EXHIBIT 10(J)
DOMESTIC RELOCATION POLICY
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EFFECTIVE DATE OF POLICY: JANUARY 1, 1999
THIS POLICY IS FOR INTERNAL USE ONLY AND IS NOT TO BE DISTRIBUTED EXTERNALLY.
It is the Policy of the bank to provide eligible employees with relocation
assistance provided they meet the following criteria:
. They are exempt internal transfers relocating at the Bank's request.
. They are exempt new hires relocating within the United States
at the Bank's request.
The various provisions of this Policy may be provided in whole or in part. The
granting of benefits in excess of the provisions of this Policy must be pre-
approved in writing as an exception by the appropriate Director of Employment.
DEFINITIONS
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. Temporary Relocation: The employee is expected to relocate back to the
place of origin or to another assignment within 1 year. No relocation
benefits will be granted for temporary relocatees without approval from a
Director of Employment.
. Long Term Relocation: The employee's new assignment is expected to last
longer than one year.
. Homeowner: A relocating employee owning his/her primary residence at the
time an offer is extended.
. Renter: A relocating employee who does not own his/her primary residence
when offer is extended.
ELIGIBILITY
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Relocation benefits may be provided if the distance between the new work
location and the former residence is 50 miles or greater than the distance
between the former residence and the former work location.
RESPONSIBILITY
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The Corporate Relocation Manager and the Human Resources Representative will
assist Managers in the development of a relocation package best-suited to an
employee's needs, according to the appropriate provisions by grade level and
homeowner/renter status. A formal commitment letter to the employee will be
generated and signed by the Human Resources Representative. A written package,
which includes cost estimates, will be prepared by the Corporate Relocation
Manager BEFORE a commitment is made to the relocating employee.
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RELOCATION BENEFITS MAY NOT BE COMMUNICATED TO A RELOCATEE, BY ANY GRADE LEVEL
MANAGER, WITHOUT THE PRIOR APPROVAL OF THE APPROPRIATE HUMAN RESOURCES
REPRESENTATIVE AND THE CORPORATE RELOCATION MANAGER.
THE COST OF GRANTING RELOCATION BENEFITS CAN BE EXTREMELY HIGH AND PRIOR
APPROVAL IS ABSOLUTELY REQUIRED.
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Benefits may not be communicated which are not specifically stated in this
policy. It is the responsibility of the employee's supervisor to ensure that
expenses are in accordance with Policy and that proper receipts and
documentation accompany the appropriate reimbursement forms.
The Corporate Relocation Manager(CRM)is responsible for administering this
Policy and for providing estimated costs, advice and assistance to hiring
managers. The CRM is also responsible for approving the specific relocation
benefits granted to each relocating employee to ensure that proper approvals
have been obtained and that they are within policy.
Employees are expected to follow standards of reasonableness when incurring
relocation expenses and must report such expenses promptly and accurately.
INTERPRETATION, CANCELLATION OR AMENDMENT
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The Bank retains the right to interpret or apply any provisions of this Policy
with respect to any situation and may at any time cancel in whole or in part or
amend any of its provisions.
EMERGENCY LEAVE
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An employee on temporary relocation/assignment may be reimbursed by the Bank for
economy air fare for a trip due to the death of an immediate family member or
domestic partner. Extreme medical reasons may also be considered. Final approval
for such Bank-paid travel rests with the employee's Supervisor.
RESIGNATION
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If an employee voluntarily resigns from the Bank while in the process of
relocating or within one year of relocating to the new location, that employee
will forfeit the right to receive reimbursement from the Bank for expenses
incurred. The relocatee will be required to repay funds already received from
the Bank as reimbursement for relocation expenses and funds paid by the Bank to
home buying services on his/her behalf.
TERMINATION
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If an employee is involuntarily terminated by the Bank (other than for violation
of company policy), during the relocation process or on temporary assignment,
the Bank may pay actual expenses of returning family or domestic partner,
household goods and personal effects to point of origin, provided the move
occurs within sixty (60) days of termination. If moving to a location other
than point of origin, reimbursement of actual cost is not to exceed cost of
shipment to point of origin. No other expenses will be reimbursed. Employees
who do not ship their household possessions and personal effects do not receive
reimbursement in lieu of such shipments.
If an employee is terminated FOR CAUSE during the relocation process or on
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temporary assignment, the Bank will NOT pay expenses to return employee to point
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of origin.
EXCLUSIONS
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This policy does not cover temporary training assignments of one year or less.
Staff members who seek another position through the job posting system requiring
relocation will not be eligible for Domestic Relocation benefits.
EXPIRATION
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Relocation benefits expire one year and one day from start date of new
assignment except for benefits for which other time frames are expressly stated.
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ADMINISTRATION
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The Corporate Relocation Manager(CRM)will provide consulting services to
Managers and Human Resources Representatives. The CRM will provide operational
details to relocating employees and the necessary forms and literature to be
used for third-party assistance and reimbursements. The CRM will also process
all benefits.
EXCEPTIONS
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Sections of this Policy clearly identify the organizational level required to
make exceptions. All other exceptions, including grade level eligibility, must
have written authorization from the Director of Employment. The Corporate
Relocation Manager must have written authorization to implement any exceptions
granted.
ALLOCATION OF COSTS
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Costs incurred by the Bank under this Policy will be charged to the
Responsibility Center where the employee is to be assigned upon relocation.
REIMBURSABLE EXPENSES
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The Bank may reimburse the employee for expenses in accordance with the
agreement between the hiring Manager, Human Resources Representative, Corporate
Relocation Manager, and the employee. Reimbursable expenses are as follows:
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HOUSEHUNTING TRIP
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ELIGIBILITY:
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EXEMPT GRADE HOMEOWNER RENTER
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MPP 8 Days Max 5 Days Max
30-32 8 Days Max 3 Days Max
26-29 5 Days Max 3 Days Max
Mgmt. Trainee - see separate section
The Bank may reimburse direct-route economy airfare or mileage and reasonable
expenses for meals, lodging, telephone and ground transportation for the
employee and spouse or domestic partner for ONE househunting trip to the new
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location. Direct hotel billing to the Bank is limited to room and tax only.
Meals and other reimbursable expenses must be treated separately and cannot be
charged to the hotel bill. Reasonable baby-sitting and kenneling costs may also
be paid.
TRANSFER OF EMPLOYEE AND FAMILY
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ELIGIBILITY: ALL EXEMPT EMPLOYEES
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The Bank may reimburse reasonable expenses for meals, lodging and transportation
incurred by the employee and family or domestic partner when transferring from
the former to the new location. Such costs are paid not only for the employee's
spouse or domestic partner and children but also for other family members
normally residing in the employee's household. The Bank may pay direct-route
economy fares or, if using personal automobile, the standard Bank mileage
allowance for the most direct route.
EMPLOYEE DEPARTURE EXPENSES
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ELIGIBILITY: ALL EXEMPT EMPLOYEES
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Prior to departure from the former location, temporary housing will be provided
for up to two nights maximum.
NOTE: ALL TRAVEL ARRANGEMENTS, INCLUDING AIRLINE TICKETS, AUTO RENTALS AND
HOTEL RESERVATIONS MUST BE MADE THROUGH A TRAVEL COORDINATOR IN THE TRAVEL
DEPARTMENT AT THE HEAD OFFICE (617-434-2501).
TRANSPORTATION OF HOUSEHOLD POSSESSIONS
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ELIGIBILITY:
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EXEMPT GRADE
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MPP
30-32
26-29
Mgmt. Trainee - see separate section
The Bank may pay reasonable costs for packing, insuring and transporting the
employee's household possessions from the permanent residence at the former
location to EITHER a temporary or permanent residence at the new location. The
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transportation cost of shipping household pets as accompanying baggage may also
be paid.
The Bank may pay for the transportation of bulky items such as those listed
below with approval of the Corporate Relocation Manager:
. Utility Sheds
. Garden Tractors
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. Pool Tables
. Riding Lawnmowers
THE BANK WILL NOT PAY FOR TRANSPORTATION OF FIREARMS, TRAILERS, BOATS, BUILDING
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SUPPLIES, FARM IMPLEMENTS, HORSES/LIVESTOCK, SHRUBS/PLANTS, FIREWOOD, CAMPERS,
RECREATIONAL VEHICLES, FROZEN FOODS OR OTHER PERISHABLES.
STORAGE
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ELIGIBILITY:
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EXEMPT GRADE HOMEOWNER RENTER
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MPP 60 Days 60 Days
30-32 60 Days 30 Days
26-29 30 Days N/A
Mgmt. Trainee - see separate section
The Bank may pay for storage of household effects, including all handling and
insurance, if required at the new location. The Bank may also pay for boarding
of household pets with approval of the Corporate Relocation Manager.
When temporarily relocated (for less than one year), household effects that are
not shipped and cannot be left in the home at the former location may be stored
for the period of assignment at Bank expense. Short term training assignments
do not qualify for storage of household goods. Exceptions for additional
storage time must be approved by the Corporate Relocation Manager.
NOTE: All arrangements for moving and storage of household possessions and
personal effects MUST BE MADE THROUGH THE RELOCATION DEPARTMENT AT THE HEAD
OFFICE (617-434-8632).
INSURANCE
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ELIGIBILITY:
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EXEMPT GRADE
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MPP
30-32
26-29
Mgmt. Trainee - see separate section
If the transportation of household goods is approved, the Bank, along with the
carrier selected by the Relocation Department, will provide insurance protection
up to full replacement value for all shipment articles listed by the employee on
the carrier inventory. The Bank will not be responsible for items not listed on
the carrier inventory. Qualified appraisals must be provided to the carrier for
individual items valued in excess of $5,000.
Because of ICC regulations, the following items are EXCLUDED FROM COVERAGE:
DOCUMENTS, CASH, COLLECTIBLES, JEWELRY, WATCHES, AND PRECIOUS STONES.
AUTOMOBILES
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Eligibility:
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EXEMPT GRADE
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MPP
30-32
26-29
Mgmt. Trainee - see separate section
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The Bank may pay the standard mileage allowance for driving a maximum of two
automobiles to the new location. In cases where the distance exceeds 500 miles
between the former and the new residence, the Bank may pay the cost of
transporting a maximum of two (2) automobiles to the new location.
TEMPORARY HOUSING
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ELIGIBILITY:
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EXEMPT GRADE HOMEOWNER RENTER
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MPP 60 Days 60 Days
30-32 60 Days 30 Days
26-29 30 Days N/A
Mgmt. Trainee - see separate section
If the employee is required to report to the new assignment prior to finding
permanent housing, the Bank may provide temporary housing for the employee and
family or domestic partner. A corporate apartment may be provided if available.
However, if housed in a corporate apartment, expenses for food and laundry will
not be reimbursed. If a corporate apartment is unavailable, hotel
accommodations may be arranged and expenses for food and laundry will be
reimbursed. Temporary living expenses in accordance with IRS guidelines may
begin as of the date the employee reports to the new location.
Corporate apartments must be treated with the same respect as other Bank assets.
Willful damage may result in disciplinary action. Expenses for repair of
damages may be charged directly to the employee.
NOTE: All arrangements for temporary housing MUST BE MADE THROUGH THE
RELOCATION DEPARTMENT AT THE HEAD OFFICE (617-434-8632).
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TRIPS HOME
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ELIGIBILITY:
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EXEMPT GRADE HOMEOWNER
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MPP 4 Trips Max
30-32 4 Trips Max
26-29 2 Trips Max
Mgmt. Trainee - see separate section
Trips home may be authorized when an employee precedes his/her family or
domestic partner to the assignment location and the nature and location of the
assignment makes them feasible. Reasonable expenses, including economy air fare
incurred for visits home, are reimbursed and must be taken at intervals of not
less than every other week. The cost of a trip to conclude a home sale should
be coordinated with authorized trips home.
CLOSING COSTS NEW LOCATION/FORMER LOCATION
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ELIGIBILITY:
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EXEMPT GRADE
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MPP
30-32
26-29
Mgmt. Trainee - see separate section
The Bank may pay reasonable expenses of certain closing costs for the purchase
of a primary residence at the new location and the sale of the current primary
residence, including: survey charges, title charges, reasonable attorney's
fees, home inspection, termite inspection, mortgage application fee, recording
and transfer charges, credit report and appraisal fee. The settlement statement
provided by the lender at the closing must be submitted for reimbursement of
closing costs.
DUPLICATE CARRYING CHARGES
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ELIGIBILITY:
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EXEMPT GRADE HOMEOWNER
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MPP 60 Days Max
30-32 60 Days Max
26-29 60 Days Max
Mgmt. Trainee - see separate section
The Bank may reimburse duplicate carrying charges up to a maximum of two months
on an unoccupied or unrented primary residence owned by the employee at the
former location, provided the employee has secured a permanent residence at the
new location, has legal possession of two residences and is incurring duplicate
housing expenses.
Carrying charges include: real estate taxes, property insurance, utilities and
the interest portion of the lesser of the two mortgages. Reimbursement of these
expenses will be pro-rated on a daily basis and will commence as of the date of
possession of a permanent residence at the new location. The Bank will not
reimburse the portion of the mortgage payment applied toward the principal or
the costs of maintenance, repairs, improvements or security.
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PRE-MARKETING ASSISTANCE
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ELIGIBILITY: ALL EXEMPT EMPLOYEES
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The Bank may provide pre-marketing consulting services through a Relocation
Management Consulting Company. This service is designed to reduce the length of
time the former residence is on the market and obtain the maximum sale price for
the employee. The Corporate Relocation Manager may make the necessary
arrangements.
HOME FINDING ASSISTANCE
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ELIGIBILITY: ALL EXEMPT EMPLOYEES
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The Corporate Relocation Manager may provide home finding assistance, when
necessary, to all relocating employees.
SALE OF PRIMARY RESIDENCE
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ELIGIBILITY: CONTACT THE CORPORATE RELOCATION MANAGER
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When an employee who owns their primary residence is relocated, the Bank may
provide home-sale assistance at the discretion of the Manager, Human Resources
Representative and the Corporate Relocation Manager. Primary residence is
defined as a private or semi-private dwelling, or a condominium, owned by the
employee. The Bank will not provide assistance in disposing of secondary tracts
of land, vacation homes or property held primarily for investment purposes.
RETAINED PRIMARY RESIDENCE
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ELIGIBILITY:
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EXEMPT GRADE
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MPP only
Internal transfers on temporary assignment (under 1 year) who own their home at
the time of transfer are encouraged to retain their primary residence. If the
employee decides to lease the home, the Bank may reimburse for rental management
services for the duration of the temporary assignment and for reasonable
increases in insurance premiums resulting from tenant/vs. homeowner coverage
and/or occupied/vs. unoccupied coverage.
Such services do not include cost of property repair or maintenance. Should an
employee be unable to lease his/her primary residence before renting at the new
location, the Bank may reimburse the employee for a maximum of two months
commencing on the effective date of the lease at the new location or until the
employee leases the home (whichever occurs first).
BRIDGE LOAN
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ELIGIBILITY: CONTACT THE CORPORATE RELOCATION MANAGER
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If an employee buys a home at the new location before selling the home at the
former location, a bridge loan may be secured. BankBoston will obtain opinions
of value from at least two real estate brokers. A lender chosen by BankBoston
may then loan a percentage of the equity based on current market conditions.
However, if broker's opinion of the value is being used, BankBoston reserves the
right to negotiate the dollar amount of the bridge loan based on current local
practices.
The interest on these loans is charged to the appropriate Responsibility Center,
and the loans are to be repaid within 15 days after the sale of the home at the
former location. When the employee sells the former residence, the amount of
the bridge loan must be forwarded directly to the lender.
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The employee must complete an application (available from the Corporate
Relocation Manager and submit evidence of the current balance of the present
mortgage (including any liens or second mortgages).
LEASE CANCELLATION (RENTERS)
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ELIGIBILITY:
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EXEMPT GRADE
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MPP
30-32
26-29
Mgmt. Trainee - see separate section
The employee is responsible for canceling any lease remaining at the former
location at the time of transfer and obtaining a written release from the lease
obligation. The Bank may pay reasonable costs of canceling leases equivalent to
a maximum of 2 MONTHS rent.
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FINDER'S FEE/DEPOSITS (RENTERS)
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ELIGIBILITY:
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EXEMPT GRADE
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MPP
30-32
26-29
Mgmt. Trainee - see separate section
The Bank may reimburse reasonable finder's fee to secure rental housing.
Security deposits of up to 2 months rent may be advanced to the employee for a
period of up to one year. These advances must be repaid by the end of the first
year and may be provided interest free.
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RELOCATION ALLOWANCE
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ELIGIBILITY:
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HOMEOWNER RENTER
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$2,000 $1,000
When relocating at the Bank's request, the Bank may provide a relocation
allowance to defray miscellaneous expenses not specifically identified as
reimbursable under other provisions of this policy.
TAXES
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ELIGIBILITY: ALL EXEMPT EMPLOYEES
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In order to be eligible for deductibility of moving expenses for tax purposes,
the employee must work full time for at least 39 weeks following the move.
Under present IRS regulations certain relocation expenses are considered income
to the employee and are subject to taxation. In order to compensate for
additional Federal and State taxes the Payroll Department will make appropriate
estimated adjustments at the time of payment.
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