Sick/Vacation Leave Payouts

Wright Way Policies

4201.3 Payment for Unused Vacation

1.      When a fiscal faculty or unclassified staff member terminates employment with the university, the employee's supervisor shall forward a Sick Leave/Vacation Summary Form to the appropriate representative in the Department of Human Resources prior to the termination date, outlining sick and vacation hours used by that employee during the last month or partial month of service. The hours recorded on this form will be deducted from the balance on the employee's last workday in order to determine any cash payment to be made to the terminating employee.

Upon termination, 100 percent FTE fiscal faculty and unclassified staff shall be paid for all earned but unused vacation hours up to the maximum accrual permitted based on length of service. The maximum cash payment for those terminating employees who worked less than 100 percent FTE is determined on a prorated basis and cannot exceed that amount of vacation time that could have been earned in a two-year period.

2.      Special-contract staff (fiscal faculty and unclassified) shall receive no payment for unused vacation upon separation. All accrued vacation should be used during the contract period at times mutually agreed upon by the employee and the supervisor.

3.      Upon termination and completion of one year of service, classified non–exempt staff employed at least 1,045 hours in a twelve-month period (at least 51 percent FTE)) shall be paid for at all unused vacation up to the maximum accrual permitted based on length of service.

4202.6 Retirement and Death Payment of Sick Leave

1.      After ten years of state service and upon retirement or death, an employee or his/her estate may receive a cash settlement equivalent to one-fourth of the value of accrued but unused sick leave up to a maximum of one-fourth of 120 days. In no case shall payment exceed 30 days (240 hours). Payment is based upon the employee's rate of compensation at the time of retirement or death. Such payment eliminates all sick leave credit of the employee.

2.      A retirement payout for sick leave shall be made only once to any employee. An employee who returns to state service after retirement and receipt of cash payment for sick leave credit may accrue and use sick leave as before, but may not receive a cash settlement for the unused sick leave at the time of a second retirement.

Tax Savings Options

You have the option of tax deferring any portion of your sick and/or vacation payout into a Supplemental Retirement Account (403(b) and/or 457(b)) through WSU.  You can elect to defer any portion of your payout up to the current IRS limit.

To Accomplish:

1.      Set up an account with an approved vendor.  Visit our website for the list of approved vendors at www.wright.edu/human-resources/benefits.

2.      Email HR-Benefits@wright.edu with the amount you want to defer, account type (403(b) and/or 457(b)), provider name and the date of your retirement.

Timeline for Account Set-Up & Email

1.      For 457(b), per IRS you must take action at least one month prior to your retirement date.

2.      For 403(b), you have until the 10th day of the month of your retirement.

 

This information provides you with details of the Voluntary Retirement Incentive Program available from Wright State University. More complete information about the offer can be found in the official plan documents.  If there are any differences between this information and the official plan documents, the official plan documents shall govern.