Paid Time Off (PTO) - Mcleod Benefits

Paid Time Off

Paid Time Off (PTO) is a special bank of time for you to use for vacation, holidays, personal days or other absences due to your own illness or that of a family member.

Before taking PTO, you must get pre-approval from your supervisor in accordance with your department’s time-off processes. Attendance policies and department call-in procedures apply.

How You Earn PTO

You will receive PTO based on your years of continuous benefits-eligible service and budgeted status (64 hours or greater). You will accrue a prorated amount of PTO each pay period for every hour you work, up to your annual maximum accrual. The maximum PTO accrual allowed is one and a half times your annual accrual rate. For example: If you accrue at a rate of 160 hours, your accrual maximum will be 240 hours per year.

If you change to a benefit-ineligible status before completing one year of continuous benefit-eligible service, any unused PTO time will be forfeited.

PTO* At A Glance

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PTO* At A Glance

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Years of Benefit-Eligible Service	Per Hour	Budgeted FTE**	Budgeted Hours Per Pay Period	Maximum Hours Eligible to Accrue Per Pay Period	Maximum Hours Eligible to Accrue Per Pay Year
Up to 5 Years	0.076923	1.0 and Over	80	6.153840	240
		0.90	72	5.538456	216
		0.80	64	4.923072	192
6 to 10 Years	0.096153	1.0 and Over	80	7.692240	300
		0.90	72	6.923016	270
		0.80	64	6.153792	240
> 10 Years	0.115384	1.0 and Over	80	9.230720	360
		0.90	72	8.307648	324
		0.80	64	7.384576	288

Years of Benefit-Eligible Service	Per Hour	Budgeted FTE**	Budgeted Hours Per Pay Period	Maximum Hours Eligible to Accrue Per Pay Period	Maximum Hours Eligible to Accrue Per Pay Year
Up to 5 Years	0.076923	1.0 and Over	80	6.153840	240
		0.90	72	5.538456	216
		0.80	64	4.923072	192
6 to 10 Years	0.096153	1.0 and Over	80	7.692240	300
		0.90	72	6.923016	270
		0.80	64	6.153792	240
> 10 Years	0.115384	1.0 and Over	80	9.230720	360
		0.90	72	8.307648	324
		0.80	64	7.384576	288

*Paid Time Off (PTO) Accrual is based on Regular Hours Worked and PTO Hours Paid during eligible pay periods. It does not accrue while on a Leave of Absence or above the maximum amounts listed above.
** Full-time equivalent (FTE) is a unit that standardizes part-time workers’ hours against those working full-time.

When your years of benefit-eligible service increase to the next level, your PTO accrual will automatically change to the new rate. Your PTO balance and the number of hours you use and accrue each pay period can be viewed on Smart@Work On-line located in the center panel of the Compass.

PTO If You Terminate Employment

If you leave McLeod and meet specific guidelines, you may be paid for any unused, accrued PTO. You will not be eligible to receive payment for accrued PTO, and accrued PTO will be lost, if you:

Leave McLeod before completing one year of continuous benefits-eligible service at the time of separation,
Fail to work a required notice or
Are dismissed involuntarily for any reason.

PTO Sell Program

McLeod recognizes that not everyone has the same time-off needs. A PTO Sell opportunity is usually available in November and/or May. If you meet the eligibility criteria, you will be able to sell your PTO time. The criteria* will require that you:

Retain at least 100 available hours in your PTO bank after your sell request

Due to IRS tax rules, McLeod applies an early withdrawal penalty of 10%, called a “haircut provision,” on all monies voluntarily cashed out. This is a voluntary PTO Sell Program. You can choose to keep your time in your PTO bank and continue to use it to meet your time-off needs.
* Criteria are subject to change.

PTO Sell Requests will be available during the sell windows through Smart@Work On-line located in the center panel of the Compass.

Grandfathered Sick Pay (GSP)

If you were employed with McLeod Health before January 1, 2000, and you have a balance in your Sick Pay bank, that amount remains available to use (“grandfathered”) for long-term illnesses. GSP was designed to offer income protection for illnesses lasting more than two consecutive calendar days. Since GSP was intended to be the first line of disability protection, you will be required to utilize all accrued time in this bank before you will be paid short-term disability benefits. When your employment ends or you change to an ineligible status, any unused GSP time is forfeited. Please refer to the PTO policy for further information on when GSP can be used.

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