S.B. 138

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RETIREMENT - USE OF SICK LEAVE
2 1998 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: David L. Buhler
5 AN ACT RELATING TO STATE OFFICERS AND EMPLOYEES; MODIFYING THE
6 UNUSED SICK LEAVE AND EARLY RETIREMENT PROGRAMS; AND PROVIDING AN
7 EFFECTIVE DATE.
8 This act affects sections of Utah Code Annotated 1953 as follows:
9 AMENDS:
10 67-19-14, as last amended by Chapter 164, Laws of Utah 1993
11 Be it enacted by the Legislature of the state of Utah:
12 Section 1. Section 67-19-14 is amended to read:
13 67-19-14. Sick leave -- Unused sick days -- Early retirement program.
14 (1) The director shall, as an incentive to reduce sick leave abuse, make rules governing
15 procedures whereby, after an employee has accumulated [18] 30 unused sick leave days, any sick
16 days accumulated during any calendar year in excess of [eight] five, at the option of that employee,
17 may be carried as "converted sick leave" which the employee may use at a later date as annual
18 leave, regular sick leave, or as paid-up health and medical insurance at the time of retirement on
19 the basis of the payment by the employing department of one month's premium for each day of
20 accumulated sick leave.
21 (2) (a) (i) The director shall make rules for the governance of an early retirement program.
22 (ii) Employing departments may offer an early retirement option to an employee.
23 (iii) Employee participation in any part of the early retirement program shall be entirely
24 voluntary.
25 (iv) An employee must be eligible for retirement benefits to qualify for the program.
26 (b) (i) (A) The program shall provide for an employee to be paid for 25% of unused
27 accumulated sick leave at the employee's preretirement rate of pay.

1 (B) An employee shall have the option of having all monies from the cashout under
2 Subsection (b)(i)(A) transferred directly to the deferred compensation plan qualified under Section
3 401(k) of the Internal Revenue Code which is sponsored by the Utah State Retirement Board.
4 (ii) The employing department shall also provide health and life insurance benefits until
5 the employee becomes eligible for Medicare, but not to exceed five years' coverage from the date
6 of retirement, except as provided under Subsection (2)(c).
7 (c) (i) An employee under the age of 60, whose unused sick leave, after the 25% cashout
8 has been paid, exceeds the 60 days maximum for five-year coverage under Subsection (b), may
9 continue health and life insurance for the employee and the employee's spouse at the rate of one
10 month's coverage for each day of unused sick leave above the 60 days, but [not to exceed coverage
11 beyond] only to the age eligible for Medicare.
12 (ii) An employee and the employee's spouse who are eligible for Medicare may purchase
13 Medicare supplemental insurance at the rate of one month's coverage for each day of the
14 employee's unused sick leave.
15 (d) Any costs or savings for this act shall be borne by the agency and [shall not be
16 appropriated by the Legislature] be reflected in the agency's budget request each year following
17 the employee's retirement date.
18 (3) (a) The director shall make rules to provide a continuation of health and dental
19 insurance to the surviving spouse and family of any state employee whose death occurs in the line
20 of duty. The insurance coverage shall continue for a period of five years or until the surviving
21 spouse becomes eligible for Medicare, whichever comes first.
22 (b) The rules shall also provide for a cashout of 25% of accumulated sick leave in the same
23 manner as provided under Subsection (2)(b).
24 (c) The costs of paying for the benefits under Subsections (3)(a) and (b) shall be included
25 in the agency's budget request each year following the date of death of the employee.
26 Section 2. Effective date.
27 This act takes effect on July 1, 1998.


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Legislative Review Note
as of 1-23-98 11:11 AM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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