R477-7-5. Converted Sick Leave

  (1) An employee may not accrue converted sick leave hours on or after January 3, 2014. Converted sick leave hours accrued before January 3, 2014 can be used for retirement per R477-7-5(6) or cashed out if the employee leaves employment.

  (a) Converted sick leave hours accrued prior to January 1, 2006 shall remain Program I converted sick leave hours.

  (b) Converted sick leave hours accrued after January 1, 2006 shall remain Program II converted sick leave hours.

  (2) An employee may use converted sick leave as annual leave or as regular sick leave.

  (3) When management approves the use of converted sick leave, an employee may use any combination of Program I and Program II converted sick leave.

  (4) Employees retiring from LTD who have converted sick leave balances still intact may use these hours for the unused converted sick leave retirement program at the time they become eligible for retirement.

  (5) Upon retirement, 25% of the value of the unused converted sick leave, but not to exceed Internal Revenue Service limitations, shall be placed in the employee's 401(k) account as an employer contribution.

  (a) Converted sick leave hours from Program II shall be placed in the 401(k) account before hours from Program I.

  (b) The remainder shall be used for:

  (i) the purchase of health care insurance and life insurance under Subsection R477-7-6(3)(a) if the converted sick leave was accrued in Program I ; or

  (ii) a contribution into the employee's PEHP health reimbursement account under Subsection R477-7-6(6)(b) if the converted sick leave was accrued in Program II.

  (6) Upon retirement, Program I converted sick leave hours may not be suspended or deferred for future use. This includes retired employees who reemploy with the state and choose to suspend their defined benefit payments and employees participating in phased retirement.