HR109 Leaving and Returning to Penn State Employment

POLICY'S INITIAL DATE: August 5, 2024

THIS VERSION EFFECTIVE: January 1, 2024

Contents: 

• Purpose
• Employees Resigning from a Regular or Limited-Term Position
• Unused Vacation Balance at Time of Retirement for Those Eligible to Retire Under HR54 Qualifications
• Completion of, or Retirement From, a Limited-Term Staff Appointment
• Establishing the Final Date of Employment Around the End of the Calendar Year 
• Credit for Prior Years of Service 

PURPOSE: 

This policy establishes certain end of employment criteria for full-time benefits-eligible staff and academic employees and the parameters around crediting years of service for former full-time benefits-eligible, non-unionized employees who return to Penn State employment. 

EMPLOYEES RESIGNING FROM A REGULAR OR LIMITED-TERM POSITION: 

An employee who is resigning outside of retirement parameters is not eligible to use any vacation, personal holiday, service days, campus closure compensatory time, or holiday compensatory balances to extend their employment.  

UNUSED VACATION BALANCE AT TIME OF RETIREMENT FOR THOSE ELIGIBLE TO RETIRE UNDER HR54 QUALIFICATIONS: 

If an employee meets the following criteria as a retiree: 

• An employee who accrues vacation; and 
• An employee who has unused vacation accruals at time of retirement; and 
• An employee who qualifies as a retirement under policy HR54

Then the employee must choose one of the options below: 

1. All unused vacation accruals may be used prior to the date of retirement; or 
2. The employee may use a portion of unused vacation accruals, and receive a lump sum payment for any vacation accruals remaining at the date of retirement; or 
3. The employee may receive a lump sum payment for any unused vacation accruals remaining at the date of retirement. 

COMPLETION OF, OR RETIREMENT FROM, A LIMITED-TERM STAFF APPOINTMENT: 

The unit of an employee on a Limited-Term appointment who will not be continued beyond the ending date of the appointment must allow for one of the following: 

1. Allow for the employee to use all accrued vacation prior to the completion of the appointment, including the use of vacation on their last date of employment; or 
2. The dollar value of any unused vacation accruals at the time of the employee's effective last date of employment will be paid to the employee in a lump sum payment; or 
3. Employees who meet retirement qualifications under HR54 from a Limited-Term appointment will be paid out unused vacation and sick time in accordance with HR34. 

ESTABLISHING THE FINAL DATE OF EMPLOYMENT AROUND THE END OF THE CALENDAR YEAR: 

If an employee indicates they are going to resign at the end of the calendar year, during the Winter Break, the employee's last date of employment will be December 31st, if the following conditions are met: 

• The individual has completed at least one calendar year of full-time employment with the University; and 
• The employee works their last scheduled workday, or absence due to a bona fide illness, prior to the start of Winter Break; and 
• The employee is not required and does not work the balance of December because of the University holidays or regularly scheduled days off. 

Crediting Prior Years

A full-time, benefits-eligible, non-unionized, employee who terminates from the University and is subsequently rehired within five (5) years of their termination date, may request credit for their most recent full-time prior years of service period from Penn State Benefits (benefits@psu.edu) upon reinstatement, provide the individual meets the following criteria: 

• The individual has a rehire date of on or after January 1, 2024. 
• The individual had a minimum of one (1) year of continuous service as a full-time, non-unionized, benefits-eligible, employee prior to terminating from the University. 
• The individual is rehired within five (5) years of their termination date and has been working for at least one year from the date of rehire in a full-time, non-unionized, benefits-eligible, position for the University. 
• The individual has not reinstated their previous years of service in the past (individuals can only use this benefit one time). 

A reinstatement of prior years of service has no impact on active employee health, dental, or life insurance, and the University will make no contributions toward retirement for the period of termination. The prior years of service will be credited for vacation accrual rate calculations, but the individual will not be credited with any prior vacation or sick leave balances upon the reinstatement of their previous years of service. Full-time faculty members can use credit for prior years of service when determining their eligibility for emeritus status under policy AC25.

Employees whose most recent full-time hire date was prior to January 1, 2010, will be eligible for post-retirement health care provisions outlined in policy HR54, if they meet the criteria to bridge service under this policy. Employees whose most recent full-time hire date was on or after January 1, 2010, will have their healthcare retirement account reinstated to the balance at the time of termination.

CROSS REFERENCES: 

Application 

HR34 - Employment Conditions for Full-Time Staff Employees 

HR54 - Continuation of Group Insurance after Age 60, Age 65, and after Retirement or Death 

AC25 - Emeritus Status