Common use of Payment of Accumulated Sick Leave Clause in Contracts

Payment of Accumulated Sick Leave. The following schedule shall apply for any payment of accumulated sick leave: Years of Service Pay off Credit at Termination Pay off Credit at Retirement 0 - 5 Years 0 Percent 0 Percent 5 - 10 Years 25 Percent 25 Percent 10 - 25 Years 25 Percent 35 Percent 25 & Over 25 Percent 40 Percent Payment for all credited sick leave will be made upon retirement or termination of employment only if the employee provides the District with a minimum of two (2) weeks’ notice. Any cash out of sick leave accruals shall be deducted from an employee’s sick leave accrual bank at time of retirement. Any remaining balance shall be reported to Contra Costa County Employees’ Retirement Association (CCCERA) as retirement service credit. The parties’ intent in negotiating this provision in 2017 was to eliminate the employees’ ability to cash-out a portion of their sick leave balance and also receive service credit for these same hours. Current Internal Revenue Service (IRS) regulations regarding Cash or Deferred Arrangements (CODA) do not allow an employee the option to choose between a cash-out payment or apply all of their sick leave balances to service credit. The MOU language as drafted above is consistent with current IRS regulations to the extent individual employees are not provided a choice of how much sick leave would be subject to cash out. However, the parties both believe that employees should have the ability to choose how to use their sick leave balances at the time of retirement, as long as it is consistent with IRS CODA requirements and CCCERA regulations and guidelines. Thus, should the IRS or CCCERA regulations or guidelines change to allow for this choice, the District agrees to meet and confer within 30 days of the changed law to discuss how to implement the potential change(s).

Payment of Accumulated Sick Leave. The following schedule shall apply for any payment of accumulated sick leave: Years of Service Pay Pay-off Credit at Termination Pay Pay-off Credit at Retirement 0 - 5 Years 0 Percent 0 Percent 5 - 10 Years 25 Percent 25 Percent 10 - 25 Years 25 Percent 35 Percent 25 & and Over 25 Percent 40 Percent Payment for all credited accumulated sick leave will be made upon retirement or termination of employment only if the employee provides the District with a minimum of two (2) weeks’ ' notice. Any cash out of sick leave accruals shall be deducted from an employee’s sick leave accrual bank at time of retirement. Any retirement and only the remaining balance shall be reported to Contra Costa County Employees’ Retirement Association (CCCERA) as retirement service credit. The parties’ intent in negotiating this provision in 2017 was to eliminate the employees’ ability to cash-out a portion of their sick leave balance and also receive service credit for these same hours. Current Internal Revenue Service (IRS) regulations regarding Cash or Deferred Arrangements (CODA) do not allow an employee the option to choose between a cash-out payment or apply all of their sick leave balances to service credit. The MOU language as drafted above is consistent with current IRS regulations to the extent individual employees are not provided a choice of how much sick leave would be subject to cash out. However, the parties both believe that employees should have the ability to choose how to use their sick leave balances at the time of retirement, as long as it is consistent with IRS CODA requirements and CCCERA regulations and guidelines. Thus, should the IRS or CCCERA regulations or guidelines change to allow for this choice, the District agrees to meet and confer within 30 days of the changed law to discuss how to implement the potential change(s).