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The 89th General Assembly of the State of Tennessee adopted a longevity pay plan to reward State employees for extended service to the State. The plan became effective July 1, 1979 and was amended July 1, 1980 to include faculty members of the State's public higher education institutions, and was further amended on July 1, 1994 to include regular part-time employees who are scheduled to work 1600 or more hours (82.1 percent time) in a fiscal year. In addition, effective July 1, 1995, regular full-time employees with 36 months of full-time service became eligible to receive longevity credit for prior part-time service that is equivalent to not less than 5 years of full- time service. Its continuation each year is subject to positive action by the State Legislature.
20.2 Eligibility
Upon completion of 36 months of service, all regular full-time faculty, clerical and support staff, administrative/ professional employees, and MODFY employees are eligible for longevity payments. In addition, all regular part-time employees who are scheduled to work 1600 or more hours (82.1 percent time) in a fiscal year and have 36 months of service are also eligible for longevity payments. (Refer to Employee Benefits, Section 20.4.2 for additional information regarding credit for part-time service.) The 36 months of qualifying service must be in an eligible status as defined below. For purposes of creditable service for longevity payments, the service base of employees in faculty, MODFY, or eligible regular part-time appointments shall be considered to be a full 12 months.
20.3 Compensation
Eligible employees shall receive longevity pay at an established rate for each year of creditable service up to a maximum provided by statute. The rate per year of service is established annually by the Legislature. The longevity payment is included in the regular monthly payroll check that corresponds with the employee's longevity anniversary date. September 1 shall be the anniversary date for faculty and staff who completed fifteen years of service prior to July 1, 1984. Payments for these individuals will be made in the September payroll check. Other eligible faculty who have an August 1 anniversary date will receive their longevity pay in the July payroll check. (Faculty with less than fifteen (15) years of service as of July 1, 1984, who previously had a September 1 anniversary date have had their date adjusted to August 1 to reflect the change to semesters). All other employees who have greater than three years of creditable service shall receive their longevity pay in the month in which their longevity anniversary date occurs.
20.3.1 Longevity Overtime Bonus
The method of paying overtime on longevity became effective with the coverage of non-exempt state employees by the Fair Labor Standards Act (workweek of April 15, 1986) and applies only to that portion of the employee's longevity work year after that date. The value of longevity pay is not included in the week-to-week calculation of regular hourly rate for overtime payment purposes. But when longevity pay is given, half the hourly equivalent rate of the longevity payment is due for all premium overtime hours earned during the prior year of service for which the longevity payment is made.
20.3.2 Deductions
Longevity pay is subject to Federal Withholding Tax and Social Security Taxes. The gross dollar value of longevity pay is considered as covered salary for purposes of calculating retirement benefits.
20.4 Longevity Service Credit
20.4.1 Adjusted Longevity Anniversary Date
The adjusted longevity anniversary date shall be that date on which 36 months of creditable regular state service is completed. A longevity anniversary date is established for all faculty and staff who are eligible or potentially eligible to participate in the program. At the time of initial employment, the faculty or staff member's longevity anniversary date is established utilizing all periods of prior eligible service with the State or one of its agencies or an institution within the Tennessee Board of Regents or the University of Tennessee Systems. If the faculty or staff member does not indicate prior service, the longevity anniversary date is the same as the initial employment date.
20.4.2 Eligible Service
The following types of service are considered eligible service when establishing an individual's adjusted longevity anniversary date:
A. All regular full-time service with the University of Tennessee, Tennessee Board of Regents or Tennessee Government to include agencies, offices, departments or other subdivisions of the Executive, Judicial or Legislative branches.
B. All regular part-time service in which the employee was scheduled to work 1600 or more hours in a fiscal year with any of the organizations listed above.
C. Effective July 1, 1995, all regular full-time service of 36 months and prior regular part-time service that is the equivalent of 5 years of regular full-time service with any of the organizations listed above. Credit for such prior part-time service is prospective only.
D. Eligible temporary service which immediately precedes the regular full-time service with any of the organizations listed in Employee Benefits, Section 20.4.2.A.
Effective July 1, 1995, eligible temporary service includes all part-time temporary service that is the equivalent of 5 years of full-time service which immediately precedes regular full- time service. Credit for eligible part-time service will be given when 36 months of regular full-time service has been rendered and will be prospective only.
E. Periods during which a faculty or staff member is in an approved paid leave status.
F. Periods during which a regular full-time faculty or staff member is working a temporarily reduced work schedule of not less than fifty percent of full-time and for a period not to exceed six months.
G. Periods during which the faculty or staff member is on leave of absence without pay and is receiving compensation from the State Board of Claims for an on-the-job injury or illness.
H. Any faculty or staff member otherwise eligible who is on military leave.
I. Periods during which a faculty or staff member is on an approved grant-in-aid.
J. Periods during terminal leave status.
K. Employees who have prior part-time service consisting of at least a 1600 hour annual schedule shall receive longevity credit for each month of such part-time service in which the employee was scheduled to work a full month and actually worked one-tenth of one hour more than half the schedule. This provision became effective July 1, 1987. Longevity benefits provided by this provision shall not be paid retroactively. In other words, the employee who changes status as described in this section shall receive credit for the time worked, but will not receive longevity payments for credited time until the next fiscal year. Eligible faculty and staff included in Employee Benefits, Sections 20.4.2.E, F or I shall receive their longevity payment as normally scheduled. Eligible faculty and staff covered by Employee Benefits, Sections 20.4.2.G or H shall receive their longevity payments upon returning to an active payroll status with the institution.
L. Regular employees may receive longevity credit for adjunct faculty service if the following conditions apply:
(1) The employee's work schedule for the fiscal year consisted of the equivalent of 1600 or more hours. Effective July 1, 1999, equivalent hours shall be calculated for each semester/quarter and then added together to obtain the total equivalent hours for the fiscal year. (The following formula will be used to determine the equivalent hours: semester/quarter hours taught x 2.5 x number of weeks in semester/quarter=clock hours.)
Example: Employee taught 9.0 hours the second session of Summer 1997, 15.0 hours Fall Semester 1997, 15.0 hours Spring Semester 1998 and 6.0 hours the first session of Summer 1998.
Summer 1997 9 hrs x 2.5 x 6 wks = 135.0 hrs Fall 1997 15 hrs x 2.5 x 17 wks = 637.5 hrs Spring 1998 15 hrs x 2.5 x 17 wks = 637.5 hrs Summer 1998 6 hrs x 2.5 x 6 wks = 90.0 hrs Total 1500.0 hrs Total hours for 1997-98 FY 1500.0. This employee's work schedule would not satisfy the 1600 or more hours criteria for the fiscal year.
(2) The adjunct faculty service immediately preceded eligible regular service.
Eligible employees covered by G and H shall receive longevity payment upon returning to an active payroll status within the institution.
M. Periods in which regular part-time employees work additional hours resulting in a fiscal year work schedule of 1,600 or more hours.
20.4.3 Ineligible Service
The following types of service are not considered as eligible service when establishing an individual's longevity anniversary date:
A. Part-time service (except as specified in Employee Benefits, Sections 20.4.2.K and L) or service as a student employee.
B. Temporary service unless such service is full- time and immediately precedes regular full-time service.
C. Service with elementary or secondary (K-12) public schools.
D. Periods during which a faculty or staff member is on leave of absence without pay except when the faculty or staff member is on an approved leave of absence without pay due to an on-the-job injury or illness and when the employee is receiving benefit payments from the state.
E. Services rendered in addition to the faculty or staff member's regular duties, including the services of faculty for teaching summer school, do not qualify as eligible service. Although such periods of service may immediately precede regular full-time service, they can not be counted as eligible service in establishing the employee's adjusted longevity anniversary date.
EXCEPTION: Such service is included only if it is combined with other regular or adjunct service in the same fiscal year to determine the employee's eligibility for an adjustment under Employee Benefits, Sections 20.4.2.K and L.
20.4.4 Rehiring Previous Faculty and Staff
When employing individuals with prior state service, the faculty or staff member's adjusted longevity date will be established utilizing all eligible prior service. The adjusted longevity date will be used to initiate payments for current and subsequent fiscal years.
20.4.5 Transfers
Employees who transfer from one State agency to another without a break in service are eligible for longevity compensation in accordance with their adjusted anniversary month.
20.5 Changes in Employment Status
20.5.1 Employees who change from regular full-time or eligible part-time positions to regular part-time service of less than 1600 hours in a fiscal year and are in the regular part-time status of less than 1600 hours at the time of their longevity anniversary date will not be eligible for longevity payments.
20.5.2 Eligible faculty and staff on an academic year pay base changing to a fiscal year pay base shall be eligible to continue receiving longevity payments and shall receive no change in service credit as a result of the transfer.
20.5.3 Eligible faculty and staff on a fiscal year pay base changing to an academic year pay base shall be eligible to continue receiving longevity payments and shall receive no change in service credit as a result of the transfer.
20.5.4 Employees who change from regular part-time service of less than 1600 hours in a fiscal year, temporary or student status to regular full-time status or eligible regular part-time status, become eligible to participate in the longevity pay plan.
20.6 Faculty
20.6.1 Eligible faculty (other than those who completed 15 years of service prior to July 1, 1984) whose anniversary date is the beginning of the academic year shall receive longevity pay in the last month of the contract period (July).
20.6.2 Eligible faculty members (other than those who completed 15 years of service prior to July 1, 1984) whose anniversary date is other than the beginning of the academic year shall receive their longevity pay in the monthly paycheck which covers their anniversary date.
20.7 Leave of Absence
All employees who are on leave of absence without pay are entitled to longevity payment on their adjusted longevity anniversary date upon return from said unpaid leave.
20.8 Termination of Employment
The following longevity pay regulations apply to persons who terminate their employment for any reason other than retirement.
20.8.1 If a terminating employee has completed an additional year of creditable service for longevity payment purposes, then the longevity payment shall be made. However, no pro-rata payment will be made for a partial year's service.
20.8.2 Terminating faculty whose anniversary date is the beginning of the academic year and who are otherwise eligible, shall receive their longevity payment in the final month's payroll for the year's service provided that the entire academic year was served.
20.9 Retirement
Eligible retiring employees may receive their longevity pay if the longevity anniversary date occurs during their terminal leave period. All retiring employees are eligible for longevity pay following the completion of one year of creditable service. Faculty who retire after completing their responsibilities for the academic year are eligible for longevity pay in the final payroll for the academic year.
Due to the cost-of-living adjustment for retirement purposes, a 12-month employee with his/her longevity anniversary date as July 1, who plans to retire prior to June 30 must be in active pay status on June 29 in order to be eligible for longevity pay.
20.10 Exceptions
Exceptions to the provisions of these regulations may be recommended by the President for the Chancellor's approval.
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