Common use of Sick Leave Conversion to Deferred Compensation Clause in Contracts

Sick Leave Conversion to Deferred Compensation. This option is for active employees only. Upon completion of fifteen (15) years of PERS service, employees may elect to convert accumulated sick leave hours to cash and transfer it to the City’s qualified deferred compensation program. The following conditions apply: a. At no time shall the conversion reduce the hours of the employee’s sick leave bank below eight hundred thirty (830) hours. b. The annual transfer cannot exceed ten-thousand dollars ($10,000) and will be calculated using the employee’s then current hourly rate of pay multiplied by the number of hours being converted. It is the employee’s responsibility to complete the proper paperwork with the deferred compensation vendor to ensure the proper IRS limit is applied. c. If the employee chooses the sick leave deferred compensation conversion program in any year, the employee is not eligible to continue on the City’s group health insurance plan for themselves and dependents at retirement. However, employee may return to the City’s health insurance plan pursuant to NRS on any even numbered year. Upon return to the City’s health care plan, the retiree will pay the full cost of coverage. d. An election to participate in the sick leave deferred compensation conversion program must be made annually. The election must be received by Payroll by the last pay period in January to be paid the last pay period in February. e. At retirement, the remaining balance of the sick leave bank will be subject to the sick leave cash-out provision section of the contract.

Sick Leave Conversion to Deferred Compensation. This option is for active employees only. Upon completion of fifteen (15) 20 years of PERS service, employees may elect to convert accumulated sick leave hours to cash and transfer it to the City’s qualified deferred compensation program. The following conditions apply: a. At no time shall the conversion reduce the hours of the employee’s sick leave bank below eight hundred thirty four-hundred, eighty (830480) hours. b. The annual transfer cannot exceed ten-thousand dollars ($10,000) and will be calculated using the employee’s then current hourly rate of pay multiplied by the number of hours being converted. It is the employee’s responsibility to complete the proper paperwork with the deferred compensation vendor to ensure the proper IRS limit is applied. c. If the employee chooses the sick leave deferred compensation conversion program in any year, the employee is not eligible to continue on the City’s group health insurance plan for themselves and dependents at retirement. However, employee may return to the City’s health insurance plan pursuant to NRS on any even numbered year. Upon return to the City’s health care plan, the retiree will pay the full cost of coverage. d. An election to participate in the sick leave deferred compensation conversion program must be made annually. The election must be received by Payroll by the last pay period in January to be paid the last pay period in February. e. Employees may only participate in the program for a maximum of five (5) years before retirement. f. At retirement, the remaining balance of the sick leave bank will be subject to the sick leave cash-out provision section of the contract.

Sick Leave Conversion to Deferred Compensation. This option is for active employees only. Upon completion of fifteen (15) 20 years of PERS service, employees may elect to convert accumulated sick leave hours to cash and transfer it to the City’s qualified deferred compensation program. The following conditions apply: a. At no time shall the conversion reduce the hours of the employee’s sick leave bank below eight hundred thirty four- hundred, eighty (830480) hours. b. The annual transfer cannot exceed ten-thousand dollars ($10,000) and will be calculated using the employee’s then current hourly rate of pay multiplied by the number of hours being converted. It is the employee’s responsibility to complete the proper paperwork with the deferred compensation vendor to ensure the proper IRS limit is applied. c. If the employee chooses the sick leave deferred compensation conversion program in any year, the employee is not eligible to continue on the City’s group health insurance plan for themselves and dependents at retirement. However, employee may return to the City’s health insurance plan pursuant to NRS on any even numbered year. Upon return to the City’s health care plan, the retiree will pay the full cost of coverage. d. An election to participate in the sick leave deferred compensation conversion program must be made annually. The election must be received by Payroll by the last pay period in January to be paid the last pay period in February. e. Employees may only participate in the program for a maximum of five (5) years before retirement. f. At retirement, the remaining balance of the sick leave bank will be subject to the sick leave cash-out provision section of the contract.out