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2.1.030 Longevity Award Policy
University of Central Missouri Policy
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Policy Name: Longevity Award Policy |
Date Approved: Approved by the Board of Regents on September 16, 1992 |
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Policy Category: Board of Governors - Employment Terms, Classifications, and Benefits |
Date Effective: |
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Policy Number: 2.1.030 |
Date Last Revised: |
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Approval Authority: Board of Governors |
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Responsible Department: |
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The purpose of the longevity award (formerly entitled severance pay) policy is to reward employees who voluntarily leave the university at the age of 50 or over after serving the University of Central Missouri for 10 or more consecutive years. This policy gives retiring employees credit under the MOSERS retirement system for a virtually unlimited number of days (each 21-day block equals one month of retirement credit).
All permanent, full-time employees of the University of Central Missouri (faculty, professional staff, support staff and bargaining unit) who voluntarily leave the university at the age of 50 or over after serving the University of Central Missouri for 10 or more consecutive years are entitled to a longevity award based upon the following rates:
A. Ten years of service at $100 per year for $1000; AND each succeeding year at $25 per year.
B. Credit under MOSERS of unused accumulated sick leave if at least a 21 day balance (as required by MOSERS).
An employee voluntarily leaving the university at age 65 who has served the university for 25 consecutive years and who has 100 days of unused accumulated sick leave may receive a longevity award calculated as follows:
10 years at $100 per year = $1000 + 15 years at $25 per year = $375
TOTAL MONETARY AWARD $1,375
Upon retirement an employee gains credit for unused accumulated sick leave under the MOSERS retirement system. MOSERS' only requirements are that the employee must first be fully vested, that there be at least a 21-day balance in unused sick leave and that credit be awarded in 21-day increments, with any remainder forfeited. Each 21-day block equals one month of retirement credit.
Thus, an employee retiring at age 55 who has served the university for 15 consecutive years and who has 240 days of unused accumulated sick leave may receive a longevity award calculated as follows:
10 years at $100 per year = $1000 + 5 years at $25 per year = $125
TOTAL MONETARY AWARD $1,125
The above employee converts 231 of the 240 days of unused accumulated sick leave into 11 months of employment credit towards his/her MOSERS account. Because of the MOSERS stipulation of 21 day increments, nine days would be forfeited (21 divides into 240 11 times with nine left over).
The longevity award normally will be paid the month following the date the employee voluntarily leaves the university, but must be paid during the calendar year in which that action is effective.
Note: This policy is effective for persons employed by the university on or before June 30, 2001. Persons employed on or after July 1, 2001, will not be eligible for longevity awards. (This stipulation was approved by the Board of Governors on March 21, 2001.)
