Classification and Compensation: Longevity Allowance Policy
Classification and Compensation: Longevity Allowance
Subject: University Human Resources
Policy: Longevity Allowance
Effective Date: January 1, 2019
Revised:
Review Date: January 2022
Responsible Party: University Human Resources
Application: This policy applies only to classified employees
100.00 Introduction and Purpose
This policy describes the application of the longevity allowance for classified employees as authorized under Section 2-18-304, MCA and approved by the Board of Regents.
200.00 Longevity Rates and Application
A classified employee who has completed five (5) years of uninterrupted service will receive 1.5% of the employee’s base salary multiplied by the number of completed, contiguous, five-year periods of uninterrupted service. In addition to the longevity allowance provided under subsection (1)(a) of the statute above, each employee who has completed 10 years of uninterrupted state service, 15 years of uninterrupted state service, or 20 years of uninterrupted state service must receive an additional 0.5% of the employee's base salary for each of those additional 5 years of uninterrupted service. If an employee returns to state employment after a break in service, the employee must restart the accrual process.
Yearly Longevity Increment
|
Percentage of Pay Increase
|
---|---|
5 years
|
1.50% |
10 years
|
3.50%
|
15 years
|
5.50%
|
20 years
|
7.50%
|
25 years
|
9.50%
|
30 years
|
11.00%
|
35 years
|
12.50%
|
40 years
|
14.00%
|
45 years
|
15.50%
|
50 years
|
17.00%
|
55 years
|
18.50%
|
60 years
|
20.50%
|
65 years
|
21.50%
|
For purposes of calculating longevity, employment as a short-term worker does not
apply toward years of service, however employment in any other capacity will count
toward years of service. Authorized leaves of absence are not considered interruptions
in service. Employees on an approved leave of absence will continue to accrue longevity
credit.
300.00 Application of Longevity When Moving to Classified Status
The longevity rate of a classified employee who has been continuously employed in both classified and contract employee positions will be based on the classified employee’s years of continuous employment with the university. Contract employees are not eligible for longevity pay.