Sick Leave Payment at Retirement or Death
All UW staff who retire from active service under the rules of their retirement plan, and who file a timely UW retirement application with the UW Benefits Office, except for those in the Inlandboatmen's Union bargaining unit, have 25% of the cash value of their final sick leave balance placed into a tax-free medical expense account (Voluntary Employee Beneficiary Association - VEBA). Employees in the Inlandboatmen's Union bargaining unit do not participate in VEBA and instead receive 25% of the cash value of their final sick leave balance as direct compensation.
Employees who die while in service have 25% of the cash value of their full sick leave balance paid to their estate.
To process sick leave payment upon retirement or death, the home department must complete the Employee Separation Payment Authorization form and submit it to the Payroll Office (Box 359555). In the Online Work/Leave System (OWLS), the form is presented electronically for completion when ending an employee's leave record. The completed form is printed for transmission to the Payroll Office. Units that do not use OWLS may download the form from Forms Management.
Use the following procedure to determine the budget to charge for sick leave payment at the time of an employee's retirement or death.
- Determine if the employee's distribution budget number is a State, a Base Indirect Cost, or a Grant and Contract budget by checking the budget type and budget class codes.
Look up the details of the employee's distribution budget number(s) through the Information Systems' Financial Information (FIN) screen #FI0041I "Budget Number Index Page 1." Use the following steps to access this screen:
- Choose #5 (Financial Index Inquiry) from the Financial Accounting System main menu (FINMENU)
- Choose #2 (Budget Number Index) from the Financial Index Inquiry menu (FINHELP)
- Type in the budget number at the prompt.
Use the following guidelines to decide which budget to charge:
- STATE BUDGETS - all distribution budget numbers in budget type 01, budget class 11 identified with a central staff benefit number, the old College Code 48, must be charged against 01-4808. For example, budget 01-3012 has a benefits budget of 01-4883. This would convert to 01-4808. For some State budgets, however, staff benefits are charged directly against the budget themselves. For example, budget 07-5285 has a benefits budget of 07-5285. Even though this is a type 01 class 11 budget, it does not convert at all.
- BASE INDIRECT COST BUDGETS (Local program 74) - all distribution budget numbers in budget type 01, budget classes 31 or 32 must be charged against 74-4808.
- GRANT and CONTRACT BUDGETS - all distribution budget numbers in budget type 05 must be charged against 74-4808.
- ALL OTHER BUDGETS - all distribution budget numbers in any other budget type and class must be charged directly to the budgets themselves and will not be converted.
- Enter the designated budget number in item 5 on the Employee Separation Payment Authorization form.
Contact the Budget Office at 543-6277 with any questions about the appropriate budget number to charge for payment of unused sick leave at retirement or death.
View additional information on using the FIN screens.