Sick bank payout

Discussion in 'UPS Discussions' started by brownboxman, Nov 5, 2011.

  1. brownboxman

    brownboxman Active Member

    Ok I am 18 months from retirement, I will have 480 hrs accum if I stay healthy. I have had some tellme to to start using it up to avoid being hit by taxes in the year I retire, what have any of you experienced with that?
     
  2. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    480 hours works out to 60 days. The way that it usually works is your pension administrator figures out your retirement date and you would then back that date up for any vacation/personal/sick time that you have built up and that would be your actual retirement date. You would then receive separate checks for each week of accrued time and your pension would begin the month following your last week of accrued time.

    I am planning on doing it a bit differently when I retire. I plan on working up to my 30 year mark and then taking all of my vacation/personal/sick time starting on the full week after that date for the next 8 weeks. My pension would also not begin until all of my accrued time has been used.

    There really should not be a tax hit as you will be receiving separate checks which will be taxed at your normal rates. You should check with your pension administrator for more accurate guidance for your particular situation.