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UMB Policy on Compensation for Accrued Annual Leave for Faculty
Faculty | Approved March 29, 2019
I. Policy Statement
The University System of Maryland Policy on Annual Leave for Faculty (Policy II – 2.40) authorizes UMB to adopt procedures for payment of all or part of the value of accrued annual leave to 12-month faculty members who reduce their level of effort or change to a 10-month or 9 1/2-month faculty appointment. UMB allows faculty members described in this policy to be compensated for accrued annual leave at the discretion of the Provost, as designee of the President of UMB.
This policy applies to UMB faculty members whose reduction in effort or change in appointment began on or subsequent to June 6, 2017, the effective date of the USM policy change permitting payments to faculty for annual leave prior to separation from employment.
II. Implementation of Policy; Examples
A. A UMB 12‐month appointment faculty member may be eligible for payment for part or all of accrued annual leave if the faculty member has a change of effort or status as listed below.
1. A 12‐month appointment faculty member loses eligibility to earn and accrue annual leave as a result of:
a. changing to a 12‐month appointment at less than .5 FTE, or
b. changing to a 10‐month or 9 1/2-month faculty appointment that is not eligible to accrue annual leave.
2. A full‐time or part‐time 12‐month faculty member eligible to accrue annual leave becomes eligible to earn and accrue annual leave at a reduced rate as a result of a reduction in level of effort under the faculty member’s appointment.
B. A payment for accrued annual leave must be requested in writing by an eligible faculty member to a Department Chair or Dean and recommended by a Dean or designee to the Provost or designee. A letter to the Provost may be used to submit a request. The fully approved letter must be submitted with a Payroll Adjustment Form and any other documents required by Financial Services to request an annual leave payment.
C. A faculty member’s annual leave balance may not be reduced to less than the maximum leave balance UMB will track in its electronic leave recording system as the calendar year carry forward balance for that faculty member.
D. Generally, a tenured faculty member will not receive a payment for accrued annual leave if the faculty member does not relinquish tenure at the time of a change of effort or status resulting in eligibility to request an annual leave payment. An exception to this requirement will be made for a tenured faculty member who has been on a 12-month appointment in order to serve in an administrative role (e.g., dean or assistant or associate dean). Upon relinquishing the administrative role, the faculty member may assume/resume a 9 1/2 or 10-month appointment, will no longer accrue annual leave, and can be paid for unused leave at the time of the change of appointment.
E. A faculty member’s payment for annual leave under this policy will be calculated based on the annual salary of the faculty member immediately prior to the change in effort or status that results in eligibility for payment. For this purpose, annual salary includes any supplement paid for an administrative role held immediately preceding the change in effort or status.
F. A faculty member who retires and is compensated for accrued annual leave cannot return to a position with an annual leave benefit.
G. A faculty member who was granted a leave of absence who retires at the end of the leave will be compensated for annual leave based on the salary rate of the faculty member prior to the leave of absence.
H. Examples: A faculty member who reduces his or her level of effort from 1.00 FTE to 0.6 FTE has an annual leave balance of 400 hours at the time of effort change. The faculty member can receive a payment for a maximum of 160 hours annual leave, leaving a balance of 240 hours, which is the maximum balance a 0.6 FTE faculty member can carry forward from one calendar year to the next. For a faculty member changing to 0.5 FTE, with the same 400 hours balance at the time of effort change, the maximum payout would be 200 hours. For a faculty member changing to 0.8 FTE under the same conditions, the maximum payment would be 80 hours.
I. As permitted by USM Policy II-4.20, some fiscal year faculty (12-month appointees) are employed under faculty contracts that limit the annual leave that can be paid to them upon separation from employment. This policy will not be applied to increase annual leave payments above the limits stated in such contracts. If a faculty member’s level of effort is reduced, the maximum payment for annual leave under a contract limiting annual leave payment will be reduced pro rata consistent with the effort reduction, provided the faculty member remains eligible for annual leave. At the time of the reduction of effort, a payment can be requested for accrued leave in excess of the new maximum annual leave payable upon separation from employment.
J. Unpaid, accrued annual leave that is not tracked electronically by the UMB leave recording system remains a liability of UMB. Faculty with annual balances not tracked are responsible for maintaining documentation to establish leave balances upon separation from employment.
III. Roles and Responsibilities
A. The Executive Vice President and Provost or designee must approve payments for accrued annual leave for faculty under this Policy.
B. The Executive Vice President and Provost is in charge of this Policy.
C. Financial Services will provide instructions concerning the documentation required to process a Payroll Adjustment Form for a payment under this Policy.
IV. Key Related Policies and/or Procedures