This page was last updated on 6/17/2024.
The University of Iowa, along with UI Health Care, is participating in the State of Iowa Vacation Payout for FY2024 program. Eligible staff and faculty may choose to request a one-time payout of unused banked and accrued vacation hours, up to a maximum of 40 hours. Payouts will be included on Aug. 1 monthly paychecks.
To participate, eligible employees must complete the Vacation Payout application in Employee Self-Service by 5 p.m. Wednesday, July 17, 2024.
Eligibility
Eligible employees must have a vacation balance of at least 160 vacation hours (including banked hours) as of May 31, 2024.
These balances will be reflected on the Vacation/Sick Leave report dated “Available as of 01-MAY-2024” in Employee Self-Service.
You must remain employed by the institution through July 31, 2024.
Frequently Asked Questions (FAQs)
The University of Iowa, along with UI Health Care, is participating in a State of Iowa program that allows eligible staff and faculty who accrue vacation to request a one-time payout of unused banked and accrued vacation hours, up to a maximum of 40 hours.
Yes, the 2024 vacation payout program is optional. Eligible employees can request a one-time payout for unused banked and accrued vacation hours, up to a maximum of 40 hours.
No action is necessary. Eligible employees must opt-in to this year's vacation payout program.
Eligible employees must have a vacation balance of at least 160 hours (including banked hours) as of May 31, 2024. This includes net accruals for the month of May. You must remain employed by the institution through July 31, 2024.
You must complete your request for payment in exchange for banked and vacation hours through Employee Self-Service by 5 p.m. Wednesday, July 17, 2024.
Banked hours will be reduced first, followed by accrued vacation hours if necessary.
Banked hours are earned in excess of maximum vacation accruals. There are three scenarios where employees may earn banked hours:
- If an employee transfers from full-time to part-time employment, leaving them with an excess of accrued vacation, the excess time will be banked until the staff member's current balance is returned to zero, or they increase their percent time or return to full-time employment.
- If an employee changes work categories (i.e. Merit to P&S) where they have more accruals than the maximum of the new work category.
- The governor of Iowa provided additional vacation hours to eligible employees. Those hours were added to employee banked vacation balances.
Banked hours are found under Time & Pay > Vacation & Sick Leave in Employee Self-Service. Below is an example of an employee with 16 banked hours, totaling 208 vacation.
Banked hours and accrued hours are different even though they are both components of your vacation balance. You earn accrued vacation, which is included in your vacation maximum. Most banked hours result from the Governor’s orders, while some are banked by the university to avoid forfeiture when an employee becomes subject to reduced maximum limits. Banked hours do not count against the maximum and are the last to be used after the employee’s accrued hours have been depleted—with an exception being this year's (2024) vacation payout program.
You may choose up to a maximum of 40 hours of banked and accrued vacation in exchange for a payment that will be included on your Aug. 1 paycheck.
If you're eligible and apply by 5 p.m. Wednesday, July 17, 2024, a payment will be included on your regular Aug. 1 monthly paycheck.
By participating, the vacation payout program will reduce your banked and vacation accrual balance the week of July 18, 2024, by the number of hours requested. Banked hours will be reduced first, followed by accrued vacation hours if necessary.
The number of banked and vacation hours that are paid will be reflected on your Vacation/Sick Report in Employee Self-Service with the code: VP (Vacation Payout Program).
There is no minimum, but you must request payment in whole hour increments.
This will not impact your ability to accrue maximum vacation hours. Your maximum accrual is noted on your Vacation/Sick Report in Employee Self-Service.
The request will not affect your annual salary increase scheduled for July 1, 2024. Any banked and vacation hours requested to be exchanged through the payout program will be calculated using your fiscal year end (June 30, 2024) regular hourly rate.
Payments will be calculated by multiplying the requested banked and vacation hours by your regular hourly rate on June 30, 2024. To calculate your hourly rate:
- For faculty, institutional officers, professional and scientific, and SEIU employees:
- Divide your annual salary on June 30, 2024, by 2,080 work hours (prorated by percent of effort).
- For Merit employees:
- Divide your annual salary on June 30, 2024, by 2,096 work hours (prorated by percent of effort).
You can find your June 30, 2024, annual salary in Employee Self-Service under Time & Pay > Compensation > Appointment & Salary History.
The payment will be subject to all applicable payroll tax withholding.
Employees who do not accrue vacation, such as temporary employees, nine-month faculty, graduate assistants, medical residents, and fellows, are not eligible to participate in this program.
No. Sick hours are not included in this program. Banked hours will be reduced first, followed by accrued vacation hours if necessary.
The payout will be included on your Aug. 1, 2024, monthly paycheck. The payout will be reflected on earnings statements with the code: VP (Vacation Payout Program).
Within Employee Self-Service, when you select "Yes," a box will appear, confirming your opt-in status. After submitting an application, you will see a pop-up message –‘You have successfully submitted your request!’
The application will always reflect your current selection. If you’ve elected to participate, the ‘I would like to participate in the August 1 vacation payout’ check box will be selected and in blue. In addition, the ‘number of hours’ field will be active and display the number of hours you elected to exchange for payout.
If you elected to not participate, the ‘I would like to participate in the August 1 vacation payout’ will be unchecked and the ‘number of hours’ field will be gray and will display “e.g. 40” or “0” – depending on your prior activity.
You can change your vacation payout request online through the Employee Self-Service application up to 5 p.m. Wednesday, July 17, 2024. To verify your change, complete the attestation and resubmit the vacation payout request.
Vacation payout requests cannot be changed after 5 p.m. Wednesday, July 17, 2024. After that time, requests will be irrevocable and paid on your Aug. 1 paycheck.
Similarly, if you do not complete a vacation payout request through Employee Self-Service by 5 p.m. Wednesday, July 17, 2024, you will not receive a vacation payout.
Unfortunately, there will be no exceptions for employees who miss the July 17, 2024, deadline.
This program is authorized by the State of Iowa and each state employer can participate. The University of Iowa has elected to participate this year and will evaluate future programs on an annual basis.
Yes, you may defer this payout to your VRSP and/or 457(b) plan through the regular Self-Service Voluntary Retirement Saving Plan application.
To do so, after July 1, 2024, increase your current deferral to the amount that you would like to defer on Aug. 1, 2024. Make sure to combine any amount you may already be deferring plus the additional amount from this payout program. After Aug. 1, 2024, make sure you reduce your VRSP back to your regular monthly deferral amount. Please contact benefits@uiowa.edu with any questions.