HR50 Use of Accumulated Vacation at Time of Resignation or Retirement, or Upon Completion of a Limited-Term Appointment

POLICY'S INITIAL DATE: October 31, 1958

THIS VERSION EFFECTIVE: July 1, 2022

Contents:

• Purpose
• Eligibility
• Settlement for Unused Vacation Balance Upon Resignation or Retirement Without Eligibility for University Insurance
• Use of Vacation Balance Prior to Retirement with Eligibility for University Insurance
• Completion of, or Retirement from, a Limited-Term Appointment

PURPOSE:

To outline the provisions for an employee's unused vacation accruals at the time of termination or prior to retirement. 

ELIGIBILITY:

This policy applies to:

• Full-time, benefits-eligible staff who have satisfied their probationary period prior to their termination date, and
• Academic employees who accrue vacation and who have completed at least one continuous year of full-time employment immediately preceding the date of termination. 

SETTLEMENT FOR UNUSED VACATION BALANCE UPON RESIGNATION OR RETIREMENT WITHOUT ELIGIBILITY FOR UNIVERSITY INSURANCE:

When an employee leaves University employment, for other than retirement as specified in the retirement section below, the unused vacation accruals may not be used to extend the employee's termination date. The dollar value of any unused vacation accruals due, in accordance with applicable policy or contract provisions, is paid to the employee in a lump sum payment. 

USE OF VACATION BALANCE PRIOR TO RETIREMENT WITH ELIGIBILITY FOR UNIVERSITY INSURANCE:

An employee who: (a) earns vacation on a formal plan; (b) has an unused vacation accruals; (c) is retiring from the University; and (d) qualifies to continue the University's insurance into retirement under University policy HR54, shall select one of the following two alternatives for using such accruals, subject to approval by the employee's administrative officer. The first alternative provides that all vacation accruals be used before the effective date of retirement. The second alternative provides that the employee may opt to use a portion of unused vacation accruals, and receive a lump sum payment for any vacation accruals remaining as of the date of the retirement.

COMPLETION OF, OR RETIREMENT FROM, A LIMITED_TERM APPOINTMENT:

Special attention must also be given to the situation wherein an employee on a Limited-Term appointment will not be continued beyond the ending date of the appointment to ensure that, either accrued vacation has already been used prior to the completion of the appointment, or that budgetary arrangements have been confirmed to provide payment of the unused vacation accruals.

CROSS REFERENCES:

HR34 - Employment Conditions for Full-Time Staff Employees

HR54 - Continuation of Group Insurance after Age 60, Age 65, and after Retirement or Death