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SALT LAKE CITY (AP) -- The Utah Legislature was entitled to phase out a program that let state employees cash their accumulated sick leave into retirement benefits, the state's highest court said Thursday.
In a 5-0 decision, the Utah Supreme Court said the conversion was a practice never clearly defined by law as a benefit and that state workers couldn't assert a contract right over it. The court rejected a lawsuit filed by the Utah Public Employees Association.
Writing for the court, Associate Chief Justice Michael J. Wilkins said the state lets employees roll over and accumulate sick leave as a job incentive, but that workers couldn't assert an inviolable right to the cash value of it.
The costs to the state have nearly doubled over the past five years as more state employees cashed in thousands of hours of sick leave to support them through retirement. Originally the program allowed state workers to claim a month's medical and life insurance coverage for every eight hours of unused sick time.
"We really appreciate the Supreme Court in being expeditious in handling this matter," Senate President John L. Valentine, R-Orem, said Thursday. "It affects compensation, it affects whether or not we have to set aside a particular amount of dollars to fund this particular benefit. This was not an easy decision for the court but it was an even harder decision for us."
The Legislature acted last year to phase out the program over five years. The first change took effect Jan. 1, when workers could bank only 75 percent of their accumulated sick leave at retirement for medical and life insurance premiums, with the remaining 25 percent going to their 401(k) accounts.
Also suing were four state workers and a retiree who logged a combined 8,000 hours of unused sick leave. They said the Legislature's changes were an unconstitutional taking of something due them at retirement.
"We disagree," said Wilkins' 39-page decision. "Instead, we find the statutory language ambiguous as to when an employee's right to redeem the unused sick leave for medical and life insurance vests."
The court was uncertain if the benefit could be claimed upon retirement or when a state employee reaches his or her service or age minimum but decides to continue working.
The Utah Supreme Court said it would allow the Legislature's rollback to take effect within 30 days by lifting an injunction that has held up the changes.
(Copyright 2006 by The Associated Press. All Rights Reserved.)
