(1) Upon retirement, an employee shall be paid 25 percent of the employee’s accrued sick leave, at the employee’s regular hourly rate of pay, up to a maximum cash out of 1,440 hours. For purposes of this policy, “retirement” means the employee must be a vested member and meet the eligibility criteria to retire from a Washington State-sponsored retirement plan, Public Employees’ Retirement System (PERS) Plans 1, 2, or 3. Plan 1 and 2 members under a Washington State-sponsored retirement plan with the Department of Retirement Systems (DRS) must immediately receive a monthly retirement plan payment or lump sum payment as allowed by the plan. Plan 3 members under a Washington State-sponsored retirement plan with DRS are not required to receive a retirement plan payment or lump sum payment, but must meet the retirement plan’s eligibility criteria.

(2) Upon the death of an employee, the employee’s estate shall be paid 25 percent of the employee’s accrued sick leave, at the employee’s regular hourly rate of pay, up to a maximum cash out of 1,440 hours.

(3) Employees who voluntarily resign or who are laid off by the district due to a reduction in force or lack of work and who, in both cases, have completed at least five years of continuous active service with the district shall be paid 25 percent of the employee’s accrued sick leave, at the employee’s regular hourly rate of pay, up to a maximum cash out of 1,440 hours; provided, that an employee who voluntarily resigns must provide the district with at least two weeks’ written notice of resignation as a condition to receiving payment for sick leave.

(4) Employees whose employment is involuntarily terminated for any reason other than as set forth in subsection (3) of this section shall not be eligible for sick leave cash out and accrued sick leave shall be forfeited upon termination of employment.

(5) Sick leave cash out shall be calculated based upon the employee’s then-regular base hourly wage or salary (excluding overtime or any premium, specialty or incentive pay). The sick leave cash out shall be calculated effective of the date of an employee’s last day of actual work for the district, and shall be paid out on the next regular payday.

(6) Sick leave cash out shall in all cases be capped at a maximum of 1,440 hours. Accrued sick leave which exceeds the maximum 1,440 hours shall not be cashed out and shall be forfeited upon termination of employment for any reason. [Res. 788 § 1 (Exh. 1), 2019; Res. 767 § 1.6, 2018; Res. 548 §§ 1, 2, 2002.]