420-4

Subject: Managerial Lump Sum Payments

Supersedes: Personnel Policy and Procedure No. 526-84

Source: Personnel Order No. 88/5, as amended, containing the "Leave Regulations for Management Employees"

Date: June 30, 1997

Policy

Upon final separation from City service, managers with unused current and vested/sub-managerial leave balances may be compensated for such balances only through a managerial lump sum payment. This payment is calculated according to, and subject to the limitations of, Personnel Order No. 88/5, as amended, some of which are discussed below. Managers intending to separate from City service do not have the option of being compensated for unused leave balances by remaining on the agency payroll after separation from City service.

1. Charges to leave balances made immediately prior to separation from City service shall be subject to the regulations governing lump sum payments contained in Personnel Order No. 88/5, as amended. Payment for leave charged after the last day of actual work will be recalculated according to the appropriate regulations.

2. Continuous service as a City employee, regardless of pay plan, shall be the basis for determining the annual leave accrual rate for employees covered by the Pay Plan for Management Employees. If a manager charges more annual leave than can be earned in one year during the 12 months preceding final separation, his or her lump sum payment will be adjusted to reflect any difference between the salary at which he or she was paid for that excess leave and the salary at which such leave was earned. However, if the manager has more than two years of annual leave accrual to his or her credit, the amount of annual leave that can be used without reduction in the final lump sum payment is increased by the amount of excess annual leave that the manager was permitted to accumulate in his or her current annual leave bank pursuant to Section 4.3 of the "Leave Regulations for Management Employees." Such time used shall not be contiguous with separation from City service, and the manager's lump sum payment will be recalculated accordingly if such time is so used.

3. Service in the uniformed forces shall not be counted towards the number of years of City service required to receive a lump sum payment based on unused sick leave.

William J. Diamond
Commissioner

Return to PSB Table of Contents