5.6 ERMUSR 11-13-2018 - Laserfiche WebLink

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XX. PURCHASED VACATION TIME (PVT) During the annual open enrollment period and when hired, an employee may purchase up to 40 hours of additional vacation time. If an employee decides to purchase vacation time, the employee pays for the hours on a pre-tax basis. The purchased vacation time will be deducted equally from each paycheck over the course of the year and paid out at the rate in effect when paid out. Vacation is purchased in one -hour increments with a minimum purchase of eight hours and a maximum purchase of 40 hours. Per IRS regulations, the purchased vacation time can only be used once the employee's entire accrued vacation time has been exhausted. Purchased vacation hours must be used in the calendar year in which they are bought. Any purchased vacation hours that have not been used before the second to last pay period end date of the calendar year will automatically be paid out at the supplemental tax rate in the last pay check of the calendar year in which the vacation time was purchased. Therefore, purchased vacation time will not be available for use after mid -December. Any unused purchased vacation time will be reimbursed at the rate in effect when paid out. Upon termination if purchased vacation time used exceeds time deducted for, the employee must pay the difference back to ERMU. However, if the employee has remaining purchased vacation time that has not been used, it will be paid out to the employee. New employees are allowed to buy purchased vacation time based on their benefit eligibility date, as listed in the chart below. Benefit Eligibility Date Maximum PVT Hours Eligible for Purchase January — March 40 Hours April — May 32 Hours June — July 24 Hours August — September 16 Hours October — November 8 Hours December 0 Hours 0