NP 3-60.06 – Sick leave Payout

Employees hired or reinstated, under the scope of this Policy, on or after July 1, 1989, who are approved for regular or early retirement under Public Employees’ Retirement Association rules will be paid for one quarter (1/4) of sick leave accrued as of the date of retirement, or for 240 hours whichever is less, at the rate of pay in effect on the date of retirement. Such employees who were hired prior to July 1, 1989, and had no break in service, will be paid upon retirement for one-fourth (1/4) of sick leave accrued as of the date of retirement.

Employees who are approved for long term disability retirement will use sick leave to the extent accumulated prior to receiving disability benefits. If accumulated sick leave is not sufficient to provide coverage until disability benefits begin, salary and benefits will be provided at one-half the employee’s rate of pay for the period not covered by sick leave.

In the case of death of an employee, one-fourth (1/4) of total sick leave accrued on the date of death will be paid at the rate of pay in effect at the time of death.