[Adopted 12-13-1988 by Ord. No. 1414-88]
Any full-time employee of the Borough of Fair
Lawn who has or shall be entitled to accumulate sick leave under personnel
rules and regulations as authorized by state law shall be entitled,
upon retirement, or upon termination of employment other than for
a violation of any federal, state or municipal law, rule or regulation,
to payment of supplemental terminal leave compensation for each full
day of earned and unused accumulated sick leave which is credited
to such employee on the effective date of such retirement or termination
of employment in the manner prescribed herein.
Except in the event of death before such retirement
or termination, any full-time employee having served continuously
and consecutively for a minimum of 20 years may make application for
supplemental compensation as provided herein not later than November
1 of the calendar year immediately preceding the year of contemplated
retirement or termination of employment with the Borough.
Upon death of an employee after a minimum of
20 continuous and consecutive years of service, or upon retirement
or termination of employment of a continuous and consecutive twenty-year
employee, the department head and the Borough Treasurer/Chief Financial
Officer shall certify to the Municipal Manager the number of earned
and unused accumulated sick leave credited to the employee on the
date of death or effective date of such termination of employment,
and the Treasurer/Chief Financial Officer shall then compute the amount
of supplemental terminal leave compensation to which the employee
or beneficiary is entitled as herein provided.
The supplemental terminal leave compensation
to be paid hereunder shall be computed at the rate of 40% of the eligible
employee's gross daily rate of pay on the date of death, termination
or retirement for each day of earned and unused sick leave for employees
having completed 20 continuous and consecutive years of service with
the Borough, and an additional 2% for each full year of service thereafter
to a maximum of 60% for 30 or more years of contiguous, consecutive
employment with the Borough.
[Amended 12-11-2001 by Ord. No. 1880-2001]
A.
The supplemental terminal leave compensation provided
herein shall be paid in a lump sum or in partial payments at the option
of the former employee or his/her beneficiary; provided, however,
that no such lump sum or partial payment shall exceed the sum of $15,000
in any one calendar year. No interest shall accrue to the retiree
or beneficiary on the unpaid balance of such compensation.
B.
If the employee qualifies for the catch-up provision
in accordance with the Internal Revenue Service Code under Section
475, the employee may choose to have a portion of their terminal leave
converted to additional compensation so that it can be transferred
to the employee's deferred compensation account. If the employee chooses
to take advantage of this option, the employee must make application
not later than December 15 of the calendar year immediately preceding
the start of the contribution period. The Treasurer/Chief Financial
Officer shall certify to the Borough Manager the number of earned
and unused accumulated sick leave days credited to the employee by
December 31 and compute the amount of supplemental terminal leave
compensation the employee wants to convert under the Deferred Compensation
Law.
[Added 3-13-1990 by Ord. No. 1444-90; amended 10-29-2019 by Ord. No. 2515-2019]
A.
The benefits set forth in §§ 30-1, 30-2, 30-3, 30-4 and 30-5A of this chapter shall not be available to any full-time employee of the Borough of Fair Lawn except a member of the Police Benevolent Association or a member of the Police Superior Officers Association, who is hired by the Borough on or after March 19, 1990, and the Borough shall not be liable or responsible for providing same.
The supplemental terminal leave compensation
provided herein for unused accumulated sick leave shall in no way
affect, increase or decrease any pension or retirement benefit to
such retired or deceased employee or beneficiary under any other statute,
rule or regulation.
A.
In addition to the terminal leave supplemental compensation
herein provided, any employee who retires or terminates employment
shall, along with his or her spouse, be entitled to continue with
the same hospitalization, medical and major medical coverage plan
or plans as provided by the Borough for active employees, provided,
however, that the cost will be shared on a 50-50 basis between the
retiree and the Borough until such time that the former employee or
spouse is otherwise covered by a similar plan or the former employee
becomes gainfully employed, in which case the Borough's obligation
to provide its share of the coverage shall cease. The former employee
and/or spouse may, however, continue membership in the group plan
or plans at their own cost/and expense under such regulations as are
acceptable to the Plan and the Borough.
[Amended 9-9-1997 by Ord. No. 1696-97]
B.
An employee to be eligible for the benefits hereunder
must fulfill the requirements of one of the following:
[Added 9-9-1997 by Ord. No. 1696-97]
(1)
Has retired on a disability.
(2)
Has retired after 25 years or more of service credit
in a state or locally administered retirement system having a period
of the last 20 consecutive years of service with the Borough of Fair
Lawn at the time of retirement.
(3)
Has retired and reached the age of 65 years or older
with 25 years or more of service credit in a state or locally administered
retirement system having a period of the last 20 consecutive years
of service with the Borough of Fair Lawn at the time of retirement.
(4)
Has retired and reached the age of 62 years or older
with at least the last 15 years of service with the Borough of Fair
Lawn at the time of retirement.
C.
To receive such group coverage, the retiree will be
required to provide proof of his/her status in such manner as shall
be determined by the Borough Council.
D.
Any full-time employee of the Borough who has not
terminated employment or retired as of December 31, 1987, and who
meets the other requirements of this article shall receive the benefits
as set forth in this section and same shall be paid entirely by the
Borough.
E.
Any full-time employee of the Borough who was hired
on or between January 1, 1988, to April 25, 1988, shall receive the
benefits herein if the full-time employee meets all the requirements,
and the Borough shall pay for same.
F.
The benefits set forth in this section shall not be
available to any full, part-time or temporary employee hired by the
Borough on or after April 26, 1988, and the Borough shall not be liable
or responsible for providing same.
G.
In the event an employee is entitled to benefits under
this section, the Borough is only responsible to provide the benefits
to said employee to the same extent as existed for said employee on
the date of his/her retirement or termination.
In the event of the death of an active or former
employee having a minimum of 20 years continuous, consecutive service
at the time of such death, the benefits or balance of benefits herein
provided shall go to the surviving spouse or named beneficiary.
