Montana Code 2-18-1311. Contributions of unused sick and vacation leave — other contributions not prohibited
2-18-1311. Contributions of unused sick and vacation leave — other contributions not prohibited. (1) When the member‘s employment is terminated, the member’s unused sick leave balance may be converted to a tax-free employer contribution to the participant account pursuant to this section.
Terms Used In Montana Code 2-18-1311
- account: means an account established for the payment of qualified health care expenses under the plan. See Montana Code 2-18-1303
- Employee: means a person employed by an employer. See Montana Code 2-18-1303
- Employer: means a legally constituted department, board, commission, or any other administrative unit of state government, a county, an incorporated city or town, or any other political subdivision of the state, including a school district, or a unit of the university system. See Montana Code 2-18-1303
- Member: means an employee whose work unit voted to establish a common association. See Montana Code 2-18-1303
- Participant: means a member who terminates employment and for whom an account is established. See Montana Code 2-18-1303
- Statute: A law passed by a legislature.
(2)The amount of the employer contribution to a participant’s account for hours converted under this section must be equal to one-fourth of the pay attributed to the accumulated sick leave. The attributable pay must be computed on the basis of the employee‘s salary or wage at the time that the sick leave is converted. A participant may not later receive as sick leave credit or as a lump-sum payment amounts contributed to the participant account pursuant to this section.
(3)At termination of employment, the member’s unused vacation leave balance may be converted to a tax-free employer contribution to the participant account as provided for in 2-18-617.
(4)This section does not prohibit an employer from making other contributions permitted by statute and federal law or from entering into an agreement with a participant for employer contributions to a participant account in addition to the contributions provided for under this section.