Payroll Manual

Payments upon Separation from State Service

Payroll Manual

The following types of payments are due to an employee after they have separated from state service. The maximum payments will vary by bargaining units.
 

PaymentType of SeparationWhen Payable Max
Vacation AccrualsTerminationAfter two full pay periodsVaries by BU
Vacation AccrualsRetirement, Layoff, DeceasedImmediately upon separationvaries
Salary WithholdingTerminationAfter two full pay periodsAmount taken up to 5 days
Salary WithholdingRetirement, Layoff, Deceased or movement to a position not previously subject to the Salary Withholding ProgramImmediately upon separationAmount taken up to 5 days
OT accrualsTerminationAfter two full pay periodsvaries
OT accrualsRetirement, Layoff, DeceasedImmediately upon separationvaries
OT accrualsMovement to a different agencyAfter two full pay periodsvaries
Over 40 Comp TimeTerminationAfter two full pay periods240 straight time hours
Over 40 Comp TimeRetirement, Layoff, DeceasedImmediately upon separation240 straight time hours
Over 40 Comp TimeMovement to a different agencyAfter two full pay periods240 straight time hours
DRP (Deficit Reduction Program)Termination, Retirement, Layoff, DeceasedSystem generated balance due at time of separation if final repayment is in progress. If final payment has not begun, the agency must submit. This can be submitted on separationUnpaid Balance Due to be returned to the employee.
Earnings earned before separationTermination, Retirement, Layoff, DeceasedImmediately upon separationAs required
Retroactive Earnings earned before separationTermination, Retirement, Layoff, DeceasedIf found after separation, immediately when found. If due to contract settlement, as soon as contract implementation.As required
Balance of Contract for Academic StaffTermination, Retirement, Layoff, Deceased, movement to an ineligible position not subject to the earnings, i.e.  movement to nonacademic positionImmediately upon separationAs required

 

Last Updated: 09/17/2025