Human Resource Services
Frequently Asked Questions
UF Leave Benefits Restructure and 3 Percent Salary Increases/Retirement Payments
*** Updated February 2, 2012***
Will faculty receive the 3 percent salary increase?
Eligible faculty members will receive what UF is designating a "retirement payment" salary increase beginning with their first paycheck in March. The retirement payment is equal to 3 percent of base salary up to the IRS compensation limit on which the retirement contribution is calculated. The retirement payment will be made with each paycheck and reimburses faculty for the amount the state requires them to contribute to the state retirement plan. Each retirement payment is subject to all applicable withholding, taxes and policies.
How will the 3 percent be calculated?
The 3 percent will be applied to the employee’s base salary up to the IRS compensation limit for the 3 percent retirement contribution: $245,000 if the employee was hired on or after July 1, 1996, and $363,820 if he or she was hired prior to July 1, 1996.
Will employees covered by the United Faculty of Florida collective bargaining unit agreement also receive the 3 percent “retirement payment” salary increase?
The retirement payments and leave changes for employees in the United Faculty of Florida (UFF) bargaining unit are subject to union negotiation and approval. After negotiating with UFF for some time, union leadership has declined our written proposal to provide the retirement payments. Therefore, employees in the United Faculty of Florida bargaining unit will not be receiving the retirement payments in February and will not be affected by the leave changes.
I am an in-unit employee, covered by the United Faculty of Florida contract. However, I do not pay union dues. Will I receive the 3 percent “retirement payment” and be affected by the leave benefit changes?
Any employee covered by the bargaining unit will not receive the 3 percent retirement payment salary increase nor be affected by the leave changes in February, regardless of whether the in-unit employee pays dues to the union.
What is the status of the pending litigation related to the mandatory 3 percent retirement contribution?
Litigation is still pending. However, should the state require the university rather than faculty to make this 3 percent contribution, the university would cease to provide eligible faculty with the retirement payments. Instead, the university or the state would begin to make the payments on behalf of the employee for retirement. Also, if the state or a court requires the university to reimburse eligible faculty for past contributions they've been required to make, the university’s reimbursement would be reduced by the amount the university has already paid eligible faculty in retirement payments.
What leave changes were approved by the University Board of Trustees and when are they effective for faculty?
The vacation and sick leave regulation changes were approved by the Board of Trustees in December 2011 and may be found at the following web site: http://regulations.ufl.edu/chapter1/1201w-notations.pdf. They become effective for out-of-unit faculty on February 17, 2012.
How are staff employees affected by the proposed changes?
The vacation leave changes were implemented for staff in September and the sick leave changes for staff were implemented effective January 1, 2012. Eligible staff received a 3 percent increase effective September 16, 2011.
Would you summarize the leave changes?
The changes for out-of-unit faculty, TEAMS, and USPS employees are as follows*:
- The maximum cashout has changed from 352 to 200 hours. Upon separation (for any reason), employees will be paid for up to 200 hours of unused vacation leave hours.
- The year-end maximum vacation leave accrual has changed from 480 hours to 352 hours. The maximum vacation leave accrual for USPS employees remains at 240 hours.
- Eligible employees (10 years of continuous employment and hired prior to April 1, 2010) who retire on or before June 30, 2016, will continue to receive a payment of ¼ of unused sick leave up to a total of 480 hours. The sick leave payment is eliminated for employees who separate for reasons other than retirement or separate after June 30, 2016.
*Employees in the United Faculty of Florida are covered by the collective bargaining agreement.
Is the biweekly accrual rate for vacation and sick leave changing?
No, the accrual rates for vacation and sick leave are not changing.
What happens if my vacation balance exceeds 352 hours?
Normally, a process is run at the end of the calendar year to reduce vacation leave balances to the maximum and convert these hours to sick leave. This process was not run at the end of 2011 which allowed employees and supervisors the opportunity to schedule vacation time for employees with excessive vacation leave balances. The next time vacation hours over 352 will be transferred to sick leave will be in January 2013, based on December 2012 balances.
How are employees in DROP affected by these changes?
- Because DROP participants were not affected by the 3 percent required contribution to retirement, they would not receive the 3 percent salary increase.
- Participants would be permitted to cash out up to 200 hours at termination, provided the total vacation cash-out including the amount they cashed out upon entering DROP does not exceed 352 hours (240 if USPS). If a DROP participant cashed out fewer than 352 hours (or 240 hours if USPS) at the beginning of DROP, he or she would be permitted to cash out up to 200 hours at termination, provided 200 hours plus the original amount does not exceed the 352 hours (240 if USPS). For example, if a TEAMS employee received a cash-out of 100 hours at the time the election to enter DROP was made, that employee can cash-out an additional 200 hours because the sum of the two cash-outs does not exceed 352 hours. If an employee did not cash out any hours at the time the election to enter DROP was made, then that employee can cash out 200 hours. These cashout provisions do not apply to in-unit faculty entering DROP, who are covered by the collective bargaining agreement.
Will faculty currently enrolled in DROP be eligible for the 3 percent increase to their salary base?
No. Only faculty who are required to contribute the 3 percent will receive the payment. Because DROP participants are not required to contribute 3 percent toward their retirement, they are not eligible for the retirement payment.
Will faculty receive a payment for unused sick leave upon separation?
Out- of unit faculty - If the separation is a result of retirement (or exiting DROP) on or before June 30, 2016, eligible employees will be paid for 1/4 of unused sick leave, up to a total of 480 hours. This includes all employees enrolled in the FRS Pension Plan, the SUS Optional Retirement Program, and the FRS Florida Investment Plan, as well as those enrolled in DROP.
In-unit faculty – their leave benefits are covered by the collective bargaining agreement.
What determines employee eligibility for the payment of unused sick leave?
Out-of –unit faculty and staff employees with ten or more years of creditable service who were hired prior to April 1, 2010, and who are retiring prior to June 30, 2016, are eligible. Employees in the United Faculty of Florida collective bargaining unit are covered by the collective bargaining agreement.
Would eligible employees who retire (or exit DROP) on or before June 30, 2016, receive a payment for unused sick leave?
Yes.
What happens to vacation leave hours that exceed the maximum accrual?
They will roll over into the employee’s sick leave balance.
When would the rollover to sick leave happen?
The first rollover would be effective at the end of December 2012, and annually thereafter.
Please direct questions and comments to 2012salaryincrease@ufl.edu or call Brook Mercier (352) 273-1790 or Janet Malphurs (352) 273-1737. For questions related to the changes in the sick and vacation leave benefits, contact Jennifer Johnson-Kingswell at (352) 273-1728.