Longevity Pay

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 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 years 1.50
• 15 but less than 20 years 2.25
• 20 but less than 25 years 3.25
• 25 or more years 4.50

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.

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.

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

Prorated 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 month to count toward this amount. No longevity pay is awarded for any period covered by terminal leave pay.

Prorated longevity is computed as full longevity pay, except if an employee has a fraction of a year toward the next higher percentage rate, the prorated 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 prorated 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 prorated amount for which the employee is eligible is paid.

Exceptions are as follows:

• • An employee going on leave without pay due to short-term disability may be paid the prorated amount for which the employee is eligible.
  • An employee going on extended military leave without pay shall be paid the prorated amount for which eligible.
  • 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.

To calculate prorated longevity, first calculate the full longevity amount the employee would receive at the next longevity anniversary.

Full Longevity = (Annual salary at time of separation) x (longevity %), rounded to the nearest dollar

Then calculate the prorated payment:

Prorated Longevity Payment = Full Longevity x (# of months now eligible / 12), rounded to the nearest cent

Example 1
Employee’s TSSD is 2/1/93 and annual salary is $28,362. Last longevity payment received was in February 2003. Employee is terminating university/state employment on November 30, 2003.

Calculation is as follows:
Full Longevity = $28,362 x 1.5% = $425.430, rounded to the nearest dollar = $425
Prorated Longevity Payment = $425 x 10/12 = $354.166, rounded to the nearest cent = $354.17

Example 2
Employee’s TSSD is 2/1/93 and annual salary is $28,362. Last longevity payment received was in February 2003. Employee is terminating university/state employment on November 10, 2003.

Calculation is as follows:
Full Longevity = $28,362 x 1.5% = $425.430, rounded to the nearest dollar = $425
Prorated Longevity Payment = $425 x 9/12 = $318.750, rounded to the nearest cent = $318.75

Notes:

• • If an employee has a fraction of a year toward the next higher percentage rate, the payment would be based on the higher rate. For example, if an employee has 19 years and 3 months service, the payment would be 3.25% rather than 2.25%.
  • Prorated longevity is rounded to the nearest cent. It is not rounded to the nearest dollar like full longevity.
  • If an employee was in pay status half or more of the working days and holidays in that month, then the employee earns credit for that month (see example 1).
  • If an employee was not in pay status for half or more of the working days and holidays in the month, the employee does not get credit for that month (see example 2).
  • Be sure to include the month in which the employee received his or her last full longevity check when calculating the number of months towards the prorated payout.
  • Comments section should include the calculation method used by the department.

Full longevity payments are initiated and processed by Payroll Services as part of the payroll process. Pro rata longevity payments are initiated by the operating department.

• Service Date Information
• Creditable Service Form