Population: New or Prospective Non-Represented
Vacation Buying Plan
To give you added flexibility with your paid time off PSEG offers a Vacation Buying Plan. This program allows you to purchase up to five additional days of vacation on a pre-tax basis each year. The cost of each vacation day is based on your base pay as of January 1 and will be deducted from your paycheck throughout the plan year.
Any vacation you purchase can only be taken after your normal vacation entitlement is used. You must use all your vacation entitlement before using any of the additional vacation days you elect as part of the Vacation Buying Plan. All vacation days purchased must be used by the first pay period in December and cannot be carried over into the following year. When you take purchased vacation, you will be taxed on this amount. For employees who want to buy vacation to use for year-end holidays (but cannot use it at that time because it has to be used before the first pay period in December, it is suggested they use their purchased vacation during the year and save their floaters for the holidays.
If you do not use all the vacation days you purchased, they will be automatically cashed out before the end of the year at the rate they were purchased and will be taxable. You will receive this money in your last paycheck of the year (December).
If you elect to purchase vacation days during annual enrollment and terminate or retire, purchased vacation days not used will be reimbursed at the purchase rate or, if purchased vacation days are used and not paid for, you will be responsible for reimbursing PSEG at the purchase rate.
IRS regulations require that any purchased vacation be used in the year of which it is purchased and consequently cannot be rolled over to the following year. Because of this, as well as year end payroll requirements to ensure purchased vacation time is accounted for in the current year wages/payroll (also an IRS requirement) the 11 month period is the only way this can be accomplished. It is an IRS requirement that any vacation provided by an employer be used first, before any purchased vacation. The 15 month allowance is a PSEG administrative process that does not override IRS regulations.
Who Is Eligible
Non-represented employees including new hires are eligible to participate in the vacation buying plan. You must work at 20 hours per week and not hired to work on a temporary or limited basis.
Your Participation Options
You must choose from one of the following participation options:
- Option 1: No participation
- Option 2: Purchase of one day of vacation
- Option 3: Purchase of two days of vacation
- Option 4: Purchase of three days of vacation
- Option 5: Purchase of four days of vacation
- Option 6: Purchase of five days of vacation