"Big I.O.U." Redux

Budget Year	No. of days	Amount of Liability	Reserved
2008	17,661	$4,880,873	-0-
2014	12,950	$3,426,576	$200,000
2015	10,779	$3,609,774	$175,000

In 2008, I called it "The Big I.O.U."

Employees, especially in urban municipalities, may add up all their unused sick and vacation time for a whopping big package at retirement. Some municipalities have a "use it or lose it" approach, but the state began requiring those with "accumulated absences" to state the liability in the budget document, including any funds set aside for payouts.

If I understand a resolution on Monday's agenda correctly, the city will be able to keep money in a fund from year to year to address the liability. It struck me as just another way that the city is developing fiscal prudence that was lacking over the years when there was no chief financial officer on the staff.

Plainfield has a system that lets employees accumulate sick days. Here is what the Municipal Code says:

Sec. 11:9-6.   Sick leave; accumulation.

    (a)     In the first calendar year of employment. employees shall be entitled to one (1) day of sick leave for each month of employment.

    (b)     Sick leave can be accumulated without limit during each employee's length of service. Upon regular retirement or work connected disability retirement. or upon death, employees shall be entitled to pay at the prevailing rate at the time of retirement or death on the basis of one-third (1/3) day per full, day verifiable sick leave accumulated and not previously used. Upon separation from service in good standing other than said retirements or death, employees shall be entitled pay at the prevailing rate at the time of separation on the basis of one-quarter (1/4) day per full day of verifiable sick leave accumulated and not previously used.

    (c)     Employees shall not be permitted to utilize anticipated sick leave until they have completed one (1) year of service. After one (1) year of service, employees may utilize up to the current year's anticipated sick leave, provided prior accumulated sick leave has been first utilized.

(R.O. 1957, 5:10-4, as amended May 4, 1970; MC 1971-9, §3, Sept. 20, 1971; MC 1973-4, §3, Jan. 15, 1973; MC 1973-28, §1, August 6, 1973.)

--Bernice