Vacation Pay Deferral Program
This is a program that provides State employees the ability to defer, to the employee’s deferred compensation plan, pay or compensation that he or she receives for unused vacation leave credits due to separation from service (i.e. resignation, retirement, termination, etc.). Deferring pay for unused vacation leave credits (usually a sizeable amount) can provide tax-savings on such pay in addition to significantly increasing an employee’s retirement savings.
Vacation Pay Deferral Program Information Sheet