Office of Administration > Policy Office > Policy Library > INT141

UT System Administration Policy Library -- Policy INT141 Longevity Pay

 

Responsible Officer: Assistant Vice Chancellor for Employee Services
Sponsoring Office: Office of Employee Services
Effective Date: April 1, 2006
Last Reviewed:  December 14, 2007                        
Next Scheduled Review: June 1, 2011
Errors or changes to: policyoffice@utsystem.edu

 

CONTENTS

 

Policy Statement
Rationale
Scope
Website Address for This Policy
Related Policies, Requirements or Standards
Contacts
Definitions

Responsibilities
Procedures

Forms and Tools/Online Processes
Appendix

POLICY STATEMENT

 

 

The University of Texas System provides longevity pay to eligible employees in accordance with state law.

RATIONALE

 

 

To provide for the administration of longevity pay.

SCOPE

 

 

All Offices of UT System Administration

WEBSITE ADDRESS FOR THIS POLICY

 

http://www.utsystem.edu/policy/policies/int141.html

RELATED STATUTES, POLICIES, REQUIREMENTS OR STANDARDS

 

 

 

CONTACTS

 

If you have any questions about UT System Administration Policy INT 141, Longevity Pay, contact the following offices:

 

Subject	Office Name	Telephone Number	Email/URL
Human Resources/ Employee Benefits	Office of Employee Services	512-499-4587	esc@utsystem.edu

DEFINITIONS  

 

 

RESPONSIBILITIES 

 

PROCEDURES  

 

 

1. Eligibility

1.1An employee is eligible for longevity pay if the employee:

• is a full-time employee on the first workday of the month;
• is not on leave without pay on the first workday of the month; and
• has accrued at least two years of lifetime service credit not later than the last day of the preceding month.

1.2 Law enforcement personnel who receive hazardous duty pay are entitled to longevity pay based on lifetime service credit accrued while serving in non-hazardous duty positions.

 

1.3 The following employees are not entitled to longevity pay:

1. a part time employee
2. a temporary employee
3. an academic employee
4. an employee who retired from state employment on or after June 1, 2005, and receives an annuity based wholly or partly on service as a state employee in a public retirement system that was credited to the employee.

1.4 The entitlement to receive longevity pay of an employee who holds a full-time, non-academic position is not affected by the employee teaching one or more courses or engaging in academic research, or both. 

 

2. Return to Work Retirees

2.1An employee who retired from state employment before June 1, 2005, and returned to state employment before September 1, 2005, is entitled to continue receiving longevity pay in the same amount the employee was entitled to receive immediately before September 1, 2005.  The amount of longevity pay to which the employee is entitled is frozen and will not increase regardless of the amount of lifetime service credit accrued after returning to work. 

2.2 An employee who retired from state employment before June 1, 2005 and returned to state employment on or after September 1, 2005, is not entitled to receive longevity pay.

 

3. Basis of Service

 

3.1. Lifetime service credit for longevity pay is based on all employment with the state regardless of whether the individual was a student during the service, including full-time, part-time, temporary, academic, and legislative service.

3.2.A faculty member who accepts a position as a non-academic employee is entitled to lifetime service credit for the actual length of the faculty appointment.  The credit for service in the faculty appointment is included when determining longevity pay.

3.3. An employee who is on leave without pay for an entire calendar month does not accrue lifetime service for the month.

3.4.The amount of an employee’s lifetime service credit does not include the period of service in a hazardous duty position if the employee is entitled to receive hazardous duty pay.  An employee’s lifetime service credit includes the period served in a hazardous duty position if the employee is not currently entitled to receive hazardous duty pay. 

3.5.A state employee returning to state employment following service in the military is entitled to lifetime service credit for pay purposes for the time spent in the military in accordance with applicable federal or veteran’s reemployment laws. Years of service as a National Guard Technician prior to January 1, 1969, are creditable as lifetime service credit for longevity pay purposes.

4. Payment

4.1. Upon completion of two years of service, longevity pay begins on the first day of the next month at the rate of $20 per month and continues at that rate until the completion of another two-year increment, when it increases to the next level.  When an employee reaches the next level for longevity pay during a month, the increase in longevity pay will be effective the first day of the following month.  See Appendix, Longevity Pay Table.

 

4.2. A change in status occurring during the month will be effective the first day of the following month.  For example:

 

1. An employee appointed on September 1st of a given year will complete two years of service on August 31st, two years later.  Eligibility for longevity pay begins on the first day of the next month, September 1st.
2. An employee appointed on September 2nd of a given year will complete two years of service on September 1st, two years later.  Eligibility for longevity pay begins on the first day of the next month, October 1st.
3. An employee who increases to full-time during a month becomes eligible for longevity pay the following month, provided the employee meets all other eligibility criteria. 

4.3.Longevity pay will not be prorated.  The full amount of longevity pay will be paid to an individual who ceases to be an employee after the first workday of the month.

4.4. Separate lump sum payment for longevity pay is not authorized; payment is included only in the regular paychecks of employees.

5. Longevity Pay as Part of Employee Pay

5.1 Longevity pay is considered a part of total compensation although the base salary rate of an employee is not affected by such payment.

 

5.2 The inclusion of longevity pay as a part of total compensation affects federal withholding, OASI, the amount of some group insurance coverage and other benefit calculations, rate of overtime pay, if any, and retirement contributions.

 

5.3Longevity pay is not included when calculating lump sum payment of vacation leave upon termination; nor is it included when calculating lump sum payment of vacation and sick leave to the estate of a deceased employee.

 

FORMS AND TOOLS / ONLINE PROCESSES

 

None

APPENDIX

 

Longevity Pay Schedule

 

 

 

 

 

 

 

 

 

 

 

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