ICAP International Assignee Allowances Policy



Policy on Allowances Offered to Internationally Hired Employees Assigned to Work in Countries Outside of theUnited StatesRevision Effective1 July 2017112395077572400Table of ContentsContents TOC \o "1-3" \h \z \u Introduction PAGEREF _Toc485651155 \h 1Policy Background PAGEREF _Toc485651156 \h 1Applicability PAGEREF _Toc485651157 \h 2Visa and Work Permits PAGEREF _Toc485651158 \h 5Housing Subsidy for Country Directors PAGEREF _Toc485651159 \h 5Education Allowance PAGEREF _Toc485651160 \h 7Home Leave Allowance PAGEREF _Toc485651161 \h 8Relocation Allowance PAGEREF _Toc485651162 \h 9Taxation PAGEREF _Toc485651163 \h 10IntroductionThis policy describes allowances offered to specific internationally hired ICAP employees (International Assignees) assigned to work in countries outside of the United States and who are based in Columbia-formed entities known familiarly as Limited Liability Companies (LLCs) or Centers for International Programs (CIPs). These assignees may be employed directly by Columbia University (CU-Hired International Assignees) or directly by University-formed or University-affiliated entities (CO-Hired International Assignees). Both types of assignees may be nationals of, or expatriates to, the countries to which they are assigned to work.This version of the policy will be in effect as of 1 January 2017 and will remain in effect until further revisions are deemed necessary. This version supersedes the version that was effective as of 1 August 2015.Policy BackgroundGiven the nature of the work performed abroad, ICAP needs to recruit highly trained and experienced individuals to perform complex work at country or regional levels. These individuals need to have specialized training and experience associated with the planning, management, implementation and evaluation of international public health and development programs. They also need to be experienced in the provision of technical assistance to strengthen health systems and training support to improve national or local human resources capacity. Many of these staff positions also require extensive research experience, as they are expected to lead and/or participate in the implementation of public health research.Qualified candidates who possess these skills and experience are often in short supply in the countries where ICAP performs its work. To identify the most suitable candidates for these positions, ICAP aggressively recruits at national (in-country), regional (e.g., within sub-Saharan Africa), and international levels. Because qualified candidates for these positions do possess advanced and highly marketable skills, training, and experience and generally have worked for organizations in the same field as ICAP, it is a common expectation that compensation packages offered to incumbents in these positions include enhancements such as premium pay (i.e., enhancements to the competitively positioned basic salary) and allowances beyond what locally hired staff are typically provided. This policy describes the remuneration packages ICAP routinely offers individuals who fill these positions.To ensure that remuneration packages offered to candidates for these positions are realistic and competitive and consistently applied, ICAP routinely interacts with competitor organizations (e.g., NGOs and academic institutions) about their own practices and maintains active membership within international associations (e.g., InsideNGO) through which regular, updated data practices for pay and other compensation are provided. In addition, ICAP routinely purchases independent market survey data for specific countries in order to assess average costs for leased housing and goods and services.ApplicabilityThe provisions of this policy apply to two distinct categories of ICAP employees:Columbia University-hired employees (CU-Hired International Assignees) assigned to work outside the United States: These employees may be nationals of or expatriates to the countries to which they are assigned to work. As CU-Hires, these employees are Columbia University employees paid through the University payroll system, are covered by the policies and procedures of the University, and are eligible to receive most benefits afforded to all Columbia University employees in addition to applicable subsidies and allowances outlined in this policy.CO-Hired International Assignees. These employees may also be nationals of or expatriates to the countries to which they are assigned to work. These individuals are employees of the local entities established to support ICAP’s work in-country (e.g., LLCs) and are paid entirely through local payroll systems. These employees are covered by the terms and conditions of the local entities (described through existing Local Hire Manuals in each country) and are eligible to receive all benefits that are afforded to other locally hired employees in addition to applicable subsidies and allowances outlined in this policy.Further, in the application of this policy, ICAP differentiates between assignees (under both categories above) who hold the position of Country Director and other employees as well as assignees who were employed as CU-Hires prior to May 1, 2012 and employees (under both categories above) hired after that date. This is because Country Directors, due to the nature of their positions, may receive specific allowances that other employees do not routinely receive and ICAP’s decision to prospectively maintain allowance packages offered to CU-Hires employed prior to May 1, 2012 with few modifications until these assignees either a) transition to fill other ICAP positions or b) resign from University employment.In administering these allowance policies, ICAP recognizes four distinct groups of International Assignees:Group 1Columbia University-hired employees (CU-Hires) assigned to work outside of the United States and employed by the University prior to May 1, 2012For all CU-Hire staff (Country Directors and others) employed by the University prior to May 1, 2012, the following allowances are provided:Post Allowance and Post Differential at the rates indicated by the US State Department as in effect for the country where the employee was assigned as of May 1, 2012. These rates will remain in effect for as long as the individual remains under this allowance category. If the assignee transfers to another country, the Post Allowance and Post Differential are no longer provided and the assignee reverts to the same policy affecting employees hired after May 1, 2012.Educational Allowance for eligible dependent children for elementary and secondary (high school level) education. The allowance is limited to US$ 10,000 per child, per academic year with a family maximum of US$ 30,000 per year. Educational allowance is limited to cover the costs of tuition only.Housing Allowance for leased properties at amounts in effect for each individual as of May 1, 2012 or higher if the landlord has imposed increases since that date.A Home Security Allowance to cover the actual costs of home security services up to a maximum of US$250 per month where applicable and necessary, for those receiving the Housing Allowance. These costs will typically be paid directly by the ICAP Country Office.Home Leave Allowance consisting of an annual economy airfare to the assignee’s home of record for the assignee and qualified dependents living with the assignee in the host country.Group 2All ICAP Country Directors Hired After May 1, 2012For all ICAP Country Directors hired after May 1, 2012 (including CO-Hires and CU-Hires) the following allowances are provided:A Housing Allowance consisting of average housing lease costs paid by international assignees from other organizations living in various locations where ICAP Country Offices are located. The housing allowance will be paid regardless of the incumbent’s nationality or length of residence in the host country. Incumbents who own a residence in the city where the ICAP office is located are ineligible for a Housing Allowance.A Home Security Allowance to cover the actual costs of home security services up to a maximum of US$250 per month where applicable and necessary, for those receiving the Housing Allowance. These costs will typically be paid directly by the ICAP Country Office.?International Assignment Allowance of 30% of the incumbent’s base salary provided, regardless of the incumbent’s nationality or length of residence in the host country.Educational Allowance for eligible dependent children for elementary and secondary (high school level) education. The allowance is limited to US$ 10,000 per child, per academic year with a family maximum of US$ 30,000 per year. The educational allowance will be limited to cover the costs of tuition only.Home Leave Allowance consisting of an annual economy airfare to the assignee’s home of record for the assignee and qualified dependents living with the assignee in the host country.Group 3Columbia University-hired employees assigned to work outside of the United States and employed by the University after May 1, 2012 (other than Country Directors)For all CU-Hires (other than Country Directors) employed by the University after May 1, 2012, the following allowances associated with their status as international assignees are provided:International Assignment Allowance of 30% of the incumbent’s base salary provided, regardless of the incumbent’s nationality or length of residence in the host country.Educational Allowance for eligible dependent children for elementary and secondary (high school level) education. The allowance is limited to US$ 10,000 per child, per academic year with a family maximum of US$ 30,000 per year. The educational allowance will be limited to cover the costs of tuition only.Home Leave Allowance consisting of an annual economy airfare to the assignee’s home of record for the assignee and qualified dependents living with the assignee in the host country.Group 4All ICAP Country RepresentativesICAP Country Representatives, both CO-hired and CU-hired international assignees, are provided the following allowances:International Assignment Allowance of 30% of the incumbent’s base salary provided, regardless of the incumbent’s nationality or length of residence in the host country.All standard local benefits offered to other locally hired employees within the ICAP Country Office (as described in the Country Office Local Hire Manual), including participation in either the local medical plan or a more internationally oriented plan, if available.Home Leave Allowance (if not residing in their home country) consisting of an annual economy airfare to the assignee’s home of record for the assignee and qualified dependents living with the assignee in the host country.Group 5CO-Hired International Employees (other than Country Directors and Country Representatives)For all CO-Hired International Employees the following allowances are provided:International Assignment Allowance of 30% of the incumbent’s base salary provided, regardless of the incumbent’s nationality or length of residence in the host country.All standard local benefits offered to other locally-hired employees within the ICAP Country Office (as described in the Country Office Local Hire Manual), including participation in either the local medical plan or a more internationally-oriented plan, if available.Home Leave Allowance consisting of an annual economy airfare to the employee’s home of record for the employee and qualified dependents living with the employee in the host country.Visa and Work PermitsICAP supports international assignees in obtaining visas for the employee and accompanying family members and a work permit for the employee, if necessary.?ICAP will reimburse or pay reasonable and customary expenses associated with obtaining visas and work permits for the employee and legal dependents, including the actual costs of visas and work permits, postage, and fees for translating required documents.Housing Subsidy for Country DirectorsMaximum Housing Subsidy: Country Directors hired after May 1, 2012 are eligible to receive a Housing Allowance representing actual rental costs paid by the international assignee up to a maximum subsidy determined by ICAP NY Human Resources. ICAP NY Human Resources may set the maximum subsidy based on available information about the average house lease costs paid by international assignees from other organizations living in that location and/or based upon information provided by the Country Director looking for housing. In the latter case, the employee should provide ICAP NY Human Resources with at least three rental quotes and a justification for the employee’s choice of housing. These quotes can come from real estate agents and/or housing advertisements available online or in local newspapers.If the total housing cost for the leased property selected by the Country Director exceeds the ICAP maximum, the excess will be paid by the Country Director.Housing allowances will not be provided to Country Directors who own or who elect to purchase or build a primary residence in the city (or immediate surrounding area) in which the ICAP office is located.Negotiation of the Lease and Making Payments: The Country Director is responsible for finding suitable housing with Country Office advice on suitable neighborhoods in which the Country Director may lease a residence.?The Country Office will also provide information about services provided by real estate agencies, where available.The Country Director is responsible for negotiating and signing a valid and official lease directly with the landlord. The lease agreement is between the employee and the landlord, and ICAP is not responsible for the lease or its terms.If the Country Director would like ICAP’s local legal counsel to review the lease, the Country Director is responsible for any legal fees incurred in obtaining this service, as well as for any other costs associated with securing their housing.Wherever possible, the Country Director should attempt to obtain annual leases that are paid on a month-to-month basis. In cases where this is difficult (e.g., prevailing practice in-country requires the prepayment of leases for extended periods such as three months or even longer), the Country Director should negotiate hard with the landlord to agree upon as short a prepayment period as possible. The ICAP standard is a maximum of three months’ prepayment (quarterly payments).The Country Director is responsible for providing the Country Office with a copy of the lease that is signed by both the individual and the landlord. The lease must clearly identify the monthly and/or annual cost. If the lease is not in English, a translation should be attached.The Country Director is responsible for paying lease costs directly to the landlord and will be reimbursed by ICAP in accordance with this policy. If prepayments are so high that the Country Director needs ICAP to advance funds for this purpose, the ICAP Director of Human Resources will establish an agreement with the employee so that the Country Office may proceed with making those prepayments directly to the landlord. Each prepayment will be considered an employment-related advance to the individual, and the employee is responsible for any balance due that is associated with leaving that housing location prior to the end of the period covered by the most recent prepayment. Education AllowanceEducation allowance to help offset the cost of primary and secondary school for qualified dependents will be provided to eligible staff as described above. The specifics of the education allowance are as follows:The allowance is intended for dependent children between the ages of five and 18 as long as they are attending an accredited kindergarten, elementary, intermediate, or high school.The maximum allowance provided is US$ 10,000 per child, per academic year with an annual family maximum of US$ 30,000.The allowance is limited to tuition only and cannot be applied to fees such as registration fees, building fund fees, uniforms, books, class trips, computer labs, or any extracurricular activities.The education allowance ceases on the earliest of the following dates:Date the dependent completes the final year of secondary schoolEnd of the calendar year in which a dependent child turns 19Date of termination of employment (Note: Any children of terminated employees who are receiving the education allowance will be allowed to complete any semester that has already started.)In applying for the educational allowance for the first time for an eligible dependent, the staff member must provide a copy of the child’s birth or adoption certificate as a way of documenting the dependent relationship and the age of the child.The employee may request that ICAP pay the school directly or they may pay the school out-of-pocket and request reimbursement from ICAP (through a Travel and Business Expense Report or TBER form). Below are some of the reimbursement guidelines:All reimbursement requests are approved by the ICAP NY Human Resources Department.All reimbursement requests must contain an official invoice from the educational institution that:Clearly shows the student’s name and dates for each school year and the specific term which the reimbursement is either being applied to or being reimbursed forClearly itemizes total fees, specifically the fee associated with the tuition portion of the invoiceIs presented in English or with an English translationOnce the invoices and/or reimbursement documents have been submitted, they will be reviewed and approved by the ICAP Director of Human Resources.Home Leave AllowanceEligible international assignees and qualified dependents living at post are entitled to an annual home leave allowance (one earned for 12 months of service completed), subject to restrictions in the sponsored project award(s). The allowance consists of round-trip air tickets from the country of assignment to the employee’s home of record. Below are the policy guidelines for the Home Leave Allowance.The allowance is transferable to travel to a location other than the home of record if the cost of the ticket to the alternate location is less than or equal to the cost of the ticket for travel to the home of record. If the cost to an alternate location is greater, the additional cost is the responsibility of the employee.Home leaves cannot be taken after a resignation or termination has been announced or within six months of the end of an assignment. Home leaves not taken during the 12-month period within which they are allowed may not be carried over to the following year.Home leave tickets are to be purchased through ICAP-New York unless the Country Office can document that a more economical ticket for the same itinerary can be secured.Extra charges for changes in itinerary or cancellation of travel plans not due to operational reasons will be the responsibility of the assignee.Home leave allowance will not be provided to assignees who are working in their home?country.Eligible employees must complete a Request for Home Leave Form and have it approved before arranging for travel paid by ICAP. Approval is required from both the ICAP NY Human Resources Director and the Country Director or, if the Country Director is making the request, the ICAP COO.Allowable Home Leave Travel ExpensesThe cost of round-trip economy fare for the employee and qualified dependentsTransportation to/from the airport and airport feesThe cost of a day room or hotel room, if the travelers have a forced layover in an airport for eight hours or moreUnallowable Home Leave TravelPer diemMiscellaneous travel expensesEn-route transit costsNote: Employees are entitled to one “travel day” in each direction of their Home Leave trip, as well as one medical day in their home country for check-ups with their physician(s). Such days will not be counted against their vacation accruals.Relocation AllowanceRegardless of the employment category of the employee (CU-Hired or CO-Hired International Assignee), if the employee is required to relocate from their current home country (or current country of assignment) to another country in order to assume an ICAP position, they may be eligible for a relocation allowance up to a maximum of US$ 10,000 in accordance with Columbia University policy. The amount of any relocation allowance is subject to availability of funding through relevant sponsored projects and current Columbia University policy. The details of the relocation allowance are as follows:The allowance is available both at the beginning and the end of the assignment. At the end of the assignment, shipment will be made only to the employee’s home of record or to their next duty assignment if the new employer is not paying for such relocation. All shipments must be made within 60 days of when the employee departs the host country and/or is separated from ICAP employment.The allowance is intended for the shipment of household goods and personal effects only. The shipment of automobiles, pets, or articles of unusual size or value is not covered by the relocation allowance. Under exceptional circumstances and with approval of the ICAP NY Human Resources Director, the relocation allowance – up to a maximum of $5,000 – may be used instead to purchase household goods and basic furnishings upon arrival in the assignment location. Such items become the property of ICAP at the end of the international assignee’s employment at that location. Note that motorized vehicles cannot be purchased with the allowance.The employee must obtain three quotes from shipping agents and submit them to the ICAP NY Human Resources for review, approval, and final selection of the shipping agent.Once the shipping agent has been identified, ICAP NY Human Resources staff will initiate contact with the agent and once this has been completed, the employee will be notified.Payment to the shipping agent will be made directly to the agent by Columbia University. If the cost of relocation is below US$ 10,000, the assignee will not be eligible to receive the difference between actual costs and US$ 10,000.It is the employee’s responsibility to work with the agent in order to arrange for the actual shipment.TaxationIt is an underlying expectation of ICAP at Columbia University that all international assignees (either CU-Hired or CO-Hired International Assignees) will meet their tax obligations in both their home and host locations. Some of the allowances listed within this manual may or may not be taxable to the assignee in either tax jurisdiction, and assignees are expected to work with their tax advisors to make that determination and to ensure that the appropriate remittances are made to the various taxing authorities. In certain countries where ICAP works, Columbia University has existing Memoranda of Understanding (MOUs) and/or other documentation (e.g., confirmations from national tax authorities) that exempts from local tax requirements specific types of compensation and benefits offered to international assignees.Questions related to local tax requirements should be directed to tax advisors in-country or local legal counsel. The ICAP Director of Human Resources may also be contacted for assistance. ................
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