1. Paid Time Off
How, and How Many?

2. Time Off – Current Situation
Separate annual allotments for sick days, personal days, floating holidays and vacation
Vacation increases as service years increase
Each allotment tracked separately, and different provisions for whether or not they are paid out on termination
2/27/2019

3. Paid Time Off
How does it work?

4. Combined Time Off Alternative – Paid Time Off
Incorporate sick, personal, floating and vacation into one PTO bank
Employees accrue set PTO hours per pay period, and then use when available
Sliding scale with higher PTO accrual for longer tenured employees (see next page for example)
Accrual capped at one year’s worth of PTO
Eliminates classification of time off
Eliminates need for carryover provisions – rolling accrual per calendar year
Excludes bereavement, jury duty, military
2/27/2019

5. Paid Time Off Example Assume bi-weekly payroll (26 per year)
Service Years
Bi-weekly Accrual
Annual Days
0 – 5
.75 day
19.5 days
6 – 10
.90 days
23.4 days
11 – 15
1.05 days
27.3 days
16 – 20
1.15 days
29.9 days
21 +
1.25 days
32.5 days
2/27/2019

6. Paid Time Off Example
Hypothetical Utilization – Employee with 2 years service
Week #
Bi-weekly Accrual Rate
Accrual
Days off
Balance
1 – 6
.75 day
2.25 days 1
1.25 days
7 – 12
3.5 days
13 – 18 5
.75 days
19 – 24
3 days
25 – 30
5.25 days
31 – 36
2.5 days
37 – 42
4.75 days
43 – 48
7 days
49 – 52
1.5 days
New Year
1 day
5.75 days
2/27/2019

7. Paid Time Off Example
Hypothetical Utilization – Employee with 25 years service
Week #
Bi-weekly Accrual Rate
Accrual
Days off
Balance
1 – 6
1.25 days
3.75 days 3
.75 days
7 – 12
4.5 days
13 – 18 5
3.25 days
19 – 24
7 days
25 – 30
5.75 days
31 – 36
9.5 days
37 – 42
13.25 days
43 – 48
14 days
49 – 52
2.5 days 10
6.5 days
New Year
10.25 days
2/27/2019

8. Paid Time Off
How many days per year?

9. Time Off – Current Situation
Identical numbers of sick leave, personal days and floating holidays. Township provides higher level of vacation days.
Boro total is slightly above local municipalities, Township higher than Boro based on additional vacation
Sick leave of 12 days per year in both municipalities
Rarely taken in full
Average utilization is currently 6 days. For planning purposes, State government utilizes 5 days. Boro police, which have unlimited sick days, average 3 days
Unused sick time is banked - primarily for use in the event of disability. Bank is partially paid out upon termination in Boro
2/27/2019

10. Short Term Disability Current situation
Sick days above those taken banked to be used for STD supplement
Boro and Township policies differ and are not generous (unless supplemented by banked time)
Proposed solution – enhance disability benefit
STD begins after 5 days of sickness (5 days counted against PTO)
STD paid at 100% for number of weeks equal to 50% of years of service
Balance to 26 weeks paid at 75%
e.g. A 10 year employee would have 5 weeks paid at 100%, 21 weeks paid at 75%
Provides higher level of protection when needed most
2/27/2019

11. Short Term Disability – Grandfathering of Banked Time
Current banked time for employees converted to dollar amount on 1/1/2013
Employees can use $ bank to supplement STD when payment drops to 75%
e.g. Employee making $1000 per week. When on STD and being paid 75%, $250 from sick time bank would be used each week to bring salary to 100%
Determine whether to allow current Boro employees to be paid out remaining bank based on current policy
2/27/2019

12. Holidays
Potential to reduce number of holidays while keeping overall time off benefit constant
e.g. if holidays reduced by one day, PTO accrual calculation increased by one day year
Would increase days “open for business”
Consider elimination of certain holidays (New Year’s Eve/Veterans’ and Good Friday) and
Retain one floating holiday to be determined based on calendar (e.g. 7/3 if 7/4 is Tuesday).
If floating holiday not used, add to that year’s PTO bank by adding one day on 1/1
2/27/2019

13. 2/27/2019

14. Grandfathering of Current Benefits
Paid Time Off
Grandfathering of Current Benefits

15. Grandfathering Unused Sick Time Vacation Carryover
Current banked time for employees converted to dollar amount on 1/1/2013
Employees can use $ bank to supplement STD when payment drops to 75%
Determine whether to allow current Boro employees to be paid out remaining bank based on current policy
Vacation Carryover
Prime PTO pump by starting 1/1/2012 with carryover vacation, to a maximum of one year’s vacation accrual based on current system and current tenure
e.g. – Boro employee with 23 carryover vacation days and 12 service years would start 1/1/2013 with 21 days in their PTO bank
2/27/2019