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Vacation Pay Deferral Program

Upon resignation, termination or retirement, the University of Hawaii will pay out 100% of all accrued and unused vacation leave.

The Vacation Pay Deferral Program is comprised of 2 sub-programs: Post-Separation Vacation Pay Deferral Program and the Early Vacation Payout Program*. These voluntary programs provide University employees the ability to shelter their compensation received for unused vacation leave credits after separation from service (i.e. resignation, retirement, termination). Deferring pay for unused vacation leave credits (usually a sizable amount) can provide tax-savings on such pay as well as significantly increasing an employee’s retirement savings.

Employees are recommended to contact a financial advisor to determine if participating in the Vacation Pay Deferral Program is appropriate for their own situation.

*Some restrictions apply for early vacation payout. See the eligibility section for more information.

Post-Separation Vacation Pay Deferral Eligibility

  • All employees that have a remaining vacation balance upon separation

Early Vacation Payout Eligibility

  • This option is not available to employees who have or will reach the maximum allowable contribution for the calendar year.
  • You must be retiring and have a planned retirement date on November 1st, December 1st or 31st, or January 1st.
  • You have a vacation balance of at least 80 hours or any other applicable amount that is the equivalence of 10 vacation days.

Post-Separation Vacation Pay Deferral (PSVPD):

To request post vacation pay deferral to your retirement plan:

No later than 14 days prior to your last date of employment (COB date):

  1. Notify your HR rep of your plan to participate in the Vacation Pay Deferral Program to coordinate the vacation payment date and the deferral date.
  2. Obtain your vacation payout dollar amount from your HR Representative.
  3. If you are deferring to your ISP 457(b):
    1. Complete the Post-Separation Payout Deferral Request Form and submit to your HR Rep.
    2. Complete the Prudential Post Vacation Payout Election Form by date shown on 2024 PSVPD Payout Schedule
  4. If you are deferring to your 403(b):
    1. Complete the NBS SRA by the SRA due date.

To request early vacation payout to you 457(b) and/or 403(b) retirement plan:

Within 3 months prior to your retirement date:

  1. Obtain your vacation payout dollar amount from your HR Representative.
  2. If you are deferring to your ISP 457(b), complete the Prudential Early Vacation Payout Request Form and Prudential Early Vacation Payout Election Form by date shown on EVP payout schedule.
  3. If you are deferring to your 403(b), complete the NBS SRA by the SRA due date.

Post-Separation Vacation Payout Deferral

Form G-2 is completed by the HR Rep for Post Separation Vacation Payout Deferral

Early Vacation Payout

Form G-2A is completed by the HR Rep for Early Vacation Payout

UH Payroll’s How to Calculate Vacation Payout rev. Oct 2019 (HR Login Required)

 

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