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Public workers get boost from sick time 'cash-out'

ADVANCE FOR USE SATURDAY, NOV. 12, 2011 AND THEREAFTER - In this Thursday, Nov. 3, 2011 photo, Denny Johnston poses for a photo at his home in Olympia, Wash. When Johnston retired from the Washington state corrections system, he was able to convert $15,000 of unused sick time into a tax-free account to pay health-care expenses. Proponents of the benefit say the ability to monetize leftover sick days encourages good attendance and is a fair trade-off for what they believe is lower pay for public workers. Critics see the sick time cash-outs as yet another example of government employees receiving benefits that are not available to most who work in the private sector. Photo: Ted S. Warren / AP

Denny Johnston received more than a pension and a handshake when he retired from the Washington state corrections system in 2009.

Because he used only a quarter of his sick days over a three-decade-long career, he was able to convert $15,000 of unused sick time into a tax-free account to pay health care expenses.

While the benefit is extremely rare in the private sector, where use-it-or-lose-it policies prevail, state and local government workers around the country can convert unused sick time into straight cash, retirement credits or use them to pay for health care when they retire.

The perk can add up.

In Ohio, 2,164 state retirees eligible to cash out sick time at a 55 percent rate received an average of $5,646 in the 2011 fiscal year. More than 4,300 departing Florida employees who retired or otherwise left state service last fiscal year averaged about $3,000 in sick-time payments. At least five received 10 times that.

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