Paid Time Off Banks

1
Paid Time Off Banks

• Oh What A Relief It Is!

Presented by Tammy King Walsh American
Mathematical Society April 22, 2004
2
The Concept What Is It?

• Definition PTO vs. PPL
• Combines traditional paid non-work time in one
  pool or bank
• Intended use is largely irrelevant - allows
  employees to choose how to use the time
• PPL is accrued or credited according to the
  adopting companys preferences

3
So Why Adopt Such A Policy?

• General Reasons
• Gives employee control over the benefit
• Administration
• Increased productivity
• Cost savings
• Specific Reasons

4
History Pre-PPL (2001)

• Leave policies provided benefit in days
• Standard work week varied by location
• Varied accrual rates
• Holidays and Personal days varied by office
• Sick Leave provisions
• Compressed work week and part-time work

5
So What To Do?

• Identified common aspect(s) across all locations
• Identified pros and cons to implementation
• For AMS there were many advantages
• One down side getting people to understand
  it
• Devise a plan that does not take away

6
AMS PPL Policy - continued

• Cap on Usage 50 days in previous 52 weeks
  (rolling year)
• Lump Sum at Separation
• Credit for New Employees
• Official Holidays/Office Closings
• This was changed in the first year of the
  policy to 50 days in a payroll year.

7
AMS PPL Policy - continued

• Transition - continued
• Old sick time (pre-1987)
• Exempt added to bank
• Non-exempt choice

8
How Was It Received?

• Skepticism -
• Why change?
• Difficult concept, but specifics were even
  harder
• Complicated by requiring use of PPL for
  Office Closing Days (holidays under the old
  policy)

9
What Did It Accomplish?

• Simplified management of the plan
• Treated all classes of employees equitably
• Increased employee satisfaction with leave policy
• Complicated payout formula at separation

10
What Did We Get Out of All This?

• Reminded of importance of communication
  Everyone must clearly understand the policy
• Recognition that PPL is an evolving policy
  transition process is very important
• People are taking responsibility for planning
  time - unscheduled time out of the office has
  decreased, while planned time has increased
• Unintended benefit accrual on balance sheet for
  vested PPL has gone down 2 years in a row