Longevity Pay
Payment Timing and Steps for Paying Longevity Pay
When Longevity Pay Will Be Paid
| If the employee is entitled to longevity pay and the employee’s regular salary is: | The longevity pay should be included in the: |
|---|---|
| Monthly | Monthly pay |
| Twice monthly | Pay for the first half of the pay period |
| Every two weeks | Wages paid closest to the pay date for an employee paid monthly |
All of the longevity pay must be paid at the same time; longevity pay may not be split among payments.
The state agency that employs the individual on the first workday of a month must pay any longevity the employee is entitled to.
Example:
If an employee works for Agency A from March 1 through March 5 and transfers to Agency B on March 6, and if that employee is entitled to $20 in longevity pay, Agency A is required to pay all the longevity pay the employee is entitled to, and the pay must be included with the compensation earned by the employee while working for Agency A.
Steps to Pay Longevity Pay
When an agency hires an employee, the agency must research whether the employee has previous state employment. If there is prior state employment, the agency must:
- Confirm the amount of lifetime service credit.
– and – - Compute the correct amount of longevity pay entitlement.
If the agency fails to do this, the lifetime service credit for longevity will be based on the employment date at the new agency and the eligible employee may be underpaid longevity pay.
If a state agency fails to verify prior state service or delays paying longevity pay until the prior state service credit is verified, the agency must pay the employee’s longevity pay for the period the employee was owed but not paid the longevity pay.
See the definition of lifetime service credit above in the Eligibility for Longevity Pay section of this statement for clarification on the method to determine the total lifetime service credit.
Source
Texas Government Code, Chapter 74 (Section 74.041), Chapter 659 and Subchapter D (Sections 659.041 through 659.047) and Chapter 837 (Section 837.103).