Vacation Carryover for Retirement Purposes
An employee may carry over vacation to be paid out when they retire under the following conditions:
- Vacation time can only be carried over in the last five years leading up to an employee’s actual retirement date.
- An employee needs to complete a new Vacation Carryover for Retirement Purposes request form in Maestro within HUB each year to confirm their previously approved and/or new vacation carryover.
- An employee may only carry over a maximum of one year’s vacation entitlement from one year to the next.
- Staff example: an employee’s annual vacation entitlement is 25 days, which means their total vacation carryover cannot exceed 25 days.
- The total accumulated vacation that can be paid out upon retirement is the lesser of the employee’s vacation accrual in the two years prior to the retirement year, and 50 days. The combined total of carryover and earned vacation credits to be paid out in the retirement year must not exceed 50 days.
- Two years of vacation accruals is the annual accrual rate in the fiscal year of retirement plus the annual accrual rate in the prior fiscal year.
- Faculty example: an instructor’s annual vacation entitlement is 44 days, which means their total vacation carryover cannot exceed 44 days. In this example, if an instructor were to retire at the beginning of April, they would only need to carry over six days from the previous year to add to their 44-day entitlement at April 1.
- Vacation credits that exceed the maximum of 50 days must be used before the employee’s actual retirement date as those credits are not eligible to be paid out.
- It is management’s responsibility to review:
- an employee’s actual retirement date,
- the number of vacation days an employee will take in their retirement year, and
- an employee’s vacation accrual rate to ensure their carryover is kept to the minimum necessary to achieve the 50-day pay out (if applicable).
- All carryover to be paid out at retirement must be approved by a Dean/Director (or other appropriate level of approval). If an employee reports directly to the President, the President’s approval is required.
- If an employee requests to change their date of retirement, or requests to withdraw their notice of retirement, they must submit the request in writing to the Vice President and include the reason for their request. If this request is approved, the appropriate amount of vacation carryover for retirement purposes will be returned to the employee’s vacation balance, and they will determine a plan to use these vacation days within the year.