Retiree Accumulated Sick Leave (RASL) FAQ's
The Retiree Accumulated Sick Leave (RASL) Program is maintained and
administered by the Arizona Department of Administration (ADOA) and the
General Accounting Office (GAO). This program may be changed at anytime with
or without notice to participants. The following information is designed to
provide an overview of the RASL program. Final eligibility is determined by
ADOA and GAO.
Retiree Accumulated Sick Leave (RASL)
- What is the Retiree Accumulated Sick Leave (RASL) benefit?
- How do I know if I am eligible for the RASL benefit?
- How do I apply for the RASL benefit?
- Is this benefit subject to Federal, FICA, Medicare, and State tax withholdings?
- Can the RASL benefit be put into a deferred compensation plan through the RASL Program?
- What is the maximum RASL benefit?
- What is the maximum amount of accrued unused sick leave that can be applied to the RASL benefit?
- How is the RASL benefit calculated?
- How is the RASL benefit paid?
- Can the RASL benefit be accelerated in the event of an emergency or financial hardship?
- Can I use the RASL benefit as compensation in calculating my retirement benefit?
- Where do I send the completed RASL application?
Retiree Accumulated Sick Leave (RASL)
1. What is the Retiree Accumulated Sick Leave (RASL) benefit?
This benefit affects eligible employees who retire from the University and have accumulated unused sick leave of 500 hours or more at time of retirement. These eligible employees may elect a cash payout of their sick leave benefit over a three (3) year period. The RASL benefit is defined in Arizona Revised Statutes and outlined in both the University Handbook for Appointed Personnel and the Classified Staff Human Resources Policy Manual.
2. How do I know if I am eligible for the RASL benefit?
To be eligible for RASL benefit the employee must
- be an active State employee at the time of retirement,
- apply for retirement with one of the authorized State of Arizona retirement systems immediately (within fourteen (14) calendar days) upon separation from State service,
- have at least 500 or more hours of accrued unused sick leave at the time of retirement, and
- make written application for the RASL benefit within one hundred eighty (180) days of the retirement date by completing the RASL Certification Forms and return to the UA Pay Roll Department,
- however, if the retiree intends to utilize the deferred compensation option, the completed RASL Forms must be submitted to the UA Pay Roll Department prior to separation of employment.
There are no extensions to these deadlines. Failure to comply with these deadlines will result in permanent and irrevocable forfeiture of this benefit.
3. How do I apply for the RASL benefit?
First, you must apply for retirement from one of the authorized State of
Arizona retirement systems within fourteen (14) calendar days from your date
of separation from State service. Second, you must complete the
RASL Certification Form
and return it to UA Human Resources within one hundred eighty (180)
days of your retirement date.
4. Is this benefit subject to Federal, FICA, Medicare, and State tax withholdings?
Yes, it is considered earned income and not a retirement benefit. Federal, FICA and Medicare taxes are withheld on each installment. Arizona State tax is also withheld, even if you move to another state, because the income was earned in Arizona. Amounts rolled into a deferred compensation account are subject only to FICA and Medicare taxes.
5. Can the RASL benefit be put into a deferred compensation plan through the RASL Program?
Yes, for retirees separating from State service after May 31, 2006, the first RASL payment may be rolled into a 457(b) plan with the State-sponsored deferred compensation provider.
The retiree must:
The deferral amount will still be subject to FICA and Medicare withholdings.
6. What is the maximum RASL benefit?
The maximum total benefit is $30,000.
7. What is the maximum amount of accrued unused sick leave that can be applied to the RASL benefit?
A maximum of 1,500 hours of accrued unused sick leave can be applied to the RASL benefit. Hours in excess of this limit are irrevocably forfeited and purged from the payroll system.
8. How is the RASL benefit calculated?
The RASL benefit value is calculated by multiplying the hourly pay rate at the time of separation by the number of unused sick leave hours (up to 1,500) multiplied by the appropriate following percentage:
| 500 - 749 hours | 25% |
| 750 - 999 hours | 33% |
| 1,000-1,500 hours | 50% |
Example: Your hourly rate of pay is $16.00 and you have 750 hours of accrued unused sick leave. $16.00 x 750 x .33 = $3,960.00 total RASL benefit.
9. How is the RASL benefit paid?
The cash benefit is paid in equal installments over three years. You may elect to have the payments electronically deposited or mailed directly to your home address.
10. Can the RASL benefit be accelerated in the event of an emergency or financial hardship?
The RASL benefit cannot be accelerated. However, in the event of the death of the retiree, the designated beneficiary is paid the remainder of the benefit.
11. Can I use the RASL benefit as compensation in calculating my retirement benefit?
The statute prohibits this benefit from inclusion as compensation for retirement purposes.
12. Where do I send the completed RASL application?
The completed RASL application should be sent to the Payroll Office in the
University Services Building, 888 N. Euclid Ave, Room 402. It is recommended
to label the envelope RASL Application.
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