Common use of Redemption of Sick Leave Hours Upon Retirement Clause in Contracts

Redemption of Sick Leave Hours Upon Retirement. Employees retiring from the City under a normal service retirement as established under the terms of this MOU may redeem unused sick leave at the time of retirement by selecting one of the conversion methods authorized in this subsection—all conversions are computed using the base pay in effect for the applicable conversion period. Credited sick leave from another agency will be deducted from a retiring employee's total sick leave accumulation for the purpose of calculating the redemption. To qualify for use of this benefit, employees hired before July 1, 2005, must have at least 15 years of continuous service with the City, be at least 50 years of age, and utilize one of the sick leave redemption options included in this subsection on or before June 30, 2020. For an employee utilizing sick leave redemption options on or after July 1, 2020, and for an employee hired on or after July 1, 2005, the employee must have at least 25 years of continuous service with the City and be at least 50 years of age or, in the case of option "C.4" of this subsection, be at least 46 ("3% @ 50" retirement plan) or 51 (3% @ 55" retirement plan), as applicable, years of age and within 4 years of his/her planned retirement date/normal retirement age (NRA). This option is not available to employees who retire with a disability retirement. 1. Unused sick leave may be redeemed during the final pay period prior to retirement for a lump-sum cash settlement paid at the rate of 2 hours of accumulated sick leave redeemed for 1 hour of wages at the employee's current base rate of pay. Applicable payroll taxes would apply. 2. The City's CalPERS contract provides an option for normal service retirees to receive additional time-in-service credit by converting sick leave at the rate of 8 hours of sick leave accrual for .004-year-of-service credit. 3. Pursuant to federal and state law, employees attaining the minimum age of 46 (3% @ 50" retirement plan) or 51 (3% @ 55" retirement plan), as applicable, and who are within 4 years of their planned retirement date/NRA may take advantage of the 457 Deferred Compensation Plan "Catch-Up" provisions and allowances as defined in the City's Great West 457 Plan document. Employees may not make "Special Section 457 Catch-Up" contributions in the year they actually retire/attain their NRA. To the extent allowed by federal and state law and the City's deferred compensation plan, the City will allow, in 1 or more of the 3 calendar years ending prior to an employee's planned retirement date/NRA (or alternate NRA), the conversion of accrued sick leave at a rate of 2.25 hours for 1 hour of cash contribution, at the employee's base rate of pay in effect at the time of conversion, to the City's 457 Deferred Compensation Plan. Sick leave conversion contributions for the "457 Catch-Up" will normally be distributed over the 3 calendar years ending prior to an employee's planned retirement date/NRA (or alternate NRA). However, based on the total amount of "457 Catch-Up" contributions available to the employee, accumulated sick leave hours, and the employee's designated retirement date/NRA (or alternate NRA), "457 Catch-Up" contributions may occur over a shorter period of time prior to retirement; in no event, however, shall any contribution occur in the year the employee actually retires/attains his/her NRA. To be eligible to participate in this conversion method, the employee must be within 4 years of his/her planned retirement date, have "457 Catch-Up" privileges available to him/her, be enrolled in the City-sponsored 457 Deferred Compensation Plan, and maintain a minimum of 192 hours (270 hours for Fire shift employees) of sick leave in his/her accrual account after conversion during each year of participation. For purposes of this paragraph only, sick leave hours used for the "457 Catch-Up" shall be the first earned with respect to accumulation. Contributions made pursuant to this paragraph shall be reported as City contributions and shall not be fully vested with the employee until the actual date of retirement. An employee leaving City service by means other than normal service retirement shall be required to reimburse to the City all cash contributions to the deferred compensation plan that were converted from accrued sick leave; reimbursement to be enforced by agreement with the administrator of the City- sponsored defined contribution plan. In the event that such action for reimbursement cannot be effected through the deferred compensation plan administrator, the employee grants to the City the right to withhold payment on other leave balances due to the employee at the time of separation. The City retains the right to pursue other legal remedies appropriate to recovering disbursed moneys. Moneys not recovered by the City shall be reported to the Internal Revenue Service as a benefit conversion to cash subject to personal income taxes. It is the employee's responsibility to select one of the options defined herein and notify the Administrative Services Department of his/her choice in a timely manner sufficient to allow implementation. If option "C.3" is selected, remaining sick leave in the employee's accrual bank will be converted to a cash settlement in the final pay period prior to retirement pursuant to the provisions contained in option "C.1."

Redemption of Sick Leave Hours Upon Retirement. Employees retiring from the City under a normal service retirement as established under the terms of this MOU may redeem unused sick leave at the time of retirement by selecting one of the conversion methods authorized in this subsection—all conversions are computed using the base pay in effect for the applicable conversion period. Credited sick leave from another agency will be deducted from a retiring employee's total sick leave accumulation for the purpose of calculating the redemption. To qualify for use of this benefit, employees hired before July 1, 2005, must have at least 15 years of continuous service with the City, be at least 50 years of age, and utilize one of the sick leave redemption options included in this subsection on or before June 30, 2020. For an employee utilizing sick leave redemption options on or after July 1, 2020, and for an employee hired on or after July 1, 2005, the employee must have at least 25 years of continuous service with the City and be at least 50 years of age or, in the case of option "C.4" of this subsection, be at least 46 ("3% @ 50" retirement plan) or 51 (3% @ 55" retirement plan), as applicable, years of age and within 4 years of his/her planned retirement date/normal retirement age (NRA). This option is not available to employees who retire with a disability retirement. 1. Unused sick leave may be redeemed during the final pay period prior to retirement for a lump-sum cash settlement paid at the rate of 2 hours of accumulated sick leave redeemed for 1 hour of wages at the employee's current base rate of pay. Applicable payroll taxes would apply. 2. The City's CalPERS contract provides an option for normal service retirees to receive additional time-in-service credit by converting sick leave at the rate of 8 hours of sick leave accrual for .004-year-of-service credit. 3. Pursuant to federal and state law, employees attaining the minimum age of 46 (3% @ 50" retirement plan) or 51 (3% @ 55" retirement plan), as applicable, and who are within 4 years of their planned retirement date/NRA may take advantage of the 457 Deferred Compensation Plan "Catch-Up" provisions and allowances as defined in the City's Great West 457 Plan document. Employees may not make "Special Section 457 Catch-Up" contributions in the year they actually retire/attain their NRA. To the extent allowed by federal and state law and the City's deferred compensation plan, the City will allow, in 1 or more of the 3 calendar years ending prior to an employee's planned retirement date/NRA (or alternate NRA), the conversion of accrued sick leave at a rate of 2.25 hours for 1 hour of cash contribution, at the employee's base rate of pay in effect at the time of conversion, to the City's 457 Deferred Compensation Plan. Sick leave conversion contributions for the "457 Catch-Up" will normally be distributed over the 3 calendar years ending prior to an employee's planned retirement date/NRA (or alternate NRA). However, based on the total amount of "457 Catch-Up" contributions available to the employee, accumulated sick leave hours, and the employee's designated retirement date/NRA (or alternate NRA), "457 Catch-Up" contributions may occur over a shorter period of time prior to retirement; in no event, however, shall any contribution occur in the year the employee actually retires/attains his/her NRA. To be eligible to participate in this conversion method, the employee must be within 4 years of his/her planned retirement date, have "457 Catch-Up" privileges available to him/her, be enrolled in the City-sponsored 457 Deferred Compensation Plan, and maintain a minimum of 192 hours (270 hours for Fire shift employees) of sick leave in his/her accrual account after conversion during each year of participation. For purposes of this paragraph only, sick leave hours used for the "457 Catch-Up" shall be the first earned with respect to accumulation. Contributions made pursuant to this paragraph shall be reported as City contributions and shall not be fully vested with the employee until the actual date of retirement. An employee leaving City service by means other than normal service retirement shall be required to reimburse to the City all cash contributions to the deferred compensation plan that were converted from accrued sick leave; reimbursement to be enforced by agreement with the administrator of the City- City-sponsored defined contribution plan. In the event that such action for reimbursement cannot be effected through the deferred compensation plan administrator, the employee grants to the City the right to withhold payment on other leave balances due to the employee at the time of separation. The City retains the right to pursue other legal remedies appropriate to recovering disbursed moneys. Moneys not recovered by the City shall be reported to the Internal Revenue Service as a benefit conversion to cash subject to personal income taxes. It is the employee's responsibility to select one of the options defined herein and notify the Administrative Services Department of his/her choice in a timely manner sufficient to allow implementation. If option "C.3C.4" is selected, remaining sick leave in the employee's accrual bank will be converted to a cash settlement in the final pay period prior to retirement pursuant to the provisions contained in option "C.1C.2."

Redemption of Sick Leave Hours Upon Retirement. Employees retiring from the City under a normal service retirement as established under the terms of this MOU may redeem unused sick leave at the time of retirement by selecting one of the conversion methods authorized in this subsection—all conversions are computed using the base pay in effect for the applicable conversion period. Credited sick leave from another agency will be deducted from a retiring employee's total sick leave accumulation for the purpose of calculating the redemption. To qualify for use of this benefit, employees hired before July 1, 2005, must have at least 15 years of continuous service with the City, be at least 50 years of age, and utilize one of the sick leave redemption options included in this subsection on or before June 30, 2020. For an employee utilizing sick leave redemption options on or after July 1, 2020, and for an employee hired on or after July 1, 2005, the employee must have at least 25 years of continuous service with the City and be at least 50 years of age or, in the case of option "C.4C.3" of this subsection, be at least 46 ("3% @ 50" retirement plan) or ), 51 (“3% @ 55" retirement plan), or 53 (2.7% @ 57 retirement plan) as applicable, years of age and within 4 years of his/her planned retirement date/normal retirement age (NRA). This option is not available to employees who retire with a disability retirement. 1. Unused sick leave may be redeemed during the final pay period prior to retirement for a lump-sum cash settlement paid at the rate of 2 hours of accumulated sick leave redeemed for 1 hour of wages at the employee's current base rate of pay. Applicable payroll taxes would apply. 2. The City's CalPERS contract provides an option for normal service retirees to receive additional time-in-service credit by converting sick leave at the rate of 8 hours of sick leave accrual for .004-year-of-service credit. 3. Pursuant to federal and state law, employees attaining the minimum age of 46 (3% @ 50" retirement plan) or 51 (3% @ 55" retirement plan), as applicable, and who are within 4 years of their planned retirement date/NRA may take advantage of the 457 Deferred Compensation Plan "Catch-Up" provisions and allowances as defined in the City's Great West 457 Plan document. Employees may not make "Special Section 457 Catch-Up" contributions in the year they actually retire/attain their NRA. To the extent allowed by federal and state law and the City's deferred compensation plan, the City will allow, in 1 or more of the 3 calendar years ending prior to an employee's planned retirement date/NRA (or alternate NRA), the conversion of accrued sick leave at a rate of 2.25 hours for 1 hour of cash contribution, at the employee's base rate of pay in effect at the time of conversion, to the City's 457 Deferred Compensation Plan. Sick leave conversion contributions for the "457 Catch-Up" will normally be distributed over the 3 calendar years ending prior to an employee's planned retirement date/NRA (or alternate NRA). However, based on the total amount of "457 Catch-Up" contributions available to the employee, accumulated sick leave hours, and the employee's designated retirement date/NRA (or alternate NRA), "457 Catch-Up" contributions may occur over a shorter period of time prior to retirement; in no event, however, shall any contribution occur in the year the employee actually retires/attains his/her NRA. To be eligible to participate in this conversion method, the employee must be within 4 years of his/her planned retirement date, have "457 Catch-Up" privileges available to him/her, be enrolled in the City-sponsored 457 Deferred Compensation Plan, and maintain a minimum of 192 hours (270 hours for Fire shift employees) of sick leave in his/her accrual account after conversion during each year of participation. For purposes of this paragraph only, sick leave hours used for the "457 Catch-Up" shall be the first earned with respect to accumulation. Contributions made pursuant to this paragraph shall be reported as City contributions and shall not be fully vested with the employee until the actual date of retirement. An employee leaving City service by means other than normal service retirement shall be required to reimburse to the City all cash contributions to the deferred compensation plan that were converted from accrued sick leave; reimbursement to be enforced by agreement with the administrator of the City- sponsored defined contribution plan. In the event that such action for reimbursement cannot be effected through the deferred compensation plan administrator, the employee grants to the City the right to withhold payment on other leave balances due to the employee at the time of separation. The City retains the right to pursue other legal remedies appropriate to recovering disbursed moneys. Moneys Monies not recovered by the City shall be reported to the Internal Revenue Service as a benefit conversion to cash subject to personal income taxes. It is the employee's responsibility to select one of the options defined herein and notify the Administrative Services Department of his/her choice in a timely manner sufficient to allow implementation. If option "C.3" is selected, remaining sick leave in the employee's accrual bank will be converted to a cash settlement in the final pay period prior to retirement pursuant to the provisions contained in option "C.1."