2104 - Leave Buy-Back (Historical View)** Effective: 4/14/2017 2:25:23 PM - 5/2/2017 1:05:44 PM **
Updating with 2016-2017 information
- Employee Relations Officers
- Personnel Officers
- Provides information about the Excluded Employee Leave Buy-Back Program.
- Provides information about the Excluded Employee Leave Buy-Back Program Enhancement for fiscal year 2016/17.
- Provides information about the annual cash out of accumulated vacation/annual leave provided in some Memoranda of Understanding.
Leave buy-back allows employees to receive cash payment in exchange for applicable leave credits. The California Department of Human Resources (CalHR) may authorize an annual Excluded Employee Leave Buy-Back Program and will notify departments of the opportunity to participate.
Some Memoranda of Understanding (MOU) provide that a department head or designee will advise department employees whether or not funds are available for cashing out vacation/annual leave.
Excluded Employee Leave Buy-Back Program (Program)
California Code of Regulations, title 2, section 599.744 provides by annual determination, CalHR may authorize the Program. CalHR and the Department of Finance have authorized the Program for fiscal year 2016-17. Payment for all leave hours are made using existing departmental appropriations, therefore, each department’s participation is subject to the availability of departmental funds.
Leave buy-back means that eligible employees in participating departments may receive payment at their regular salary rate in exchange for up to 80 unused leave hours. Eligible leave may be a combination of vacation or annual leave, personal leave (personal leave 1992, 2003, 2010/11/12 and voluntary personal leave), personal holiday, or holiday credit.
Employees 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
Program Enhancement for Fiscal Year 2016-17
The current Program is being enhanced to allow excluded employees with vacation or annual leave balances in excess of 640 hours, as of December 1, 2016, the option to transfer future leave accruals into a Savings Plus 457(b) and/or 401(k) Plan account. The Program allows eligible excluded employees the option to transfer the number of leave accruals elected into Savings Plus, 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.
To participate in the transfer of future leave accruals eligible employees were required to make the election by December 31, 2016. Employees had the option to transfer up to the number of hours they accrue during the January through May pay periods, in increments of eight (8) hours, not to exceed 80 hours. However, the actual number of hours converted will is subject to the number of hours approved by the state and authorized by each department. If the department does not have funding and the Program is not offered, the CalHR-271 form is null and void and the employees leave accruals will be available for use. If the Program is offered for an amount less than the employee elected, the lower amount of hours will transfer to Savings Plus based upon the following hierarchy: (1) 457(b) pre-tax, (2) 401(k) pre-tax, (3) 457(b) Roth, and (4) 401(k) Roth, in accordance with the employee’s election until each plan and deferral type is satisfied. Excess leave accruals will be available for use.
As noted above, the option to transfer future leave accruals to Savings Plus is an enhancement to the existing Program. As such, 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).
For additional information, refer to the frequently asked questions (FAQ’s) below.
Represented Employee Cash Out of Vacation/Annual Leave
Vacation/annual leave cash out means that eligible represented employees in participating departments may receive payment at their regular salary rate in exchange for accrued vacation or annual leave. Participation is limited to employees whose MOU specifically includes this provision. 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.
Each applicable MOU provides specific dates for the leave cash out. Most MOU’s state on or before May 1 the department head or designee will advise department employees whether the department has available funds to participate. In addition, most provide that employees must submit their written request to cash out leave in the month of May and departments are to issue pay in June.
The following MOU’s allow for annual cash out:
|Bargaining Unit Name||Number of Hours|
|1||Service Employees International Union||80|
|2||California Attorneys, Administrative Law Judges and Hearing Officers||80|
|3||Service Employees International Union||80|
|4||Service Employees International Union||80|
|6||California Correctional Peace Officers Association||80|
|7||California Statewide Law Enforcement Association||80|
|8||California Department of Forestry and Fire Protection Firefighters||80|
|9||Professional Engineers in California Government||80|
|10||California Association of Professional Scientists||80|
|11||Service Employees International Union||80|
|12||International Union of Operating Engineers||80|
|13||International Union of Operating Engineers||80|
|14||Service Employees International Union||80|
|15||Service Employees International Union||80|
|17||Service Employees International Union||80|
|18||California Association of Psychiatric Technicians||80|
|19||American Federation of State, County, and Municipal Employees||80|
|20||Service Employees International Union||80|
|21||Service Employees International Union||80|
To participate, employees must have an appointment in one of the applicable bargaining units, work in a department with available funds, and be in the applicable bargaining unit at the time payment is issued. Participation is limited to one time per fiscal year. For tax purposes, payments will be ordinary income in the month that payment is made.
Departments are encouraged, to the extent operationally feasible, to allow employees to use their leave hours as they accrue rather than letting the leave balances accumulate as a future fiscal liability.
Excluded Employee Leave Buy-Back Program
The Program is currently being offered and employees in participating departments may receive payment at their regular salary rate in exchange for up to 80 hours of unused leave credits. The Department Certification of Funding and Participation form must be completed and returned to CalHR’s Personnel Services Branch prior to implementation. Forms may be scanned and emailed to email@example.com. Departments must complete and return the form whether they participate in the Program or not.
Departments must notify their excluded employees to advise whether the department has funds available and is able to participate. Participating departments shall indicate the number of hours that may be bought back, not to exceed the 80 hour maximum. Documentation of the employee notification shall be maintained by each department.
Eligible excluded employees who wish to participate in the Program must submit an Excluded Employee Leave Buy-Back Request Form to an individual designated by the department. Participation in the Program is limited to once per fiscal year.
Departments will deduct the number of corresponding leave credits from the employees available leave balances. Payments may be made as early as May 2017, but no later than June 30, 2017.
Payments under the Program are subject to the flat tax method and garnishments, if applicable. Instructions on how to process payments are issued by the State Controller’s Office.
Program Enhancement for Fiscal Year 2016-17
To participate in the Savings Plus option, all eligible employees were required to submit an irrevocable Transfer Future Leave Accruals to Savings Plus form to their Human Resources office by December 31, 2016.
Bargaining Units 1, 2, 3, 4, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 17, 18, 19, 20, and 21 Vacation/Annual Leave Cash Out
The Department Certification of Funding and Participation form for the Vacation/Annual Leave Cash Out Program for bargaining units 1, 2, 3, 4, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 17, 18, 19, 20, and 21 must be completed and returned to CalHR’s Personnel Services Branch by April 30, 2017. Forms may be scanned and emailed to firstname.lastname@example.org. Departments must complete and return the form whether they participate in the program or not.
Departments must notify their bargaining units 1, 2, 3, 4, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 17, 18, 19, 20, and 21employees in the month of April to advise whether the department has funds available and is able to participate. Participating departments shall advise employees of the number of hours that may be cashed out, not to exceed the allowable amount specified in the applicable Memorandum of Understanding. Documentation of the employee notification shall be maintained by each department.
Eligible represented employees must submit an Employee Leave Cash Out Request form during the month of May to an individual designated by the department. Participation in the program is limited to once per fiscal year.
Departments will transact payment information on a flow basis in the month of June 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 the flat tax method and garnishments, if applicable. Instructions on how to process payments are issued by the State Controller’s Office.
- Leave Buy-Back Enhancement for Fiscal Year 2016/17: Frequently Asked Questions
- CalHR 138: Leave Reduction Plan
- CalHR 271: Transfer Future Leave Accruals to Savings Plus
- Leave Buy-Back Email: Sample Email for HR to send to Excluded Employees
- Leave Buy-Back Tracking: Tracking Tool
- PML 2007-010: PML 2007-010 - 3/27/2007 - Excluded Employee Leave Buy Back
- PML 2015-011: PML 2015-011 - 4/3/2015 - Bargaining Units 2, 7, 9, 10, 12 and 13 Cash Out of Vacation/Annual Leave – Fiscal Year 2014-15
- PML 2015-012: PML 2015-012 - 4/3/2015 - 2015 Excluded Employee Leave Buy-Back Program
- PML 2016-009: PML 2016-009 - 4/18/2016 - Bargaining Units 2, 7, 9, 10, 12 and 13 Cash Out of Vacation/Annual Leave
- PML 2016-011: PML 2016-011 - 4/20/2016 - Excluded Employee Leave Buy Back Program
- PML 2016-032: 2017 Excluded Employee Leave Buy-Back Program
- Leave Buy-Back Program: Excluded Employee Leave Buy-Back Program
Personnel Services Branch
Personnel Program Consultant, , Personnel Services Branch