Common use of Payment Upon Retirement Clause in Contracts

Payment Upon Retirement. Employees who retire shall be paid, at their current rate of pay, for no more than eighty percent (80%) of all accumulated unused sick leave, capped at up to a maximum of one hundred forty-two (142) paid days/994 hours. For example, an employee whose current rate is $30.00 and: 1. has 850 hours of accumulated unused sick leave, shall receive payment for 680 hours, which equals $20,400 (850 hrs x .8 = 680; 680 x $30 = $20,400); 2. has 1200 hours of accumulated unused sick leave, shall receive payment for 960 hours, which equals $28,800 (1200 hrs x .8 = 960; 960 x $30 = $28,800); 3. has 1500 hours of accumulated unused sick leave, shall receive payment for 994 hours (1500 hrs x .80 = 1200 but max rate of 994; 994 x $30 = $29,820) Full year employees who retire shall be paid, at their current rate of pay, for no more than eighty percent (80%) of all accumulated unused sick leave, capped at sixty (60) paid days/480 hours. Payment for sick leave on this basis shall eliminate all sick leave credit of the employee and no future claims against such accumulated sick leave can be made. Such payment shall be made in the first available payroll following the employee’s date of retirement.

Payment Upon Retirement. Employees who retire shall be paid, at their current rate of pay, for no more than eighty percent (80%) of all accumulated unused sick leave, capped at up to a maximum of one hundred forty-two (142) paid days/994 hours. For example, an employee whose current rate is $30.00 and: 1. has 850 hours of accumulated unused sick leave, shall receive payment for 680 hours, which equals $20,400 (850 hrs x .8 = 680; 680 x $30 = $20,400); 2. has 1200 hours of accumulated unused sick leave, shall receive payment for 960 hours, which equals $28,800 (1200 hrs x .8 = 960; 960 x $30 = $28,800); 3. has 1500 hours of accumulated unused sick leave, shall receive payment for 994 hours (1500 hrs x .80 = 1200 but max rate of 994; 994 x $30 = $29,820) Full year employees who retire shall be paid, at their current rate of pay, for no more than eighty percent (80%) of all accumulated unused sick leave, capped at sixty (60) paid days/480 hours). Payment for sick leave on this basis shall eliminate all sick leave credit of the employee and no future claims against such accumulated sick leave can be made. Such payment shall be made in the first available payroll following the employee’s date of retirement.