Ricoh will continue to offer a Vacation Purchase Program (VPP) during benefits open enrollment to all employees except those residing in the state of California. The VPP will allow employees 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, 2021 and must be used by December 31, 2021 or will be forfeited.
The cost for purchased days will be determined by dividing your annual base pay as of September 30, 2020 by 260 working days, with the cost to you being deducted from your pay over the course of 2021. Additional vacation days purchased through the VPP will be tracked as Vacation Purchase Program days through the applicable payroll recordkeeping system. Managers of employees 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 employee 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 2021.
If you are a part-time employee, 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, employees 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, 2021.
Below is a sample calculation of the cost of purchasing additional vacation days based on an annual base pay as of September 30, 2020 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
- 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.
- Employees with a vacation excess bank of eight hours or more are NOT eligible to participate in the Vacation Purchase Program.