Sick Leave Programs
KPPA recognizes two sick leave programs relevant to retirement: Standard Sick Leave and Alternate Sick Leave. The Standard Sick Leave Program allows members to convert their hours of unused sick leave to additional months of service credit at the time of retirement. The Alternate Sick Leave Program allows a CERS employer to compensate an employee for as many unused sick leave days as the employer's personnel policy provides.
Tier 2 members may receive a maximum of 12 months of service credit for unused sick time. Sick leave credit counts towards health insurance benefits but cannot be used to determine retirement eligibility. At retirement, an eligible member's unused sick leave hours and hours worked per day determine the sick leave credit that may be awarded.
KERS and SPRS Members
Most KERS and SPRS employers are required to participate in the Standard Sick Leave Program. Only KERS quasi-governmental agencies have the option to elect participation in the Standard Sick Leave Program.
CERS Members
CERS employers can choose to participate in the Alternate Sick Leave Program, the Standard Sick Leave Program, or neither. Tier 2 members may receive service credit for sick leave at the time of retirement if their employer has adopted a sick leave program with KPPA.
Under the Standard CERS program, the member receives service credit for up to six months of unused sick leave. A CERS employer may also elect to split the cost of sick leave in excess of six months with the member or pay the entire cost in excess of six months. In accordance with the sick leave program adopted by the employer, under the Standard program, any sick leave for which the employee is paid upon termination is not reported to KPPA and is not eligible to be used as service credit.
Under the Alternate CERS program, members are paid for unused sick leave and receive sick leave service credit at the time of termination or retirement. The money paid to the member for their unused sick leave is used in determining the member's final compensation and the service is also used to increase the member's service credit.
The computation of alternate sick leave is complex. If a member's employer participates in this program, it is advisable that the member consult with a retirement counselor to determine the effect of alternate sick leave credit on their specific benefits.