June 29, 2006
Effective immediately, the BHE has established a new policy that allows retiring MCCC unit members to defer their 20% accumulated sick leave pay and their vacation leave pay into a Tax Sheltered Annuity Plan (a 403(B) plan).
This can only be done upon retirement. The payment/deferral must be made within 2.5 months of separation of service. Employees who take advantage of early retirement are not eligible for this deferral because of the delay in payment of the sick and vacation leave accrual. Per IRS regulations, there are limits on the amount of money that can be deferred by each employee.
If you have made plans to retire or are thinking about retiring, please see your human resource office for more information about this tax savings policy.