Policy # 87.0 Archived Version:
Conversion of Temporary Disability Leave

Revision date of this archived policy:
June 7, 2005

Note: This is not a current version of the policy. View current version. »

87.1 Policy
  Regular full-time and half-time staff employees who have accrued a minimum of sixty-six (66) days of temporary disability leave have a conversion option for extra vacation leave or credit toward retirement. It is the intention of this policy and its entitlements to reward loyal, long-time employees who remain healthy as well as to encourage employees to use temporary disability leave only when necessary.
  NOTE: The provisions in this policy are not available for persons retiring who are on long- term disability.
  NOTE: For a staff employee who works in a regular half-time position, conversion is available if the employee has temporary disability leave accrual which is a pro rata equivalent to sixty-six (66) days. For example, an employee who works fifty percent (.50) must maintain an accrual of thirty-three (33) days to be eligible for conversion.
  NOTE: Policies 87.1.1.1 and 87.1.2 are applicable only to employees hired prior to July 1, 1995.
  87.1.1 If, at retirement, a staff employee has a minimum of sixty-six (66) days of accrued temporary disability leave, the employee may apply all of the accrued temporary disability leave balance (except for any days opted under 87.1.2) toward (1) the employee’s service date for regular retirement or toward (2) (a) the service and/or (b) age requirements for early retirement.
    87.1.1.1 The University shall pay directly to the staff 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.

For example, if a staff employee is sixty-six (66) days short of eligibility for retirement and if the employee has sixty-six (66) days of accrued temporary disability leave, the employee’s temporary disability leave accrual could apply to fulfill the retirement eligibility requirement. Also, the employee will receive a lump sum payment based on the total number of days of temporary disability leave [less the twenty two (22) days opted in 87.1.2]. The amount of the lump sum payment will be determined by taking the remaining number of temporary disability leave days valued at the daily or hourly rate or pay, as appropriate, multiplied by the retirement percentage contribution for the staff employee.

      NOTE: An example of the calculation for 87.1.1.1 is as follows:
Total days of accumulated temporary disability leave 66 days
Less days opted in 87.1.2 (22 days x daily rate = $2,200) 22 days
Balance of accumulated temporary disability leave 44 days
Daily rate of pay (annual salary of $26,000 divided 260 work days) $100
Balance of accumulated temporary disability leave $4,400
Multiplied by normal retirement contribution percentage 10.00%
Lump sum payment to employee $440.00
  87.1.2 An employee who has a minimum of sixty-six (66) days of accrued temporary disability leave, may opt to take a cash award for the employee’s temporary disability leave accrued balance not to exceed the salary equivalency of twenty-two (22) days.
  NOTE: For the purposes of 87.1.2 in this policy, twenty-two (22) days means basically one month’s wages/salary. For an employee who works half-time or more, but less than full time, the cash award is for a wage/salary equivalency of the pro rata portion of a month of the employee’s wages/salary.
    87.1.2.1 The remaining balance of accrued temporary disability leave balance, if any, may be applied to the employee’s service and/or age eligibility toward retirement (see 87.1.1).
  NOTE:For purposes of Sections 87.1.1 and 87.1.2, “retirement” means that a staff employee retires in accordance with the University retirement Administrative Regulations (see AR II-1.6-1). These two sections are not applicable for staff employees who leave employment at the University for any other reason. These two sections are not applicable for civil service/Federal Employee Retirement System staff employees.
  87.1.3 Upon accumulating a balance of sixty-six (66) temporary disability leave days, a staff employee may, on an annual basis, voluntarily convert accrued temporary disability leave for vacation leave. An employee shall have accumulated and shall retain a minimum balance of sixty-six (66) temporary disability leave days to be eligible for this alternative conversion option.
    87.1.3.1 Only days in excess of sixty-six (66) accrued temporary disability leave days may be converted.
    87.1.3.2 One (1) vacation leave day shall be acquired for each three (3) temporary disability leave days surrendered.
    87.1.3.3 A maximum of twelve (12) temporary disability leave days may be converted in any one fiscal year.
    87.1.3.4 A staff employee who converts twelve (12) temporary disability leave days and who did not use any temporary disability leave days during that fiscal year shall acquire five (5) vacation leave days as a result of the conversion.
      87.1.3.4.1 The conversion shall occur only in the month following the fiscal year end.
      87.1.3.4.2 The days acquired through the exchange shall be considered as earned days of the completed fiscal year, even though these days are not available for use until after July 1.
      87.1.3.4.3 Any converted day(s) shall become a part of the staff employee’s vacation leave balance and shall be used in accordance with HRP&P 80.0.
    87.1.3.5 Conversion of temporary disability leave for vacation leave shall be final.
87.2 Delegation
  87.2.1 The department head shall be responsible for maintaining current, complete, and permanent records of accrued temporary disability leave, current balance available for use, use of temporary disability leave, future accrual changes and conversion records for a staff employee within the department.
  87.2.2 The department records shall be available for review by the staff employee, officials of Human Resource Services, or other authorized University officials as necessary.
87.3 Procedure
  87.3.1 A staff employee, who has a minimum balance of sixty-six (66) temporary disability leave days plus three or more days for conversion and who desires to convert accrued temporary leave days to vacation leave days, shall, in consultation with the department, complete the Temporary Disability Leave/Vacation Leave Conversion Form (see 87.4.1).
    87.3.1.1 Conversion of accrued temporary disability leave to vacation leave for the preceding fiscal year shall be completed between July 1 and July 31.
    87.3.1.2 The department head shall be responsible for forwarding any records of conversion of temporary disability leave for vacation leave to the Employee Records Office of Human Resource Services.
  87.3.2 At the time a staff employee notifies the department of an intent to retire, the department shall consult with the employee about the employee’s receiving appropriate payment for the accrued temporary disability leave days and/or applying accrued temporary disability leave days toward retirement requirements. The department, in consultation with the employee, shall ensure that the Temporary Disability Leave/Retirement Conversion Form (see 87.4.2) is completed and forwarded to the Retirement Office of Human Resource Services.
    87.3.2.1 Requests for applying accrued temporary leave days toward retirement requirements shall be made with due consideration for human resources planning purposes. It is estimated that a minimum period for proper planning purposes for retirement shall be three (3) months.
    87.3.2.2 Any costs as a result of this policy shall come from the department’s regular salary account.
87.4 Forms
  87.4.1 Temporary Disability Leave/Vacation Leave Conversion Form
  87.4.2 Temporary Disability Leave/Retirement Conversion Form

Archived Versions of this Policy

Previous version: revised 06-20-2008
Previous version: revised 11-28-2007
Previous version: revised 04-01-2006
Previous version: revised 06-07-2005
Previous version: revised 04-20-2004