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Payment of Unused Sick Leave

Discontinuation of Payment of Unused Sick Leave Program

June 22, 2017

Effective June 22, 2017 the West Virginia State Legislature has eliminated funding for the State Employee Sick Leave Fund. The fund was created by W. Va. Code §5-5-6 in 2009 and provided eligible employees an option to receive payment for their unused sick leave. Effective with the elimination of the sick leave fund due to recent state budget cuts, requests for payment of unused sick leave are no longer being accepted or approved by the State Department of Administration.

Background of the Program

During the 2008 Legislative Session, regulations were passed permitting eligible employees to sell unused sick leave. Employees were eligible to sell unused sick leave if they are eligible to convert unused sick leave into extended retiree health insurance benefits. Generally speaking, employees hired prior to July 1, 2001 are eligible to convert unused sick leave into extended retiree health benefits.

Repayment of Sick Leave to the State

If an employee leaves the benefits-eligible employment of the State of West Virginia within five (5) years, or 60 months, he/she must reimburse the State Employee Sick Leave Fund the amount of their gross payment plus 12% interest per year. Death or Retirement are not considered separation of employment for purposes of the sick leave buyout program.

Questions regarding this information may be directed to Benefits Administration at 293-5700×4.