Effective July 1, floating holidays are folded into vacation accrual banks. Questions have arisen as to whether this change will affect the annual "cap" on accrued vacation/floating holidays, and it will not. Prior to July 1, the capping rule was that on January 1 of each year an employee would retain a maximum of one year's vacation entitlement, plus 10 floating holidays. The new capping rule means that an employee will retain a maximum of one year's entitlement, plus five days. Since annual vacation has been increased by five days, the result is the same. Here's an example of an employee who received 10 vacation days each year:

With the old capping rule, the employee's maximum entitlement as of January 1 would be:

Annual vacation	=	10 days
Plus 10 floating holidays	=	10 days
Total	=	20 days

The new rule is:

Annual vacation	=	15 days
Plus 5 days	=	5 days
Total	=	20 days

If you have questions regarding this policy, please contact the Benefits Office, x5-2087.

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