About the Program
This program provides for the conversion of your accumulated sick leave to pay for continued State Group Health Insurance premiums for you and/or your eligible dependents if you have family coverage. You are eligible for accumulated sick leave conversion if you are a subscriber in the State Group Health Insurance program or a dependent on your spouses State Group Health Insurance contract and:
- You retire and begin receiving an "immediate annuity" (an "immediate annuity" is one that begins within 30 days after retirement). or
- You terminate and you have at least 20 years of creditable WRS service, or
- Your employment terminates due to layoff; or
- You die.
Value of Accumulated Sick Leave
The value of your conversion credit is determined by multiplying your "highest" hourly rate* by your total hours of accumulated sick leave. Employees with 15 or more years of service may be eligible to receive an additional (supplemental) sick leave credit. The University matches the sick leave hours at the rate of 52 hours per year for each year of service from year 1-24 and at the rate of 104 hours per year for years greater than 24 (not to exceed the beginning balance). Years of service are based on the "seniority date" of State of Wisconsin service and does not include service earned through other WRS covered employment.
This accumulated sick leave conversion credit can only be used to pay for State Group Health insurance premiums. State law does not allow sick leave conversion credits to be paid out in cash. Group Health insurance premiums will then be deducted from this account until depleted.
* Unclassified employees can determine their hourly rate by dividing their current monthly full-time rate by 174 hours.
Use of Sick Leave Conversion Account
You are eligible for sick leave conversion upon retirement, termination or death. You may escrow (delay the use of) your sick leave credits indefinitely provided you have comparable health insurance coverage. You must be insured under the State Group Health Insurance Plan upon retirement, termination or death to be eligible for this escrow provision. Contact the Department of Employee Trust Funds for information on the options for escrowing your sick leave.
When you begin using your escrowed sick leave credits, you will be allowed to re-enroll in any State Group Health insurance plan without waiting periods or exclusions for pre-existing conditions. When re-enrolling, you will need to notify Employee Trust Funds two to three months prior to the effective coverage date.
Spouse is Also a University/State Employee
If you are the subscriber carrying the health insurance coverage and your spouse is an active University/State employee in a position covered by the WRS, you may transfer your health coverage to your spouse. Your spouse will then carry the health insurance coverage for both of you, and you can place your sick leave status in "inactive" status until your spouse retires. Upon your spouse's retirement, both sick leave balances can be converted to pay health insurance premiums. Contact the UWM Benefits Office for more information on how to transfer health insurance coverage.
CAUTION: If you and your spouse are both University or State employees, and each of you have a "single plan coverage," your sick leave credits will not be available for use by the surviving spouse.
Conversion of Accumulated Sick Leave
At retirement or termination - An Accumulated Leave Certification form will be completed by the UWM Benefits Office as soon as possible after the date of your retirement or termination.
In the event of a layoff - If you are laid off, you will be contacted by the UWM Benefits Office regarding conversion of your sick leave. If you are interested, you will be sent a Sick Leave Conversion Request form to be completed by you and your department.
In the event of your death - If death occurs while still an active employee, and you or your spouse is carrying family coverage under the State Group Health Insurance, your surviving spouse and dependents will be eligible for conversion of your sick leave hours to pay for health insurance premiums. An Accumulated Leave Certification form will be completed by the UWM Benefits Office.
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Last modified: January 5, 2004
