Tenn. Comp. R. & Regs. 1700-03-01-.16
Whenever a deceased member's unused accumulated sick leave is paid by the member's employer to the member's estate or to a beneficiary designated by the member for such payment, the payment shall not be considered earnable compensation for retirement purposes. The payment is considered a form of a death benefit, and not payment of service earned by the member as in the case of annual leave. Although the payment is not considered earnable compensation for retirement purposes, the unused accumulated sick leave will be credited as service pursuant to T.C.A. § 8-34-604 and used in the benefit calculation of any monthly retirement annuity which may be due upon the member's death. If a monthly annuity is available, the date of retirement will become effective following the payment of any annual leave. This rule shall not apply to any member who is covered under the provisions of T.C.A. § 8-35-118, or under T.C.A., Part 3, Chapter 35, Title 8.
Tenn. Comp. R. & Regs. 1700-03-01-.16
Authority: T.C.A. §§ 8-34-313 and 8-34-101(14).