S-0289.2/91       _______________________________________________

                                 SENATE BILL 5178

                  _______________________________________________

State of Washington              52nd Legislature             1991 Regular Session

By Senator Vognild.

Read first time January 22, 1991.  Referred to Committee on Governmental Operations.Providing for one hundred percent cash out on leaving state service for accrued sick leave.

     AN ACT Relating to state employees; and amending RCW 41.04.340.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

     Sec. 1.  RCW 41.04.340 and 1990 c 162 s 1 are each amended to read as follows:

     As used in this section the term "eligible employee" means any employee of the state, other than teaching and research faculty at the state and regional universities and The Evergreen State College, entitled to accumulate sick leave and for whom accurate sick leave records have been maintained.  No employee may receive compensation under this section for any portion of sick leave accumulated at a rate in excess of one day per month.  The state and regional universities and The Evergreen State College shall maintain complete and accurate sick leave records for all teaching and research faculty.

     An attendance incentive program is established for all eligible employees.  In January of the year following any year in which a minimum of sixty days of sick leave is accrued, and each January thereafter, any eligible employee may receive remuneration for unused sick leave accumulated in the previous year at a rate equal to one day's monetary compensation of the employee for each four full days of accrued sick leave in excess of sixty days.  Sick leave for which compensation has been received shall be deducted from accrued sick leave at the rate of four days for every one day's monetary compensation.

     ((At the time of separation from state service due to retirement or death, an eligible employee or the employee's estate shall receive remuneration at a rate equal to one day's current monetary compensation of the employee for each four full days of accrued sick leave:  PROVIDED, That community college districts may delay until July 1, 1981, payment due any eligible employee or employee's estate: PROVIDED FURTHER, That)) A state employee, upon leaving state service, may elect to receive payment for unused sick leave (based upon the employee's current salary) amounting to one hundred percent of time accrued.  The state shall, in lieu of cash remuneration for unused sick leave, provide eligible employees with a benefits plan, with equivalent funds, that at the request of eligible employees shall be used for reimbursement of medical expenses.  There shall be added to any such delayed payment interest at the rate of eight percent per year.

     Moneys or benefits received under this section shall not be included for the purpose of computing a retirement allowance under any public retirement system in this state.

     This section shall be administered, and rules shall be promulgated to carry out its purposes, by the state personnel board and the higher education personnel board for persons subject to chapters 41.06 and 28B.16 RCW, respectively, and by their respective personnel authorities for other eligible employees:  PROVIDED, That determination of classes of eligible employees shall be subject to approval by the office of financial management.

     Should the legislature revoke any benefits granted under this section, no affected employee shall be entitled thereafter to receive such benefits as a matter of contractual right.