Conversion of Temporary Disability Leave

Purpose

Regular staff employees with a full-time equivalent (FTE) of 0.5 or greater and who have accrued a minimum of 66 days of temporary disability leave (TDL) have a conversion option for extra vacation leave or credit toward retirement. It is the intention of this policy to reward loyal, long-time employees who remain healthy as well as to encourage employees to use TDL only when necessary.

Note: The provisions in the policy are not available for persons retiring who are on Long Term Disability (LTD).

Note: For a staff employee who works in a regular staff position with an assignment of 0.5 FTE or greater, but less than 1.0 FTE, conversion is available if the employee has TDL accrual which is pro rata the equivalent to 66 days. For example, an employee who works 50% (0.5 FTE) an accrual of 33 full days (66 multiplied by 0.5 days) must be maintained to be eligible for conversion.

Policy

Conversion to Vacation Leave

Upon accumulating a balance of 66 TDL days, an employee may, on an annual basis, voluntarily convert accrued TDL for vacation leave. A full-time employee shall retain a minimum balance of 66 TDL days to be eligible for this conversion option.

1. Only days in excess of 66 TDL days may be converted.
2. One vacation day shall be given for every three TDL days surrendered.
3. A maximum of 12 TDL days may be converted in any one fiscal year.
4. An employee who converts 12 TDL days to four vacation leave days and who did not use any TDL during that fiscal year shall acquire an additional vacation leave day (five days total).
5. The conversion shall occur only in the month following the fiscal year end (July 1 - 31).
6. Days acquired through conversion shall be counted as vacation days earned in the completed fiscal year.
7. Any converted day(s) shall become a part of the employee’s vacation leave balance and shall be final.

Conversion for Retirement

1. If, at retirement, an employee has a minimum of 66 days of accrued TDL, the employee may apply the entire accrual amount toward the employee’s service date for regular retirement and/or the age requirement for early retirement.
   
    
2. For employees hired prior to July 1, 1995, the University shall pay the employee an amount equal to that which the University would have contributed to the employee’s retirement plan if the employee had worked the same period of time.
   
   
   
   Example
   
   An employee is 65 days 'short' of eligibility for retirement and has 70 days of accrued TDL, the employee’s TDL accrual could be applied to fulfill the retirement eligibility requirement. Also, the employee will receive a lump sum payment based on the total number of TDL days. The amount of the lump sum payment will be determined by taking the remaining number of TDL days (valued at the daily pay), multiplied by the retirement percentage contribution for the employee.
   
    

   Total days of accrued TDL                                                                    70 days                  
   
   Days needed to move up retirement date                                              65 days

   Days eligible for full payment (see number 2 below)                               5 days                 
   
   Daily rate of pay (annual salary of $26,000 divided by 260 work days)    $100
   
   TDL days at full pay (5 days x $100)                                                     $500
   
   TDL days to move up retirement date                                                    65 days
   
   Value of lump sum TDL payment (65 days x $100)                                 $6,500
   
   Multiplied by normal retirement contribution percentage                          10%           
   
   Lump sum payment to employee                                                          $650+$500=$1150   
   
    

3. An employee hired prior to July 1, 1995, who has a minimum of 66 days of accrued TDL, may choose to take a cash award for the TDL balance, not to exceed the salary equivalency of 22 days.  In the example, below, the employee has 100 accrued TDL days. 
   
   
   
   Total days of accrued TDL                                                                    100 days                  
   
   Less days opted for full payment                                                           22 days
   
   Daily rate of pay (annual salary of $26,000 divided 260 work days)         $100 
   
   Value of accrued TDL (22 days x $100)                                                 $2,200
   
   Balance of accrued TDL (100 days less 22 days)                                     78 days
   
   Value of accrued TDL (78 days x $100)                                                  $7,800 
   
   Multiplied by normal retirement contribution percentage                          10%           
   
   Lump sum payment to employee                                                          $780+$2,200=$2,980
   
    

Note:  Sections 2 and 3 are not applicable for civil service/Federal Employee Retirement System staff employees.

Process

1) The department head, or designee, shall be responsible for administration of this policy. The completedTemporary Disability Leave/Retirement Leave Converstion Form shall be sent to the Human Resources Office of Employee Benefits (115 Scovell Hall, 0064).  The completed Temporary Disability Leave/Vacation Leave Conversion Form shall be sent  to the Human Resources Office of Employee Relations (213 Scovell Hall, 0064).

2) The official record for TDL balances will be maintained by the University’s centralized resource information system and available for review by staff employees online or on their pay stub.

Form

Temporary Disability Leave/Retirement Leave Conversion Form

Temporary Disability Leave/Vacation Leave Conversion Form