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from one vacation season to the next. A covered employee who
terminates employment before reaching the May 1 start of a
vacation season retains the right to receive payment for vacation
pay benefits he has vested in since May 1 of the preceding year.
However, he has no right to receive vacation pay for nonvested
vacation benefits he would have vested in by the May 1 start of
the next vacation season. An employee receives vacation pay
under the Acme Markets plan equal to the salary he would normally
receive when the vacation is actually taken.
B. Petitioner's Section 463 Deductions
For the General Plan and the Acme Markets Plans, petitioner
included both the unused yearend vested and nonvested vacation
benefits in calculating its vacation pay accruals under section
463 for the relevant period. In some instances, petitioner
applied inflation factor adjustments to the unused yearend vested
and nonvested vacation benefits when calculating claimed accruals
under section 463. The parties agree that petitioner may include
the unused yearend vested vacation benefits and related
adjustments when calculating its vacation pay accruals under
section 463. Respondent disputes, however, petitioner's
inclusion of the unused yearend nonvested vacation benefits and
adjustments when calculating the vacation pay accruals under
section 463 for TYE 8701 and TYE 8801.
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