Paid Time Off (PTO Programs)

[Guest Kyle Russell]

One of the assignments I've been given is to establish a PTO program for my company. As I understand it, this includes Vacation, Holidays, Sick Pay, and just about anything else that has to do with paid time off benefits for an employee. Can you explain a little bit more about these types of programs or possible direct me to a publication or internet link? Thanks!

[Sheila K]

I am posting our latest update to our employee handbook regarding PTO/RSB. This was implemented in Jan 99 and has been well-received.

PAID TIME OFF

Paid Time Off (PTO) is a benefit granted to employees to provide time to participate in activities unrelated to the performance of their jobs. Arizona Federal Credit Union’s PTO plan is provided to encourage planning and predictability of time off from work. PTO hours are also utilized for the first three days of an unscheduled absence.

The PTO plan is not utilized for AFCU paid holidays, jury duty or bereavement leave.

RESERVE SICK BANK

A Reserve Sick Bank (RSB) is also provided and accumulates additional hours. (RSB) hours are used after three consecutive days of an absence for an employee’s extended illness or injury. RSB may also be used after the first three consecutive days for any certified Family Medical Leave of Absence (FMLA). In order to utilize RSB, a statement from the attending physician verifying the need for the absence and/or permitting the return to work or a completed FMLA certification is required.

The RSB plan is not utilized for AFCU paid holidays, jury duty or bereavement leave. There is no maximum accrual for hours in the RSB.

ACCRUAL

The PTO and RSB plans provide an accrual each pay period for full-time and part-time employees.

 PTO and RSB accruals begin the first pay period following the date of employment.

 PTO and RSB accrued leave is granted to full-time and part-time employees only after they have completed six months of employment. For those employees hired from a “temporary” status, their “temporary” start date will be considered in satisfying their waiting period for the use of these hours.

 PTO and RSB hours do not accrue for an employee on a leave of absence in a paid or non-paid status.

 Accrued PTO balances will be reflected each pay period on the employee’s paycheck summary.

 PTO and RSB accruals may only be used as they are earned.

 In case of an unscheduled absence, if the employee does not have sufficient hours to compensate them from PTO or RSB hours, that time will be taken as non-paid leave.

FULL-TIME EMPLOYEE PTO/RSB BENEFIT

PTO hours accrue each pay period and are based on the number of years of service. The number of RSB hours remains constant for full-time employees for all years of service.

Note: Part-time employees transferring to full-time status will automatically be converted to the full-time accrual rate.

Hire thru 24 Mos.

5.23 hrs per pay period/PTO

2.46 hrs per pay period/RSB

25 thru 60 Mos.

6.15 hrs per pay period/PTO

2.46 hrs per pay period/RSB

61 thru 120 Mos.

7.08 hrs per pay period/PTO

2.46 hrs per pay period/RSB

121 thru 180 Mos.

8.00 hrs per pay period/PTO

2.46 hrs per pay period/RSB

181 Plus Mos.

8.92 hrs per pay period/PTO

2.46 hrs per pay period/RSB

Note: All full time employees are required to take a minimum of five consecutive working days (PTO hours) off during each calendar year. The five days may be inclusive of an AFCU holiday.

PART-TIME EMPLOYEE PTO/RSB BENEFIT

PTO and RSB hours accrue each pay period based on the total number of hours worked during that pay period. The percentage of PTO and RSB hours increase based on the number of years of service.

Note: Full-time employees transferring to part-time status will automatically be converted to the part-time accrual rate.

Hire thru 12 Mos.

.016 x hours worked in pay period/PTO .008 x hours worked in pay period/RSB

13 thru 24 Mos.

.039 x hours worked in pay period/PTO

.016 x hours worked in pay period/RSB

25 thru 60 Mos.

.058 x hours worked in pay period/PTO .023 x hours worked in pay period/RSB

61 thru 120 Mos.

.066 x hours worked in pay period/PTO .023 x hours worked in pay period/RSB

121 thru 180 Mos.

.075 x hours worked in pay period/PTO .023 x hours worked in pay period/RSB

181 Plus Mos.

.084 x hours worked in pay period/PTO .023 x hours worked in pay period/RSB

SCHEDULING

 In order to minimize disruption of Credit Union operations, requests for PTO hours should be pre-approved at least one week in advance except in cases of illness or emergency. When possible, RSB hours should be pre-approved as well.

 Due to anticipated increases in member activity and operational demands, the Credit Union will not grant any PTO requests for the period beginning December 13, 1999 through January 14, 2000 ensuring the highest possible service levels to our membership during the century changeover.

 To schedule PTO or RSB hours, e-mail is sent to the employee’s Supervisor listing the specific dates requested. The Supervisor either approves or declines the request in a return e-mail response.

 Scheduling is based on the needs of the branch/department operations. Reasonable efforts will be made to grant time for periods requested.

 Requests made for time off that exceed the PTO accrual balance will not be approved.

 Time taken from work for medical or dental appointments will be deducted from the PTO accrual. If no time is available, the time will be unpaid.

 Time off during the final two-week notice of separation will not be granted. PTO and RSB hours will not be paid to employees during their final two weeks of employment.

If you have any further questions, please feel free to e-mail me at smkafcu@aol.com

Good Luck

Sheila K

[Guest jlreid]

I also have been given the assignment of developing a complete PTO plan and have no idea where to start. Maybe we can keep in touch and share any info we get????