State of California M E M O R A N D U M REFERENCE CODE: PML 95-049 DATE: November 17, 1995 TO: Personnel Officers Personnel Transactions Supervisors FROM: Department of Personnel Administration Classification and Compensation Division SUBJECT: Annual Leave Program (ALP) Update CONTACT: Clarice Baker (916) 324-0439 or Calnet 454-0439 Office Vision: DPA (CLBAKER) Internet: CLBAKER@SMTP.DPA.CA.GOV The purpose of this memorandum is to notify departments of changes in the Annual Leave Program (ALP). Also provided are guidelines for the payment of the enhanced Nonindustrial Disability Insurance (NDI) benefits that are available to employees under the ALP. Please advise your employees of these changes. NEW REQUIREMENT FOR EXCLUDED EMPLOYEES - EFFECTIVE NOVEMBER 1, 1995 Effective November 1, 1995, employees newly appointed to a class with a designation which is excluded from the definition of State employee under Government Code Section 3513 (c) shall be mandatorily enrolled in the ALP pursuant to Department of Personnel Administration (DPA) Rule 599.752 (b). This new requirement applies to any person who is appointed, promoted, or transferred into a position that is excluded from collective bargaining. Please ensure excluded employees, who are appointed on and after November 1, 1995, are enrolled in the ALP and are advised of their ALP rights and benefits. ENROLLMENT REQUIREMENTS FOR EMPLOYEES ELIGIBLE FOR THE ALP "Eligibility" Part-time employees, permanent-intermittent employees, and employees whose appointments are either limited term or temporary are eligible to participate in the ALP. Seasonal employees who are designated as "E" (Excluded from collective bargaining) do not have eligibility to participate in the ALP. Employees on Training and Development Assignments are eligible to participate in the ALP only if their permanent civil service appointment has eligibility to participate in the program. "Excluded Employees" Effective August 20, 1992, the ALP was extended on a voluntary basis to all current employees who were designated excluded as defined in Government Code Section 3513 (c). This right of voluntary participation will continue for employees who were in an eligible excluded position on that date and are still in an excluded position. "State Bargaining Units 5, 10, 12, 13, and 16 Employees" Employees who were in the above bargaining units prior to the establishment of ALP shall have the opportunity to enroll in ALP on a voluntary basis. New employees who enter into the above bargaining units by appointment, transfer, promotion, etc., after the establishment of the ALP shall be mandatorily placed in the ALP. The State has agreed to an additional condition which would provide current eligible employees in Units 12 and 13 who did not opt into the ALP and who, for example, transfer, demote, or promote between these two units, will not be required to participate as a "new hire". This provision is in each unit's contract, and the exception to mandatory coverage would apply solely to an employee's movement between these two bargaining units. In all other instances, current State employees who are appointed to a position covered by a bargaining unit that has the ALP shall automatically be placed in the ALP. "Annual Open Enrollment and Continuous Enrollment" Employees who are represented by Unit 5 will continue to be given annual open enrollment to the ALP. Excluded employees and employees in Bargaining Units 10, 12, 13, and 16 who have not elected to enroll in the ALP may elect to enroll at any time. SUMMARY OF ANNUAL LEAVE PROGRAM "Effective Date" Participation in the ALP shall be the first of the month following enrollment for employees who voluntarily elect to enroll in the Program. Employees who are mandatorily placed in annual leave shall receive annual leave benefits immediately. "Annual Leave Accrual" Under the ALP, employees will earn six days of additional leave (in lieu of the current 12 days of sick leave per year) by adding four hours of annual leave to the existing monthly vacation accrual schedule. Employees who work less than full time will earn annual leave credits prorated based on their time base. The tables below reflect the annual leave accrual rate for a full-time employee: "Rank and File" Length of Service: Annual Leave Accrual: 1 month to 3 years 11 hours per month 37 months to 10 years 14 hours per month 121 months to 15 years 16 hours per month 181 months to 20 years 17 hours per month 241 months and over 18 hours per month Bargaining Unit 05 employees shall accrue holiday credit in lieu of the holidays. This accrued holiday-in-lieu credit shall be added to the monthly annual leave accrual rate of employees. "Excluded Employees and Board and Commission Members" Length of Service: Annual Leave Accrual: 1 month to 3 years 15 hours per month (effective 12/31/90) 37 months to 10 years 15 hours per month 121 months to 15 years 17 hours per month 181 months to 20 years 18 hours per month 241 months to 25 years 19 hours per month 301 months and over 20 hours per month ANNUAL LEAVE USAGE Employees receive and may use annual leave credits in half hour increments after one qualifying pay period. Annual leave can be used to meet the employee's need for paid time off for any management approved absence covered by sick leave and vacation in the past. Employees will be allowed to accumulate up to a maximum of 640 hours of annual leave. Exceptions to this limit will not be allowed except in extremely unusual situations as determined by the Director of the Department of Personnel Administration. Upon separation from State service, employees receive a lump sum payment for accumulated credits. EFFECT OF ENROLLMENT ON LEAVE CREDITS "Vacation" At the time of enrollment, an employee's existing vacation balance will be transferred to Annual Leave. Thereafter, no vacation credits will be accrued, and annual leave credits will begin accruing according to the rate schedules shown above. "Sick Leave" Sick Leave credits will no longer be accrued once enrolled in the ALP. However, sick leave balances in existence at the time of enrollment will be maintained for use by the employee for approved sick leave purposes. Any sick leave credits on the books at the time of retirement will be converted to service credit at current formulas (2,000 hours of sick leave converts to service credit that would provide a monthly retirement benefit of approximately two percent of pay for miscellaneous employee who retires at age 60). "Irrevocability of Participation in ALP" Participation in the ALP is irrevocable as long as an employee is employed in State service in any position which leave credits are provided. When an employee moves to a bargaining unit that does not have annual leave, the employee is still required to participate in the ALP. "Excluded" Excluded employees who are participating in the ALP and thereafter transfer to a represented position will accrue annual leave credits by adding four hours to the vacation accrual schedule for represented employees. "Exception" Pursuant to DPA Rule 599.752.1, an employee who transfers to a board or commission member appointment must elect coverage under either vacation or annual leave. A board or commission member who elect annual leave, and thereafter is appointed to a position other than a board or commission member, will continue coverage in the ALP. ENHANCED NONINDUSTRIAL DISABILITY INSURANCE (NDI) PROVISIONS The NDI benefit which covers nonwork-related disabilities will be improved for annual leave participants from its current level of $135 per week to 50 percent of gross salary for up to 26 weeks. Disability payments may be supplemented with annual leave, or sick leave credits, and partial employment to provide for up to 100 percent income placement. At the time of the NDI claim, an employee must elect to choose either the 50 percent NDI benefit rate; a supplementation level of 75 percent; or a supplementation level of 100 percent of gross pay. Once a claim has been filed and the employee has determined the rate of supplementation, the supplemental rate shall be maintained throughout the disability period. Employees may choose a different supplementation rate for claims related to subsequent disabilities. Employees who are mandatorily placed in the ALP shall be immediately eligible for enhanced NDI benefits. Employees who voluntary enroll in the ALP shall serve a 90 calendar day waiting period before being eligible for the enhanced NDI benefits. In addition, employees who enroll in annual leave while on an NDI claim, will continue to receive the original NDI pay for the duration of the claim. Effective July 1, 1994, employees who supplement their NDI benefit at 100 percent income replacement will receive full State service credits for seniority purposes and annual leave credit. Employees who supplement their NDI benefit at 75 percent income replacement shall receive one-half credit for seniority and one-half the amount of annual leave granted to employees who supplement at 100 percent. NDI PROVISIONS AND HOLIDAYS FOR EMPLOYEES IN THE ALP Employees who are on NDI status without supplementation of leave credits shall only receive the NDI benefit payment holidays. If a holiday falls during the period of supplementation or while an employee has returned to partial work status, the employee shall receive (regular pay) full credit and NDI compensation for the holiday. The time worked does not have to be the day before the holiday or the day after the holiday. Employees are entitled to holiday pay whether it is a qualifying pay period or not. The amount of time given for holidays is based on the employee's time base. Example: Full-time employees who elect to supplement their NDI benefit at 75 percent income replacement shall receive eight hours of regular pay for the holiday. The NDI gross will be reduced when the employee's regular gross pay plus the NDI gross exceeds the employee's monthly salary rate as a result of additional pay received for holidays. Attached are formulas for assisting departments in calculating the various methods of the NDI/Annual Leave Benefit options. If you have any questions regarding this memorandum, you may call Clarice Baker on (916) 324-0439, Calnet 454-0439. Mike Vargas Section Manager Attachment (Attachment will be available in hardcopy thru the mail.)