(c) Notwithstanding any other law, when a state employee quits, retires, or disability retires from his or her employment with the state, the employee may, at least five workdays prior to his or her final day of employment, submit a written election to his or her appointing power authorizing the state employer to defer into the next calendar year payment of any or all of the employee’s unused or accumulated vacation, annual leave, holiday leave, sick leave to which the employee is otherwise entitled due to a disability, retirement, or time off to which the employee is entitled by reason of previous overtime work where compensating time off was given by the appointing power. The employee may elect any of the following:
(1) Contribute the entire payment to his or her 401(k), 403(b), or 457 plan account.
- (A) This election is only available if the employee’s last day of employment is on or after November 1 of the calendar year of his or her last day of employment.
- (B) The contributions shall be deposited into the applicable plan account no later than two and one-half months after the employee’s last day of employment.
(2) Contribute any portion of the deferred payment to his or her 401(k), 403(b), or 457 plan account and receive cash payment for the remaining noncontributed unused leave.
- (A) An employee is eligible to defer a portion of the deferred payment into a 401(k), 403(b), or 457 plan account only if the employee’s last day of employment was on or after November 1 of the calendar year of his or her last day of employment.
- (B) For the portion deferred into a 401(k), 403(b), or 457 plan account, the contributions shall be deposited into an applicable plan account no later than two and one-half months after the employee’s last day of employment.
(C) For the portion received as a cash payment:
- (i) Only that portion of leave that extends past the November pay period for the employee shall be deferred into the next calendar year.
- (ii) Payments shall be tendered under this paragraph no later than February 1 in the year following the employee’s last day of employment.
(3) Receive a lump-sum payment for all of the deferred unused leave as described above.
- (A) Only that portion of leave that extends past the November pay period for the employee shall be deferred into the next calendar year.
- (B) Payments shall be tendered under this section no later than February 1 in the year following the employee’s last day of employment.