before the census one date of the respective term, or according to Payroll guidelines.

(4) Electronic Personnel Action Form (ePAF) approved through level 75 on or before the census two date of the respective term.

(5) Must be enrolled full time as approved by the Graduate School.

(6) In accordance with Texas Education Code 54.2002, students classified as Non-Resident Distance Education (NRDE) are not eligible for exemptions or waivers, including benefits outlined in this OP. Departments that wish to cover the equivalent of these benefits may issue a scholarship that must be processed in Scholarship Universe or as otherwise prescribed by SBS.

b. Summer Term (consists of early summer, late summer, and full summer sessions)

(1) Students on Leave Without Pay (LWOP) status are not eligible for exemptions and waivers, including those benefits outlined in this OP.

(2) Appointed at least one-half time (0.5 FTE) to a TA, RA, Graduate Coaching Assistant, or GPTI position related to their degree program for at least 30 days during the term.

(3) Job begin date on or before the census two date of the late summer term.

(4) Electronic Personnel Action Form (ePAF) approved through level 75 for all summer appointments on or before the census one date of the late summer term.

(5) Must be enrolled full time as approved by the Graduate School.

5. Benefits

Qualifying graduate students will receive tuition and fee benefits as set forth below and SHP support in accordance with separate institutional procedures. In accordance with federal costing principles, all qualifying graduate students will receive benefits, regardless of funding source.

a. All Qualifying Graduate Students

(1) Waiver of non-resident tuition rates for the fall, spring, and summer terms in accordance with Texas Education Code § 54.212.

(2) Exemption from the following tuition and fees for the fall, spring, and summer terms:

Designated Tuition;
Differential Tuition;
IT Fee;
Library Fee;
Student Services Fee;
Student Union Fee;
Student Health & Wellness Fee (can elect to pay);
Student Athletic Event Access Fee (can elect to pay); and
Student Recreation Fee (can elect to pay).

(3) Tuition and fee benefits will post to the student’s account once the student’s ePAF is approved through level 75. Benefits may be removed if the ePAF is later rejected or returned to the submitter. Waivers are authorized by statute and will be recorded as reductions to central institutional tuition revenue. Exemptions will be allocated to the FOPs on the student’s job labor distribution as of the following dates:

(a) Fall/Spring Terms – Exemptions will be allocated to FOPs in proportion to the student’s job labor distribution as of the census two date of the respective term.

(b) Summer Term – Exemptions will be allocated to FOPs in proportion to the student’s job labor distribution as of the census one date of the late summer term and include any future summer appointments that have been processed through level 75 as of this date.

(4) Increased compensation for SHP to offset health insurance costs is allocated in fall/spring terms based on the same job appointment deadlines noted above. Eligible SHP support is processed via payroll on November 1 and March 1 paychecks in accordance with separate institutional procedures.

(a) RAs will be provided a one-time payment each term up to the total premium rate charged by the vendor (Spring billing and payment will include Summer coverage).

(b) If a student is both a TA/GPTI and RA with an assignment that equals .5 FTE, the one-time payment will reflect the appointment split.

(c) While payments will be processed via payroll the month prior to the end of the term, insurance premiums are billed to the student account and must be paid according to Student Business Services payment due dates.

(d) Students enrolled in employee health insurance through ERS are not eligible to receive SHP support.

(5) Exemptions allocable to state funds that do not allow tuition and fee benefits will post as revenue reductions to central FOPs via automated process; those allocable to allowable sources will be posted by Accounting Services (AS) as an expense within two weeks of these allocation dates.

(6) If a student’s appointment is moved from an allowable source to an unallowable source after these allocation dates, an alternate fund will continue to be required for the exemption expense, and the department may be required to reimburse applicable SHP support in accordance with separate institutional procedures. See section 6.a below for department / principal investigator (PI) responsibilities when labor redistributions are processed.

b. Doctoral Students

Qualifying graduate students who are admitted to a doctoral program will also receive the following:

(1) A benefit covering state and graduate tuition for three semester credit hours and the International Education Fee for the fall and spring terms will be posted as a scholarship to the student account based on eligibility reports. The benefit will post as an expense to central FOPs. While Scholarship Universe is utilized, benefits are employer-provided educational assistance payments excludable from gross income in accordance with IRC § 127 qualified plan rules.

(2) Exemption from the following fees for the fall, spring, and summer terms. Benefits will be allocated and expensed in accordance with section 5.a above.

Advising and Retention Fee;
Cultural Activities Fee;
Energy Fee;
Financial and Record Services Fee;
Rawls College of Business Administration (RCOBA) Facility Fee;
RCOBA and Whitacre College of Engineering (WCOE) Placement Fees; and
Transportation Fee.

c. Whitacre College of Engineering Doctoral Students

(1) Qualifying graduate students who are admitted to a Whitacre College of Engineering (WCOE) doctoral program will also have the following paid on their behalf:

State and graduate tuition for up to six semester credit hours for each fall, spring, and combined summer terms; and
International Education Fee for the summer term.

These amounts may be prorated if another exemption or waiver is applied that covers any portion of these charges.

(2) Benefit Processing Roles and Responsibilities

(a) WCOE will identify eligible students and provide SBS a list of names, benefit amounts, and FOPs to charge by the allocation dates outlined in section 5.a above. For students appointed to unallowable funds, WCOE will be responsible for providing an alternate allowable funding source for the benefit, so the expense will not always be allocated on the basis of a student’s job labor distribution; however, charges to sponsored project, applicable state, service center (see OP 62.23, Academic Service Centers), and education-related business activity (see OP 62.15, Sales of Goods and Services by Auxiliary Enterprises and Education-Related Business Activities) FOPs cannot exceed amounts that would be allocated as outlined in section 5.a above.

(b) SBS will review to ensure all are qualifying graduate students in the WCOE doctoral program and verify benefit amounts before posting to student accounts.

(c) AS will post the expense to FOPs specified by WCOE, provided none result in overcharges to sponsored project, applicable state, service center, or education-related business activity FOPs.

(3) Benefit is available for a maximum of five years. While WCOE may elect to provide similar support beyond this time period, it is dependent on performance and funding availability. Therefore, the support does not qualify as tuition remission and must be processed as a scholarship after five years.

(4) Benefit is an employer-provided educational assistance payment excludable from gross income in accordance with IRC § 127 qualified plan rules.

6. Roles and Responsibilities

a. Departments / Principal Investigators

Departments/PIs are responsible for ensuring students are appointed to the appropriate positions by deadlines outlined in section 4 above. When students are appointed to sponsored projects, departments/PIs should make reasonable efforts to ensure the appointments are commensurate with planned effort. Submittal of the ePAF constitutes departmental/PI approval that the student’s appointment is related to their degree program and, when appointed to sponsored funds, is in proportion to the expected effort. For students appointed as RAs, the Research Assistant Certification form must be completed and attached to the ePAF.

Departments are also responsible for reviewing the financial ledgers on a regular basis to ensure charges are appropriate and accurate. Departments must also evaluate labor redistributions involving sponsored project, applicable state, service center, and education-related business activity funds to determine whether the tuition and fee benefit expense should be adjusted proportionately.

If a labor change is moving funding from institutional funds to sponsored projects, gifts, or other external funds, the college may be required to reimburse SHP support as applicable in accordance with separate institutional procedures.

b. Student Business Services (SBS)

SBS will establish the date parameters within the automated processing system, address departmental questions concerning the application of tuition and fee benefits, and process WCOE educational assistance payments on the student accounts.

c. Office of Financial Aid and Scholarships (FAS)

FAS will process the additional doctoral educational benefits via Scholarship Universe based on eligibility reports. FAS will also review and manage student benefits for any over-award or Satisfactory Academic Progress (SAP) concerns.

d. Accounting Services (AS)

As new funds are established in Banner, AS will flag those that do not allow tuition remission. Tuition and fee benefits for students appointed to these funds will be charged to a clearing FOP. AS is responsible for working with the departments to transfer the charges to allowable alternate funding sources.

e. Graduate School

All TA, RA, Graduate Coaching Assistant, and GPTI ePAFs as well as Research Assistant Certification forms will route to the Graduate School for approval, which will ensure students meet its requirements for these positions, including full-time enrollment (see OPs 64.02, Graduate Enrollment Policy, and 64.03, Graduate Students Employed as Teaching Assistants and Graduate Part-Time Instructors). The Graduate School will also monitor enrollment status of all TAs, RAs, Graduate Coaching Assistants, and GPTIs throughout the semester and notify SBS if it does not comply with its full-time enrollment policy, at which point SBS will revoke benefits and notify AS so related expense reversals can be processed.

f. Health Sciences Center (HSC) Departments

Any eligible TTU student(s) in accordance with section 4 of this document who are currently employed as a TA, RA, or GPTI at the HSC may be eligible to receive tuition and fee benefits as outlined in section 5.a and 5.b above. Approved tuition and fee benefits for this population may be processed with SBS according to separately established institutional procedures.

HSC departments are responsible for notifying TTU SBS of any eligible student who has not received benefits no later than the census two date for the fall/spring terms and the census one date of the late summer term and for providing TTU SBS with a funding source to pay for applicable benefits. If funding is not provided or is unavailable, benefits must be revoked. The HSC Office of Financial Aid will receive appointment benefit reports on the census dates of each term to review for funding or approval concerns.

HSC appointments are not eligible for TTU SHP support allocations.

g. Human Resources

Human Resources will verify graduate student appointments and eligibility for SHP support.

h. Payroll & Tax Services (PTS)

PTS will process payment for applicable graduate SHP support to offset health insurance costs via payroll in accordance with separate institutional procedures.

7. Cost Transfers

If the department prefers to cover tuition and fee benefit expenses from sources other than those which fund the students’ salary, cost transfers may be submitted as long as:

a. The expense is not transferred to a sponsored project, applicable state, service center, or education-related business activity FOP, as expenses to these funds cannot exceed amounts that would be allocated in accordance with section 5.a above;

b. The expense is otherwise allowable on the FOP to be charged; and

c. The cost transfer is submitted within the earlier of 90 days of the original charge or fiscal-year-end cost transfer deadlines, as cost transfers are generally not allowed to cross fiscal years (see OPs 62.27, Cost Transfers, and 65.04, Cost Transfers Involving Sponsored Projects and Cost Share Funds, for additional policies governing the transfer of costs).

8. Revocation

If ePAFs are not revised or terminated as necessary before exemptions are charged out, departments must request revocation of the benefit. Requests should be addressed to the Senior Managing Director of SBS and approved by the department chair, college dean, and Dean of the Graduate School.

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Texas Tech Downtown Center Room 218
Email
officialpublications@ttu.edu

OP 62.40: Graduate Employee Benefits

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