AFSCME: 21.3 Sick Leave Conversion to Health Coverage Upon Retirement – Tier One

Unless otherwise provided in this MOU, employees hired prior to January 1, 2011 whose employment with the County is severed by reason of retirement during the term of this MOU shall be reimbursed by the County for the unused sick leave at time of retirement on the following basis:

  1. For each 8 hours of unused sick leave at time of retirement, the County shall contribute towards one (1) month’s premium for health coverage or for dental coverage for the employee and eligible dependents (if such dependents are enrolled in the plan at the time of retirement). The County shall not be obligated to contribute at a rate in excess of $165.00 per 8 hours of unused sick leave per month for the retired employee to continue health or dental coverage (e.g., if an employee retires with 320 hours of unused sick leave, the County will continue to pay the health or dental premiums on said employee for a period of 40 months). For employees who retire with 45% or more of the total amount of sick leave they could have accrued during their career with the County of San Mateo, the conversion rate for each 8 hours of unused sick leave shall be $195.00.

Employees may increase the number of hours per month to be converted up to a maximum of 14 hours of sick leave per month. Such conversion may be in one full hour increments above a minimum of eight hours (e.g., if a worker converts 12 hours, he/she would be reimbursed $247.00 instead of $165.00). The number of hours to be converted shall be set upon retirement and can be changed annually during open enrollment, or upon a change in family status that impacts the number of covered individuals (e.g., death of spouse, marriage and addition of spouse).

For employees who retire on or after January 1, 2008, the conversion rate for each 8 hours of sick leave will be increased from $165.00/$195.00 to $420. In no event will changes in the Kaiser premium or application of the 2% or 4% increases listed below result in the $420 rate being reduced.

For employees who retire with 20 or more years of service with the County of San Mateo, the $420 rate will be increased by 4% effective January 1, 2009 and each January 1st thereafter, the rate will be increased by 4%. Such contribution shall not exceed 90% of the Kaiser Employee-only premium non-medicare rate.

For employees who retire with at least 15 but less than 20 years of service with the County of San Mateo, the $420 rate will be increased by 2% effective January 1, 2009 and each January 1st thereafter, the rate will be increased by 2%. Such contribution shall not exceed 90% of the Kaiser Employee-Only premium non-medicare rate.

For employees who retire after January 1, 2007 with less than 15 years of service with the County of San Mateo, the conversion rate for each 8 hours of sick leave will be increased to $400. For employees who retire after January 1, 2008 with less than 15 years of service with the County of San Mateo, the conversion rate for each 8 hours of sick leave will be increased to $420. For employees who retire after January 1, 2009 with less than 15 years of service with the County of San Mateo, the conversion rate for each 8 hours of sick leave will be increased to $440.

Should a retired employee die while receiving benefits under this section, the employee’s spouse and eligible dependents shall continue to receive coverage to the limits provided above.

Employees hired on or after 1-1-2011 receive $400 per 8 hours of accrued sick leave. No inflation factor and no conversion at a lower number of hours. Section 21.6 remains in effect.

  1. The County provides a specified contribution to retirees who have unused sick leave at the time of retirement. For each unused eight hours of sick leave at time of retirement the County will make a specified contribution, as defined above, to the monthly premium for the retiree. If the cost of the premium is greater than the County’s contribution, the retiree pays the difference through their retirement pay warrant. If the cost of the premium is less than the County’s contribution, the County will apply the difference to the retiree’s Medicare Part B premium cost.
  2. The County will provide up to a maximum of 288.6 hours of sick leave (3 years of retiree health coverage) to employees who receive a disability retirement. For example, if an employee who receives a disability retirement has 100 hours of sick leave at the time of retirement, the County will add another 188.6 hours of sick leave to his/her balance.
  3. For employees who retire on or after January 1, 2007 with 20 or more years of service with the County of San Mateo, the 8 hours of sick leave converted for each month’s retiree health contribution by the county shall be reduced to 6 hours.