No more cash pay-outs; employees retirement to be credited instead

Fayette County employees who are fully vested in the county’s defined benefit retirement plan will no longer be able to “cash out” their accrued sick leave.

The county commission last week approved a change that results in the sick leave being converted into credit service towards their retirement.

County Manager Jack Krakeel said the system would save the county approximately $155,000. Next year, when five employees become eligible to retire, they will have accumulated sick leave that would require a pay-out of roughly $28,245, he said.

The credit would only be available to county employees who retire or resign in good standing, as long as they are also vested in the county’s defined benefit retirement plan.

Previously, county employees who retire were allowed to be compensated in pay for their accrued sick leave at a rate of 25 percent of their current hourly rate. The policy differs slightly for those employed prior to March 1, 1998 who are paid $15 for each day of unused sick leave with a maximum total payment of $900.

The defined benefit plan, which guarantees a flat monthly payment for the remainder of a retiree’s life, was adopted earlier this year and drew citizen complaints that it might lead to fiscal troubles in future years for the county.