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Committee caps retiree vacation run-out at 3 weeks beginning 2027 to reduce city costs
Summary
The HR committee approved a revision to the vacation policy that will limit how much vacation an employee may run out prior to retirement to three weeks, with remaining balances paid in a lump sum; the change takes effect Jan. 1, 2027, and is intended to reduce city insurance and retirement contribution costs.
The Waukesha City HR Committee approved a change to the city’s vacation policy that limits retiree vacation run-out to a maximum of three weeks, effective Jan. 1, 2027.
Marquise explained that the change aims to reduce city costs tied to insurance and Wisconsin Retirement System (WRS) contributions when employees remain on the books while using large vacation balances. "So to save the city money effective 01/01/2027, vacation run out is a maximum of 3 weeks," Marquise said, adding that any remaining balance above three weeks would be paid as a lump sum on the employee’s final paycheck.
Committee members recalled earlier discussions of the change and asked how staff arrived at three weeks; Marquise described the number as "somewhat random" but said it reflects an effort to balance costs and fairness. A motion to approve the revision as presented was made, seconded and approved by voice vote.
