Do you have a Vacation and/or Compensatory Time Conversion Policy?

If you have a policy in place addressing vacation and/or compensatory time conversions to a deferred compensation plan (e.g., MNDCP), here are some details to ensure you are applying the policy consistent to Minnesota Statutes & MSRS policy.

Vacation and compensatory time conversions are:

• subject to pension retirement deductions up to 40 hours per fiscal year 
  
  
• not available for prior fiscal years. You may only convert available time for current/future fiscal years.

If you are considering initiating a vacation and/or compensatory time conversion to a deferred compensation plan, please contact our Eligibility team to discuss details. 

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What Earnings are Eligible for Retirement Deductions?

The following table provides a quick reference for when to take retirement deductions. 

Minnesota Statutes Section  352.01, Subd 13(a)

Vacation and Compensatory time pay is considered periodic compensation for salary purposes. Please refer to this statute for the definition of salary.

MSRS Policy

In addition to Minnesota Statutes, the MSRS Board of Directors policies further define the eligibility for vacation and compensatory time as it relates to pension retirement benefits.

Labor Agreements

Please review any union contracts as vacation and compensatory time language may vary.