HR0432 – Longevity Pay

HR0432 – Longevity Pay

Objective:

To recognize faculty and staff for their years of service with the university and state.

Policy:

1. After completing 36 full-time equivalent (FTE) months of service at 82.05 percent time or more with the University of Tennessee, the Tennessee Board of Regents, and/or any other agency of the state of Tennessee, employees are eligible to receive longevity pay as authorized by state law.
2. Twelve-month employees who are in an active pay status for one or more days during their longevity anniversary month are eligible for the longevity payment for that fiscal year. Nine-month and flex-year employees must be in an active pay status the last day of the month which immediately precedes their longevity anniversary month in order to be eligible for payment.
   
   NOTE: Special guidelines (see link below) apply to faculty and staff who are retiring, who are on approved leaves of absence, or who are terminating employment with the university. UT Extension employees who receive federal benefits are not eligible for longevity pay, but instead will receive step pay.
3. Longevity is paid at the rate of $100 times the number of years of service. The maximum benefit level is 30 years.
4. Longevity pay is distributed on the 19th of the month following the employee’s longevity anniversary month, unless the 19th falls on a weekend or holiday. Employees with June anniversary dates are an exception and will receive payment in June.
5. Longevity pay is subject to federal income tax withholding and Social Security/Medicare taxes at the prevailing rates. Longevity pay is included when calculating retirement benefits and overtime payment.

FORMS

• HR0432-longevity-pay-guidelines.pdf