Skip Navigation
Office of Human Resources at UNC Chapel Hill
For Job SeekersFor Faculty & StaffFor ManagersHR HomeUNC Home
The Office of Human Resources
QuickFind
A to Z Index
Form Finder
Hot Topics
Directories
HR Directory
Campus Directory
More Info
About HR
Directions to HR
Related Websites

You are here:Home / Human Resources / SPA / Pay Systems & Job Classification / Wage-Hour & Special Pay Policies / Longevity Pay

Last Revision:12/01/2003
Last Review:12/01/2003
Posted to Website:11/01/2003

Longevity Pay

CONTENTS

Purpose

The longevity pay plan recognizes and expresses the University's appreciation for the long-term service of permanent SPA employees, both full-time and part-time (regularly scheduled to work 20 hours or more each work week) who have completed at least 10 years of Total State Service.


Service Requirements

Longevity pay (full or pro rata) is based on Total State Service and is computed as a percentage of the employee's base annual salary at the date of eligibility.

A break in service as a result of leave without pay delays the payment for longevity by the months represented by the non-pay status. (Workers' compensation leave and military leave do not represent breaks in service.)

Service toward longevity is credited for each month in which an employee is in pay status for one-half or more of the regularly scheduled work days and paid holidays in the month. Credit also is given for:

  • other governmental units which are State agencies;
  • authorized military leave and subsequent reinstatement according to policy; and
  • employment with the Agricultural Extension Service, Community College system, a public school system for the entire school year, local divisions of the Department of Human Resources, and the General Assembly (except legislators, pages, and interns).

Longevity Payment

Longevity is paid annually. The amount is computed by multiplying the eligible employee's base annual salary by the appropriate percentage (see table below) and is rounded to the nearest dollar:

Years of Total State Service
Longevity Pay Percent
10 but less than 15 years1.50
15 but less than 20 years2.25
20 but less than 25 years3.25
25 or more years4.50

Longevity Pay is made in a lump sum and is subject to statutory deductions. It is not considered a part of base annual pay for classification, other pay or records purposes.

Full longevity pay is paid by separate check to an eligible employee on the payday for the pay period in which his/her eligibility date occurs and annually in succeeding years.

Should an employee separate before the date of the annual longevity payment, longevity pay is awarded on a pro rata basis.

An employee who transfers to another State agency or University is paid by the receiving agency on the eligibility date.

An employee who separates and receives a prorated longevity payment and is reinstated must complete additional service to total 12 months before receiving the balance of longevity; the balance is based on the employee's current salary.

Pro rata longevity is calculated by taking 1/12 of the annual percentage amount for each month since his/her last annual longevity payment through the date of the status change. The employee must have been in pay status for one-half or more of the regularly scheduled work days and paid holidays in the month for the the month to count toward this amount. No longevity pay is awarded for any period covered by terminal leave pay.

Pro rata longevity is computed as full longevity pay, except if an employee has a fraction of a year toward the next higher percentage rate, the pro rata payment is based on the next higher rate. It is paid to the nearest cent.

If an eligible employee goes on extended military leave without pay, a longevity payment computed on a pro rata basis shall be paid the same as if the employee is separating. The balance will be paid when the employee returns and completes a full year.

If an employee goes on leave without pay, longevity shall not be paid until the employee returns and completes the full year. If, however, the employee should resign while on leave without pay, the pro rata amount for which the employee is eligible is paid.

Exceptions are as follows: 

  1. An employee going on leave without pay due to short-term disability may be paid the pro rata amount for which the employee is eligible. 
  2. An employee going on extended military leave without pay shall be paid the pro rata amount for which eligible. 
  3. An employee on workers' compensation leave shall be paid longevity as if working.

Salary increases effective on the longevity eligibility date are incorporated in base pay before longevity is computed.


Implementation

Full longevity payments are initiated and processed by HR Records & Information Department.

Pro rata longevity payments are initiated by the operating department.


Related subjects

Related forms

If you have comments about this website, or if you need viewing accommodations due to a disability, please contact hr@unc.edu.
© Copyright 2003 The Office of Human Resources, University of North Carolina at Chapel Hill. An Equal Opportunity Employer.