As state employees, UA retirees are eligible to participate in the Retiree Accumulated Sick Leave (RASL) program, maintained and administered by the Arizona Department of Administration (ADOA) and the General Accounting Office (GAO). Employees who have accumulated 500 hours or more of unused sick leave at time of retirement may elect a cash payout of their sick leave benefit over a 3-year period.
To be eligible for the RASL benefit, you must meet these criteria. Final eligibility is determined by ADOA and GAO:
There are no extensions to these deadlines. If you miss these deadlines, you permanently and irrevocably forfeit the benefit.
The RASL benefit value is calculated by multiplying your hourly pay rate at the time of retirement by the number of unused sick leave hours (up to 1,500) multiplied by a percentage based on the number of accumulated hours:
Example: Your hourly pay rate is $20.00 and you have 750 hours of accrued unused sick leave.
$20.00 × 750 × .33 = $4,950.00 total RASL benefit.
You can apply a maximum of 1,500 hours of accrued, unused sick leave to the RASL benefit. Hours in excess of this limit are irrevocably forfeited and purged from the payroll system.
The maximum RASL payout is $30,000.
The cash benefit is paid in equal installments over 3 years. You may elect to have the payments electronically deposited or mailed directly to your home address.
The RASL benefit cannot be accelerated, but in the event the retiree dies, the designated beneficiary is paid the remainder of the benefit.
RASL cannot be included as compensation for retirement purposes.
RASL is considered earned income, not a retirement benefit. Therefore, federal, FICA, and Medicare taxes are withheld on each installment. Arizona state tax is also withheld, even if you move to another state, because the income was earned in Arizona.
To reduce your tax liability, you may choose to have all or part of your first RASL payment rolled over into a 457(b) Deferred Compensation Plan with Nationwide. Amounts rolled into a deferred compensation account are subject only to FICA and Medicare taxes.
RASL Deferred Compensation Calculator: Retirees who receive RASL payouts have the option of rolling over the first payment into a deferred compensation plan with Nationwide, which may reduce tax liability for people whose income drops after retirement. This calculator helps you determine whether deferred compensation is to your advantage.
Submit to UA Payroll
University Services Building, Room 402
888 N. Euclid Ave. / P.O. Box 210158
Tucson, AZ 85721-0158
Label the envelope “RASL Application.”