29.
Commissioners Court - Regular Session
- Meeting Date:
- 06/07/2022
- Title:
- Longevity Pay
- Submitted For:
- Cynthia Long
- Submitted By:
- Kathy Pierce, Commissioner Pct. #2
- Department:
- Commissioner Pct. #2
- Agenda Category:
- Regular Agenda Items
Information
Agenda Item
Discuss, consider and take appropriate action on changes to payment of Longevity Pay, changing lump sum option to biweekly payments.
Background
Per the County Compensation policy, Longevity Pay is based on an individual employee’s length of service with Williamson County (excludes Commissioned Officers and Elected Officials). Longevity Pay starts at five years’ service and increases every five years thereafter up through twenty-five years. Longevity Pay initially was paid the first pay period following the required eligibility. Ten or so years ago, Commissioners Court changed to a lump sum payment on the first pay period in December as a “Christmas Bonus”. Those already receiving Longevity Pay were given the option of staying with the bi-weekly payment or changing to the lump sum payment.
The change created a semi-manual system of accounting for Longevity Pay. Receiving Longevity Pay each pay period gives employees the flexibility to use the funds when needed. Additionally, spreading the payments over the course of a year reduces the tax consequences associated with a lump sum payment.
The Auditor’s office proposes that a lump sum payment could be made on the July 15th payday for Longevity Pay accrued since December 2021, or the date of eligibility for those earning the pay thus far in 2022, and then bi-weekly payments could commence the following pay period for all eligible employees.
The change created a semi-manual system of accounting for Longevity Pay. Receiving Longevity Pay each pay period gives employees the flexibility to use the funds when needed. Additionally, spreading the payments over the course of a year reduces the tax consequences associated with a lump sum payment.
The Auditor’s office proposes that a lump sum payment could be made on the July 15th payday for Longevity Pay accrued since December 2021, or the date of eligibility for those earning the pay thus far in 2022, and then bi-weekly payments could commence the following pay period for all eligible employees.
Fiscal Impact
| From/To | Acct No. | Description | Amount |
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Attachments
No file(s) attached.
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| County Judge Exec Asst. | Becky Pruitt | 06/02/2022 08:11 AM |
- Form Started By:
- Kathy Pierce
- Started On:
- 06/01/2022 03:12 PM
- Final Approval Date:
- 06/02/2022