20.08 Lump Sum Termination Pay Updated: January 10, 2002
1. Definition
Lump sum termination pay is the amount paid to an employee separating from the University for their accrued compensable leave balances when they elect to be paid for their leave in a lump sum payment as opposed to remaining on the payroll until their leave has been exhausted. Generally, accrued compensable leave is comprised of unused annual leave balance; however, it may also include unused comp time, if the employee holds a classified position and if the comp time has been properly documented and complies with System Policy.
2. Procedures
2.1 The terminating employee must notify their department head or the Director of Human Resources of their preference for lump sum termination pay or to remain on the payroll until their unused annual leave and/or comp time has been exhausted.
2.2 If the terminating employee requests lump sum termination pay, the employee's department and the Human Resources Department are responsible for reconciling the employee's unused leave balance to ensure that the correct balance is identified. The number of reconciled hours will be documented in a memo from the Director of Human Resources to the terminating employee's department head.
2.3 The terminating employee's department head is responsible for initiating the lump sum termination pay request for the reconciled number of hours by completing a Payroll Adjustment Form and processing it through the normal approval channels. A copy of the memo from the Director of Human Resources must be attached.
2.4 Upon approval by all required officials, the Payroll Adjustment Form is forwarded to the Payroll Office for processing on the next bi-weekly payroll.
3.0 Funding Source
The lump sum termination pay will be paid from the same account(s) as the terminating employee's regular paycheck. If the employee is paid from an E&G account, the department may request a transfer from salary savings to cover the cost, if needed. If the employee is paid from a grant or contract account, an alternative funding source will need to be identified to cover the lump sum termination pay.
