Internet Explorer 11 is not supported

For optimal browsing, we recommend Chrome, Firefox or Safari browsers.

Minn. Legislature to Examine Practice of Paying Unused Leave to Retirees

Minnesota lawmakers plan to examine practice of paying unused sick and vacation leave to retiring state workers.

The practice of paying unused sick and vacation leave to retiring state workers is drawing scrutiny from the Minnesota legislature, the St. Paul Pioneer Press reports.

State Sen. Mike Parry, chairman of the legislative committee that reviews contracts of state employees, announced Monday that the joint Subcommittee on Employee Relations would begin holding hearings on the matter as soon as possible, according to the Pioneer Press.

The Pioneer Press had previously reported that Minnesota had paid about $57 million in unused sick leave to retiring state workers from January 2008 to June 2011. The newspaper found about $32 million in payments for unused vacation time over the same period. Some payouts, particularly three for administrators departing from the state university system, have topped six figures.

According to the newspaper, state contracts currently allow retiring workers who meet certain requirements -- usually being of retirement age or having worked for the state for at least 20 years -- to receive a percentage of unused leave as part of their severance. The newspaper's analysis also found that retiring university administrators received, on average, higher payments. That is likely because there is a cap on compensation for other state workers outside the university system, the Pioneer Press reports.

A spokesperson for the Minnesota State Colleges and Universities told the newspaper that they would be cooperating with any legislative probe. A spokesperson for AFSCME Council 5, one of the state's largest employee unions, told the Pioneer Press adjustments to employee compensation should be a part of contract negotiations.

Dylan Scott is a GOVERNING staff writer.