October 29, 2001

PLEASE POST

Re: Paid Time Off (PTO) Payment

The annual PTO payout of hours in excess of 288 hours will be paid on the regular biweekly December 5, 2001 paycheck. The accrual balance will be based on the quadri-weekly Leave Activity Period ending November 10, 2001.

The "Cash Out" will be paid using the Description of Service Code, PTH. The IRS considers this type of payment as supplementary pay, which is subject to flat taxation at 27.5% Federal Withholding, 6% State Withholding, 6.2% OASDI (if the maximum has not been reached), and 1.45% Medicare. Employees not coordinated with Social Security are subject to only the flat Federal and State Withholding taxes for this payment.

To defer some of the payment on a biweekly payday, biweekly-paid employees may utilize either the percentage or the flat tax-deferred 403B reduction plans. For either type of tax deferred plan, Regular earnings are affected first by the 403B plan selection and any remaining PTH payment will still be subject to the flat taxation. Questions regarding these 403B plan effects and amount limits should be directed to either Yvonne Gandara at ygandara@mednet.ucla.edu or Linda Stephens at lstephens@mednet.ucla.edu.

We advise employees to not use Bencom to change a 403B reduction for this payday, but rather contact your departmental personnel representative to make the entry for you. The cutoff date to enroll in/change the 403B program to affect the December 5, 2001 payment is November 28, 2001. Two change forms are required, one to change for the December 5, 2001 payday, and the other to change the 403B reduction for future paydays.

Eligibility for the Paid Time Off Program is limited to career (full and part-time) non-represented employees at the UCLA Medical Center (Westwood campus) on 63000 funds, Santa Monica-UCLA Medical Center (63200 funds) and Physician Support Services (62100 funds). Employees in the Health Care Professional unit (HX) continue to participate at both hospital locations. Employees with split-funded appointments and casual employees are not eligible for the Program.

Upon written verification, PTO-eligible employees on disability, FMLA and/or approved Intermittent Family Leave may be temporarily suspended from the Program until they return to regular working status. Individuals who are not currently enrolled in the program as of November 10, 2001 are not eligible for the PTO cash out at this time.

If you have any questions please e-mail me at jpalmquist@mednet.ucla.edu or Maure Gardner at mgardner@mednet.ucla.edu.

Judy Palmquist
Financial Services, Payroll