Longevity Pay
The Longevity Policy recognizes and expresses the University’s appreciation for long-term service of permanent SHRA/CSS/DMSS employees working at least 20 hours or more per week with at least 10 years of Total State Service.
Service Requirements
Longevity pay is based on Total State Service and is computed as a percentage of the employee’s base annual salary as of the date of eligibility.
A break in service as a result of leave without pay delays the payment for longevity by the months represented by the non-pay status. Workers’ compensation leave and military leave do not represent breaks in service.
Service toward longevity is credited for each month in which an employee is in pay status for one-half or more of the regularly scheduled workdays and paid holidays in the month. Credit is also received for:
- other governmental units which are State agencies;
- authorized military leave and subsequent reinstatement according to policy; and
- employment with the Agricultural Extension Service, Community College system, a public-school system for the entire school year, local divisions of the Department of Human Resources, and the General Assembly (except legislators, pages, and interns).
Longevity Payment
Longevity is paid annually to eligible employees in a single lump sum amount and is subject to statutory deductions. The amount is computed by multiplying the employee’s base annual salary by the appropriate percentage (see below) and is rounded to the nearest dollar.
Years of Service | Longevity Pay Percentage |
|---|---|
10-15 years | 1.50% |
15-20 years | 2.25% |
20-25 years | 3.25% |
25+ years | 4.50% |
Annual longevity pay is paid to an eligible employee on the payday for the pay period in which his/her eligibility date occurs and annually in succeeding years.
Transfers, Reinstatement, & Terminations
An employee who transfers to another State agency or University is paid by the receiving agency on the eligibility date.
An employee who separates and receives a prorated longevity payment and is reinstated must complete additional service to total 12 months before receiving the balance of longevity; the balance is based on the employee’s current salary.
If an employee separates before the date of the annual longevity payment, longevity pay is awarded on a pro rata basis.
Pro-rated Longevity Payment
Prorated longevity is calculated by taking 1/12 of the annual percentage amount for each month since his/her last annual longevity payment through the date of the status change. The employee must have been in pay status for one-half or more of the regularly scheduled workdays and paid holidays in the month for the month to count toward this amount.
Prorated longevity is computed as full longevity pay, except if an employee has a fraction of a year toward the next higher percentage rate, the prorated payment is based on the next higher rate. It is paid to the nearest cent.
If an eligible employee goes on extended military leave without pay, a longevity payment computed on a prorated basis shall be paid the same as if the employee is separating. The balance will be paid when the employee returns and completes a full year.
If an employee goes on leave without pay, longevity shall not be paid until the employee returns and completes the full year. If, however, the employee should resign while on leave without pay, the prorated amount for which the employee is eligible is paid.
Exceptions are as follows:
- An employee going on leave without pay due to short-term disability may be paid the prorated amount for which the employee is eligible.
- An employee going on extended military leave without pay shall be paid the prorated amount for which eligible.
- An employee on workers’ compensation leave shall be paid longevity as if working.
Salary increases effective on the longevity eligibility date are incorporated in base pay before longevity is computed.
Implementation
All longevity payments are initiated and processed by Financial Services as part of the payroll process with the exception of employees who are on leave without pay due to short-term disability. Eligible employees who are on leave without pay due to short-term disability will receive their longevity on a pro rata basis in their monthly short-term disability benefit payment.
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