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Benefits − Unused Leave
Leave Other Than Sick Leave:
Upon separation from state service, employees receive a lump sum payment of all unused accumulated leave credits (vacation, annual, holiday, compensating time off, and personal holiday). Employees can transfer all or a portion of this payment to their Savings Plus Program (SPP) account.
Lump Sum Payment: Your unused leave payment will be taxable as ordinary income.
Savings Plus Program (SPP) Transfer: If you transfer unused leave credit to a SPP 401(k) and/or 457 accounts, you will not owe taxes on the money until you withdraw it. Any unused leave credit you transfer to SPP counts toward the annual contribution limits for 401(k) and/or 457 plans. To make this transfer, submit a Request to Defer Lump Sum Separation Pay form, available on the SPP website.
Sick Leave:
Sick leave credit is not cashed out. Employees separated by layoff and subsequently reemployed within the life of the reemployment list (typically five years) shall have their sick leave earned prior to layoff restored to them. In addition, upon reemployment, their prior state service shall be counted for the purposes of calculating the accrual rate for vacation.