Section R477-7-6 - Sick Leave Retirement BenefitUpon 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.Utah Admin. Code R477-7-6
Amended by Utah State Bulletin Number 2015-14, effective 7/1/2015Amended by Utah State Bulletin Number 2017-14, effective 7/1/2017Amended by Utah State Bulletin Number 2018-14, effective 7/1/2018Amended by Utah State Bulletin Number 2019-14, effective 7/1/2019Amended by Utah State Bulletin Number 2020-13, effective 7/1/2020Amended by Utah State Bulletin Number 2021-14, effective 7/1/2021Amended by Utah State Bulletin Number 2022-13, effective 7/1/2022