Original Notice.

Preproposal statement of inquiry was filed as WSR 00-19-023.

Title of Rule: WAC 392-136-020 Annual conversion of accumulated sick leave.

Purpose: Amend rules to permit school districts to make conversion of sick leave to monetary compensation available to eligible employees separating from employment.

Other Identifying Information: School district employees -- Attendance incentive program.

Statutory Authority for Adoption: RCW 28A.400.210.

Statute Being Implemented: Chapter 231, Laws of 2000.

Summary: The definition of employees eligible to convert unused sick leave to monetary compensation is expanded to include those at least fifty-five years old and must have fifteen years of service is covered under PERS 2 or TRS 2 or ten years service under TRS 3.

Reasons Supporting Proposal: This will amend OSPI's rules to conform to the legislative changes.

Name of Agency Personnel Responsible for Drafting: Linda Harrison, Office of Superintendent of Public Instruction, (360) 753-2298; Implementation: Allen Jones, Office of Superintendent of Public Instruction, (360) 753-6708; and Enforcement: Mike Bigelow, Office of Superintendent of Public Instruction, (360) 753-1718.

Name of Proponent: Office of the Superintendent of Public Instruction, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: The rule change is needed to reflect the change made by the 2000 legislative session. Under the attendance incentive program school districts may now permit conversion of unused sick leave to monetary compensation upon termination of employment for eligible employees. Prior to this legislative change such conversion was permitted only upon retirement or death.

     The law allows but does not require a sick leave buyout program. Expanding eligibility for conversion of sick leave will increase district compensation costs for certain employees upon termination of employment. No additional funding was provided by the legislation.

     Although the attendance incentive program is available to all school districts and educational service districts the expanded eligibility for employees upon termination of employment applies only to school districts.

Proposal Changes the Following Existing Rules: See Explanation of Rule above.

No small business economic impact statement has been prepared under chapter 19.85 RCW. Not applicable.

RCW 34.05.328 does not apply to this rule adoption.

Hearing Location: Wanamaker Room, 1st Floor, Old Capitol Building, P.O. Box 47200, Olympia, WA 98504-7200, on April 11, 2001, at 9 a.m.-11 a.m.

Assistance for Persons with Disabilities: Contact Sheila Emery by March 28, 2001, TDD (360) 664-3631.

Submit Written Comments to: Legal Services, Office of Superintendent of Public Instruction, P.O. Box 47200, 600 South Washington Street, Olympia, WA 98504-7200, fax (360) 753-4201, by April 10, 2001.

Date of Intended Adoption: April 12, 2001.

March 7, 2001

Dr. Terry Bergeson

Superintendent of

Public Instruction

OTS-4639.2

AMENDATORY SECTION(Amending Order 84-2, filed 1/26/84)

WAC 392-136-020   Conversion of sick leave upon retirement or death.   (1) Eligible employees: ((Each eligible employee who is employed by a school district or)) Upon separation from employment the following employees may personally, or through their estate in the event of death, elect to convert all eligible, accumulated, unused sick leave to monetary compensation as provided in this section:

     (a) Eligible educational service district ((as of June 12, 1980, or thereafter and)) employees are those who ((subsequently)) terminate((s)) employment with the educational service district due to either retirement or death ((may personally, or through his or her estate in the event of death, elect to convert all eligible, accumulated, unused sick leave days to monetary compensation as provided in this section)).

     (b) Eligible school district employees are those who qualify under an attendance incentive program established by the school district board of directors pursuant to WAC 391-136-065 and who:

     (i) Separate from employment with the school district due to death or retirement; or

     (ii) After June 7, 2000, separate from employment with the school district and are at least age fifty-five and:

     (A) Have at least ten years of service under teachers' retirement plan 3 as defined in RCW 41.32.010(40), or under the Washington school employees' retirement system plan 3 as defined in RCW 41.35.010(31); or

     (B) Have at least fifteen years of service under teachers' retirement system plan 2 as defined in RCW 41.32.010(39), under Washington school employees' retirement system plan 2 as defined in RCW 41.35.010(30), or under public employees' retirement system plan 2 as defined in RCW 41.40.010(34).

     (c) In order to receive reimbursement for unused sick leave, by virtue of retirement pursuant to ((this chapter, at the time of separation from a school or educational service district employment due to retirement, an)) subsection (1)(a) or (1)(b)(i) of this section the employee must have separated from such employment and have been granted a retirement allowance under the laws governing the teachers' retirement system ((or)), the public employees' retirement system, or the school employees' retirement system whichever applies; however, it is not necessary that the employee actually file for retirement prior to the date of his or her separation so long as the application is thereafter filed within a reasonable period of time and without the occurrence of any intervening covered employment((: Provided, That the maximum number of days that may be converted pursuant to this section for a school district employee shall be one hundred eighty days)).

     (2) Eligible sick leave days: A maximum of one hundred eighty days may be converted to monetary compensation pursuant to this section. Eligible days include all unused sick leave days that have been accumulated by an eligible employee at a rate of accumulation no greater than one full day per month of employment as provided by the leave policies of the district(s) of employment (a maximum of twelve days per year), less sick leave days previously converted pursuant to WAC 392-136-015 and those credited as service rendered for retirement purposes((, may be converted to monetary compensation upon the employee's termination of employment due to retirement or death)).

     (3) Rate of conversion: Sick leave days that are eligible for conversion shall be converted to monetary compensation at the rate of twenty-five percent of an employee's full-time daily rate of compensation at the time of termination of employment for each full day of eligible sick leave. Partial days of eligible sick leave shall be converted on a pro rata basis.

     (4) Deduction of converted days: All sick leave days converted pursuant to this section shall be deducted from an employee's accumulated sick leave balance.

     (5) Exclusion from retirement allowance: Compensation received pursuant to this section shall not be included for the purpose of computing a retirement allowance under any public retirement system in this state.

[Statutory Authority: RCW 28A.21.360 and 28A.58.096. 84-04-034 (Order 84-2), § 392-136-020, filed 1/26/84. Statutory Authority: RCW 28A.58.100(2). 82-16-038 (Order 82-8), § 392-136-020, filed 7/28/82. Statutory Authority: 1980 c 182 §§ 5 and 6. 80-12-029 (Order 80-23), § 392-136-020, filed 8/28/80.]

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