1.10 Longevity Pay Policy
I. Definitions
A. Total Qualifying Service
A month-for-month computation of full-time employment with departments, agencies, or educational institutions of the State of North Carolina, as defined by the State Board of Community Colleges Code 1C SBCCC 400.98.
B. Eligibility
A full-time employee is eligible for longevity pay only after the date the employee has completed ten years of total service with a community college, a school administrative unit, or an agency.
II. General Rule and Regulations
A.
Annual longevity pay amounts are based on the length of total service to agencies, community colleges, and school administrative units as designated in Paragraph (b) of the State Board of Community Colleges Code 1C SBCCC 400.98 and a percentage of the employee's annual rate of pay on the date of eligibility.
1. It is the employee's responsibility to provide proof of prior service with the State of North Carolina. Longevity pay will be calculated and paid beginning on the date of receipt of the Prior State Service Verification Form in the Human Resource Department. New hires are allowed reasonable time to submit the completed form.
2. Longevity pay amounts are computed by multiplying the employee's annual base or contract salary rate as of the eligibility date by the appropriate percentage, rounded to the nearest dollar, in accordance with the following table:
Years of Total State Service | Longevity Pay Rate |
---|---|
10, but fewer than 15 | 1.5% |
15, but fewer than 20 | 2.25% |
20, but fewer than 25 | 3.25% |
25 or more | 4.5% |
3. Longevity pay is not considered a part of annual base or contract pay, nor is it to be represented in personnel and payroll records as a part of annual base or contract salary. (Salary increases effective on the same date as the longevity eligibility date shall be incorporated in the base pay before computing longevity).
B.
The payment of longevity pay to eligible employees is automatic. Payment shall be made in a lump sum, subject to all statutory deductions, during the monthly pay period in which the employee has satisfied all eligibility requirements, if the date is before the 16th day of the month. If the eligibility date is after the 15th day of the month, longevity pay is paid the following month.
- Eligible employees on worker's compensation leave shall receive longevity payment in the same manner as if they were working.
- If an employee retires, resigns, dies, or is otherwise separated on or after the date of becoming eligible for a longevity payment, the full payment shall be made to the employee or to the estate of the employee in case of death.
- If, on the effective date of this policy, an employee has completed the qualifying length of service but is between eligibility dates, longevity payment will be made on the next longevity anniversary date.
- If the employee has worked part but not all of one year since qualifying for longevity payment, the employee shall receive a pro rata payment in the event of:
- separation from the institution;
- change in employment status to temporary part time, or to a position not covered in this policy.
- If an employee separates from a community college and receives a partial longevity payment and is employed by another community college, school administrative unit, or state agency, the balance of the longevity payment shall be made upon completion of additional service totaling 12 months for an employee having a 12 month period of employment, or upon completion of a lesser term for an eligible employee on less than a 12 month period of employment. The balance due is computed on the annual or contract salary being paid at the completion of the requirement.
- If an eligible employee at the time of separation has a fraction of a year toward the next higher percentage rate, payment shall be based on the higher rate; however, the basic eligibility for longevity requirement must have been satisfied before this provision can apply.
- Leave without pay in excess of one half the work days in a month (with the exception of authorized military leave and worker's compensation leave) will delay the longevity anniversary date on a month for month basis.
C. Exclusions
Total service for the longevity pay plan does not include:
- Temporary service; that is, service by an employee who works in a temporary position, or who is working temporarily in the absence of another full-time employee on leave of absence;
- Periods of out-of-state employment with other states, schools, colleges or universities;
- Periods of employment with agencies of the federal government;
- Periods of military service other than those categories described in paragraph D of this policy.
- Periods of employment for employers other than the State of North Carolina, even though credit in the North Carolina retirement system has been purchased for such employment.
D. Authorized Military Leave
- Credit for military leave is granted only for persons who were employees of the State of North Carolina or other agencies listed in Paragraph (b) of the State Board of Community Colleges Code 1C SBCCC 400.98 who were granted leave without pay:
- for a period of involuntary service plus 90 days, or for a period of voluntary enlistment for up to four years plus 90 days, so long as they returned to employment in a covered agency within the 90 days; or
- for a period of active duty for service, alerts, or required annual training while in the National Guard or in a military reserve program.
- Employees who enlist for more than four years or who reenlist shall not be eligible for military leave.
- Employees hospitalized for a service connected disability or injury shall be granted additional leave without pay for the period of hospitalization plus 90 days or for 12 months, whichever is shorter. The hospitalization must commence before reinstatement into qualifying service for the provisions of this part to apply.
Changes
Changes approved by the Board of Trustees on May 6, 2020
Approved by Cabinet on January 7, 2008