Longevity Pay Policy

Eligibility Requirements 

All employees of the College designated as full- and part-time permanent shall be eligible for Longevity payments upon completion of ten (10) years of service as defined by the College’s Total Creditable State Service Policy. Periods of leave without pay in excess of one-half the workdays in a month, except for worker’s compensation leave and qualifying military service, will extend the employee’s longevity eligibility or payment due date on a month for month basis.

Amount of Longevity Pay 

Annual longevity pay amounts are based on the length of total eligible service and a percentage of the employee’s annual rate of pay as described in this policy and prescribed by SBCCC. Payments are determined by multiplying the employee’s base rate of pay by the appropriate percentage from the following table:

Years of Total Service and Longevity Pay Rate:

10 but less than 15 years 1.50%
15 but less than 20 years 2.25%
20 but less than 25 years 3.25%
25 or more years 4.50%

Salary increases effective on the longevity date will be processed prior to calculating the longevity payment.

Employees with greater than fourteen years of service who are eligible for longevity payment at the time of separation and who have served a fraction of the final year toward the next higher percentage rate, shall be paid longevity based on the next new higher rate. This provision does not apply to make employees eligible for their first longevity payment.

Timing and Method of Payment

• Payroll shall automatically process longevity payments for each eligible employee in the month eligible.
• Payment will be made in a lump sum at the end of the month following the date of eligibility. This includes employees on worker’s compensation leave of absence.
• Longevity payments are only payable after the date the employee has completed ten years of total eligible service as defined by policy and SBCCC.
• After ten years of service, if an employee has worked part, but not all of one year since qualifying for longevity payment, the employee shall receive a pro-rated payment to reflect the months worked since the last longevity payment in the event of separation from the institution, change in employment status to a position not eligible under this policy, or in the event of the employee’s death.
• If the College employs an individual into a longevity eligible position who was paid a pro-rated amount of longevity by another community college, school administrative unit or state agency, the balance of the longevity payment shall be made upon completion of the 12-month period. The balance due is computed on the annual base salary paid at the time of completion.
• If an employee is placed on short-term disability, longevity will be prorated in the monthly payment.

Longevity pay is not a part of annual base pay, though it is reported as total annual earnings for the purposes of the State Retirement System and W-2 earnings.

The following payroll deductions are applied to longevity pay:

• Federal Income Withholding Tax
• State Income Withholding Tax
• Social Security Tax
• Employee’s Retirement Contribution

Longevity is paid from the same funds as an employee’s base salary, in the same percentages if applicable.

Longevity shall be paid in accordance with the procedures established by the State Board Code of Community Colleges (SBCCC) of North Carolina.

Rev. 2/3/23