Eligible teachers could count unused leave toward retirement

If enacted, the retirement system would count eligible unused annual leave in a retiring member’s annual compensation for retirement calculations. This covers members who joined the system before July 1, 2008, and no more than 60 days of unused annual leave. The payment must be authorized by law and equally available to members working the same number of contract days or more. At least two members of the employer must receive payment for unused leave. The leave must have been accrued before August 1, 2026, with an employer that began paying for unused leave for retirement calculations before that date.

If enacted, the state and, in some cases, a teacher’s last employer would pay the retirement system’s cost of counting eligible unused leave toward benefits. The state would cover costs for eligible leave accrued by July 31, 2026. The last employer paying for the leave would cover costs the state does not pay. The cost is the amount needed to fund the benefit after required employee and employer contributions are paid. For the employer categories identified in Section 2(4)(a) and (c), the state would also cover annual leave balance adjustments based on leave earned or used, up to five additional days per year. When the teacher retires, the retirement system would bill the last employer for its share, due within 15 days after notice.