Common use of Vacation Pay on Retirement Clause in Contracts

Vacation Pay on Retirement. On normal retirement each employee will be entitled to the same vacation or vacation pay which he/she would have had if he/she continued working to the end of the calendar year. When an employee retires at age sixty-five (65), he/she shall receive the present provisions of the contract. If an employee is re-appointed after age sixty-five (65), the employee will only receive the earned vacation pay when he/she retires from the position of post retiral appointment. It is understood that the above provisions do not apply to employees who have been on long term disability for more than three (3) months immediately prior to their normal retirement. (For example, an employee whose normal retirement date is May 01 and who has been on long term disability for the full period February 01 through April 30 will not receive vacation entitlement for the entire calendar year).