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Sick-leave bonuses in effect
![[Picture]](01_1_i.gif)
If Leann Newman stays healthy, there may be $30,000 waiting for her when she retires. But she doubts the legislation increasing sick leave bonuses will still be around when she retires in about a decade. "When the Legislature finds out the cost, it may rethink this," said Newman, a University of Arizona academic adviser. The Arizona Legislature in July revised the incentive statute to add a hefty bonus - up to $30,000 - for employees who consistently come to work. Before July 1, compensation for retiring UA employees was capped at $750 for a minimum of 1,000 unused sick leave hours. The old statute stated that employees were to be paid in a one-lump sum, which raised some concern that it would cause a UA budget deficit. Greg Fahey, associate vice president for state relations, said provisions were added to the bill to help alleviate that concern. "The $30,000 cap payable over three years should be a big help in preventing a hole in the budget," he said. The state has set aside $2 million to pay its part, Fahey said. That amount is supposed to cover all state employees that qualify for the program. In order to receive the bonus, a state employee must be eligible for benefits and have at least 500 unused sick leave hours. Retirees are awarded on a graduating scale. Those with 1,000 to 1,500 unused sick leave hours receive half their former hourly pay for the time accumulated. Retiring faculty with fewer hours receive a smaller fraction of what they used to earn. Accumulated sick leave hours exceeding 1,500 cannot be used toward the benefit and no employee will receive more than $30,000. "The new payout is a little more lucrative," said Jerry Ford, director of compensation and benefits for the UA. Ford said there are two payment options employees can choose from - cash payment or health insurance. Both payments are made in installments over a three-year period. Jerry Hogle, faculty chairman and an English professor, said the revised sick leave program is better, but still has some problems. "I see it as a big improvement from previous years," he said. Hogle said there is a small problem with filling out the forms: Faculty are asked for an hourly rate, but they are salaried employees. Ford said a faculty member's annual salary can be figured into an hourly rate. Kent Kloepping, director of the UA's Center for Disability Related Resources, will retire this week. He is not eligible for the benefit because he has used up his sick leave. "The state is paying major amounts of money," he said. "I'm not real supportive of the program, but that may be because I'm not eligible."
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