Payout Processing

Employee Separation and Retirement Payout Processing

When your career journey at Montclair transitions into retirement, or a new professional chapter, navigating your final financial distributions should be a seamless, supportive process. 

The Office of Payroll Services is dedicated to ensuring your accrued time off balances are calculated accurately and processed efficiently. This comprehensive guide outlines how different employee classifications receive payouts for unused time, what paperwork is required, and when you can expect your funds.

Time Off Balance Payout by Classification

Voluntary Separations and Resignations

For standard separations from the University, your remaining accrued time is carefully prorated based on your final active calendar days. Whatever payment delivery method you established in Workday at the time of your departure remains the active channel for these funds.

• Vacation Time: All eligible accumulated, unused vacation days are paid out up to your plan limits.
• Compensatory and Paid Leave Bank (PLB) Time: Remaining compensatory time and paid leave bank hours are paid out completely upon termination.
• Sick Time: Sick hours are not eligible for a financial payout upon a standard voluntary resignation.

Official University Retirement

When officially retiring from the University, your time off balances undergo a final review and proration after your official retirement date. Retiring professionals are eligible for specific sick leave pay incentives up to legal statutory limits:

• Vacation, Compensatory and PLB Time: All eligible unused accrued vacation, compensatory and paid leave bank hours are paid out after review.
• Sick Time Incentives: Qualifying retirees are eligible to receive a payout equal to one-half (½) of all verified remaining sick hours after proration, capped at a maximum institutional payout of $15,000.

If you’re looking for a more comprehensive resource on retiring from Montclair, view our Retirement Roadmap, which outlines the chronological steps you’ll take to ensure a smooth transition.

Required Documentation for Pension System Retirees

To release sick leave incentive payouts, retirees enrolled in state pension networks must provide specific state-issued documentation to ensure institutional compliance. Completing these forms accurately prevents processing delays.

• PERS and PFRS Pension Members: You must submit an official State Certification of Available Sick Leave at Retirement (SCOR Form) alongside your official Congratulations Letter issued by the New Jersey Division of Pensions and Benefits. Please complete only the designated employee sections of the form, as extraneous edits can halt the review process. Email both completed items directly to the payroll desk.
• ABP Pension Members: Members of the Alternate Benefit Program must first advise the Human Resources benefits department of their formal retirement. Once the state verifies your status, the benefits team will officially authorize the Office of Payroll Services to process your sick leave payout. Learn more about plan frameworks on our Retirement Plans directory.

Payout Timelines, Prorations and Adjustments

Understanding the operational timing behind your final payout ensures a stress-free transition. Payroll calculations follow meticulous verification steps after your time on campus concludes.

• The Processing Window: Please allow approximately four to six weeks following your official termination date for your final time balance payouts to be fully processed. The earliest you might see an eligible payout is the Friday after your final active paycheck is issued.
• Off-Cycle Distribution: Time balance payments are handled as independent distributions. They are processed during an off-cycle window and will not be lumped into your final active paycheck from the University. You can track payment cycles via our published Payroll Schedules.
• Proration Audits: Your final balances are adjusted to reflect your exact days worked during your final calendar year. For example, if an employee's last day is June 30th on a calendar year cycle, payroll will prorate the balances for July 1st through December 31st. If your final time off usage exceeds your prorated accruals, the difference will be deducted directly from your final paycheck.
• Calculating Estimates: Should you wish to estimate what your potential paid time off payment will look like, you can calculate your baseline numbers using the monthly accrual metrics found directly on our Paid Time Off platform.

Helping Others: The Donated Leave Program

If you find yourself with an excess of accrued time off balances that exceed your allowable payout limits, you have the opportunity to support your campus peers. The University allows employees to contribute their extra hours to colleagues facing extended medical emergencies through the Donated Leave Program. You can easily transfer your surplus days by reviewing the guidelines on the Donated Leave directory.

Resignation Payout Process

Things to Know

• Balances are reviewed and prorated after termination date.
• Payments will be processed after termination (will not be included in last payment from the university). Allow 4 to 6 weeks for processing.
• Should you wish to have an idea of what your PTO payment may look like, feel free to calculate using the monthly accrual rates on our Paid Time Off page.
• If you would like to donate excess hours, please refer to the Donated Leave page.
• If you wish to receive a copy of your paystub, please send your request(s) to payroll@montclair.edu.