3420B - TERMINAL PAY PROCEDURES

A person employed by the District as a member of the instructional staff shall be eligible for terminal pay upon normal retirement, provided that normal retirement coincides with termination. "Normal Retirement" shall mean retirement under any plan established by the State legislature with either full or reduced retirement benefits. Payment may be made to the beneficiary if service is terminated by death. Accrued vacation is also paid to employees leaving the employ of the District for reasons other than retirement.

All calculations dealing with terminal pay for accumulated sick leave and vacation shall be based upon the employee’s daily rate.

Vacation

Terminal pay for accrued vacation will be paid thirty (30) days after the date of normal retirement or upon termination. Vacation cannot be sold in lieu of time off.

Sick Leave

Terminal pay for accrued sick leave will be paid sixty (60) days after the date of normal retirement. Terminal pay for accrued sick leave upon retirement shall be the maximum allowable according to the following:

1. During the first three (3) years of service in the District, the daily rate of pay multiplied by thirty-five percent (35%) times the number of days of accumulated sick leave.

2. During the next three (3) years of service in the District, the daily rate of pay multiplied by forty percent (40%) times the number of days of accumulated sick leave.

3. During the next three (3) years of service in the District, the daily rate of pay multiplied by forty-five percent (45%) times the number of days of accumulated sick leave.

4. During the next three (3) years of service in the District, the daily rate of pay multiplied by fifty percent (50%) times the number of days of accumulated sick leave.

5. During and after the thirteenth (13th) year of service in the District, the daily rate of pay multiplied by 100% times the number of days of accumulated sick leave.

Calculation Methodology for Sick Leave Payments

Upon retirement payment of sick leave is calculated in accordance with F.S. 1012.61(2)(a)4a through e.

Terminal Pay for DROP Participants

There are special provisions for the terminal pay of participants in the Deferred Retirement Option Program (DROP).

Vacation:

Vacation will be paid to vacation eligible DROP participants within the first calendar month after DROP participation begins. This will allow the inclusion of accrued annual leave in employees’ average final compensation for retirement purposes.

Sick Leave:

Accrued sick leave for DROP participants will not be paid until the DROP period is completed and the employee ceases employment with the District except under the FICA Alternative Plan discussed below.

FICA Alternative Plan

Terminal pay for employees and retirees shall be deposited by the District directly into an individual account of the employee/retiree pursuant to the FICA Alternative Plan for the District subject to contribution limits; terminal pay amounts of less than $500.00 will not be deposited into the 401(a).

Employees participating in DROP will have an amount deposited into their account with the FICA Alternative Plan (401a) for the District each July. The amount is equal to that percentage of the time left under their DROP option multiplied by the value of the balance of their accrued sick leave days.

In the last year of employment (prior to entering DROP) and in the last year of DROP the maximum plan contribution cannot exceed 100% of the plan year compensation or $41,000 whichever is less.

Processing Terminal Vacation and Sick Leave

Processing procedures for vacation and sick leave accruals vary depending upon the reason for the separation of the employment relationship, therefore, the following terminal pay processing procedure is grouped based upon the reason for termination.

Dismissal* and Resignation

Vacation shall be paid to a vacation eligible member of the instructional staff who has resigned or have been dismissed at the maximum amount allowed by F.S. 1012.65 and this procedure. The maximum amount of payment is sixty (60) days. If former employees return to work for the District, vacation shall be earned based on the new employment date, as with any new hire.

Sick leave balances shall not be paid to a member of the instructional staff who is dismissed or resigns. Sick leave balances are held in escrow. If former employees return to work for the District, sick leave balances will be reinstated at that time.

*Exceptions exist for dismissals as a result of certain incidents of gross misconduct.

Retirement

Vacation shall be paid to retiring vacation eligible retiring member of the instructional staff at the maximum amount allowed by F.S. 1012.65 and this procedure. The maximum level of payment is sixty (60) days. Any amount of vacation above sixty (60) days will be forfeited. No balance is maintained. If a former retiree returns to work for the District, vacation shall be earned based on the new employment date, as with any new hire.

Sick leave shall be paid at the maximum amount allowed by F.S. 1012.61(2)(a)4a through e and in accordance with this procedure. Payment is determined at a percentage rate based on the instructional staff member's years of service with the District. No balance remains. If a former retiree returns to work for the District, sick leave shall be earned based on the new employment date, as with any new hire.

DROP Retirement

Vacation shall be paid to vacation eligible DROP participants at the maximum amount allowed by F.S. 1012.65 and in accordance with this procedure at the time the instructional staff member enters DROP. Upon enrollment in DROP, participants who do not elect vacation payment will be paid the maximum amount allowed at the end of their employment. DROP participants who have vacation in excess of the maximum allowed may retain their balance subject to the sixty (60) day accrual limit. All accrued vacation in excess of the amount eligible for terminal pay must be used prior to completion of the employee's DROP period or it will be forfeited. Payment for accrued vacation paid both at the time of entry into DROP or when the DROP period ends shall not total more than the sixty (60) day limit. No balance is maintained. If a former DROP retiree returns to work for the District after completion of DROP participation, vacation shall be earned based on the new employment date, as with any new hire.

Sick leave for DROP participants is paid under special provisions allowing the deposit of accrued sick leave amounts into a FICA Alternative 401(a) account. The FICA Alternative 401(a) Plan is a five (5) year plan. If a DROP extension is approved after the first five (5) years, a final payment will be made at termination. No balance remains once employees have completed their DROP participation. If a former DROP retiree returns to work for the District after completion of DROP participation, sick leave shall be earned based on the new employment date, as with any new hire.

Survivor Benefits

Upon the death of an employee, final wages, paid sick leave, and vacation shall be distributed to the wife or husband, and in the case there is no wife or husband, then to the child or equally to the living children, if eighteen (18) or older, then to the father or mother or if both are living, equally to the father and mother.

In the absence of the above living family members, the final wages, paid sick leave, and vacation shall be paid to the estate of the employee.

Employees in bargaining units refer to negotiated agreements.

Revised 11/04
Revised 1/05
Revised 6/05

© Brevard County Public Schools 2005