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The leave rate is separate from the benefit rate because the eligibility criteria for earning leave and for receiving benefits are different:

• Applies to: Employees covered by the leave program and who receive pension-eligible wages. 
• Excludes: Faculty and other groups who are not eligible for the University’s leave program.

The money collected from the leave rate funds a separate central pool that covers employee costs while an employee is on qualifying leave. During this time, departments do not have to pay the employee’s salary or benefits but do have to pay any PTO or banked sick leave used.

• Department pays: Worked time; PTO and banked sick usage (including elimination period); contribution to central pool (via leave rate)
• Central pool pays: Qualifying leave (short-term disability, parental and caregiver, including applicable top-off pay); benefits and FICA during qualifying leave period; PTO paid at separation (where eligible).

Applying a leave rate for each employee spreads the cost of providing leave programs proportionally across departments.

The leave rate is based on actual leave costs from recent years and can vary year-to-year. It is a variable amount calculated based on the employee’s pension-eligible wages.

• Applicable earn codes: HR Elig Field 1 value of EXVAC, FLSAG, NEVAC, NURSES, EXPTO, FLSPTO, NEPTO, NRSPTO, EVCSRS or EVFERS with pension-eligible wages (PEN).

The payroll system will automatically fix the funding source if a timing gap between payroll deadlines and qualifying leave approvals affects which pay period the central pool covers. Departments should not create a payroll correcting entry (PCE) to move these costs, because the system will correct them in the next pay period.