Relocation Allowance - MSP
A relocation allowance is compensation intended to offset higher living costs in a new location. Some managers and senior professionals (MSP) who accept new positions at UCD may be eligible, upon advance approval, for relocation allowances.
IMPORTANT: Eligibility is limited to individuals who, at the time of recruitment, are not employed by the University and who reside outside the State of California.
General Guidelines Regarding Relocation Allowance:
- The total relocation allowance may not exceed 25% of the employee's annualized base salary. Payment is generally made on a monthly basis over a four-year period, with 40% of the allowance paid in the first year, 30% in the second year, 20% in the third year, and 10% in the fourth year.
- The relocation allowance is included in the eligible employee's gross income as taxable wages
- The relocation allowance is excluded from covered compensation under the UC Retirement Plan
Relocation allowances are reportable for tax purposes because they are considered additional income (compensation) to the employee.
Department Responsibility:
The hiring department requests approval from the Associate Vice Chancellor - Human Resources via an e-mail with the following information:
- Name of the person who is relocating and title of the position that they will be filling
- Where they are relocating from (prior residence)
- Rationale as to why the department is requesting a relocation allowance.
Associate Vice Chancellor - Human Resources Office's Responsibility:
- Review the request and send written approval to the department.
Department Responsibility:
- Enter the relocation allowance in the Payroll/Personnel System using RIP Descripion of Service Code.
References:
Last revised 2/28/07