“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.
Yes, the accrued sick-pay is paid out at the rate at the time of a person retiring, despite what the earnings were when it was accrued. The formula I spoke of applies to San Francisco, and averages about 2/3rds payout of hourly rate. But with a max cap on what can be carried over each year, and the reduced payout, the employee generally is giving away time without compensation.