Ricoh will continue to offer a Vacation Purchase Program (VPP) during benefits open enrollment to all team members except those residing in the state of California. The VPP will allow team members to purchase from one to five additional vacation days on a before-tax basis during annual enrollment. Purchased days will be available for use on January 1, 2024 and must be used by December 31, 2024 or will be forfeited.
The cost for purchased days will be determined by dividing your annual base pay as of September 30, 2023 by 260 working days, with the cost to you being deducted from your pay over the course of 2024. Additional vacation days purchased through the VPP will be tracked as Vacation Purchase Program days through the applicable payroll recordkeeping system. Managers of team members who elect to purchase additional vacation days will be informed of the number of days purchased for each direct report and will be expected to track these days appropriately.
If the team member under the Sample Calculation below elected to purchase an additional five vacation days through the VPP, $28.85 would be deducted on a before-tax basis from each bi-weekly paycheck in 2024.
If you are a part-time team member, your calculation will be based on the number of hours you are scheduled to work in a year.
The VPP is a completely voluntary benefit that can be used at your discretion and is a “use it or lose it” program. Any days not used at the end of the year or upon termination will not be paid out and will be forfeited. As always, team members who elect additional vacation days are required to work with their Manager in scheduling when any additional vacation days are to be used before December 31, 2024.
Sample Calculation
Below is a sample calculation of the cost of purchasing additional vacation days based on an annual base pay as of September 30, 2023 of $39,000:
= Annual base pay ÷ 260
= $39,000 ÷ 260
= $150 for 1 day of vacation
Total cost for five additional vacation days through the VPP:
= $150 x 5 days
= $750 Total
Important Considerations
- If you wish to purchase VPP days, you must make an active election to do so. Elections you made for the current year will NOT be automatically rolled over.
- Team members with a vacation excess bank of eight hours or more are NOT eligible to participate in the Vacation Purchase Program.