Showing posts with label sick leave. Show all posts
Showing posts with label sick leave. Show all posts

Unused Sick Leave & Credited Service

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What happens to your sick time earned when you retire and have between 5 and 10 years of service completed?
Your MOSERS pension benefit is calculated using the formula:

Final Average Pay x Credited Service x Multiplier = Monthly Base Benefit. 

As part of this calculation, we will add one month of additional service for each block of 168 hours of unused sick leave you have at retirement. For example, if you have 2,500 hours of unused sick leave, you will receive an additional 14 months of credited service (2500/168=14.88) when your retirement benefit is calculated. Your unused sick leave is used in calculating the amount of your retirement benefit, but cannot be used to determine eligibility for retirement or BackDROP. Any amount of sick leave that remains above the calculated additional service credit is forfeited.

There are some specific situations in which unused sick leave doesn’t count:
•        MSEP 2011 members: If you leave state employment after January 1, 2018 and prior to being eligible for early or normal retirement, you will get no service credit for unused sick leave.
•       MSEP retirees: If you leave state employment prior to being eligible for early or normal retirement, you will get no service credit for your unused sick leave.
•       Legislators, statewide elected officials, and judges: You do not accrue sick leave.

Please note: Employees of colleges and universities should discuss maximum accrual levels and procedures with their HR office.

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Sick Leave & Retirement

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There's a rumor going around that employees can no longer use their sick leave toward their retirement. I haven't heard of any changes, but I wanted to make sure since I handle retirement at our facility and have been asked. Thank you!
Often, people misunderstand how unused sick leave affects their MOSERS pension benefit. Unused sick leave does NOT count towards service for retirement ELIGIBILITY. It never has. In other words, it will not make you eligible for retirement sooner than you would have been without it. You must meet both the age and service requirements  –  not counting unused sick leave – to be eligible to retire.

As part of your retirement benefit calculation, we will add one month of additional service for each block of 168 hours of unused sick leave you have at retirement. This will increase the AMOUNT of your benefit payment every month in retirement. Unused sick leave cannot count toward eligibility for retirement or as part of your BackDROP period. That is, the months of unused sick leave will not make you eligible for retirement (or BackDROP) sooner, but will increase the amount of your payment once you have retired.

There are some specific situations in which unused sick leave doesn’t count:
•        MSEP 2011 members: If you leave state employment after January 1, 2018 and prior to being eligible for early or normal retirement, you will get no service credit for unused sick leave.
•       MSEP retirees: If you leave state employment prior to being eligible for early or normal retirement, you will get no service credit for your unused sick leave.
•       Legislators, statewide elected officials, and judges: You do not accrue sick leave.


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Using Leave After Applying for Retirement

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Once you submit retirement papers with a date for retirement are you allowed to take any annual or sick time?
Check with your agency’s human resources office about your specific guidelines for annual and sick leave accrual and usage before retirement.  However, please be aware that MOSERS converts unused sick leave hours into months of service credit to be used in your retirement benefit calculation.  So, any usage of sick leave near your retirement date may affect previous benefit estimates you have received.  Annual leave has no effect on your MOSERS benefit. You can learn more about how unused leave hours affect your retirement benefit here.    

We have also answered many related questions on sick leave on Rumor Central under the category heading Unused Sick Leave: http://mosersrc.blogspot.com/search/label/unused%20sick%20leave.  

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Sick Leave & BackDROP Period

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Questions regarding sick leave. I have around 22 months of employment remaining before I reach the 80 and out. I have around 1900 hours of sick leave currently. Does sick leave still contribute towards your credible service period? If I elect to backdrop, does this apply to the backdrop period if I do not count this towards credible service? Thank you!
 Yes, you will get one month of credited service for each block of 168 hours of unused sick leave you have at retirement. While this will increase the amount of your benefit, unused sick leave cannot count toward eligibility for retirement or as part of the BackDROP period. That is, the months of unused sick leave will not make you eligible for retirement (or BackDROP) sooner, but will increase the amount of your payment once you have retired. Print Friendly and PDF

Unused Sick Leave at Retirement

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I know any sick leave balance you have at retirement can go toward years served. I also know that if you have 26 years of service with the state at retirement, the state will pay 65% of your insurance premium. I have approximately 1700 hours of sick leave. Will that time count toward the years of service for the 65% reduction of my insurance premiums?
Yes. You will get one month of credited service for each 168 hours of unused sick leave you have at retirement. If you have 1700 hours of unused sick leave, you will get 10 additional months of credited service. (This service does not count toward eligibility for retirement but will increase the amount of your pension benefit payments.) MOSERS will report your actual service plus any additional service for unused sick leave to MCHCP. Note below, that their calculation for the subsidy is based on FULL years of service.

Here is additional information from the MCHCP website

The retiree premium is based on years of service with the state at retirement. The state contribution is calculated by using the number of full years of service as reported by MOSERS or another retirement system multiplied by 2.5 percent. The contribution for non-Medicare retirees is based on the PPO 600 Plan premium with the tobacco-free incentive and wellness premium. The contribution for Medicare retirees is based on the PPO 600 Plan total premium. The maximum state contribution cannot exceed 65 percent.

Employees whose premiums are collected pre-tax through the cafeteria plan have the opportunity to pre-pay premiums pre-tax as a retiree. Prepaid premiums may only be paid within the same calendar year*. To prepay, retirees must submit their enrollment request at least 31 days prior to their retirement date. The first month’s premium for retiree coverage will be divided between the last two active paychecks. Additional prepaid premiums may be collected from the retiree’s last two active paychecks and/or lump sum vacation/compensatory time payroll. Verify this payroll amount with the HR/Payroll personnel to determine how many months of retiree premiums can be prepaid.

* Employees with a retirement date of Dec. 1 cannot prepay premiums, since future premiums would be for a different plan year. Employees with a retirement date of Jan. 1 can only prepay premiums using funds from their final active payroll (usually Jan. 15) and/or their vacation and compensatory time payroll.

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Sick Leave & Retirement

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Is there any discussion about allowing current employees to use sick leave hrs as time worked in order to retire earlier, rather than counting them at retirement for yrs of service? If so what type of time frame for implementation is being looked at.
No, not that we are aware of. Currently, you will get one month of credited service for each 168 hours of unused sick leave you have at retirement. While this will increase the amount of your benefit, unused sick leave cannot count toward eligibility for retirement. That is, the months of unused sick leave will not make you eligible for retirement sooner, but will increase the amount of your payment.

Any change to this, or any other state employee pension provision, requires passage of legislation by the Missouri General Assembly and approval by the Governor. Pre-filing of bills begins on December 1, 2017 and the 2018 legislative session begins on January 3, 2018. We do not know what might happen with individual bills during the legislative session but we will monitor all legislation impacting MOSERS and inform our members of any changes that become law.

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Senate Bill 62 and Sick Leave

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We recently received several similar questions about SB 62:
1. How will SB62 change the way accumulated sick leave is calculated when a person chooses to retire?
 2. I am receiving conflicting information on the recently passed SB 62 and would like clarification.  I am currently employed by the state (hired in 1993) and I intend to participate in MSEP upon retirement.  With the recent passage of SB 62, will I receive service credit for unused sick leave, and, will I receive a COLA on my first anniversary?  It is my understanding that SB 62 provision do not apply to MSEP members but I want to be certain.  Thank you for your clarification.
 3. An article in the St. Louis Post Dispatch says "MOSERS is placing new restrictions on using accumulated unused sick leave in calculating a pension payout." What is the change and when will the new calculations be adjusted?
4. I have a question regarding the new pension law that was just passed, Senate Bill 62. According to the St. Louis Post Dispatch article, there are new restrictions on accumulated sick leave. Exactly what are these restrictions? Does this mean the blocks of sick leave I have accumulated will no longer count toward my retirement formula? The article leaves more questions than answers.
5. What did the Governor just sign re: retirement and unused sick leave and cost of living?

The provisions in SB 62 have NO impact on members of MSEP or MSEP 2000. Additionally, other than to reduce the vesting period from 10 years to 5 years, the provisions of SB 62 have NO impact on members of MSEP 2011 who work in a MOSERS benefit-eligible position until they reach normal retirement eligibility.

Effective January 1, 2018, only members who meet both of the conditions below will NOT have service credit granted for unused sick leave:

• First hired in a benefit-eligible position on or after January 1, 2011 (member of MSEP 2011) and
• Left state employment with a vested retirement benefit but prior to reaching retirement eligibility.

We refer to these members as “terminated-vested” members of MSEP 2011. (Similarly, terminated-vested members of MSEP do not receive service credit for unused sick leave if they left state employment prior to retirement eligibility, either normal or early.)

In contrast, all members of MSEP, MSEP 2000, or MSEP 2011 who retire directly from active employment receive service credit for unused sick leave. Every block of 168 hours of unused sick leave equals one month of service credit. Unused sick leave is used in calculating the amount of the benefit but does not factor into reaching retirement eligibility.

Note: Other “offsets” in SB 62 which contribute to making the vesting reduction cost neutral include the following for terminated-vested members of MSEP 2011 only, effective January 1, 2018:

• Cost-of-living adjustments (COLAs) will be applied on the second anniversary of retirement (rather than the first anniversary).
• If such a member dies prior to retirement eligibility, survivor benefits are not payable until the member would have reached their retirement eligibility age (rather than right away).

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Sick Leave Applied to BackDROP?

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I understand that unused sick leave may be applied towards retirement for the number of years/months worked. Can that sick leave be applied towards Back Drop? For example, if a person has six months of sick leave, can that individual only work 18 months and then apply the six months of sick leave to obtain a two year Back Drop?
No. You will get one month of credited service for each 168 hours of unused sick leave you have at retirement. While this will increase the amount of your benefit, unused sick leave cannot count toward eligibility for retirement or as part of the BackDROP period. That is, the months of unused sick leave will not make you eligible for retirement (or BackDROP) sooner, but will increase the amount of your payment.

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Sick Leave Limit?

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Is there a limit on how much sick leave time can be applied/added to years of service? Also how is it figured.
 No, there is no limit on how much unused sick leave can be applied to credited service (except that it cannot exceed the amount possible to accrue during your time of state employment and employees of colleges and universities should discuss maximum accrual levels and procedures with their HR office).
You will receive one month of credited service for every block of 168 hours of unused sick leave reported to MOSERS by your employer at the time you leave your position. For example, if you have 400 hours of unused sick leave, you will receive credit for an additional two months of service when your retirement benefit is calculated (400/168=2.38).
Your sick leave is used in calculating the amount of your retirement benefit, but cannot be used to determine eligibility for retirement. That is, the two months of unused sick leave will not make you eligible for retirement two months sooner but will increase the amount of your payment.

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Sick Leave at Retirement

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How much of your sick time will you get paid for, for instance if you have 2500 hours, how much will you get paid for?
If you are referring to unused sick leave at retirement, you will receive one month of credited service for every 168 hours of unused sick leave reported to MOSERS by your employer at the time you leave your position.

For example, if you have 2,500 hours of unused sick leave, you will receive an additional 14 months of credited service (2500/168=14.88) when your retirement benefit is calculated. Your unused sick leave is used in calculating the amount of your retirement benefit, but cannot be used to determine eligibility for retirement or BackDROP.

Employees of colleges and universities should discuss maximum accrual levels and procedures with their HR office.

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BackDROP and Sick Leave

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Can your accumulated sick time be used to get you to your next year of backdrop? Example: If you retired in January, could you use your accumulated sick time to get you to your retirement in March of that same year?
No. You will get one month of credited service for each 168 hours of unused sick leave you have at retirement. While this will increase the amount of your benefit, unused sick leave cannot count toward eligibility for retirement or as part of the BackDROP period. Print Friendly and PDF

Sick Leave & the Rule of 80

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Why can't we use out time (sick and annual) toward our 80 and out. If members were allowed to use their time toward the 80 and out, what kind of impact would that have?
Annual leave is not used in calculating your retirement benefit. Any unused annual leave will be paid by the agency you work for. You may want to contact your payroll/personnel officer to determine their procedure for paying out unused annual leave.

You will receive one month of credited service for every 168 hours of unused sick leave reported to MOSERS by your employer at the time you leave your position. Your sick leave is used in calculating the amount of your retirement benefit, but cannot be used to determine eligibility. For example, if you have 336 hours of unused sick leave, you will receive credit for an additional 2 months of service (336/168=2) when your retirement benefit is calculated. This 2 months of sick leave will not get you 2 months closer to retirement however; as we cannot use it to calculate when you are eligible.

The plan design reflects the policy that retirement eligibility is based on age and actual service rendered. The statute states a member has to be eligible for retirement in order to receive the additional sick leave credit. There would be a cost to change that policy because we receive retirement contributions to fund the benefits based on actual salary only;  no retirement contributions are paid on sick leave and annual leave. 

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Reemployed Retirees and Sick Leave

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When I retired from DMH April 1 of this year, I had about 1,000 hours of sick leave which gave me additional time toward retirement. If I go back to work at DMH in a benefits eligible position, will I at some point get that sick leave back?
No – not as it relates to your a future retirement benefit. You can consider the approximately 1,000 hours that has been applied to your retirement benefit as already “spent”. You will not get credit for those hours again as it relates to your retirement benefit.

However, you may accrue additional sick leave going forward and any unused sick leave you accrue from the time you return to work until you retire again will be used in calculating your future retirement benefit.

You should also be aware that if you return to a MOSERS benefit-eligible position, your retirement benefit will stop. No benefits will be paid for any portion of the month in which you are reemployed in a benefit-eligible position.

Contact your human resources representative to discuss the details of your agency's sick leave policy.  

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Unused Sick Leave as it is Calculated For Credited Service

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I understand that 168 hours of unused sick leave equals one month of service toward retirement, but what happens to the extra hours. Say a person has 1020 hours. 1020 would equal 6 months (168 x 6 = 1008, plus 12 hours. What happens to the 12 hours? Do we just lose them?
Yes, your unused sick leave is used to calculate additional credited service. It cannot be used to determine your eligibility for a retirement benefit, but it can be used in calculating the amount of your retirement benefit. Any amount of sick leave that remains above the calculated additional service credit is forfeited.




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Unused Sick Leave and Colleges & Universities

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Is is true that some institutions covered by MOSERS are not in compliance with regulations when they do not allow retirees to use the 168 hours of unused medical leave for one month of service? I retired from an institution about four years ago that did not allow me to use many hours of unused sick leave. Now, I understand that has changed. How couldsome places not have used that rule if required? 
The statutes governing credited service and sick leave state that when a member terminates employment and retires, unused sick leaveas reported directly by their department, for which the member has not been paid will be converted to credited service at the time of application for retirement benefits. In addition it specifies one month of service credit be awarded for every 168 hours reported. MOSERS has applied sick leave credit accordingly since the plans inception.

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Unused Sick Leave and Service

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I know that every 168 hours of unused medical leave can count as 1 month of service for the benefit calculation. Is there a maximum number of months which can be included?
There is no maximum number of months that can be included.

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Annual and Sick Leave at Retirement

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When I retire will I get a check for all of my annual leave hours? What will happen to my sick leave hours?
Annual Leave is not used in calculating your retirement. Any unused annual leave will be paid by the agency for which you work.  You may want to contact your human resources representative to determine your agency's procedure for paying out unused annual leave. 

Your unused sick leave is used in calculating the amount of your retirement benefit, however it cannot be used to determine eligibility for retirement or BackDROP. You will receive one month of credited service for every 168 hours of unused sick leave reported to MOSERS by your employer at the time you leave your position. There are several Rumor Central posts regarding sick leave that you might find helpful.
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BackDROP and Sick Leave

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I have one year of BackDROP completed. I also have 2080 (1 year) of sick time on the books. If I were to retire at this time, could I count the 1 year of sick time and have 2 years of required BackDROP to receive the full 2 years of money?
You will receive one month of credited service for every 168 hours of unused sick leave reported to MOSERS by your employer at the time you leave your position. Your sick leave is used in calculating the amount of your retirement, but cannot be used to determine eligibility for retirement or BackDROP.

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Accumulated Sick Leave When Laid Off

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If a MOSERS eligible employee is laid off due to staff reductions, and is eligible for normal retirement, will the accumulated sick leave be lost if the employee registers for retirement after being laid off?
Annual leave is not used in calculating your retirement. Any unused annual leave will be paid by the agency for which you work.  You may want to contact your human resources representative to determine your agency's procedure for paying out unused annual leave. 
You will receive one month of credited service for every 168 hours of unused sick leave reported to MOSERS by your employer at the time you leave your position. Your sick leave is used in calculating the amount of your retirement benefit, but cannot be used to determine eligibility. For example, if you have 336 hours of unused sick leave, you will receive credit for an additional two months of service (336/168=2) when your retirement benefit is calculated. This two months of sick leave will not get you two months closer to retirement, however, as we cannot use it to calculate when you are eligible. Unused sick leave is only credited if you are eligible to retire (early or normal) upon termination for MSEP and for MSEP 2000 you get credit as long as you are vested upon termination.

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When Leaving State Employment, Do You Lose Your Sick Leave?

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When leaving the company do you lose your sick time or can you get paid for it like your comp time?
Annual leave is not used in calculating your retirement. Any unused annual leave will be paid by the agency for which you work.  You may want to contact your human resources representative to determine your agency's procedure for paying out unused annual leave. 
You will receive one month of credited service for every 168 hours of unused sick leave reported to MOSERS by your employer at the time you leave your position. Your sick leave is used in calculating the amount of your retirement benefit, but cannot be used to determine eligibility. For example, if you have 336 hours of unused sick leave, you will receive credit for an additional two months of service (336/168=2) when your retirement benefit is calculated. This two months of sick leave will not get you two months closer to retirement, however, as we cannot use it to calculate when you are eligible. Unused sick leave is only credited if you are eligible to retire (early or normal) upon termination for MSEP and for MSEP 2000 you get credit as long as you are vested upon termination.

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