Utah Admin. Code R477-7-6 - Sick Leave Retirement Benefit
Upon retirement from active employment or LTD under Title 49, Utah State Retirement and Insurance Benefit Act, including when a retirement eligible employee passes away, management shall grant an employee or surviving spouse an unused sick leave retirement benefit under Sections 63A-17-507 and 63A-17-508.
(1) An employee in the Tier I
retirement system or the Tier II hybrid retirement system becomes eligible for this
benefit when actively retiring under Title 49, Utah State Retirement and Insurance
Benefit Act.
(2) An employee in the Tier
II defined contribution system becomes eligible when terminating employment on or
after the retirement date established by the Utah Retirement Systems. This date
reflects service time accrued by the employee as if the employee were in the Tier II
hybrid retirement system.
(3)
(a) Sick leave hours accrued before January 1,
2006 shall be Program I sick leave hours.
(b) Sick leave hours accrued on or after January
1, 2006, but before January 4, 2014, shall be Program II sick leave hours.
(c) Sick leave hours accrued on or after January
4, 2014, shall be Program III sick leave hours, which shall have no benefit upon
retirement.
(4) Management may
offer the Unused Sick Leave Retirement Option Program I to an employee who is
eligible to receive retirement benefits. Any decision whether or not to participate
in this program shall be agency wide and shall be consistent through an entire
fiscal year. If management decides to withdraw for the next fiscal year after
initially deciding to participate, management shall notify its employees at least 60
days before the new fiscal year begins.
(5) The Unused Sick Leave Retirement Options
Program I provides an employee in a participating agency the following benefit.
(a) Management shall place 25% of the value of the
unused sick leave and converted sick leave, but not to exceed Internal Revenue
Service limitations, in the employee's 401(k) account as an employer
contribution.
(b) Management shall place
sick leave hours from Program II in the employee's 401(k) account before hours from
Program I.
(c) After the 401(k)
contribution, management shall use the remaining Program I sick leave hours and
converted sick leave hours from Subsection
R477-7-5(5)(b)(i)
to provide the following benefit:
(i) The purchase
of PEHP health insurance, or a state approved program, and life insurance coverage
for the employee until the employee reaches the age eligible for Medicare.
(A) Health insurance is the same or lower level
than the level the employee has when they retire pursuant to Section
63A-17-507.
(B) The purchase rate is
eight hours of sick leave or converted sick leave for the state paid portion of one
month's premium.
(C) The employee shall
pay the same percentage of the premium as a current employee on the same plan. The
premium amount shall be determined from the approved PEHP retiree rate and not the
active employee rates.
(D) The life
insurance provided is the minimum authorized coverage provided for state employees
when the employee retires.
(ii) When the employee becomes eligible for
Medicare, the employee may purchase a Medicare supplement policy provided by PEHP at
the rate of eight hours of sick leave or converted sick leave for one month's
premium.
(iii) When the employee becomes
eligible for Medicare, the employee may purchase a PEHP health insurance policy, or
another state approved policy, for a spouse until the spouse is eligible for
Medicare.
(A) The purchase rate is eight hours of
sick leave or converted sick leave for one month's premium.
(B) The employee shall pay the same percentage of
the premium as a current employee on the same plan. The premium amount shall be
determined from the approved PEHP retiree rate and not the active employee
rates.
(iv) When the spouse
reaches the age eligible for Medicare, the employee may purchase a Medicare
supplement policy provided by PEHP for the spouse at the rate of eight hours of sick
leave or converted sick leave for one month's premium.
(v) In the event an employee is killed in the line
of duty, the employee's spouse is eligible to use the employee's available sick
leave hours for the purchase of additional medical coverage under Section
63A-17-804.
(d) Employees
retiring from LTD who have sick leave balances still intact may use these hours for
the unused sick leave retirement program when they become eligible for
retirement.
(e) Upon retirement under
Title 49, Utah State Retirement and Insurance Benefit Act, an employee may not
suspend or defer for future use any Program I sick leave hours. This includes
retired employees who reemploy with the state and choose to suspend their defined
benefit payments and employees participating in phased
retirement.
(6) The Unused
Sick Leave Retirement Option Program II provides an employee the following benefit:
(a) Management shall place 25% of the value of the
unused sick leave and converted sick leave, but not to exceed Internal Revenue
Service limitations, in the employee's 401(k) account as an employer
contribution.
(b) After the 401(k)
contribution, management shall deposit the remaining sick leave hours and the
converted sick leave hours from Subsection
R477-7-5(5)(b)(ii)
in the employee's PEHP health reimbursement account at the greater of:
(i) the employee's rate of pay at retirement;
or
(ii) the average rate of pay of state
employees who retired in the same retirement system in the previous calendar
year.
(c) A retired employee
who is reemployed in a benefited position with the state is not eligible for a
benefit calculated on any Program II sick leave hours unless:
(i) the employee voluntarily suspends their
pension;
(ii) the employee was separated
for one year or more;
(iii) the employee
was reemployed before January 2, 2014; and
(iv) the employee works for two years or more
after reemployment to receive this benefit.
(7) A retired employee who is reemployed in a
benefited position with the state after January 3, 2014 accrues Program III sick
leave, which has no benefit upon subsequent retirement.
Notes
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