There's usually a reduced payout, by formula according to years of service and age. Also, a cap on maximum hours allowed to accumulate from year to year. That's what happened in my case when I retired. I was losing over a hundred hours a year because I maxed out and rarely called in sick (allowed 13 sick days per year). I donated my time to other employees with severe illness who had depleted their sick time.
“There’s usually a reduced payout, by formula according to years of service and age.”
That’s news to me and I know something about NJ Civil Service rules.
Actually, if you accrute sick leave for your entire career, or even PART of it and are promoted, or get raises, the hourly rate of the sick leave you accrued years ago was lower than your present hourly rate, but the sick leave pay out is based on present salary.
That needs fixing also.