To: MOU Financial Leads, Business Managers, RASG, Research Information Listserv, HR Officers and Secondary Contacts
From: Janet Kelly-Scholle, Associate Director of Finance Communications
You may remember receiving an email in March announcing that a central pool was being created to fund the payout of vacation and bonus leave when employees leave the University. This central pool will be available starting July 1, 2018.
This new leave payout pool will provide greater financial predictability for departments. Departments will pay for terminal leave payouts in steady and predictable increments in advance, instead of paying large, unexpected sums when employees separate from the University. The central pool also balances the leave payout burden across departments. For example, if a long-term employee takes a position in a different department and then retires shortly after, the new department no longer has to fund the entire payout.
To fund the central pool, starting with the July 6, 2018 paychecks, a 1.2% fee will be assessed each pay period on the earnings funding sources of all leave eligible SHRA and EHRA Non-Faculty employees. While the fees will be charged to account code 516130, they will roll-up to different buckets for budgeting based on the fund type.
|If the fund type is…||the fees will roll-up to account…|
It is important to note that although departments won’t receive additional budget to cover this 1.2% fee, the change will make it easier to budget since the fee is constant.
The 1.2% rate was calculated by reviewing leave payouts over the last five fiscal years. The University will review payouts from this central leave pool each year and will adjust the rate if payouts are higher or lower than expected.
If you have questions, feel free to reach out to the help desk at 919-962-HELP or online at help.unc.edu.