Common use of Retirement Conversion Clause in Contracts

Retirement Conversion. An employee may elect at the time of retirement from active service with the City to be paid in cash for the value of his accrued but unused sick leave credit. An accumulation of 0 – 400 sick hours has no conversion, 401 – 800 sick hours has a 3 to 1 conversion rate, 801 – 1,200 sick hours has a 2 to 1 conversion rate and 1,201 – 1,600 sick hours has a 1 for 1 conversion rate. The maximum amount of hours to be converted at retirement is 1,600 hours. In order to be able to convert his sick leave into cash, the employee must be retiring under the terms of the pension plan and must have been employed by the City during the last ten years immediately prior to retirement. Further, an employee, other than an employee receiving a disability retirement, must have attained the age of 48 years if he is under the Police Pension Fund and the age of 55 years if he is under the Public Employee’s Retirement System before he can convert his sick leave credit into cash. Such payment shall be made only once to any employee. “Retirement” under this Section is effective upon receipt of the first pension payment for either a service retirement or disability retirement.

Retirement Conversion. An employee may elect at the time of retirement from active service with the City to be paid in cash for the value of his accrued but unused sick leave credit. An accumulation of 0 – 400 sick hours has no conversion, 401 – 800 sick hours has a 3 to 1 conversion rate, 801 – 1,200 sick hours has a 2 to 1 conversion rate and 1,201 – 1,600 sick hours has a 1 for 1 conversion rate. The maximum amount of hours to be converted at retirement is 1,600 hours. In order to be able to convert his sick leave into cash, the employee must be retiring under the terms of the pension plan and must have been employed by the City during the last ten years immediately prior to retirement. Further, an employee, other than an employee receiving a disability retirement, must have attained the age of 48 years if he is under the Police Pension Fund and the age of 55 years if he is under the Public Employee’s 's Retirement System before he can convert his sick leave credit into cash. Such payment shall be made only once to any employee. “Retirement” under this Section is effective upon receipt of the first pension payment for either a service retirement or disability retirement.