Common use of Payments At Separation Clause in Contracts

Payments At Separation. When employees leave the service of the City they shall be entitled to lump sum payoff at the regular rate of pay of any unused vacation hours, unused accrued compensatory time, and unused paid leave specified in Section 3.07(A)(3). No claim shall be made against the City for the use or payoff of unused sick leave, nor shall the effective date of separation be extended by use of any of the paid leaves described above. If allowed by Section 457 of the Internal Revenue Code (IRC), an employee separating from City service can defer all or a portion of the lump sum payments that the employee is entitled to receive upon separation, with the total amount deferred by the employee for the tax year in question not to exceed the maximum deferral amount allowed under Section 457 of the IRC.

Payments At Separation. When employees leave the service of the City they shall be entitled to lump sum payoff at the regular rate of pay of any unused vacation hours, unused accrued compensatory time, and unused paid leave specified in Section 3.07(A)(3). No claim shall be made against the City for the use or payoff of unused sick leave, nor shall the effective date of separation be extended by use of any of the paid leaves described above. If allowed by Section 457 of the Internal Revenue Code (IRC), an employee separating from City service can defer all or a portion of the lump sum payments that the employee is entitled to receive upon separation, with the total amount deferred by the employee for the tax year in question not to exceed the maximum deferral amount allowed under Section 457 of the IRC.. DocuSign Envelope ID: 358B42A2-21C3-4D7E-A041-B9603CFF3B5A