Extended Pay Option Plan Summary

PURPOSE

The Extended Pay Option Plan (EPOP) is available to eligible 10-month and 11-month bi-weekly employees and provides an optional method of compensation distribution under which a portion of earned wages is withheld and held in escrow for disbursement over twenty-six (26) pay periods, including summer pay periods, as applicable (22 pay periods for 10-month employees and 24 pay periods for 11-month employees). Substitute employees and temporary hourly employees are not eligible to enroll.

RESPONSIBILITY

Eligible 10-month and 11-month bi-weekly employees, excluding substitute employees and temporary hourly employees, may elect to participate in the EPOP for SY 2026-2027. For employees who enroll, a portion of each regular bi-weekly gross paycheck will be deducted and deposited into an escrow account. Subject to applicable payroll processing and the work schedule of the employee, accumulated escrow funds will be disbursed after the close of the current school year in July and/or August, as applicable. Employees are advised that changes in salary during the school year will result in a corresponding adjustment to the EPOP deduction amount.

PROCEDURES

EXTENDED PAY OPTION PLAN PROCESS

Eligible employees who elect to enroll in the EPOP must complete enrollment through Oracle Employee Self-Service.

Newly hired eligible employees must enroll within thirty (30) days of their hire date by completing the EPOP Enrollment Form for PGCEA, ASASP & Local 2250 New Hires. Note: If you are hired in December enrollment must be submitted by December 18, 2026.

The enrollment or withdrawal deadline for 11-month employees is July 24, 2026. The enrollment or withdrawal deadline for 10-month employees is August 21, 2026. Enrollments received after the applicable deadline will not be processed.

Deductions will begin within two scheduled pay periods following the employee’s enrollment.

ENROLLMENT

EPOP summer payments for employees hired after the ﬁrst pay period of the school year will be based on the number of pay periods left in the school year. The smaller number of EPOP deductions made during the school year will result in a smaller amount being paid in July and/or August. Employees should refer to the Payroll Schedule to determine the first pay period based on their hire date.Eligible employees currently enrolled in the EPOP will remain enrolled for the following school year unless Payroll Services receives a completed EPOP Withdrawal Form by the applicable deadline below:

11-month Employees - July 24, 2026
10-month Employees - August 21, 2026

Withdrawal forms received after the applicable deadline will not be processed. Newly hired employees may withdraw within thirty (30) days of their hire date.

Enrollment assistance can be provided for employees who have limited access to Oracle Employee Self-Service by contacting Payroll Services, Room 132, Sasscer Administration Building, 14201 School Lane, Upper Marlboro, 301-952-6200, payroll@pgcps.org.

WITHDRAWALS

Applicable negotiated agreement requirements prohibit withdrawal from the EPOP during the plan year. Accordingly, employees may not make hardship, partial, or full withdrawals during the school year. Employees should use the EPOP Calculators below to estimate their anticipated bi-weekly deduction before enrolling. If an employee determines that the projected deduction amount is not sustainable for the full school year, the employee is responsible for submitting the EPOP Withdrawal Form during the designated open enrollment period.

ADJUSTMENTS

An employee who is placed on leave without pay (LWOP) or another unpaid leave status may not receive a scheduled payment and may have a reduced total EPOP disbursement amount.Employees who remain on approved leave without pay through the end of the school year will also be removed from the EPOP for the remainder of the school year. Any accumulated EPOP deductions will be refunded to the employee unless an overpayment or other payroll obligation exists, including, but not limited to, amounts arising from a leave of absence, resignation, retirement, termination, promotion, or transfer.Payment of total accumulated contributions (if due) will be paid within thirty (30) days after the employee's status is changed in Oracle. Employees must re-enroll during the open enrollment period for the new school year if they want to resume participation in the EPOP.

DEDUCTIONS

The only deductions taken during the summer payments will be mandatory taxes (Federal, State, Medicare, and Social Security), wage collections, child support orders, state and federal tax liens, and court-ordered garnishments. Beneﬁt deductions (health insurance, tax- sheltered annuities, retirement, credit union, and etc.) will follow the same schedule announced for all employees and will be deducted from the payments received during the normal pay periods (10-month twenty-two (22) pay periods and 11-month twenty-four (24) pay periods).Employees are responsible for monitoring their voluntary and involuntary deductions and should notify Payroll Services at payroll@pgcps.org of any discrepancies in a timely manner.

DISCLOSURES

Structure of Standard Pay Calendars and Advanced Compensation. Prince George’s County Public Schools (PGCPS) structures its standard 10-month and 11-month pay calendars such that employees who begin service on the first official workday of the school (fiscal) year shall receive a full biweekly pay on the initial scheduled pay date. Because this initial payment may occur prior to the completion of a full standard pay period, a portion of this compensation constitutes an advance on wages not yet fully earned.

Repayment Obligations Upon Separation from Employment. In the event that an employee separates from service—whether voluntarily via resignation or retirement, extended leave of absence, or involuntarily via termination—prior to the conclusion of the active school year, the employee shall be legally obligated to repay any unearned compensation advanced before the required workdays were fully completed.

Breakeven Point: The break-even threshold, at which point all advanced compensation has been fully offset by days worked, is ordinarily achieved upon issuance of the final regular paycheck of the applicable school year.

Modifications for Delayed Start Dates Any employee whose effective date of employment occurs subsequent to the first official workday of the school year shall be subject to a mandatory payroll reconciliation. This administrative action will result in a pay adjustment, which may result in a positive or negative adjustment applied to subsequent paychecks to align gross compensation with actual days of service rendered.Employees enrolled in the EPOP who later separate from employment or experience a break in service may have available EPOP funds applied to any amounts owed to Prince George’s County Public Schools in connection with the processing of the employee’s final paycheck, to the extent permitted by applicable law and payroll procedures.All lump-sum EPOP payments are subject to applicable federal, state, and local tax withholding requirements. For 2026, federal supplemental wage withholding is generally 22% on supplemental wages up to applicable federal limits.

PROCESSING ERRORS AND ENROLLMENT CORRECTIONS

Prince George’s County Public Schools (PGCPS) will make reasonable efforts to honor timely and properly submitted employee requests to participate in the EPOP. In the event of an alleged payroll system processing error or an administrative error affecting enrollment or deductions, Payroll Services will review the matter and, where appropriate, implement corrective action as promptly as practicable.Automated payroll processing errors: If an automated payroll processing error results in missed deductions, Payroll Services will take reasonable steps to correct the error within two (2) pay periods, where feasible. Unless otherwise required by law, policy, or negotiated agreement, no catch-up deductions will be made, and summer pay will be based on the total amount actually deducted during the school year.Enrollment corrections: If an EPOP election is not implemented due to an administrative error by Payroll Services, Payroll Services will make reasonable efforts to enroll the affected employee within two (2) pay periods, where feasible and consistent with applicable payroll processing requirements.PGCPS is not responsible for enrollment requests that are incomplete, untimely, or not properly submitted. The Oracle Employee Self-Service enrollment procedure generates an email confirmation to the employee’s PGCPS email address. If the employee does not receive a confirmation within three (3) business days after enrollment, the employee should review the submission and, if necessary, re-enroll to ensure that all required steps have been completed

DEADLINES

Deadline to withdraw 11-month employees - July 24, 2026
Deadline to withdraw 10-month employees - August 21, 2026

Forms

Note: Forms may only be accessed using the employee’s PGCPS email account.