Update on Retirement Vacation/Sick Leave Payouts
September 25, 2009
Thanks to NAGE’s advocacy, the Commonwealth has changed its interpretation of a vacation and sick leave payout policy. NAGE state members who file before October 1, 2009 for retirement no later than January 31, 2010 will be able to receive their entire sick and vacation payouts at retirement as specified in the collective bargaining agreement.
Members of NAGE Units 1, 3 and 6 who file applications for retirement before October 1, 2009 and retire before January 31, 2010 will still receive lump-sum payouts for all of their accrued, unused vacation time and 20% of their accrued, unused sick time. The payouts typically occur within a few pay periods of the employee’s retirement date. Such members will also retain a health insurance premium contribution of 15%.
The Commonwealth had instituted a policy calling for vacation and sick leave payouts to be spread over four payments and 2-1/2 years. NAGE disputed that interpretation of the retirement provision, noting that the legislation called for both the affected union member and the union to agree to such an extended payout. Because NAGE has not agreed to any extended payouts, the Commonwealth has now clarified its policy. NAGE union members who retire as stipulated above will get their lump-sum payments, while managerial and confidential employees must take sick and vacation time payouts in installment payments spread over 2-1/2 years.