Employee Matters

Sick leave has value at retirement

Does my sick leave have any value when I retire?
Absolutely. The accumulated sick-leave conversion program allows you to use the value of your sick leave to pay for your state group health insurance premiums at retirement. You are eligible if you are enrolled in a state group health insurance plan as a subscriber or a dependent. If a dependent, the subscriber must have family coverage in force. If you are not covered by the health plan, contact the Employee Compensation and Benefits Services about enrollment options.

How much sick leave do I earn?
Classified staff earn 130 hours per year (five hours per pay period) and unclassified staff earn 96 hours per year (after the initial 176-hour entitlement). For part-time employees, this amount is prorated based on appointment percentage.

How is the dollar value determined?
Multiply your current hourly rate times your total hours of accumulated sick leave. Unclassified employees can determine their hourly rates by dividing their current annual salary by nine or 12 (depending upon whether paid on an academic year or annual basis) and then dividing that amount by the number of work hours in a month, which is 174 hours.

Does my employer supplement my sick-leave balance?
Right again. The number of hours of sick leave at the time of retirement is enhanced by matching credits if you have at least 15 years of service with the state and/or university. Your sick-leave balance is matched by 52 hours per year for each year of service from year 1-24 and 104 hours per year for years greater than 24. The years of service are based on your “seniority date” for state of Wisconsin service. Sick- leave credits can only be used to pay for state group health insurance premiums.

What if I have to use a significant portion of my sick leave right before I retire?
This situation would be very unfortunate; therefore, the state will credit you with 500 hours of sick leave, if you had to use at least 500 hours for the same illness in the three years before your retirement. These hours are not matched by the supplemental credits described above.

Can my spouse use my sick leave if I die first?
Yes, as long as you had family state group health coverage at retirement.

Can I put my sick leave “on hold” if I don’t need it immediately?
Generally, yes. In certain situations you can keep your sick-leave credits in escrow for later use. Contact the Employee Compensation and Benefits Services office for details.

For more information

• See http://www.bussvc.wisc.edu/ecbs/emp-info.html under Leave Benefits and/or General Benefits (Benefits Booklet).
• Contact a benefits specialist at the Employee Compensation and Benefits Services office, employee@bussvc.wisc.edu, 263-7556 or 262-5650.