Employee Cash-Out

It's Cash-Out Time!

Employees Can Invest Unused Sick Leave and Vacation Time

Did you know that a missed vacation might pay for a future vacation in retirement?

Many employees can cash out unused sick leave and/or vacation time at year-end. Most retiring public employees will get their unused sick and vacation time paid to them at the end of their employment.

This is an opportunity for participants to invest their leave into their Ohio DC account, tax-deferred.

It's easy! To defer year-end leave pay, employees must ask payroll managers for the dollar amount of leave they have available and the date it will be paid out. Ohio DC must receive their request at least 30 days before their pay date, so employees should call us at least 30 days in advance. Many participants must complete this request in early November in order to take advantage of the December cash out.

If an employee's leave cash out is due to termination (ending employment or retiring), the IRS requires the deferred cash out be made within 75 days of the termination date or within the same calendar year in which the employee is terminated, whichever is longer. The request to defer termination cash out must also be completed one month prior to that pay date.

Employees should call the Service Center at 877-644-6457 to defer their leave pay. Investing involves market risk including possible loss of principal.