Employee annual and sick leave addendum [Aug. 2014]

Georgia Department of Audits and Accounts, Performance Audit Division
Employee Annual and Sick Leave Addendum
Purpose
This special examination updates selected information from our December 2011 special examination on Employee Annual and Sick Leave.1 This review was conducted at the request of the House Appropriations Committee, which asked us to:
expand our analysis of the trend in payouts to include fiscal years 2012 and 2013, and compare payout trends to government employment trends during recessionary periods and
years with more employment stability.
A draft of the report was provided to the Department of Administrative Services and the Board of Regents of the University System of Georgia for their review and comment. In their written responses, the agencies indicated that they have no disagreements with the report.
Background
Annual and sick leave policies allow employees to receive full pay when absent from work. The specific policies that govern the accrual and use of leave depend on the employer. As noted in our original report, the State Personnel Board (SPB) sets many of the leave rules affecting a majority of state agency employees, while the Board of Regents (BOR) of the University System of Georgia (USG) sets rules governing its employees. For both state employees and USG employees, annual leave may be used for any purpose chosen by the employee (with advance approval), while sick leave may be used for personal illness, medical care, medical appointments, preventing the spread of contagious diseases, or illness/death of an immediate family member.
State Employees SPB sick and annual leave rules apply to all executive branch agencies, except the USG. Many judicial and legislative branch entities have chosen to follow these rules as well. As shown in Exhibit 1, employees earn annual leave based on their years of service, but sick leave is a set amount regardless of tenure. The exhibit also shows that employees may accumulate leave over a period of several years up to a maximum amount. Any sick or annual leave earned over the maximum amount allowable is not available for use by the employee as time off, but is placed in a separate forfeited leave account.
Under SPB rules, only those employees separating from state employment are paid for any balance of unused annual leave, up to the 360-hour maximum. The annual leave payment is the responsibility of the employee's agency at the time of separation from state service, regardless of whether the employee previously held positions with other state agencies. In addition to the payment to terminating employees, agencies pay the employer's contribution for the State Health Benefit Plan (SHBP) to the Department of Community Health and the employer's share of the two Federal Insurance Contributions Act (FICA) components Old Age, Survivor's and Disability Insurance (e.g., social security) and federal Health Insurance (e.g., Medicaid).

1 A copy of the 2011 special examination report, Employee Annual and Sick Leave (Report No. 11-19), may be accessed at http://www.audits.ga.gov/rsaAudits/download/14101.

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Exhibit 1 Leave Hours Earned by State Employees per Month1

Months of Service

Annual Leave2

Sick Leave2

0 60

10 hours

10 hours

61 120

12 hours

10 hours

121 or more

14 hours

10 hours

Maximum Accumulation

360 hours (45 days)

720 hours (90 days)

1Employees paid on a semi-monthly basis earn 1/2 of the monthly leave each pay period. 2Part-time employees earn leave on a pro-rata basis.

Source: State Personnel Board Policy

Like other terminating employees, employees retiring from state service may also receive a payment for any balance of unused annual leave. Additionally, the Employees Retirement System (ERS) will recognize any balance of at least 960 hours (120 days) of unused sick, forfeited, and previously unused leave as service credit towards retirement. As noted in our original report, a balance of 960 hours results in an additional six months of service credit, with each additional 160 hours counting as another month of service. The employee's agency must pay the employer contribution to ERS for the period of service credit granted to the employee. This payment represents the employer contributions that would have been made had the employee worked those months at the current rate of pay.

USG Employees BOR leave policies apply to faculty and staff employed at 33 USG institutions and BOR offices.2 As shown in Exhibit 2, the policies set different accrual rates for staff and faculty members. Full-time staff members earn annual leave based on their years of service, while 12-month faculty members' accrual rate does not change over time. Faculty members who have 9- or 10-month contracts receive no annual leave. All faculty and full-time staff earn the same rate of sick leave, regardless of the length of service. Unlike state employees whose excess annual and sick leave is placed in a forfeited leave account, USG employees lose any annual leave accumulated over the 360-hour maximum at the end of each calendar year and sick leave has no maximum accrual.

Exhibit 2 Annual Leave Hours Earned by USG Employees per Month

Annual Leave

Sick Leave

Months of Service

Full-time Staff1

Faculty

12-Month

and Admin

9-10

Officers

Month

Full-time Staff & All Faculty

0 60

10 hours

61 120 121 or more

12 hours 14 hours

14 Hours

Not Eligible

8 hours

Maximum Accumulation

360 hours (45 days)

1Part-time employees earn leave on a pro-rata basis.

Source: BOR Policy Manual and USG Administrative Practice Manual

No Maximum

2 BOR leave policies also apply to the Georgia Archives and the Georgia Public Library Service.

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Current USG employees may receive an annual leave payment under two primary circumstances: 1) the employee transfers from a
benefit-eligible position to an ineligible position or 2) the
employee transfers from one USG institution to another.

Annual leave payments may be made to both employees separating from USG service and current employees. For both groups, the annual leave payment is made directly to the employee and is the responsibility of the employing institution at the time of separation or transfer. USG institutions are also responsible for the employer's share of the FICA components paid by state agencies. However, no payments are made toward employees' health benefit plans because, unlike state agencies, USG does not make contributions to its health plan based on salaries/payments to employees.

USG institutions make payments to ERS for retired USG employees who previously transferred from state employment and retained their ERS membership.3 USG institutions must pay the employer contribution to ERS for the period of service credit granted to the employee.

USG employees who are members of the Teachers Retirement System (TRS) may also apply unused sick leave balances of 60 days (480 hours) or more toward additional service credits, receiving one month of service credit for every 20 days accrued.4 However, according to TRS policy, compensation paid as terminal annual or personal leave, and compensation paid for as unused or forfeited sick leave, is not subject to TRS contributions. As noted in our original report, USG employees who participate in the USG Optional Retirement Plan instead of TRS do not have the option to apply unused sick leave towards retirement.

3ERS will recognize as service credit any forfeited or previously unused leave earned as a state employee, and any unused sick leave earned as a USG employee.
4 Unused sick leave may include any sick leave forfeited during previous employment with a state agency.

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Questions and Answers
What is the trend in annual leave payouts? How do payout trends compare to employment trends in recessionary periods and years with more employment stability?
Overall, payout costs and turnover rates among state agency and USG employees have increased over time.5 State agency payout costs increased annually between fiscal years 2008 and 2013, despite a reduction in turnover among state employees during the recessionary period (which covers portions of fiscal years 2008 through 2010). Although we were unable to fully assess USG's payout and employment trends during the recessionary period, we found that USG payout costs and turnover rates increased annually between fiscal years 2010 and 2013. Details related to payouts and employment trends for state agency and USG employees are discussed below.
State Employees Payout Costs (Fiscal Years 2008 to 2013)
Between fiscal years 2008 and 2013, state agencies paid out a total of $257.7 million associated with unused annual and sick leave.6 This amount includes payments to terminating state agency employees, SHBP, ERS, and FICA.7 As shown in Exhibit 3, annual state payout costs ranged from $36 to $45 million between fiscal years 2008 and 2012, but increased to nearly $60 million in fiscal year 2013. The fiscal year 2013 increase in payout costs was due to a variety of factors, including higher average annual leave payments (ALP), additional terminating employees, and higher SHBP and ERS contribution rates.
The proportion of payout costs attributable to annual leave payments to terminating employees has decreased since our initial review. While annual leave payments represented approximately 65 to 70% of payout costs in our original analysis of fiscal years 2008 to 2011, annual leave payments accounted for only 53% of payout costs by fiscal year 2013. As shown in Exhibit 3, the combination of employer contributions to ERS, SHBP, and FICA comprised the remaining share of payout costs. The increase in payments to ERS and SHBP was largely driven by the increase in employer contribution rates. Employer contribution rates to SHBP fluctuated significantly over the six-year period, reaching as high as 35% in fiscal year 2013. Similarly, ERS payments were significantly impacted by employer contribution rates which increased from 10.41% in fiscal year 2008 to nearly 15% in fiscal year 2013.8 After fiscal year 2013, ERS retirees were no longer eligible to receive an offset from state taxes of up to 3% of retirement earnings.9 According to ERS personnel, the number of retirees increased by 33% between fiscal years 2012 and 2013 in anticipation of this reduced tax benefit.

5 Our review covers activities related to state agency employees in fiscal years 2008 through 2013 and USG employees in fiscal years 2010 through 2013. 6 To calculate payout costs for unused annual and sick leave, the audit team obtained annual leave payment data for each state employee from the State Accounting Office's payroll system, calculated employer contributions for SHBP and FICA based on rates in effect at the time of the annual leave payment, and added payments made by state agencies for retirees as reported by ERS. 7 It should be noted that, unlike annual leave and FICA payments, those made to SHBP and ERS are transfers to other state entities.
8 Rates refer to the ERS Old and New Plans, the two largest plans managed by ERS.
9 Per the minutes of the August 16, 2012 meeting of the ERS Board of Trustees, this benefit was for up to $35,000 for members 6265 years old and $65,000 for members 66 years or older.

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Exhibit 3 Total Amount Paid Out for Unused Leave by State Agencies, Fiscal Years 2008 - 20131

$60,000,000

ERS FICA2 SHBP2 ALP

$59.6

$50,000,000

$40,000,000 $30,000,000

$36.3
$4.8 $1.8 $5.5

$36.7
$5.6 $2.0 $3.1

$37.2
$6.1 $1.8 $5.1

$42.7 $5.6 $2.1 $7.1

$45.2
$8.0 $2.0 $8.1

$16.0
$2.4 $9.4

$20,000,000 $10,000,000

$24.2

$26.0

$24.2

$27.9

$27.0

$31.8

$0 2008

Average ALP $2,505

Terminating Employees3 9,676

Retiring Employees4

888

2009 $3,025
8,606 1,000

2010 $3,084
7,859 1,033

2011 $3,144
8,872 965

2012 $3,052
8,859 1,166

2013 $3,380
9,416 1,550

1Annual figures may not total due to rounding. 2An estimate of the employer's share of payments to FICA and SHBP was calculated using the rates in effect at the time the annual leave payment was made. 3Employees who received an annual leave payment upon termination or retirement from state service. 4Retirees with enough unused sick and forfeited leave to incur a payment to ERS.
Source: State Accounting Office, Department of Family and Children Services and Employee's Retirement System records, Department of Community Health and Social Security Administration policies

As shown in Exhibit 4, 53% of all payout costs associated with unused leave from fiscal years 2008 to 2013 are concentrated in five state agencies. The Departments of Corrections and Human Services had the highest payout costs, at $43.3 and $42.6 million respectively. The Department of Behavioral Health and Developmental Disabilities (DBHDD) was next at $19.0 million. As shown in Appendix A, agencies with the highest payout costs associated with unused leave typically have a very high number of terminations. However, a significant portion of the Department of Transportation's payout costs (37% over the six-year period) are associated with payments made to ERS for a large number of retirees with service credit. Complete details of the amounts paid out by each state agency and the number of employees associated with annual leave payments and ERS payments in fiscal years 2008 through 2013 are included in the appendix.

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Exhibit 4 Five State Agencies Comprise More than Half of Payout Costs, Fiscal Years 2008 2013

Corrections $43.3m (17%)

Human Services1 $42.6m (16%)

All Others $120.5m (47%)

DBHDD2 $19.0m (7%)
Transportation $17.4m (7%)
Juvenile Justice $14.8m (6%)

1Includes the Division of Family and Children Services (all years), Department of Public Health (fiscal years 2008-2011), and DBHDD (fiscal years 2008-2009). 2Department of Behavioral Health and Developmental Disabilities.
Source: State Accounting Office, Division of Family and Children Services and Employee's Retirement System records, Department of Community Health and Social Security Administration policies

Impact of the Recession
The Great Recession had a significant impact on state employment trends and, thus, payouts associated with unused leave. During the recessionary period10 (which covers portions of fiscal years 2008 through 2010), average turnover among state agency employees dropped from 16.4% to 13.4%, as shown in Exhibit 5.11 The reduction in turnover during that time was driven by fewer employees leaving state employment and an overall reduction in state employment levels. Despite reduced turnover, state agency payout costs associated with annual leave payments remained relatively stable, with year-to-year increases of about 1%. However, during the post-recessionary period (fiscal years 2011 through 2013), both turnover and payout costs saw an upward trend. By fiscal year 2013, turnover rates had exceeded rates recorded just prior to the start of the recession. As previously discussed, the dramatic increase in payout costs was primarily due to an increase in ERS payments in fiscal year 2013.
10 For the purposes of this report, the Great Recession includes the second half of fiscal year 2008 through the end of fiscal year 2010 (i.e., January 2008 June 2010). While official estimates place the recession as beginning in December 2007 and ending June 2009, we include fiscal year 2010 to capture residual effects of the recession. 11 Turnover is calculated by dividing the total number of annual employee separations by average monthly employment. Turnover rates include only benefit-eligible employees and do not include temporary employees. Turnover figures differ slightly from those reported by the Department of Administrative Services' State Human Resources Division because, other than the Department of Family and Children Services, we exclude entities that do not utilize the State Accounting Office's payroll and human resources data systems.

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Payouts in Millions Turnover

Exhibit 5 Payouts and Turnover of Benefit-Eligible State Employees, Fiscal Years 2007 - 20131

$70

Recessionary Period

20.00%

17.15%

$60

16.37%

17.84%

16.63%

18.00%

$50

15.09% 13.72% 13.35%

$59.6

16.00% 14.00%

$40

$45.2 $42.7

12.00%

10.00%

$30

$36.3 $36.7 $37.1

8.00%

$20

6.00%

4.00% $10
2.00%

$0 2007 2008 2009 2010 2011 2012 2013

Retirements

1,694 1,721 1,839 1,893 2,143 2,028 2,729

Separations2 12,132 11,672 9,597 8,892 9,705 10,350 10,794

Employment 70,732 71,280 69,939 66,623 64,295 62,227 60,500

0.00%

1Turnover is calculated by dividing the total number of annual employee separations by the average
monthly employment count. 2Figures include all separations, including retirements and employees who did not receive an annual
leave payment.

Source: Department of Administrative Services, State Accounting Office, Division of Family and Children Services and Employee's Retirement System records, Department of Community Health and Social Security Administration policies

USG Employees Payout Costs (Fiscal Years 2010 to 2013)
Between fiscal years 2010 and 2013, USG institutions paid out a total of $64.8 million associated with unused leave. Like state agencies, these payout costs consisted of the amount paid to employees separating from USG service, associated taxes, and retirement system contributions.12 As shown in Exhibit 6, annual payout costs increased from $12 to $19 million over the four-year period. The increase in payout cost is primarily due to the 48% increase in the number of employees who received annual leave payments (ALP) from 3,052 in fiscal year 2010 to 4,505 in fiscal year 2013. The increase in

12 To calculate payout costs for unused annual and sick leave, the audit team obtained annual leave payment data for each state employee from USG's Shared Services Center, Georgia Institute of Technology, Georgia Regents University, and the University of Georgia, calculated employer contributions for FICA based on rates in effect at the time of the annual leave payment, and added payments made by USG institutions for retirees as reported by ERS.

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employees receiving annual leave payments coincides with BOR's efforts to consolidate several USG institutions during the review period.

Approximately 93% of USG payout costs each year were for annual leave payments, with the remaining costs associated with payments to FICA and ERS. Despite the increase in ERS contribution rates and tax policy changes described earlier, ERS payments had a very minimal impact on USG payout costs due to the small number of USG employees who are ERS members. Over the four-year period, three institutions made payments to ERS on behalf of five retiring employees totaling $37,693.

Exhibit 6 Total Amount Paid Out for Unused Leave by USG Institutions, Fiscal Years 2010 2013

$20,000,000

FICA1 ALP

$19.0

$18,000,000 $16,000,000 $14,000,000

$12.4

$16.5 $1.2 $15.3

$16.9 $1.1 $15.8

$1.3 $17.7

$12,000,000

$0.9

$10,000,000

$11.5

$8,000,000

$6,000,000

$4,000,000

$2,000,000

$0 2010

2011

2012

2013

Average ALP Terminating Employees2
Retiring Employees3

$3,900 3,052
2

$3,900 3,603 0

$3,957 3,997 1

$3,935 4,505
2

1An estimate of the employer's share of payments to FICA was calculated using the rates in effect at the time the payout was made. 2Employees who received an annual leave payout upon termination or retirement from USG service or transfer to another USG institution. 3Retirees with enough unused sick and forfeited leave to incur a payment to ERS, which totaled $37,694 over the four-year period.

Source: University System of Georgia and Employee's Retirement System records, Social Security Administration policies

As shown in Exhibit 7, USG's four research institutions accounted for approximately 65% of payout costs between fiscal years 2010 and 2013. Georgia Regents University, the University of Georgia, and the Georgia Institute of Technology had the highest payout costs ranging from $11.7 to $13.5 million. At $4.9 million, Georgia State University had the lowest payout cost among research institutions. Details of the amounts paid out by USG institutions and the number of employees associated with annual leave payments in fiscal years 2010 through 2013 are listed in Appendix B.

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Exhibit 7 Research Institutions Account for the Majority of USG Payout Costs, Fiscal Years 2010 2013
University of Georgia $12.1m (19%)

Georgia Tech $13.5m (21%)

Georgia Regents University1
$11.7m (18%)

All Others $22.5m (35%)

Georgia State University $4.9m (7%)

1Includes Augusta State University after January 2013.
Source: University System of Georgia, Employee's Retirement System records, and Social Security Administration policies

Impact of the Recession
We were unable to obtain data to fully demonstrate the impact of the recession on USG employment.13 However, as shown in Exhibit 8, turnover14 among USG employees has increased since fiscal year 2010, which includes some residual effects of the recession. This trend is similar to that experienced by state agency employees during the same period and suggests USG was experiencing the effects of an improved economy. In addition, according to USG officials, the increase in turnover might also be due to certain hiring practices used to contain costs. For example, USG institutions have the ability to fill vacant fulltime faculty positions with one or more adjunct instructors who typically work under an annual contract.15 At the end of the contract period, these individuals are essentially terminated in the payroll system, which could contribute to the increased turnover rate.
As the exhibit shows, the increase in turnover is commensurate with the increase in payout costs between fiscal years 2010 and 2013. It should be noted that total employment figures also increased

13 Information for years preceding fiscal year 2010 was unavailable through USG's Shared Services center and could only be acquired through individual USG institutions.
14 Turnover is calculated by dividing the total number of annual employee separations by average monthly employment. Turnover rates are for benefit eligible employees only, including some benefit eligible temporary employees.
15Adjunct faculty members are less costly because they are paid on a per class basis versus an annual salary. The extent to which adjunct faculty can be used to fill full-time teaching positions is limited by the accreditation process.

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Payouts in Millions Turnover

during this period. According to USG officials, this was likely driven by the increase in student enrollment, which increased by approximately 4% between fall 2009 and fall 2012.16

Exhibit 8 Payouts and Turnover of Benefits-Eligible USG Employees, Fiscal Years 2010 - 20131, 2

$20 $18 Recessionary Period

$16

$14

$12.4

$12

$16.5

$16.9 15.29%

$19.0 16.22%

16.50% 16.00% 15.50% 15.00%

$10

$8

$6

14.00%

$4

$2

14.46%

14.50% 14.00% 13.50% 13.00%

$0 2010

Retirements

924

Separations2,3 6,117

Employment3 43,705

2011 978 6,463 44,696

2012 1,069 7,049 46,089

2013 1,138 7,550 46,553

12.50%

1 Turnover is calculated by dividing the total number of annual employee separations by the average monthly
employment count. 2 Figures include all separations, including retirements and employees who did not receive an annual leave
payment. 3 Figures are estimates and are based on employment data provided by USG's Shared Services Center, Georgia
Institute of Technology, and Georgia Regents University, as well as the audit team's calculations of University of
Georgia employment activity using the Department of Audits and Accounts salary and travel expense data.

Source: University System of Georgia and DOAA records

16 These periods correspond to fiscal years 2010 and 2013.

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Appendix A: Leave Payout Costs by State Agency, Fiscal Years 2008 2013

State Agency 1 Department of Corrections 2 Department of Human Services4 3 DBHDD5 4 Department of Transportation 5 Department of Juvenile Justice 6 Department of Labor 7 Department of Natural Resources 8 Department of Public Safety 9 Department of Revenue 10 Georgia Bureau of Investigation 11 Department of Education 12 Georgia Technology Authority 13 Department of Community Health 14 Prosecuting Attorneys' Council 15 Department of Driver Services 16 Public Defender Standards Council 17 Forestry Commission 18 Board of Pardons & Paroles 19 Department of Agriculture 20 Office of the Governor 21 Secretary of State 22 Georgia World Congress Center 23 Department of Administrative Services 24 Department of Public Health 25 Department of Community Affairs 26 Department of Defense 27 Department of Audits & Accounts 28 Georgia Public Broadcasting 29 Chattahoochee Technical College6 30 Georgia Correctional Industries 31 Department of Economic Development 32 Superior Courts 33 Central Georgia Technical College7 34 Department of Insurance 35 General Assembly of Georgia 36 West Georgia Technical College8 37 Technical College System of Georgia 38 Georgia Piedmont Technical College 39 State Personnel Administration9 40 Department of Banking & Finance 41 Savannah Technical College 42 Wiregrass Georgia Technical College10 43 Department of Law 44 Georgia Building Authority 45 Southern Crescent Technical College11 46 Administrative Office of the Courts 47 Atlanta Technical College 48 Georgia Northwestern Technical College12

ALP $27,542,880 $27,606,264 $12,435,799 $8,420,128 $9,891,351 $7,234,500 $5,465,512 $3,814,321 $3,251,161 $2,324,522 $3,364,587 $3,232,284 $2,949,177 $2,396,615 $1,871,679 $2,210,520 $1,469,705 $1,559,362 $1,573,624 $1,710,371 $1,411,824 $1,149,268 $1,104,054 $1,001,514
$975,191 $1,019,658
$999,346 $904,362 $1,065,608 $636,208 $826,618 $793,830 $823,302 $672,748 $733,893 $798,915 $735,956 $766,256 $668,890 $543,992 $698,364 $666,539 $465,871 $432,161 $520,895 $458,965 $505,247 $498,872

SHBP

FICA1

$6,649,091 $2,104,809

$6,187,101 $2,093,146

$3,333,712 $936,194

$2,008,519 $637,065

$2,397,084 $751,426

$1,720,560 $550,770

$1,317,903 $415,656

$921,997 $289,494

$711,869 $247,391

$518,723 $172,974

$787,427 $251,650

$433,087 $245,315

$706,348 $217,205

$553,725 $181,755

$449,397 $142,951

$524,923 $166,127

$361,384 $112,432

$385,367 $119,291

$382,492 $120,382

$418,264 $126,864

$344,376 $106,901

$261,648 $86,013

$271,564 $82,010

$292,056 $76,616

$248,056 $74,602

$252,333 $74,770

$234,445 $72,138

$182,376 $69,184

$264,110 $81,221

$161,596 $48,391

$202,226 $62,483

$189,108 $60,170

$201,463 $62,417

$161,723 $51,465

$173,749 $51,396

$197,668 $60,222

$175,737 $54,150

$201,685 $53,854

$168,925 $48,798

$133,132 $40,052

$172,176 $49,514

$170,778 $47,095

$114,416 $35,389

$109,612 $33,060

$130,536 $39,092

$86,635 $34,989

$119,318 $37,682

$127,734 $37,630

ERS $7,002,918 $6,685,845 $2,354,632 $6,364,831 $1,784,241 $2,174,274 $3,008,149 $2,999,052
$741,384 $1,767,160
$261,854 $625,286 $603,923 $777,934 $499,005
$25,271 $974,961 $745,027 $663,607 $255,629 $275,542 $319,165 $308,159 $209,646 $249,051 $171,893 $209,754 $299,246
$3,004 $390,069 $135,549 $166,784
$15,027 $197,117 $123,160
$17,336 $104,664
$33,792 $89,864 $245,932
$1,768 $7,716 $209,088 $235,652 $38,216 $125,135 $21,434 $3,270

Total Terminations2 Retirements3

$43,299,698

12,429

1,200

$42,572,356

9,345

1,273

$19,060,337

5,989

473

$17,430,544

2,536

755

$14,824,103

4,890

293

$11,680,104

2,167

417

$10,207,220

1,291

277

$8,024,864

766

256

$4,951,806

755

110

$4,783,379

402

119

$4,665,519

715

52

$4,535,972

421

86

$4,476,653

596

84

$3,910,029

368

56

$2,963,032

596

89

$2,926,840

557

6

$2,918,483

363

126

$2,809,047

318

88

$2,740,105

463

117

$2,511,128

370

27

$2,138,643

346

41

$1,816,094

491

27

$1,765,786

233

36

$1,579,832

248

26

$1,546,899

224

25

$1,518,654

526

29

$1,515,683

212

20

$1,455,168

171

33

$1,413,944

316

1

$1,236,265

131

54

$1,226,877

152

22

$1,209,893

211

24

$1,102,208

285

3

$1,083,054

147

31

$1,082,198

150

15

$1,074,140

268

3

$1,070,508

136

13

$1,055,587

139

4

$976,477

113

15

$963,107

76

22

$921,822

215

1

$892,127

179

1

$824,764

98

13

$810,485

104

34

$728,739

145

4

$705,725

86

10

$683,681

131

1

$667,506

129

1

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Appendix A (cont.): Leave Payout Costs by State Agency, Fiscal Years 2008 2013

State Agency

ALP

SHBP

FICA1

ERS

Total Terminations2 Retirements3

49 Athens Technical College

$482,878 $127,307 $35,871

$12,442 $658,498

160

2

50 Gwinnett Technical College

$481,567 $119,114 $36,840

$637,521

153

51 Department of Early Care & Learning

$421,203 $105,645 $32,222

$62,324 $621,394

112

14

52 State Accounting Office 53 Oconee Fall Line Technical College13

$414,260 $419,757

$108,497 $105,256

$28,927 $32,111

$45,878 $33,922

$597,561 $591,046

70

6

113

3

54 Columbus Technical College

$436,554 $105,427 $32,828

$12,546 $587,355

131

2

55 Board of Workers' Compensation

$320,407

$77,237 $24,511 $160,170

$582,326

60

21

56 North Georgia Technical College

$358,416

$79,138 $27,419

$98,715 $563,687

91

14

57 Teachers Retirement System

$389,000

$87,228 $26,351

$57,556 $560,135

70

6

58 Court of Appeals

$334,766

$77,395 $23,052 $100,493

$535,706

44

9

59 Employees' Retirement System

$325,949

$78,217 $24,130 $100,743

$529,039

59

9

60 Finance & Investment Commission

$355,782

$86,993 $26,578

$51,019 $520,372

69

9

61 Augusta Technical College

$372,162

$87,006 $28,470

$27,279 $514,918

121

4

62 Supreme Court

$268,498

$61,250 $20,540 $140,581

$490,869

33

15

63 State Road & Tollway Authority

$357,117

$89,325 $26,628

$15,006 $488,076

47

2

64 Lanier Technical College

$350,491

$96,414 $26,813

$12,607 $486,325

103

4

65 Public Service Commission

$263,952

$61,984 $20,192

$92,761 $438,889

33

14

66 South Georgia Technical College 67 Southeastern Technical College14

$234,089 $323,162

$57,261 $73,244

$17,908 $24,722

$113,456 $1,279

$422,715 $422,407

49

10

106

1

68 Department of Veterans Services

$244,302

$56,959 $18,689

$61,621 $381,571

86

15

69 Albany Technical College

$283,940

$74,438 $21,721

$380,099

98

70 Moultrie Technical College

$241,114

$59,055 $18,445

$7,206 $325,821

95

2

71 Student Finance Commission

$187,537

$44,107 $14,347

$76,660 $322,651

19

11

72 Ogeechee Technical College

$220,732

$55,808 $16,886

$8,263 $301,689

92

1

73 Southwest Georgia Technical College

$244,498

$55,265 $18,704

$0 $318,467

75

0

74 Regional Transportation Authority

$167,454

$42,444 $12,588

$17,087 $239,574

27

1

75 Altamaha Technical College

$165,449

$42,559 $12,657

$1,454 $222,120

62

1

76 Okefenokee Technical College

$152,656

$38,225 $11,678

$202,560

66

77 Subsequent Injury Trust Fund

$109,088

$26,929

$8,345

$45,597 $189,959

11

6

78 Soil & Water Conservation Commission

$95,850

$23,513

$7,333

$37,856 $164,551

24

5

79 State Properties Commission 80 Middle Georgia College15

$33,154 $5,747

$7,050 $1,313

$2,052 $440

$16,443

$58,699 $7,500

7

2

3

Grand Total

$161,264,241 $38,329,754 $12,194,204 $45,932,983 $257,721,183

53,288

6,602

1FICA estimates may be slightly higher than actual costs because the Technical College System of Georgia and its institutions do not pay the OASDI portion of FICA for

employees who are members of TRS.

2The number of employees separating from service who received an annual leave payment.

3The number of retirees with enough unused sick and forfeited leave to incur a payment to ERS for additional service credit.

4Includes the Division of Family and Children Services for all 6 fiscal years, the Department of Public Health for 2008-2011, and DBHDD for 2008-2009. 5Department of Behavioral Health and Developmental Disabilities.

6In July of 2009, Appalachian Technical College, North Metro Technical College, and Chattahoochee Technical College consilidated into Chattahoochee Technical College.

7In July of 2013, Central Georgia Technical College and Middle Georgia Technical College consolidated into Central Georgia Technical College.

8In July of 2009, West Georgia Technical College and West Central Technical College consolidated into West Georgia Technical College.

9The State Personnel Administration was abolished beginning in fiscal year 2013, with some functions moving to the Department of Administrative Services.

10In July of 2010, Valdosta Technical College and East Central Technical College consolidated into Wiregrass Georgia Technical College.

11In July of 2010, Griffin Technical College and Flint River Technical College consolidated into Southern Cresent Technical College.

12In July of 2009, Coosa Valley Technical College and Northwestern Technical College consolidated into Georgia Northwestern Technical College. 13In July of 2011, Sandersville Technical College and Heart of Georgia Technical College consolidated into Oconee Fall Line Technical College.

14In July of 2009, Swainsboro Technical College and Southeastern Technical College consolidated into Southeastern Technical College.

15In 2007, Georgia Aviation Technical College became part of Middle Georgia College, which is under the Board of Regents of the University System of Georgia.

Source: State Accounting Office, Division of Family and Children Services, Employees' Retirement System

www.audits.ga.gov

Report No. 13-27

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Appendix B: Leave Payout Costs by USG Institution, Fiscal Years 2010 20131

Institution

ALP

FICA

ERS

Total Terminations2

1 Georgia Tech

$12,640,305

$897,372

$13,537,677

2,248

2 University of Georgia3

$11,310,297

$833,756

$12,144,053

2,748

3 Georgia Regents University4

$10,873,958

$753,144 $10,871 $11,637,973

2,947

4 Georgia State University

$4,589,454

$331,444

$4,920,898

1,200

5 Kennesaw State University

$2,813,265

$210,759

$3,024,024

698

6 Georgia Southern University

$1,879,468

$138,884 $15,521

$2,033,873

722

7 Georgia Perimeter College

$1,526,478

$115,779

$1,642,257

501

8 University of West Georgia

$1,160,126

$83,630

$1,243,756

333

9 Board of Regents (USG)

$995,907

$71,441

$1,067,348

120

10 Valdosta State University

$951,826

$70,551

$1,022,377

313

11 Fort Valley State University

$920,464

$70,416

$990,880

256

12 Georgia College & State University

$920,325

$70,405

$990,730

234

13 University of North Georgia5

$836,585

$61,522

$898,107

210

14 Middle Georgia State College6

$822,474

$59,164 $11,302

$892,940

231

15 Armstrong Atlantic State University

$827,676

$63,317

$890,994

215

16 Savannah State University

$798,020

$59,948

$857,968

220

17 Columbus State University

$763,620

$57,030

$820,649

249

18 Albany State University

$727,145

$55,627

$782,771

201

19 Clayton State University

$635,076

$47,152

$682,228

191

20 Augusta State University4

$533,502

$40,354

$573,856

186

21 Southern Polytechnic State Unviversity

$440,791

$33,721

$474,511

137

22 Georgia Gwinnett College

$389,441

$29,792

$419,233

116

23 Abraham Baldwin Agricultural College

$381,301

$29,170

$410,471

92

24 College of Coastal Georgia

$360,791

$25,757

$386,548

125

25 South Georgia State College7

$329,664

$25,219

$354,883

89

26 Georgia Southwestern State University

$281,398

$21,527

$302,925

64

27 Bainbridge College

$276,596

$21,160

$297,755

81

28 Georgia Highlands College

$265,536

$18,167

$283,704

71

29 Dalton State College

$256,981

$19,659

$276,640

107

30 Darton College

$244,286

$18,688

$262,974

81

31 Atlanta Metropolitan College

$205,928

$15,754

$221,682

52

32 Skidaway Institute3

$163,222

$12,487

$175,709

32

33 Gordon College

$134,551

$10,293

$144,845

55

34 East Georgia College

$111,682

$8,544

$120,225

32

Grand Total

$60,368,141 $4,381,630 $37,694 $64,787,465

15,157

1Several Institutions were consolidated during fiscal years 2012-2013. 2The number of employees who received an annual leave payments. Includes transfers from 12-month to 10-month faculty positions. 3Skidaway Institute became part of the University of Georgia beginning fiscal year 2014. 4Augusta State University and Georgia Health Sciences University consolidated into Georgia Regents University in January of 2013. 5North Georgia College and State University and Gainesville StateCollege consolidated into the University of North Georgia. 6Middle Georgia College and Macon State College consolidated into Middle Georgia State College. 7South Georgia College and Waycross College consolidated into South Georgia State College.

Source:University System of Georgia records

www.audits.ga.gov

Report No. 13-27

13