COMPENSATION PERSPECTIVES

Non-Creditable Compensation

Overtime pay and pay awarded to employees under the Temporary Pay provision of Compensation Policy 3.05 is not considered part of creditable compensation for (1) retirement credit or (2) as the basis for VSDP benefit payments. Agencies' VRS contributions must not be based on temporary components of the employee's pay. Similarly, VSDP benefit payments must be based on the pre-disability salary minus any overtime pay, or Temporary Pay awarded to employees who perform different key (essential) duties on an interim basis, for critical assignments associated with a special time-limited project, for serving in an acting capacity in a higher level position, or for military pay supplements.