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Annual Leave Program

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301. General Information

The Annual Leave Program (ALP) allows for the replacement of​​ traditional vacation and sick leave programs with a more versatile annual leave pool. In addition, the program provides for an increased leave accumulation limit and improves the Non-Industrial Disability Insurance (NDI) benefit to 50% income replacement with the option of replacing up to 100% of income by supplementation. Under ALP, employees will earn six days of additional leave credits (in lieu of the current 12 days of sick leave) by adding four hours of annual leave to the existing monthly vacation accrual schedule.

Advantages of Annual Leave

  • More discretionary leave each year (in lieu of sick leave).
  • Cash value upon retirement or separation from State service.
  • Better income protection in the event of serious non work-related injury or illness.

Authority

Government Code Sections 19858.3 through 19859. CalHR Rules 599.752 through 599.753, and 599.766

302. Elig​​ibility

Employees eligible to participate in the annual Leave Program include the following:

  • Employees designated managerial (E-99);
  • Employees designated supervisory (E-98); Confidential and all other excluded employees (E-97);
  • Represented employees in Bargaining Units 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, and 21; 
  • Non-elected members of certain boards and commissions whose salaries are fixed by law (see CalHR Rule 599.752.1).
Part-time employees, permanent-intermittent employees, and employees whose appointments are either limited term or temporary are eligible to participate in the ALP if their current appointments and CBIDs are in one of the eligible categories. Employees on T&D assignments are eligible to participate in the program only if their permanent civil service appointments are in one of the eligible categories authorized for the ALP. Statutory exempt and seasonal employees are not eligible to participate.

303. Enrollment

Enrollment in the ALP is subject to the following conditions except for employees in BU 06 (see BU 06 contract provisions for specific details):

  • Eligible employees may make an initial voluntary election to change from the Sick Leave/Vacation Program to the ALP. This election is no longer irrevocable. Employees who elect enrollment in the ALP may change to the Sick Leave/Vacation Program after they have been in the ALP for a minimum of 24 months. 
  • Employees who have been in the ALP may make an initial voluntary election to change to the Sick Leave/Vacation Program. This election is not irrevocable, but may not be changed until the eligible employee has been in the Sick Leave/Vacation Program at least 24 months from the date of election. 
  • Employees in SEIU bargaining units have an annual open enrollment period during the month of April in which employees may opt in or out of the ALP. All enrollments must be received by the employee's personnel office from April 1 to April 30.
Departments are responsible for providing information regarding the program and providing a Sick Leave/Vacation Election Form​ to all eligible employees. It is suggested that employees who have elected to participate in the program receive confirmation of their election. The election form and copies of any other information provided to the employee should be kept in their personnel file.

Effective Date

  • The effective date of the election shall be the first day of the pay period in which the election is received by the appointing power (e.g., employee submits election form during the month of January, effective date will be January). 
  • The effective date of election for employees in SEIU bargaining units shall be the first day of the June pay period.

304. Annual Leave Accrual

Use of Annual Leave

Annual Leave can be used to meet an employee's need for paid time off for any management-approved absence that was previously covered by sick leave or vacation. When annual leave is used for sick leave purposes, the appointing power may require the employee to submit substantiation including, but not limited to, a physician statement. Annual Leave may be taken in half-hour increments regardless of whether or not it is being used for sick leave, vacation or other time off.

Accumulation

Employees who elect annual leave will be allowed to accumulate up to a maximum of 640 hours of annual leave as of January 1 each year. Exceptions to this limit will not be allowed except in extremely unusual situations and must be approved, in advance, by the director of the Department of Personnel Administration. Annual leave credits are treated like vacation when an employee separates from State service. Upon separation or retirement, employees in the ALP will receive a lump sum payment at their current salary rate for their accumulated credits.

Under the ALP, eligible employees will earn six days of additional leave in lieu of the current 12 days of sick leave. The accrual rate is calculated by adding four hours to the existing vacation accrual schedule. Managerial, supervisory, confidential and all other excluded employees, and board and commission members whose length of service is less than three years have been provided a higher accrual rate, as noted in the following table. Employees who work less than full-time will earn annual leave credits prorated according to their time-base. The following tables reflect the Annual Leave accrual rate for full-time employees:

 

Managerial, Supervisory, Confidential and All Other Excluded Employees Board and Commission Members
 

Length of Service: 1 month to 3 years

Current Vacation Accrual: 7 hours/month

Annual Leave Accrual: 15 hours/month

 

Length of Service: 37 months to 10 years

Current Vacation Accrual: 11 hours/month

Annual Leave Accrual: 15 hours/month

 

Length of Service: 121 months to 15 years

Current Vacation Accrual: 13 hours/month

Annual Leave Accrual: 17 hours/month

 

Length of Service: 181 months to 20 years

Current Vacation Accrual: 14 hours/month

Annual Leave Accrual: 18 hours/month

 

Length of Service: 241 months to 25 years

Current Vacation Accrual: 15 hours/month

Annual Leave Accrual: 19 hours/month

 

Length of Service: 301 months and over

Current Vacation Accrual: 16 hours/month

Annual Leave Accrual: 20 hours/month

 

Representative Employees in Bargaining Units 05, 06, and 08

 

Length of Service: 1 month to 3 years

Current Vacation Accrual: 8 hours/month

Annual Leave Accrual: 12 hours/month

 

Length of Service: 37 months to 10 years

Current Vacation Accrual: 11 hours/month

Annual Leave Accrual: 15 hours/month

 

Length of Service: 121 months to 15 years

Current Vacation Accrual: 13 hours/month

Annual Leave Accrual: 17 hours/month

 

Length of Service: 181 months to 20 years

Current Vacation Accrual: 14 hours/month

Annual Leave Accrual: 18 hours/month

 

Length of Service: 241 months and over

Current Vacation Accrual: 15 hours/month

Annual Leave Accrual: 19 hours/month

 

Bargaining Unit 05: Bargaining Unit 05 employees earn an additional 164 hours of holiday credit in lieu of the holidays. This accrued holiday-in-lieu credit is added to the monthly vacation or annual leave accrual rate of employees.

Bargaining Unit 08: Bargaining Unit 08 employees shall accrue one hour less of vacation or annual leave each year on the first day of the February pay period. Additionally, BU 08 employees shall accrue two hours less of vacation or annual leave each year on the first day of the August pay period.

 

Employees In Bargaining Units 1, 2, 7, 9, 10, 12, 13, 14, 16, 17, 18, 19, 20, and 21
 

Length of Service: 1 month to 3 years

Current Vacation Accrual: 7 hours/month

Annual Leave Accrual: 11 hours/month

 

Length of Service: 37 months to 10 years

Current Vacation Accrual: 10 hours/month

Annual Leave Accrual: 14 hours/month

 

Length of Service: 121 months to 15 years

Current Vacation Accrual: 12 hours/month

Annual Leave Accrual: 16 hours/month

 

Length of Service: 181 months to 20 years

Current Vacation Accrual: 13 hours/month

Annual Leave Accrual: 17 hours/month

 

Length of Service: 241 months and over

Current Vacation Accrual: 14 hours/month

Annual Leave Accrual: 18 hours/month

  

"Excluded" (managerial, supervisory, etc.) employees who elected to participate in the ALP and thereafter transfer into a represented position will accrue annual leave credits on the basis of adding four hours to the existing vacation accrual schedule for represented employees.

 

305. Vacation Balance

At the time of enrollment, an employee's vacation balance will be converted to annual leave credits. Thereafter, no vacation credits will be accrued and annual leave credits will begin accruing according to the rate schedule for full-time employees.

306. Sick Leave Balance

Sick leave credits will no longer be earned once enrolled in the ALP. However, sick leave balances in existence, at the time of enrollment, will be maintained for use by the employee for approved sick leave purposes or NDI supplementation. At retirement, unused sick leave credits will continue to be converted to retirement service credits at the current formula (2000 hours of sick leave converts to one year of CalPERS service credit).

307. Non-Industrial Disability Insurance

The Non-Industrial Disability Insurance(NDI) benefit, which covers non job-related disabilities, will be improved for annual leave participants from its current level of $135/week for up to 26 weeks to 50% of gross salary for up to 26 weeks. The requirement to exhaust sick leave credits prior to qualifying for NDI benefits has been eliminated.

 

 NDI benefits for annual leave participants may also be supplemented with annual leave, sick leave or partial employment to provide for up to a 100% income level. At the time of an NDI claim, the employee must elect to choose either the 50% NDI benefit rate or a supplementation level of 75% or 100% of gross pay. Once a claim for NDI has been filed and the employee has determined the rate of supplementation, the supplemental rate shall be maintained throughout the disability period. Employees may choose a different supplementation rate for claims related to subsequent disabilities.

 

Employees, who enroll in annual leave while receiving NDI, will continue to receive the original NDI benefit for the duration of the claim. The improved benefit would be available on subsequent claims.

 

Bargaining Unit 06 employees shall become entitled to an enhanced Non-Industrial Disability (NDI) benefit (50% of gross salary) upon serving a waiting period of 90 consecutive calendar days. If the employee files a claim for NDI benefits between the effective date of the enrollment in annual leave and the end of the waiting period, the standard NDI benefit shall be payable. This waiting period does not apply to any employee who was enrolled in the Annual Leave Program upon appointment in a position requiring mandatory participation.

 

Election into the Annual Leave Program is irrevocable for Employees in Bargaining Unit 06.

Employees in SEIU bargaining units are covered under the State Disability Insurance (SDI) benefit in lieu of a Non-Industrial Disability Insurance (NDI) and Enhanced Non-Industrial Disability Insurance (ENDI).

 

NDI Documentation

Please refer to the Personnel Procedures Manual (PPM), Section E 100, for documentation required and instructions on calculating NDI benefits for an employee in the ALP.​

  Updated: 4/23/2014
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