I heard I can convert unused vacation leave to a special account for medical expenses. How will that work?
A. Retirement medical benefits accounts under Internal Revenue Code Section 401(h) are to be established (subject to IRS approval) that will require retiring state employees to convert up to 30 days of any unused accrued vacation leave to a monetary contribution on a pretax basis. The Accounts can be used for sickness, accident, hospitalization, and medical expenses of the employee, spouse and dependents after the employee’s retirement. State employees who are terminating employment but not retiring will continue to have up to 30 days unused vacation leave converted into cash payments.
