Until recently, when employees left the University, the last department they worked in was responsible for paying out unused vacation and bonus leave, even if the employee had only been with the department a short time. That’s recently changed.
On July 1, 2018, the University created a central pool to fund the payout of vacation and bonus leave when employees leave the University.
Central Leave Pool Balances Payouts
The new pool for leave payouts makes it easier for departments to plan expenses because they pay for terminal leave payouts in steady and predictable increments, instead of large, unpredictable payments when employees leave. The central pool also balances the burden of leave payouts across departments. For example, if a long-term employee takes a position in a different department and retires shortly after, the new department no longer has to fund the entire payout.
On July 1, 2018, the University created a central pool to fund the payout of vacation and bonus leave when employees leave the University.
Beginning with the July 6, 2018 paychecks, 1.2% of each source that funds the pay for SHRA and EHRA Non-Faculty leave-eligible employees will be charged to the central leave pool.
The charge will appear on account code 516130, though they will roll up to different buckets dependent on the fund type. It is important to note this fee isn’t coming out of your paycheck. The fee is being charged to the chartfield that funds your pay.
BE ON THE LOOKOUT: If you see a unfamiliar new charge in InfoPorte, it’s the 1.2% Central Leave Pool fee. It looks similar to the Core Data and Transit fees currently in InfoPorte.