City of Greensboro Personnel Policy Manual

City of Greensboro Personnel Policy Manuał

exhausted before an employee is granted leave without pay. Payments for the PLWOP must be maintained during the extended leave without pay. 5.8 PLWOP will not have a negative impact on an employee’s service time with the City. 5.9 Impact on Retirement and Social Security Benefits Planned Leave Without Pay results in a proportional reduction in an employee’s annual earnings for the year in which the leave is taken. Because certain retirement and benefit programs are based on earnings, employees should be aware that participation in Planned Leave Without Pay may have a modest impact on future benefit calculations, including: • Defined Benefit Pension - Pension benefits are calculated using pensionable earnings and, in some cases, service credit. Planned Leave Without Pay purchase causes a reduction in annual earnings during the year in which it is taken. This may slightly affect pensionable compensation for that year and, depending on an employee’s career timing, could influence the final pension benefit. PLWOP purchases affect retirement benefits if it occurs during the employee’s pension calculation period, which is the highest earning 48 consecutive months of employment. • Social Security Benefits - Social Security benefits are based on lifetime earnings subject to Social Security taxes. A reduction in taxable earnings during a year in which Planned Leave Without Pay is taken may be reflected in an employee’s Social Security earnings record and could have a small effect on future Social Security benefits. The City provides Planned Leave Without Pay as a voluntary benefit to offer employees greater flexibility and work-life balance. Employees considering participation are encouraged to review their individual circumstances and, if desired, consult with their retirement system or a financial advisor to understand how this option may affect their long-term benefits. 6.0 PROCEDURES 6.1 PLWOP Purchase A. Once each year, employees will be given the opportunity to request PLWOP by electing it during online Open Enrollment. B. At the close of Open Enrollment processing the Department Director will receive a report listing the employee and amount of PLWOP hours purchased. The Director must then notify P&C of any employee elections that are not approved prior to upload into the employee’s account. The P&C Rep, Business Partner or Benefits Assistant is responsible for communicating this deadline to the Directors. C. The value of the PLWOP is determined for each employee by multiplying the employee’s hourly rate of pay on December 31, times the number of hours being purchased.

Table of Contents A B C D E F H I J K L List of Appendices G

F - Leaves of Absence

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