HR Policy and Procedure #87 Conversion of Temporary Disability Leave Revised August 15, 2023

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 from April 1 through March 31 in the previous year shall acquire an additional vacation leave day (five days total).
5. The conversion shall occur only in the month of April (April 1 - 30).
6. Days acquired through conversion shall be counted as vacation days earned in the current 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. At retirement, staff employees with an accumulation of at least 66 days may use these days to add to years of service to meet service requirements for normal retirement eligibility or for the age/service matrix.
    

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. Log on to myUK.
2. On the Employee Self Service tab, click Working Time and Leave Requests.
3. Click the TDL to Vacation Leave Conversion link.
4. The TDL conversion form will open. 
5. Enter your total number of TDL days accrued, followed by the the number of TDL days you wish to exchange for vacation leave. If you have not used any TDL days over the past year, note that on the form as well. This will qualify you for an additional vacation day. Then, enter the number of vacation days to be received and the number of TDL days you will have remaining after the conversion.
6. Electronically sign the form (electronic signature instructions will display) and submit the form. The new vacation days will be availble on June 1, which is when you will see it listed on your Leave Balance statement.
7. Employees will receive a confirmation email when their request is received.