Parental Leave Policy
This policy is effective as of January 1, 2017.
Vanguard recognizes that welcoming a child through birth, adoption, surrogacy, or foster care placement presents crew with a need for flexibility. Vanguard provides up to six weeks of paid parental leave to eligible crew to bond with your new child and adjust to your new family situation. Vanguard has delegated day-to-day benefits administration, including determination of eligibility for, the amount of, and duration of parental leave benefits, to a third-party short-term disability management company.
This policy applies to U.S. crew members who meet the eligibility criteria outlined below in the "Policy requirements" section.
You are eligible for parental leave if you are a crew member scheduled to work 30 hours a week or more and have completed 12 months of service prior to the birth or placement. If you are a temporary/seasonal employee or a contractor, you are not eligible for parental leave.
An eligible parent is defined as a crew member who has become a parent through one of the following criteria:
- Birth of your child. Note: Mothers giving birth may be eligible for up to 16 weeks of paid time through a combination of short-term disability and parental leave.
- A spouse or partner has given birth to your child.
- Adoption of a child who is under the age of 18. Adoption leave benefits are not available in circumstances in which a child is not newly matched for adoption (e.g., when a stepparent is adopting a partner's child).
- Become a parent through surrogacy.
- Placement of a foster child.
Birth, adoption, surrogacy, or fostering of multiples (e.g., twins, triplets) does not increase the length of parental leave granted for that event.
If you meet the eligibility requirements, you qualify for up to six weeks of paid parental leave at 100% of your base pay. The amount of the benefit will be based upon the number of hours in your scheduled work week.
Parental leave must conclude within the first 12 months after the birth or placement of a child and can be taken continuously or in two increments of time. One full workday is the minimum increment of time that can be requested. For adoption, surrogacy, and foster care, leave can begin to be taken up to six months before the expected date of placement.
You must notify your supervisor of the need for parental leave, including estimated timing and duration of such leave, at least 60 days in advance of the need, if possible.
If you are on a parental leave, the time will be designated as Family and Medical Leave Act (FMLA) time, if available, and will run concurrently beginning on the first day that you are out of work.
Certification for parental leaves
You must provide documentation (e.g., birth certificate, court order) to the third-party short-term disability management company within 21 days of requesting leave. If the third-party short-term disability management company determines that the certification is incomplete or insufficient, they will request additional information from you in writing and allow you seven days to provide the requested information. If you do not provide the requested information within that time frame, your paid parental leave benefit may be delayed.
Your parental leave benefits will terminate if:
- You reach the maximum benefit period payable under the policy.
- You fail to provide required documentation.
- The adoption, surrogacy, or foster care placement is cancelled.
- Your employment is terminated for any reason.
Parental leave benefit payments based upon 100% of your base pay are paid in accordance with each pay cycle and are required to meet the regular payroll deadlines shown on the payroll calendar. Any amount paid to you in error under the Parental Leave Policy may be recovered by Vanguard. In situations of overpayment, Vanguard will recover the overpayment directly from you or your subsequent paychecks in compliance with applicable payroll rules and regulations.
Partnership and bonus payments are not impacted by your time on parental leave. Both Partnership and bonuses are paid on the normal distribution dates and are not prorated due to your time on leave. Please see Partnership Plan Policy and Overview of bonus program for details.
The timing of your performance review and the merit effective date, if applicable, are not impacted by your time on parental leave. Your review will be completed by your manager during the year-end time frame. Your manager will either contact you while on leave to hold performance and merit conversations or they will be held upon your return to the office.
FlexCare benefits and payments
The FlexCare program includes coverage for health, dental, vision, prescription, life, and accidental death and dismemberment (AD&D) insurance, as well as flexible spending accounts (FSAs), purchased paid time off (PTO), and group legal.
Notify Crew Central of your change in status
To ensure your new child has medical coverage and to make other related benefit changes, you are required to notify Crew Central™ of a change in status within 30 days of the birth or arrival of your child. For assistance on how to notify Crew Central, please refer to Changing your FlexCare benefits: Birth and adoption.
Benefit deductions will continue to be taken from your pay for the period of the parental leave.
Annual Open Enrollment
If you are on parental leave during the annual Open Enrollment period, Open Enrollment information will be emailed to your home email address or mailed to your home address if we do not have your home email address on file. You will be eligible to make selections while on leave. If you are on a leave of absence, any election increase to basic life and/or supplemental life insurance will not go into effect until you return to work.
Paid time off (PTO)
PTO will not accrue during the parental leave. PTO accrual is based on time actually worked.
Holiday time will not be paid during parental leave. For more details, please refer to the Payroll Practices Policy.
In order to receive reimbursement, you must have been employed with Vanguard full-time prior to the start of the course and must not be on a paid or unpaid leave of absence at the time the reimbursement is scheduled to be paid to you. If you are on a paid or unpaid leave of absence (including parental leave), you will not receive such reimbursements unless and until you return to work.
You may request a personal leave after parental leave benefits have expired. See the Personal Leave Policy for more information.
Unpaid family and medical leave
Parental leave runs concurrently with FMLA time to the extent that it is available. You may be eligible for unpaid FMLA time following the expiration of parental leave benefits.
Vanguard Retirement and Savings Plan (RSP)
Salary deferrals and matching contributions (if eligible) to the Vanguard RSP may be continued during your parental leave. Your payments on plan loans will continue during parental leave.
Parental leave will not be treated as, or counted toward, a "break in service" under the RSP.
Vanguard reserves the right to restrict your computer access while you are on leave.
|Scheduled work week||A calendar week consisting of the days you normally work.|
|Months of service||Your number of months of continuous service beginning with your date of hire or continuous service date if you have been rehired.|
Policy administration and ownership
The Human Resources managing director is the policy sponsor and is responsible for overall administration and interpretation of the policy. The Benefits Manager is the policy owner who is responsible for implementing, maintaining, and reinforcing this policy. Vanguard reserves the right to amend, modify, or terminate leave benefits at any time.