Several bills (A2583, A1441, and A2581) were introduced in May that, if passed, would limit the ability of public employees to use or receive the entire cash equivalent of their accrued but unused vacation or sick leave in advance of, or upon, retirement.
Bill A2583 would cap the amount of payment for accumulated sick leave upon retirement to $10,000 for all public officials and public employees at all levels. Legislation passed in 2007 (Bill S17) had capped such payment at $15,000, but only for certain appointed or elected officials; this proposed legislation seeks to implement a $10,000 cap upon all public employees. Bill A1441 would cap the amount of accumulated sick leave upon retirement to $15,000 for local government and school board employees.
Bill A2581 would prevent any public officer or employee from taking more than six consecutive days of sick leave in the 12 months prior to retirement, unless the public employee can produce medical documentation to support the absence.
Note: This article was published in the June 2008 issue of the New Jersey eAuthority.