Procedures for Payment of Unused Sick Leave to Employees

October 28, 2008, the Office of the Secretary in the WV Department of Administration distributed procedures for eligible state employees to cash in a portion of their Unused Sick Leave. The ruling is under WV Code, 5-5-6, and procedures are in Title 148, Series 21.

Employee must meet eligibility guidelines:

  1. Employee must be entitled at retirement to credit his/her unused sick leave for extended health insurance coverage.  In most cases, only employees hired “full time” prior to 7-1-2001 are eligible for this benefit.
  2. Employee must have an accrual of at least 65 days of unused sick leave.
  3. Employee must maintain a balance of 50 days of unused sick leave at the time of payout.
  4. Employee will be paid at a rate equal to 25% of their usual daily rate of pay.
  5. The employee will not be permitted to reacquire any sick leave days for which he/she received payment.
  6. If employee leaves State employment within 60 months (5 years) from receipt of the funds, he/she must reimburse the State Employee Sick Leave Fund the amount paid to them plus twelve percent per annum (death and retirement are not considered separation of employment).

Employee procedures:

  1. Employee must complete the “Application for Payment of Unused Sick Leave and Reimbursement Agreement” form, and federal and state tax forms.
  2. Employee must submit the Application form and tax forms to Human Resources/Benefits by the due dates.
    Application for July payment must be submitted to HR/Benefits on or before June 13; or, for the December payment on or before November 1.
  3. Employee can receive sick leave payment only once per fiscal year.
  4. Employee must meet with HR/Benefits to go over the Application, and rules and procedures.

 

Note: Legislation ended the conversion of unused sick/annual leave to pay premiums for health/basic life insurance for staff and 12 month faculty hired on or after July 1, 2001. Therefore, these employees are also not eligible for the Buyback of Unused Sick Leave. However, staff and faculty who are members of the WV the State Teachers Retirement System can continue to convert unused leave for years of service credit. The PEIA Health Insurance Eligibility information includes further explanation of details.