To: All Principal Investigators and Fiscal Administrators
Effective July 1, 2015 pursuant to 2 CFR Chapter II, Part 200, Subpart E, 200.431), the RCUH Vacation Payout Reserve will be in effect for all terminal vacation payouts. The Vacation Payout Reserve is funded through a fringe benefit charge on the payroll of Regular Status Employees with an FTE of 50% or greater. The Vacation Payout Reserve will pay for all unused vacation earned by employees while working on sponsored agreements or other projects at termination. We have published the RCUH Policy 3.620 Vacation Leave and the corresponding RCUH Fringe Benefits Schedule for Fiscal Year July 1, 2015 through June 30, 2016.
Highlights of the changes to the RCUH Policy 3.620 Vacation Leave are as follows:
- Termination Vacation Payout: An employee’s applicable unused vacation hours upon termination (involuntary or voluntary) will be paid out in full from RCUH’s Vacation Payout Reserve.
- Termination Vacation Leave: Regular status employees will be allowed to take their remaining vacation hours prior to termination of employment (accrual will cease upon notification of termination vacation leave).
- Allowance to Use Vacation at FTE when FTE drops below 50% FTE: Regular Status employees with accrued vacation whose FTE drops below 50% FTE will no longer earn vacation hours but may continue to take available paid vacation leave based on the employee’s prevailing FTE.
- Transfer of Vacation Hours from Project A to Project B: Employees will be allowed to maintain their accrued vacation balance (including Carry-Over vacation hours) when they transfer (Project A to Project B with no break in service) from one RCUH job to another RCUH job. There will be no vacation payouts for transfers (with no break in service) even if the employee is hired into a new job under a different Principal Investigator.
- Reports via HR Portal: The “Vacation and Sick Leave Report” provides employees’ leave balances on the project level. The “Summary Vacation Planning Report” forecasts year-end vacation forfeitures based on the current balances. Both reports will now be published in the HR Portal.
Highlights of the changes to the RCUH Fringe Benefits Schedule for Fiscal Year July 1, 2015 through June 30, 2016 are as follows:
- Vacation Fringe Charge: 1.393% of all salaries and wages (NEW fringe charge for all employees on active payroll eligible for vacation leave)
- Long Term Care Charge: 0.259% of salaries and wages (up from 0.224% in FY2015)
If you have any questions, please email Nelson Sakamoto, Director of Human Resources at [email protected].