3.8.3 Longevity Pay Plan

Policy Tracking	Date
Approved	July 10, 2023
Revised	May 22, 2023
Reviewed	May 22, 2023

Employees of the college assigned to full-time or permanent part-time positions shall receive longevity pay if the employee meets the requirements of total qualifying service set forth in NC Community College Code (as amended).
Total service for longevity pay is based on a month-for-month computation of full-time and permanent part-time (20 hours or more, but less than full-time) employment with:
1. An institution in the community college system or a school administrative unit regardless of the source of salary and including state, local or other paid employment.
  1. Employment for a school year is equivalent to one full calendar year (credit for a partial year is given on a month-for-month- basis).
  2. In no event will an employee earn more than a year of total service credit in a 12-month period.
  3. If an employee is in pay status (working, exhausting vacation or sick leave, or when on workers' compensation leave or is on authorized military leave) for one-half or more of the regularly scheduled workdays in a month, credit shall be given for the entire month.
2. Departments, agencies, and institutions of the State of North Carolina, (e.g., Department of Administration, Department of Revenue, University of North Carolina, Department of Community Colleges, Department of Public Instruction).
3. Other governmental units which are now agencies of the State of North Carolina (e.g., county highway maintenance forces, War Manpower Commission, judicial system).
4. County agricultural extension service.
5. Local mental health, public health, social services or civil preparedness agencies in North Carolina, if such employment is subject to the Office of State Human Resources Act.
6. Authorized military leave.
  1. Credit for military leave is granted only for persons who were employees of the State of North Carolina or other agencies listed in Paragraph (b) of this Rule who were granted leave without pay:
    1. for a period of involuntary service plus 90 days or for a period of voluntary enlistment for up to four years, plus 90 days, so long as they returned to employment in a covered agency within the 90 days; or
    2. for a period of active duty for service, alerts, or required annual training while in the National Guard or in a military reserve program.
  2. Employees who enlist for more than four years or who re-enlist shall not be eligible for military leave.
  3. Employees hospitalized for a service connected- disability or injury shall be granted additional leave without pay for the period of hospitalization plus 90 days or for 12 months, whichever is shorter. The hospitalization must commence before reinstatement into qualifying service for the provisions of this part to apply.
  4. Total service for the longevity pay plan does not include:
    1. Temporary service, that is, service by an employee who works in a temporary position, or who is working temporarily in the absence of a permanent employee on leave of absence, except that temporary service of employees of the General Assembly will be counted and the full legislative terms of the members. Service of legislative interns and pages will not be counted.
    2. Periods of out-of-state employment with other states, schools, colleges or universities.
    3. Periods of employment with agencies of the federal government.
    4. Periods of military service other than those categories described in Subparagraph (b)(6) of this Rule.
    5. Periods of employment for employers other than the State of North Carolina even though credit in the North Carolina retirement system has been purchased for such employment.
7. An employee assigned to a permanent full-time or permanent part-time- position is eligible for longevity pay only after the date the employee has completed ten years of total service with a community college, a school administrative unit or an agency.
8. Annual longevity pay amounts are based on the length of total service to agencies, community colleges, and school administrative units as designated in Paragraph (b) of this Rule and a percentage of the employee's annual rate of pay on the date of eligibility.
Longevity pay amounts are computed by multiplying the employee’s base pay rate by the appropriate percentage from the following table:

Years of Total State Service Longevity Pay Rate
10 but less than 15 years 1.5 percent
15 but less than 20 years 2.25 percent
20 but less than 25 years 3.25 percent
25 or more years 4.5 percent
Longevity pay is not considered a part of annual base salary nor is it to be represented in personnel and payroll records as a part of annual base salary. (Salary increases effective on the same date as the longevity eligibility date shall be incorporated in the base salary before computing longevity).
1. The payment of longevity pay to eligible employees is automatic. Payment shall be made in a lump sum, subject to all statutory deductions, during the monthly pay period in which the employee has satisfied all eligibility requirements.
Eligible employees on worker's compensation leave shall receive longevity payment in the same manner as if they were working.
If an employee retires, resigns, dies, or is otherwise separated on or after the date of becoming eligible for a longevity payment, the full payment shall be made to the employee or to the estate of the employee in case of death.
If, on the effective date of this policy, an employee has completed the qualifying length of service but is between eligibility dates, longevity payment will be made on the next longevity anniversary date.
If the employee has worked part but not all of one year since qualifying for longevity payment, the employee shall receive a pro-rata- payment in the event of:
1. Separation from the institution;
2. Change in employment status to temporary part-time, or to a position not covered in this policy.
If an employee separates from a community college and receives a partial longevity payment and is employed by another community college, school administrative unit, or state agency, the balance of the longevity payment shall be made upon completion of additional service totaling 12 months for an employee having a 12-month period of employment, or upon completion of a lesser term for an eligible employee on less than a 12-month period of employment. The balance due is computed on the annual salary being paid at the completion of the requirement.
If an eligible employee at the time of separation has a fraction of a year toward the next higher percentage rate, payment shall be based on the higher rate; however, the basic eligibility for longevity requirement must have been satisfied before this provision can apply.
Leave without pay in excess of one-half the work days in a month (with the exception of authorized military leave and worker's compensation leave) will delay the longevity anniversary date on a month-for-month basis.
Boards of trustees shall pay longevity pay from the same source of funds and in the same pro-rata- amounts from which the employee's regular annual salary is paid (e.g. state, federal, local funds). If boards of trustees want to provide longevity payments in excess of the amounts provided for by subsection (e)(1), such payments may not be supported with state funds as defined by 1H SBCCC100.1.
The president of each community college shall:
1. Determine the quantity of qualifying service and the longevity anniversary date for each eligible employee.
2. Furnish to the State Board, in the format prescribed by the System Office, data necessary for a determination of the cost of the longevity pay plan from state funds.
The President of the Community College System shall determine the total cost of the longevity pay plan from data submitted by each community college. If funds are not adequate to pay longevity rates established under this Rule, the President of the Community College System shall submit a budget revision to the State Budget Officer requesting additional funds from other available sources within State Aid.

Years of Total State Service	Longevity Pay Rate
10 but less than 15 years	1.5 percent
15 but less than 20 years	2.25 percent
20 but less than 25 years	3.25 percent
25 or more years	4.5 percent