Human Resources Classified Staff
Policy and Procedures
Policy # 202.0
Effective: 09/88
Modified: 08/06
Section: Benefits
Subject: Accumulated Sick Leave Payment for Retiring Regular Classified Staff Employees
Reference: ARS §38-615
POLICY
Benefits eligible Regular Classified Staff employees who retire from the
University and have accumulated unused sick leave of 500 hours or more at
time of retirement have the option to elect payment of their unused sick
leave benefit. Sick leave compensation will not be paid in the event of
resignation or discharge. If the employee is eligible for normal retirement
at the time of death, the beneficiary will receive a one-time lump sum cash
payout.
The State of Arizona General Accounting Office (GAO) maintains and administers
the Retiree Accumulated Sick Leave (RASL) as defined by Arizona statute.
Eligible retirees may apply for benefits to the General Accounting Office,
which has sole discretion to grant or deny payment under this program.
Application and payment option information is available on the
GAO's website.
ELIGIBILITY
To qualify for this benefit the employee must:
-
Be employed by
the state (University) on or after July 1, 1998, and
- Have accumulated unused sick leave totaling 500 hours or more at retirement,
and
- Apply for retirement with an authorized State of Arizona retirement system
immediately (within 14 calendar days) upon separation from State
(University)
service, and
- Apply for the Retiree Accumulated Sick Leave benefit within 180 days
from the retirement date.
BENEFIT
The RASL benefit value is calculated by multiplying the hourly pay rate at the time of retirement by the number of unused sick leave hours (up to 1,500), as reported in the University's payroll system, and multiplied by the appropriate following percentage:
- At least 500 but less than 750 sick leave hours; 25%
- At least 750 but less than 1,000 sick leave hours; 33%
- At least 1,000 but less than 1,500 sick leave hours; 50%
The hourly pay rate will be calculated using the following methods:
Hourly pay rate for fiscal year employees = Annualized Pay x FTE / 2080 hours
Hourly pay rate for academic year employees = Annualized Pay x FTE / 1520 hours
The maximum benefit will be 1,500 hours of sick leave not to exceed a benefit of $30,000. Appropriate FICA, federal and state income taxes will be deducted prior to the payment of the benefit.
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