2118 - Military Leave (Historical View)

** Effective: 11/18/2016 9:33:43 AM - 11/21/2016 1:00:35 PM **

Status: Active

Change Notes

forgot the pml and other resources

Category

Leave

Audience List

Synopsis

This policy

Introduction

Upon presentation of active duty orders in the Armed Forces, National Guard, or Naval Militia, the appointing power shall grant a military leave of absence for the period of active duty specified in the orders, but not to exceed five years for a permanent, probationary, or exempt employee, or for the remainder of a limited-term employee's appointment or a temporary employee's appointment.  There are exceptions to the five-year entitlement under the Uniformed Services Employment and Reemployment Rights Act (USERRA).  Exceptions are listed in United States Code, title 38, section 4312.

Pursuant to the qualifying service criteria, state employees shall be entitled to receive their state salary for the first 30 calendar days while serving on a qualifying leave.  Pursuant to Government Code 19775.17 and 19775.18, state employees shall be entitled to the difference between their military pay and allowances and their state pay for a specified duration.

Statement

Types of Military Leave

State civil service employees are entitled to receive their state salary for the first 30 calendar days, including weekends,  while on long-term or short-term military leave for active duty, provided they meet the qualifying service criteria for the military leave taken.

Payments for the first 30 calendar days are per fiscal year.  The actual amount of payment to which the employee is entitled depends on whether active duty is for more or less than 30 calendar days and whether the employee has already been paid a portion of the 30 calendars in the same fiscal year.  Employees may not receive more than 30 calendar days of pay in one fiscal year.  Information regarding active duty crossing two fiscal years is addressed below.  For additional payment, employees may elect to use leave credits, with the exception of sick leave to cover the absence.

Short-Term Military Leave

Employees who receive active military duty orders for six months or less are entitled to 30 calendar days of pay.  In order to qualify for payment, the employee must have at least one year of state service or a combination of active military service and state service equivalent to at least one year of service immediately prior to the effective date of the active military duty orders.

Annual training ordered for the purpose of active duty military training, encampment, naval cruises, or special exercises qualify for short-term military leave and sate pay may be provided pursuant to Government Section 19775.1.

Inactive duty such as scheduled reserve drill periods also qualify for a military leave of absence.  State pay is not provided for inactive duty, however an employee may, at their option, elect to use leave credits, with the exception of sick leave.

Long-Term Military Leave

State employees who receive active military duty orders for more than six months are entitled to 30 calendar days of pay.  In order to qualify for payment, the employee must have at least one year of state service immediately prior to the effective date of the active military duty orders.

When active duty is complete, employees must submit a certification of completion signed by the commanding officer.  This may be on the form which is provided by the department at the time militarily leave is granted or by letter from the commanding officer which certifies the dates of your active military duty.  The letters should be sent to the human resources office of the employees’ department.  Employees may elect to be paid for their vacation credits at the time military leave is granted.

Emergency Military Leave

Employees who are members of the California National Guard who receive active military duty orders for state emergencies under the provisions of Military and Veterans Code, section 143 or 146 shall be granted a military leave of absence.

State employees who are members of the California National Guard are eligible for 30 calendar days of state pay for each emergency military leave.  Each emergency military leave is defined as a specific instance.  Although there may be breaks in active duty served, all service related to the same instance is considered as one emergency call-up.

In order to clarify how to apply an employee’s active military duty orders, the following is provided to assist personnel offices in determining how much compensation an employee is entitled to receive.

War or National Emergency

War or national emergency military leave is granted when a state employee is a member of the California National Guard or United States military reserve organization and are ordered to active duty by Presidential or Congressional determination.  Employee status is not considered when granting this type of leave.

Employees deployed under the United States Code, title 10, sections 12302 and 12304 receive the difference between their state salary and military salary, including most allowances for the period of active duty not to exceed 365 calendar days.  Executive order D-65-02 extended the supplemental pay and benefits up to an additional 365 calendar days, for a cumulative total of 730 calendar days.  The War on Terrorism is considered one event and multiple deployments under the War on Terrorism are considered part of the event.  The 730 calendar days are in addition to the 30 calendar day entitlement under Government Code section 19775.

Employees deployed for this type of military leave must complete a Military Leave Work Sheet even if they elect not to receive the difference between their state salary and military salary.

Extended Pay and Benefits – Government Code Section 19775.17

Government code section 19775.17 provides an employee who is a member of the California National Guard or a United States military service organization the difference of military pay and state pay for up to 180 calendar days for employees ordered to duty for a qualifying event.  A qualifying event covered by this section is an event authorized pursuant to United States Code, title 10, sections 12302 and 12304.  Any federally sponsored income protection program that may be made available to National Guard personnel or military reserve personnel may reduce compensation received pursuant to Section 19775.17.  This does not apply to any state employee entitled additional compensation or benefits pursuant to Government Code Section 19775.18.

The state provides 30 calendar days of state pay per fiscal year for active military duty to an employee who qualifies based on Government Code sections 19775 or 19775.1.  On the 31st calendar day, the employee becomes eligible for the provisions of Government Code section 19775.17 for up to 180 calendar days.  An employee who does not qualify under Section 19775.1 or is eligible for less than 30 calendar days of state pay shall be eligible for benefits provided in this Section prior to the 31st calendar day.

An employee who has received compensation under the provision of Government Code section 19775.17 who does not reinstate to state service following active duty shall have that compensation treated as a loan payable with interest.

Other military leave provisions

Salary Issues

Employees who meet the conditions of short-term or long-term military leave or who are granted an emergency military leave are entitled to any General Salary Adjustments (GEN), Labor Market Adjustments (LMA), Merit Salary Adjustments (MSA), Special In-grade Salary Adjustments (SISA) or range changes they would have been eligible to receive if they had continued working.

Employees on military leave and receiving pay pursuant to Government Code sections 19775.17 or 19775.18 will continue to receive any GEN, MSA, or SISA, regardless of whether the leave is short-term or long-term.  While on long-term military leave and no longer eligible for the provisions of Government Code sections 19775.17 or 19775.18, any GEN, MSA, or SISA will be reflected upon the employee’s return to state service.

The total state pay for employees who meet the condition Government Code section 19775.18 is based on the salary for the class the employee was in prior to military leave, plus any differential/supplemental pays they were receiving as a result of the duties they were performing on a continuous basis in their position.  This would include such things as bilingual pay, physical fitness pay, shift pay, educational pay, and any recruitment/retention differentials.  Pay differentials such as van pool, diving pay, and out of class should not be included in the total pay.  Further, those receiving a non-receipted uniform allowance would continue to accrue qualifying pay periods.

Per the State Controller’s Office (SCO), departments should key an S51 transaction in employment history for employees receiving the difference between their sate pay and military pay, if the employee is deployed under Government Code sections 19775.17 or 19775.18.  An S51 transaction is currently defined as a short-term military leave, however this code must be used to process the adjusted payments in a timely manner.

Leave Credits

An employee who meets the conditions of short-term or long-term military leave under Government Code sections 19775 or 19775.1, or who is granted an emergency military leave, shall receive the same vacation and sick leave benefits as though he or she had remained in his or her position and not been on military leave except that no more than six months of leave credits shall be granted.

Employees on military leave pursuant to Government Code section 19775.17 or 19775.18 will continue to accrue leave benefits up to 24 months, based on the length of leave.  These additional credits are applied at the accrual rate that would have applied had the employee remained on the job.

Employees placed on long-term military leave are eligible for lump-sum payment for leave credits (excluding sick leave).  Employees who have leave credits on the books may draw from their bank of leave credits anytime during their military leave (federal statute: Section 4316[d], Title 38).  The personnel office must be notified in order to process the employee’s request.  SCO has indicated these payment requests should be submitted on a Standard Form 674.  For employees who use their leave credits, the pay difference and/or health benefits continuance provisions pursuant of Government Code section 19775.18 do not begin until after the use of leave credits.

Benefits Issues

Health benefits continue while employees are on military leave with pay.  Employees who elect to continue health benefits coverage while on military leave without pay will assume the entire monthly premium.  The state will make no contribution.  Employees enrolled in the FlexElect Program with the cash option in lieu of health and/or dental coverage will continue to receive the cash option regardless of whether they receive an adjusted state warrant, or opt to retain their military pay.

Employees on military leave pursuant to Government Code section 19775.17 or 19775.18 have the option to elect to continue their health, dental, and vision plans.  If the employee is not receiving a pay warrant, departments must submit the appropriate documents to SCO to continue the benefit deductions.  In those instances where the employee pays a benefit premium but is not receiving a pay check, the state will authorize the continued payment of these premiums via the accounts receivable process.

The pre-tax health premium is considered a benefit tied to health coverage and will be continued.  If the employee opts to retain his/her military pay, the amount of employee-paid premium will be carried as an agency-collection accounts receivable to be recovered when the employee returns to pay status.

The pre-tax deductions into medical and/or dependent care reimbursement accounts are considered voluntary deductions that will no longer be taken when the employee does not receive sufficient state pay to continue the deduction.  These deductions will automatically resume once the employee returns to full-pay status.

Supervisor/manager life insurance policies exclude any payment while the employee is on any active duty other than “temporary” duty.  “Temporary” refers to short training exercises (e.g., two-week summer duty).  Given the circumstances of the War on Terrorism, this coverage is not in effect for those on extended active duty.  These same exclusions apply to any supplemental coverage the employee may have purchased by payroll deduction.  It is the responsibility of the employee to cancel the voluntary deduction if he/she wishes to avoid paying a premium without receiving the full benefit.

If the employee elects to discontinue these voluntary deductions, he/she will have to reenroll upon reinstatement to state service before coverage can begin.  It should also be noted that discontinuance of supplemental coverage would also discontinue spousal/dependent coverage.

Voluntary Long-Term Disability plans also exclude payment for any disability caused by any act of war.  If the employee elects to discontinue these voluntary deductions, he/she will need to reenroll upon reinstatement to State service before coverage can begin.

Probation Period Extensions and Experience for Deep Class Range Changes

Per Government Code section 19773, employees serving a probationary period shall serve the remainder upon return to their former position.

An employee who is returning from a military leave will have his/her service in the armed forces credited as experience toward meeting minimum qualifications for examinations and deep class alternate range criteria movement on exactly the same basis as if the employee had remained in the position held at the time he/she went on the military leave.  Any criteria that requires completion of an apprenticeship program is not included in this allowable movement.

Saving Plus Program

Pursuant to USERRA, an employee who returns from qualified military service has the right to make up missed contributions.  In addition, if they have an outstanding 401(k)/457 loan(s) balance, they are eligible under USERRA and the Soldiers' and Sailors' Civil Relief Act of 1940 to elect one of the following loan repayment options:

Employees with a 403(b) tax-sheltered annuity should contact their annuity provider.

To make up missed contributions (the amount that the employee could have deferred had they continued employment with the state and had not been interrupted by military service), the employee should contact Savings Plus and request a Qualified Military Service Make-up Deferral Application.  The employee may make up missed contributions over a period up to three times the length of military service, but no longer than five years.

If the employee separates with an outstanding Savings Plus loan, the Qualified Military Service Loan Repayment Agreement (Attachment II) should be used to elect a loan repayment option.  The employee must provide military leave orders that support the claim.

Retirement

While on military leave, employees may retain membership in the California Public Employees’ Retirement System (CalPERS).  Employees have the option to withdraw accumulated contributions after their state salary has ended.

Employees who return to state service following military leave within the time limitations specified for reinstatement will receive credit toward retirement for the period that the employee was on military leave.

The state is responsible for the payment of the employer and employee contributions as prescribed in Government Code section 20990.

Retirement contributions are deducted when the employee receives full pay for the first 30 calendar days of military leave.  This deduction will continue for those employees who remain on the payroll by use of applicable leave credits following any first 30 calendar days pay provision.  However, retirement contributions are not deducted from the employee's state issued supplemental pay while serving on active military duty for the War on Terrorism.  Per Government Code section 20630, which defines compensation, CalPERS has determined such payments are not reportable for retirement purposes.

The credit toward retirement is applied when the employee has returned from his/her military leave of absence, and the employer begins reporting payroll to CalPERS.  For restoration of retirement credits, the employee must submit a request to CalPERS with a copy of their DD-214 issued by the Defense Department, showing the dates of active military service.

To be eligible for credit for a noncompensated absence or a specially compensated absence, a member must have:

  1. Been in the employment of a CalPERS-covered agency which includes the state or another agency contracting with CalPERS prior to entering military service;
  2. Been granted a military leave or have resigned from employment for the purpose of entering active duty in the armed forces;
  3. Entered active duty within 90 days after leaving employment; and
  4. Returned to employment with the same agency, the state, or another agency contracting with CalPERS within six months after discharge from active duty.  Credit is thus posted after the return to employment.

Please note that members who meet qualifications 1 through 3 but do not return to employment within six months will not qualify for military leave credit, but may be eligible to purchase military service credit under other provisions of law.

Employee Action Needed

A CalPERS member may request military credit at any time after returning from military service, but it must be prior to separation or retirement.  However, a delay in calculating leave credit may be experienced if the request is received prior to the posting of all service earned in the fiscal year after the member’s return to employment.

Retirement credit may be requested by using the Military Service Credit Request Form. This form is available through the CalPERS website; a link is available in the Resources section below or by calling (800) 352-2238.  A copy of the DD-214 should be submitted with the request form to:

Public Employees’ Retirement System Member Services Division – Unit 831
P.O. Box 4000
Sacramento, CA 94229-2704

The member's request should also include:

Military Leave Between Two Fiscal Years

State civil service employees are entitled to receive their state pay for the first 30 calendar days of active duty, regardless of whether the military leave overlaps two fiscal years.  Payment is not restricted to the portion of the military leave of absence that falls within the current fiscal year when the orders for active duty overlap into the following fiscal year (e.g., if the employee had orders for active military duty for June 18, 2016 through July 30, 2016).

When the deployment covers two fiscal years, the employee is entitled to his or her state pay for the first 30 calendar days, which is accounted for in the fiscal year in which the deployment commenced.  The grant of the 30 calendar day entitlement is not apportioned between the two fiscal years even though the military leave extends over two fiscal years.  Accordingly, the first grant of 30 calendar days is credited to the first year in which the leave commenced.  In the event that a deployment overlaps two fiscal years, the employee would then be entitled to an additional 30 calendar days of paid leave in the second fiscal year if she or he returned to work and thereafter was redeployed in the second fiscal year.

Examples:

If an employee has orders for deployment from June 18, 2016 through July 30, 2016, the employee would be entitled to 30 calendar days of pay (i.e., June 18, 2016 through July 17, 2016) in the 2015-16 fiscal year.  The calendar days would be accounted for in the 2015-16 fiscal year because Government Code section 19775.2 provides that the beginning date of active duty determines the fiscal year in which the pay is accumulated.  The employee would be entitled to an additional 30 calendar days of pay for subsequent active duty in the 2016-17 fiscal year should she/he be redeployed in the 2016-17 fiscal year.  Thus, if the employee received subsequent orders for September 1, 2016 through October 15, 2016, the employee would receive pay for the first 30 calendar days (i.e., September 1, 2016 through September 30, 2016) of the leave.

The key factor to consider in determining what fiscal year to charge against is the initial date when deployment commences.  Thus, if an employee is deployed on June 30, 2016, and returns on July 30, 2016, the employee would be entitled to 30 calendar days of pay all of which would be charged against the 2015-16 fiscal year.

Example for computing when deployment falls within two fiscal years (2015-16 and 2016-17):

Types of Military Leave

State civil service employees are entitled to receive their state salary for the first 30 calendar days, including weekends,  while on long-term or short-term military leave for active duty, provided they meet the qualifying service criteria for the military leave taken.

Payments for the first 30 calendar days are per fiscal year.  The actual amount of payment to which the employee is entitled depends on whether active duty is for more or less than 30 calendar days and whether the employee has already been paid a portion of the 30 calendars in the same fiscal year.  Employees may not receive more than 30 calendar days of pay in one fiscal year.  Information regarding active duty crossing two fiscal years is addressed below.  For additional payment, employees may elect to use leave credits, with the exception of sick leave to cover the absence.

Short-Term Military Leave

Employees who receive active military duty orders for six months or less are entitled to 30 calendar days of pay.  In order to qualify for payment, the employee must have at least one year of state service or a combination of active military service and state service equivalent to at least one year of service immediately prior to the effective date of the active military duty orders.

Annual training ordered for the purpose of active duty military training, encampment, naval cruises, or special exercises qualify for short-term military leave and sate pay may be provided pursuant to Government Section 19775.1.

Inactive duty such as scheduled reserve drill periods also qualify for a military leave of absence.  State pay is not provided for inactive duty, however an employee may, at their option, elect to use leave credits, with the exception of sick leave.

Long-Term Military Leave

State employees who receive active military duty orders for more than six months are entitled to 30 calendar days of pay.  In order to qualify for payment, the employee must have at least one year of state service immediately prior to the effective date of the active military duty orders.

When active duty is complete, employees must submit a certification of completion signed by the commanding officer.  This may be on the form which is provided by the department at the time militarily leave is granted or by letter from the commanding officer which certifies the dates of your active military duty.  The letters should be sent to the human resources office of the employees’ department.  Employees may elect to be paid for their vacation credits at the time military leave is granted.

Emergency Military Leave

Employees who are members of the California National Guard who receive active military duty orders for state emergencies under the provisions of Military and Veterans Code, section 143 or 146 shall be granted a military leave of absence.

State employees who are members of the California National Guard are eligible for 30 calendar days of state pay for each emergency military leave.  Each emergency military leave is defined as a specific instance.  Although there may be breaks in active duty served, all service related to the same instance is considered as one emergency call-up.

In order to clarify how to apply an employee’s active military duty orders, the following is provided to assist personnel offices in determining how much compensation an employee is entitled to receive.

War or National Emergency

War or national emergency military leave is granted when a state employee is a member of the California National Guard or United States military reserve organization and are ordered to active duty by Presidential or Congressional determination.  Employee status is not considered when granting this type of leave.

Employees deployed under the United States Code, title 10, sections 12302 and 12304 receive the difference between their state salary and military salary, including most allowances for the period of active duty not to exceed 365 calendar days.  Executive order D-65-02 extended the supplemental pay and benefits up to an additional 365 calendar days, for a cumulative total of 730 calendar days.  The War on Terrorism is considered one event and multiple deployments under the War on Terrorism are considered part of the event.  The 730 calendar days are in addition to the 30 calendar day entitlement under Government Code section 19775.

Employees deployed for this type of military leave must complete a Military Leave Work Sheet even if they elect not to receive the difference between their state salary and military salary.

Extended Pay and Benefits – Government Code Section 19775.17

Government code section 19775.17 provides an employee who is a member of the California National Guard or a United States military service organization the difference of military pay and state pay for up to 180 calendar days for employees ordered to duty for a qualifying event.  A qualifying event covered by this section is an event authorized pursuant to United States Code, title 10, sections 12302 and 12304.  Any federally sponsored income protection program that may be made available to National Guard personnel or military reserve personnel may reduce compensation received pursuant to Section 19775.17.  This does not apply to any state employee entitled additional compensation or benefits pursuant to Government Code Section 19775.18.

The state provides 30 calendar days of state pay per fiscal year for active military duty to an employee who qualifies based on Government Code sections 19775 or 19775.1.  On the 31st calendar day, the employee becomes eligible for the provisions of Government Code section 19775.17 for up to 180 calendar days.  An employee who does not qualify under Section 19775.1 or is eligible for less than 30 calendar days of state pay shall be eligible for benefits provided in this Section prior to the 31st calendar day.

An employee who has received compensation under the provision of Government Code section 19775.17 who does not reinstate to state service following active duty shall have that compensation treated as a loan payable with interest.

Other military leave provisions

Salary Issues

Employees who meet the conditions of short-term or long-term military leave or who are granted an emergency military leave are entitled to any General Salary Adjustments (GEN), Labor Market Adjustments (LMA), Merit Salary Adjustments (MSA), Special In-grade Salary Adjustments (SISA) or range changes they would have been eligible to receive if they had continued working.

Employees on military leave and receiving pay pursuant to Government Code sections 19775.17 or 19775.18 will continue to receive any GEN, MSA, or SISA, regardless of whether the leave is short-term or long-term.  While on long-term military leave and no longer eligible for the provisions of Government Code sections 19775.17 or 19775.18, any GEN, MSA, or SISA will be reflected upon the employee’s return to state service.

The total state pay for employees who meet the condition Government Code section 19775.18 is based on the salary for the class the employee was in prior to military leave, plus any differential/supplemental pays they were receiving as a result of the duties they were performing on a continuous basis in their position.  This would include such things as bilingual pay, physical fitness pay, shift pay, educational pay, and any recruitment/retention differentials.  Pay differentials such as van pool, diving pay, and out of class should not be included in the total pay.  Further, those receiving a non-receipted uniform allowance would continue to accrue qualifying pay periods.

Per the State Controller’s Office (SCO), departments should key an S51 transaction in employment history for employees receiving the difference between their sate pay and military pay, if the employee is deployed under Government Code sections 19775.17 or 19775.18.  An S51 transaction is currently defined as a short-term military leave, however this code must be used to process the adjusted payments in a timely manner.

Leave Credits

An employee who meets the conditions of short-term or long-term military leave under Government Code sections 19775 or 19775.1, or who is granted an emergency military leave, shall receive the same vacation and sick leave benefits as though he or she had remained in his or her position and not been on military leave except that no more than six months of leave credits shall be granted.

Employees on military leave pursuant to Government Code section 19775.17 or 19775.18 will continue to accrue leave benefits up to 24 months, based on the length of leave.  These additional credits are applied at the accrual rate that would have applied had the employee remained on the job.

Employees placed on long-term military leave are eligible for lump-sum payment for leave credits (excluding sick leave).  Employees who have leave credits on the books may draw from their bank of leave credits anytime during their military leave (federal statute: Section 4316[d], Title 38).  The personnel office must be notified in order to process the employee’s request.  SCO has indicated these payment requests should be submitted on a Standard Form 674.  For employees who use their leave credits, the pay difference and/or health benefits continuance provisions pursuant of Government Code section 19775.18 do not begin until after the use of leave credits.

Benefits Issues

Health benefits continue while employees are on military leave with pay.  Employees who elect to continue health benefits coverage while on military leave without pay will assume the entire monthly premium.  The state will make no contribution.  Employees enrolled in the FlexElect Program with the cash option in lieu of health and/or dental coverage will continue to receive the cash option regardless of whether they receive an adjusted state warrant, or opt to retain their military pay.

Employees on military leave pursuant to Government Code section 19775.17 or 19775.18 have the option to elect to continue their health, dental, and vision plans.  If the employee is not receiving a pay warrant, departments must submit the appropriate documents to SCO to continue the benefit deductions.  In those instances where the employee pays a benefit premium but is not receiving a pay check, the state will authorize the continued payment of these premiums via the accounts receivable process.

The pre-tax health premium is considered a benefit tied to health coverage and will be continued.  If the employee opts to retain his/her military pay, the amount of employee-paid premium will be carried as an agency-collection accounts receivable to be recovered when the employee returns to pay status.

The pre-tax deductions into medical and/or dependent care reimbursement accounts are considered voluntary deductions that will no longer be taken when the employee does not receive sufficient state pay to continue the deduction.  These deductions will automatically resume once the employee returns to full-pay status.

Supervisor/manager life insurance policies exclude any payment while the employee is on any active duty other than “temporary” duty.  “Temporary” refers to short training exercises (e.g., two-week summer duty).  Given the circumstances of the War on Terrorism, this coverage is not in effect for those on extended active duty.  These same exclusions apply to any supplemental coverage the employee may have purchased by payroll deduction.  It is the responsibility of the employee to cancel the voluntary deduction if he/she wishes to avoid paying a premium without receiving the full benefit.

If the employee elects to discontinue these voluntary deductions, he/she will have to reenroll upon reinstatement to state service before coverage can begin.  It should also be noted that discontinuance of supplemental coverage would also discontinue spousal/dependent coverage.

Voluntary Long-Term Disability plans also exclude payment for any disability caused by any act of war.  If the employee elects to discontinue these voluntary deductions, he/she will need to reenroll upon reinstatement to State service before coverage can begin.

Probation Period Extensions and Experience for Deep Class Range Changes

Per Government Code section 19773, employees serving a probationary period shall serve the remainder upon return to their former position.

An employee who is returning from a military leave will have his/her service in the armed forces credited as experience toward meeting minimum qualifications for examinations and deep class alternate range criteria movement on exactly the same basis as if the employee had remained in the position held at the time he/she went on the military leave.  Any criteria that requires completion of an apprenticeship program is not included in this allowable movement.

Saving Plus Program

Pursuant to USERRA, an employee who returns from qualified military service has the right to make up missed contributions.  In addition, if they have an outstanding 401(k)/457 loan(s) balance, they are eligible under USERRA and the Soldiers' and Sailors' Civil Relief Act of 1940 to elect one of the following loan repayment options:

Employees with a 403(b) tax-sheltered annuity should contact their annuity provider.

To make up missed contributions (the amount that the employee could have deferred had they continued employment with the state and had not been interrupted by military service), the employee should contact Savings Plus and request a Qualified Military Service Make-up Deferral Application.  The employee may make up missed contributions over a period up to three times the length of military service, but no longer than five years.

If the employee separates with an outstanding Savings Plus loan, the Qualified Military Service Loan Repayment Agreement (Attachment II) should be used to elect a loan repayment option.  The employee must provide military leave orders that support the claim.

Retirement

While on military leave, employees may retain membership in the California Public Employees’ Retirement System (CalPERS).  Employees have the option to withdraw accumulated contributions after their state salary has ended.

Employees who return to state service following military leave within the time limitations specified for reinstatement will receive credit toward retirement for the period that the employee was on military leave.

The state is responsible for the payment of the employer and employee contributions as prescribed in Government Code section 20990.

Retirement contributions are deducted when the employee receives full pay for the first 30 calendar days of military leave.  This deduction will continue for those employees who remain on the payroll by use of applicable leave credits following any first 30 calendar days pay provision.  However, retirement contributions are not deducted from the employee's state issued supplemental pay while serving on active military duty for the War on Terrorism.  Per Government Code section 20630, which defines compensation, CalPERS has determined such payments are not reportable for retirement purposes.

The credit toward retirement is applied when the employee has returned from his/her military leave of absence, and the employer begins reporting payroll to CalPERS.  For restoration of retirement credits, the employee must submit a request to CalPERS with a copy of their DD-214 issued by the Defense Department, showing the dates of active military service.

To be eligible for credit for a noncompensated absence or a specially compensated absence, a member must have:

  1. Been in the employment of a CalPERS-covered agency which includes the state or another agency contracting with CalPERS prior to entering military service;
  2. Been granted a military leave or have resigned from employment for the purpose of entering active duty in the armed forces;
  3. Entered active duty within 90 days after leaving employment; and
  4. Returned to employment with the same agency, the state, or another agency contracting with CalPERS within six months after discharge from active duty.  Credit is thus posted after the return to employment.

Please note that members who meet qualifications 1 through 3 but do not return to employment within six months will not qualify for military leave credit, but may be eligible to purchase military service credit under other provisions of law.

Employee Action Needed

A CalPERS member may request military credit at any time after returning from military service, but it must be prior to separation or retirement.  However, a delay in calculating leave credit may be experienced if the request is received prior to the posting of all service earned in the fiscal year after the member’s return to employment.

Retirement credit may be requested by using the Military Service Credit Request Form. This form is available through the CalPERS website; a link is available in the Resources section below or by calling (800) 352-2238.  A copy of the DD-214 should be submitted with the request form to:

Public Employees’ Retirement System Member Services Division – Unit 831
P.O. Box 4000
Sacramento, CA 94229-2704

The member's request should also include:

Military Leave Between Two Fiscal Years

State civil service employees are entitled to receive their state pay for the first 30 calendar days of active duty, regardless of whether the military leave overlaps two fiscal years.  Payment is not restricted to the portion of the military leave of absence that falls within the current fiscal year when the orders for active duty overlap into the following fiscal year (e.g., if the employee had orders for active military duty for June 18, 2016 through July 30, 2016).

When the deployment covers two fiscal years, the employee is entitled to his or her state pay for the first 30 calendar days, which is accounted for in the fiscal year in which the deployment commenced.  The grant of the 30 calendar day entitlement is not apportioned between the two fiscal years even though the military leave extends over two fiscal years.  Accordingly, the first grant of 30 calendar days is credited to the first year in which the leave commenced.  In the event that a deployment overlaps two fiscal years, the employee would then be entitled to an additional 30 calendar days of paid leave in the second fiscal year if she or he returned to work and thereafter was redeployed in the second fiscal year.

Examples:

If an employee has orders for deployment from June 18, 2016 through July 30, 2016, the employee would be entitled to 30 calendar days of pay (i.e., June 18, 2016 through July 17, 2016) in the 2015-16 fiscal year.  The calendar days would be accounted for in the 2015-16 fiscal year because Government Code section 19775.2 provides that the beginning date of active duty determines the fiscal year in which the pay is accumulated.  The employee would be entitled to an additional 30 calendar days of pay for subsequent activ

Application

General Procedures

Employees ordered to active duty must notify their employer by providing a copy of their military active duty orders.  If an employee is unable to obtain written orders, a verbal order issued by a military authority is considered valid.  In addition to a copy of their orders, employees must provide their personnel office with their military pay records and a completed Military Leave Work Sheet (Attachment II).  To be as flexible as possible, realizing that each employee’s situation will be different, in those instances where the employee is unable to document his/her military earnings, an estimate of their military pay and allowances will suffice.  Once the Military Leave Work Sheet has been completed, the employee keeps a copy, the department retains a copy, and a third copy is forwarded to the State Controller’s Office for processing.  For employees unavailable to complete the work sheet, departments shall be responsible for informing them or their power of attorney of the provisions of the applicable Government Code section and obtaining completed documents.  A Military Leave Work Sheet should be completed each time an employee receives active military orders for more than 30 days.

In order to issue an adjusted warrant, the Military Leave Work Sheet must be signed by the employee.  If the employee is not available and someone else has been provided with power of attorney, his/her signature is acceptable.  An adjusted warrant is issued monthly to the employee’s department, who is then responsible for dispersing the warrant pursuant to the employee’s request.  Each department is responsible for monitoring the amount of time the employee receives adjusted state pay.

The personnel office is responsible for computing the adjusted gross pay, minus all mandatory deductions (state, federal, and state disability taxes and Social Security/Medicare contributions if applicable).  Retirement contributions are not deducted from the pay.  Based on the adjusted net pay, the employee will then determine what, if any, action is needed with regard to discretionary deductions.  Any federally-sponsored income protection program that may be made available to National Guard personnel or military reserve personnel may reduce compensation received pursuant to Government Code section 19775.17 or Government Code section 19775.18.

Those employees who elect to retain their military pay (their military pay may be greater than their state pay) will also need to prepare a Work Sheet if they elect to continue receiving their state-provided benefit package (health, dental, and vision).

Reconciliation of Military Leave Pay and State Pay

Pay needs to be reconciled on a month-by-month basis as it is oftentimes difficult to obtain copies of the military-issued leave and earning statements (LES) for those employees who are called to active duty and who are receiving state issued supplemental pay via Government Code section 19775.17 or 19775.18.

An LES is needed for each month the employee received supplemental pay.  In the event such verification is needed to reconcile the employee’s state pay with his/her military pay and allowances, departments may requests verification from the employee’s military finance center.  All requests for pay history must include the employee’s name, social security number, and the pay periods requested.  A return address should be included.  The employee must also sign a document authorizing the release of the pay information, which must accompany your request.

NOTE: The policies in this Policy Memo are based on Government Code sections 19770 through 19786 and federal law.  In some instances the federal and state laws provide different benefits.  To comply with both federal and state statutes, whichever statute provides the greatest benefit shall prevail.

Authorities

Resources

Forms

PML

Web Pages

Authorized By

Contact Person

Belinda Collins
Chief (Acting), , Personnel Management Division
Phone: 916-324-0468
Fax: 916-322-3769
Email: belinda.collins@calhr.ca.gov

Superseded Policies

Not Applicable.