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.
B. The benefits set forth in §
30-5B of this chapter shall be made available to any full-time employee of the Borough of Fair Lawn.
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.
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.