Policy And Procedures

TUITION REIMBURSEMENT POLICY, PROCEDURES, AND APPLICATION

WHO’S ELIGIBLE?

Active, regular U.S. Consumer Bank and Corporate Center employees who maintain a satisfactory job performance rating. You must be an active employee from the time your courses start until the courses are completed. Employees with fewer than three months of service can submit an application but will not be reimbursed until after the first three months of employment. U.S. Corporate Center employees are not eligible for tuition reimbursement if total cash compensation is more than $250,000

per calendar year.

WHAT SCHOOLS ARE ACCEPTABLE?

You must attend a college or university that has received accreditation from its state Department of Education. (Obtain copy from

college catalog.) Courses must not be taken during normal working hours.

HOW MUCH WILL I BE REIMBURSED?

Reimbursement is 80% of total expenses to a maximum of $5,000 per calendar year (January 1-December 31) for regular full-time employees and $3,000 per calendar year for regular part-time employees. Human Resources will calculate the maximum reimbursement based on your status at the time of application.

U.S. Corporate Center employees are reimbursed 100% of total expenses to a maximum of $5,250 per calendar year for regular full-time employees and $3,000 per calendar year for regular part-time employees. Human Resources will calculate the maximum reimbursement based on your status at the time of application.

Note: The maximum dollar amount allowable during a calendar year is based on the year in which you actually receive reimbursement for

completed courses.

WHAT COURSES QUALIFY FOR TUITION REIMBURSEMENT?

• All undergraduate degree program courses;

• Required and elective courses in any accredited undergraduate degree program;

• Courses in your graduate degree program, if your degree is, in the judgment of your supervising officer (or his/her equivalent),

of sufficient value to the business;

• Remedial courses that must be completed, as a requirement of the school, prior to the beginning of degree-related courses that

qualify for reimbursement;

• Courses completed with a grade that the school considers passing, such as A, B, C, D, P, or S.

WHAT FEES QUALIFY FOR REIMBURSEMENT?

All fees must be itemized with associated dollar amounts for reimbursement. Only the following fees are reimbursable:

• Exam fees for credit applied toward an approved undergraduate program or approved, business-related graduate degree program,

provided you have completed three months of service;

• Registration fees, provided you pass at least one course for which you registered;

• Application fees, if you’re a student at the school to which you’re admitted and successfully complete a course;

• Readmission fees;

• Lab fees associated with courses;

• Graduation fees (with photocopy of diploma).

MUST I REPORT GRANTS AND SCHOLARSHIPS?

Yes. Funds from any other source, such as a school- or government-sponsored program or scholarship, will be reimbursed only when the total tuition exceeds the scholarship amount. In those cases, you’re eligible to be reimbursed for 80% (100% for U.S. Corporate Center employees) of the difference between the amount received from the other funding source and the tuition cost up to the dollar limits of the policy.

WHAT EXPENSES DO NOT QUALIFY FOR REIMBURSEMENT?

• Any fees that are not individually itemized showing specific dollar amounts;

• Cost of job-related/management-recommended courses and related fees, including exam fees that lead to business-related professional certification, which aren’t required for your undergraduate or graduate program;

• Interest expenses, such as interest on student loans, late payments fees, credit card interest, etc.;

• Cost of preparatory course work, such as courses taken in preparation for the GMAT or other standardized exams required for application to the degree programs;

• Books, course materials, transportation, health fees, insurance fees, student fees, and parking fees;

• Executive MBA programs; for an explanation of Citibank’s executive MBA program, contact your Human Resources representative.

TUITION REIMBURSEMENT POLICY, PROCEDURES, AND APPLICATION

HOW DO I FILE AN APPLICATION?

When you have determined the courses for which you want to register, complete a Tuition Reimbursement Application (pages 3 and 4)and then submit for your supervisor’s review. Supervisory approval is based on your supervisor’s affirmative response to questions inSection D of the application. If any portion of the application is not completed as indicated below and required supporting documentation is not attached, the application will be rejected. See “Instructions for Employee” on page 3.

WHAT APPROVALS DO I NEED?

Your supervising officer (or equivalent) must approve your application by signing and stamping the application before you start the courses and after you complete the courses. U.S. Corporate Center employees: Have your supervising officer (or equivalent) sign and stamp the application before you start the

courses. After you complete the courses, obtain the signature of both your supervising officer and authorized Human Resources officer.

HOW DO I OBTAIN REIMBURSEMENT?

You’ll be reimbursed for courses approved on your Tuition Reimbursement Application after you submit the following original documents:

• An approved application (with appropriate signatures) including approved expense(s) at the end of course work;

• Official proof of satisfactory grade (transcript or official grade report) with school seal;

• Proof of college/university accreditation obtained from the college catalog;

• Computerized bursar’s receipt on official school letterhead, including school seal or bursar’s stamp and signature, showing courses paid in full (or balance due) or zero balance deferral agreement.

The bursar’s statement must show:

• Number of courses taken;

• Number of credits for each course;

• Tuition costs (paid or deferred);

• All scholarships and/or grants as well as all miscellaneous fees.

IS THERE A REIMBURSEMENT FILING DEADLINE?

• The above documents should be submitted at the end of the term and not later than three months after completing the course.

• You also have up to three months to submit grades and computerized bursar’s receipt for courses for which you have an incomplete grade.

• You won’t be reimbursed for any course in which application, grades, and proof of payment are submitted more than three months after completing the course.

WHAT HAPPENS IF I LEAVE THE COMPANY?

If you leave before you complete your course work, you won’t be eligible for tuition reimbursement, except in the following circumstances:

• Employees are eligible to be reimbursed for courses in progress when they retire.

• Employees whose jobs have been discontinued will be eligible for tuition reimbursement only for approved courses begun prior to the notice period and/or approved courses that began and were completed during the notice period.

• Anyone on a short-term, military training, dependent care, or short-term disability leave of absence during a school term for which he/she has applied for tuition reimbursement will not be reimbursed until he/she has successfully completed the course work and returned to work.

IS MY TUITION REIMBURSEMENT TAXABLE?

The Economic Growth and Tax Relief Reconciliation Act of 2001 allows tax-free income of up to $5,250 for employer-provided educational assistance for both job-related and non-job-related courses. The act has been expanded to permanently allow untaxed reimbursements for both graduate level and undergraduate courses. This change applies to courses that begin after December 31, 2001. Any employer-provided, non-job-related educational assistance for graduate level courses begun after June 30, 1996, and before January 1, 2002 is to be included in taxable income.