1807 - Leave Buy-Back, Option to Transfer to Savings Plus 401(k) Plans Enhancement for Fiscal Year 2023/24
Category
Savings Plus
Audience List
- Human Resources Analysts
- Personnel Officers
Synopsis
Update
Per Budget Letter 23-27, the Leave Buy-Back program for FY 2023-2024 is cancelled due to budget considerations. As a result, any forms received requesting to transfer Leave Buy-Back to Savings Plus are now null and void. Savings Plus will seek to offer this opportunity next fiscal year if the Leave Buy-Back Program is offered.
· Provides information about an option to transfer future leave accruals into a Savings Plus 401(k) retirement account, under the Excluded Employee Leave Buy-Back Program.
Introduction
Leave buy-back allows employees to receive cash payment in exchange for applicable leave credits. The Department of Human Resources may authorize an annual Excluded Employee Leave Buy-Back Program and will notify departments of the opportunity to participate, pursuant to HR Manual section 2104.
The current Leave Buy-Back Program is being enhanced to allow excluded employees in participating departments, with vacation or annual leave balances in excess of 640 hours as of December 1, 2023, the option to transfer future leave accruals into a Savings Plus 401(k) retirement account.
Statement
Excluded Employee Leave Buy-Back Program
California Code of Regulations, title 2, section 599.744 provides that by annual determination the California Department of Human Resources (CalHR) may authorize an Excluded Employee Leave Buy-Back Program. CalHR will notify departments when the program is being offered. Payment for all leave hours are made using existing departmental appropriations, therefore when offered, each department’s participation is subject to the availability of departmental funds. See HR Manual section 2104 for details about the Leave Buy-Back Program, and eligibility requirements.
NOTE: Enhancement for Fiscal Year 2023/24
The current Leave Buy-Back Program (Program) is being enhanced to allow excluded employees of participating departments, with vacation or annual leave balances in excess of 640 hours as of December 1, 2023, the option to transfer future leave accruals into a Savings Plus 401(k) Plan account. Leave buy-back means that eligible employees in participating departments may receive payment at their regular salary rate in exchange for the number of hours allowed by the department. In past years, CalHR has authorized up to 160 hours for excluded employees tied to bargaining unit 2 and 80 hours for all other excluded employees.
The Program Enhancement will allow eligible excluded employees the option to transfer the number of leave accruals elected into a Savings Plus account, take a cash payment, or a combination of the two. For the purpose of this new option, future leave accruals are either vacation or annual leave. It is anticipated that the number of hours allowed for the upcoming Program will be commensurate with past years, so departments who participate should use those limits.
This option to transfer future leave accruals to Savings Plus is an enhancement to the existing Leave Buy-Back Program, HR Manual section 2104. As such, if departments are authorized to participate in the Program, employees may elect to receive the cash value for any excess leave accruals not already allocated to transfer to Savings Plus (up to the total hours authorized by the department).
Employees (in participating departments) designated Exempt, Managerial, Supervisory, Confidential, or otherwise excluded from collective bargaining in one of the following identifier codes are eligible to participate in this program:
· Exempt or Managerial – Exempt/M/E59/E99
· Supervisory – S/E48/E58/E68/E78/E98
· Confidential and otherwise excluded from bargaining – C/E67/E77/E97
Eligibility Requirements for the Leave Buy-Back, Option to Transfer to Savings Plus. Employees must meet the following criteria before they are eligible for this Leave Buy-Back, Option to Transfer to Savings Plus:
o Excluded Employee (as defined above)
o Employed at a department participating in the Leave Buy-Back Program, as defined in HR Manual section 2104
o Employee has vacation or annual leave in excess of 640 hours by December 1, 2023
For questions, refer to the frequently asked questions (FAQ’s) link below.
Application
Excluded Employee Leave Buy-Back Program, Option to Transfer to Savings Plus
This enhancement option is only available for Excluded Employees of departments already participating in the Leave Buy-Back program. See HR Manual section 2104 for details about the Leave Buy-Back Program.
NOTE: Enhancement for 2023/24 Fiscal Year
To participate in the Savings Plus option, all eligible employees wanting to participate must complete the irrevocable Transfer Future Leave Accruals to Savings Plus form. Employees must submit the completed form to their Human Resources office by December 31, 2023. The form is available in the Forms Section below.
Once submitted, requests are irrevocable.
Departments will transact payment information on a flow basis and deduct the corresponding number of vacation/annual leave hours from the employee’s available leave balances. All payments must be issued during the month of June, but no later than June 30.
Payments under this program are subject to garnishments, if applicable. Instructions on how to process payments are issued by the State Controller’s Office.
Authorities
Resources
FAQs
- Leave Buy-Back, Option to Transfer to Savings Plus 401(k) Plans Enhancement for Fiscal Year 2023/24 Frequently Asked Questions : Leave Buy-Back, Option to Transfer to Savings Plus 401(k) Plans Enhancement for Fiscal Year 2023/24 Frequently Asked Questions
Forms
- CalHR 138: Leave Reduction Plan
- CalHR 271: Transfer Future Leave Accruals to Savings Plus
- Excluded Employee Leave Buy-Back Request: Excluded Employee Leave Buy-Back Request
- Leave Buy-Back Email: Sample Email for HR to send to Excluded Employees
Authorized By
Chief Savings Plus Division
Chief,
Savings Plus Division
Contact Person
Savings Plus Training
Training
, Savings Plus
Phone: 855-616-4776
Email: SPPtraining@calhr.ca.gov
Superseded Policies
Not Applicable.History
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