Decision

This decision applies to former UW Colleges and UW-Extension (UWCX) employees with banked leave balances.

Receiving institutions will allow transferring UWCX employees to carry over all of their banked leave balances.

Employees moving to a position at a receiving institution (RI) with no policy on use of banked leave to extend termination dates will follow that RI’s practice of allowing for extensions.

Employees moving to a position at an RI with a policy to limit use of banked leave to extend termination dates will be allowed to use banked leave to extend their termination date if retirement commences and the last working day for the employee occurs by December 31, 2019. This follows the UWCX practice of giving strong consideration to any request from a retiring staff member to use banked leave to extend their termination for up to six months. Resignations were paid out as lump sums.

For retirements commencing after December 31, 2019, employees will follow their RI’s banked leave policy.

The RIs identified below will receive the value of employees’ banked leave at the time of transition.

Former UWCX employees moving to a position with an RI prior to December 31, 2019, at a lower salary rate shall have the option of being paid out prior to this date against the amount accrued at UWCX.

Background

UW institutions have varying policies and practices as to how many banked leave hours (formerly Annual Leave Reserve Account, ALRA) a new employee will be allowed to transfer from another UW institution or state agency.

UW institutions also vary regarding how many banked leave hours a retiring employee may use to extend their termination date. For example, some UW institutions have no policy or practice. Others allow employees to extend their termination date by the full amount of their banked vacation hours. While others set a limit, such as allowing employees to extend their termination date by 30 days. UW Colleges’ and UW-Extension’s practice was to give strong consideration to any request from a retiring staff member to use banked leave to extend their termination for up to six months; resignations were paid out as lump sums.

As of mid-May 2019, the values of the banked leave hours for employees known to be transferring to an institution other than UW-Madison, UW System Administration, and UW Shared Services are outlined below. These amounts represent the employees’ current compensation rate multiplied by their hours of banked leave.

UW Receiving Institution UW Receiving Institution Employee Count
UW-Eau Claire $82.50 1
UW-Green Bay 52,745.51 9
UW-Milwaukee 69,369.16 15
UW-Oshkosh 19,845.35 8
UW-Platteville 31,937.41 8
UW-Stevens Point 39,254.66 6
UW-Whitewater 21,648.02 5
$234,882.61 52

UW System Administration will update these amounts as of June 30, 2019, and in early FY 2020, the RIs identified above will receive the estimated value of the banked leave through FY 2019. The RIs will then be responsible for managing all the future costs related to banked leave and any institutional policy.

RIs with no policy on employees extending their termination date may choose, at a later date, to implement such as policy for all its employees. If that occurs, the transferring employees will be treated the same as existing RI employees.

Next Steps

UW System Administration will communicate this decision to all transferring employees, so those impacted have time to make any necessary adjustments to their retirement planning. As noted above, UW System Administration will also continue to track the transferring employees and their related banked leave balances.

In addition, the UW System will need to determine how to handle the value of banked leave at UW-Madison, UW System Administration and UW Shared Services.