State Service Credit Frequently Asked Questions

Q: Who is eligible to earn state service credit?

A: All employees earn state service credit, regardless of type of employee, length of service or percent time employed.

Q: What is the correct method of accruing state service credit?

A: Each month an employee is on the active payroll counts as one (1) month of state service credit, regardless of the number of hours worked in a month. During any partial months at the beginning and end of employment, only the actual days worked count as state service credit. Each thirty (30) days of employment converts into one (1) month of state service credit. Employees do not accrue annual leave for any full calendar month in which the employee is on leave without pay.

Q: How does state service credit benefit an employee?

A: The state service credit total for an employee determines the following:

1. amount of monthly annual leave accrual
2. amount of longevity pay earned each month
3. amount of hazardous duty pay earned month.

Each of these has separate laws and policies that include employee eligibility. See the following policies for specifics:

Annual Leave

Longevity Pay

Hazardous Duty Pay

Q: Why does the State Comptroller’s Office require that all state service credit be based on specific dates of employment with a state agency or a state institution of higher education?

A: The Comptroller’s Office wants to ensure that employees receive the appropriate amount of annual leave, longevity pay or hazardous duty pay based on periods of state employment.

Q: Why do some employees have state service credit that does not have associated dates of state employment?

A: Previous recordkeeping procedures captured only total amounts of service credit. The agency and actual dates of state employment were not recorded. Also, due to a misunderstanding on how to accrue state service credit, employees may have received more state service credit than they were due.

Q: Have the recordkeeping procedures and the accrual method been corrected?

A: Recordkeeping methods were improved approximately 9 years ago for all new employees transferring state service to UT System from another state agency or institution of higher education. Both the name of the agency and the “from” and “to” dates of state employment are recorded.
The accrual method was corrected in 2002. Employees are credited with one (1) month of state service for each full month of employment. For each partial month of employment, the actual days worked are recorded. Days that add to 30 are converted to one (1) month of state service.

Q: If an employee’s state service credit is reduced will it retroactively affect annual leave accruals, past longevity pay or past hazardous duty pay?

A: No, reductions in state service credit will only be applied to future annual leave accruals and amounts of longevity pay or hazardous duty pay. Employees will not have to pay back longevity pay or hazardous duty pay that was not due.

Q: How does state service credit impact retirement eligibility?

A: State service credit has no direct impact on retirement eligibility. Service for retirement eligibility is calculated separately. Refer to your retirement program’s information for eligibility criteria.

Q: Does state service credit have any impact on the computation of an employee’s retirement annuity?

A: State service credit does not have a direct impact on the computation of an employee’s retirement annuity. However, for eligible employees who receive longevity pay or hazardous duty pay, the amount of these payments may add to an employee’s total compensation, thus impacting the annuity computation.

Q: Who do I contact if I have questions about state service?

A: Please contact Susie Gutierrez, Office of Employee Services, at 512-499-4797 or sgutierrez@utsystem.edu if you have questions regarding state service credit.