QUESTION
Longevity pay is one of the outstanding benefits available for working at UT Martin. Remind me again how longevity pay works, and can all or part of the longevity payment be deferred for retirement? If so, what’s the process for deferring longevity pay?
RESPONSE
Longevity pay is a benefit provided to eligible employees based on qualifying years of service with the university and other eligible Tennessee state agencies. Employees become eligible after completing 36 months of qualifying service. The payment is $100 for each year of qualifying service, up to 30 years, and is paid during the employee’s longevity anniversary period. Yes, longevity pay can be deferred into a university-sponsored deferred compensation plan, such as a 401(k), 403(b), or 457 plan, subject to applicable IRS contribution limits. To defer all or part of your longevity payment, you should contact UT Retirement Services or Payroll before the payment is processed to ensure your deferred compensation election is established correctly. The longevity policy does not have a separate longevity-specific deferral process; the regular deferred compensation process applies.
Full policy: https://policy.tennessee.edu/policy/hr0432-longevity-pay/
