Terminal sick leave is only paid when an employee is coded a retiree upon separation of service at their current hourly rate.  However, administrative staff are paid at the hourly rate the sick leave was earned each fiscal year.  The frozen administrative balance (June 2004) or the Instructional/Classified balance will be paid at the current hourly rate.  Currently, there is not a limit on the amount of sick leave hours to be paid out.

BENCOR is the District’s 401(A) special pay plan that OCPS utilizes to pay a retirees sick leave.  Contributions are made to the plan at the time of your retirement unless you are in DROP, then contributions are made each anniversary year leading up to your DROP Exit date.

One of the unique benefits of the special pay plan on all contributions is a permanent savings of Social Security and Medicare taxes for the employee and the district.   Additionally, federal income taxes are deferred on contributions and any earnings under the Plan until distributed. Those taxes could be at a lower tax rate during retirement.    All Plan contributions are 100% vested when deposited.  

Terminal Sick Leave Pay Percentage at Retirement

An employee receives terminal pay as follows:

  • 0-3 Years                               35%
  • 3.01-6 Years                         40%
  • 6.01-9 Years                         45%
  • 9.01-12  Years                      50%
  • 12.01 - over                      100%

*Based on consecutive years of service at the time of retirement.
Note:  Revision to contract effective 07/01/2008:  If the person has worked at least five consecutive years prior to retirement, previous time at the district may be counted as cumulative years of service.

**Sick Leave and DROP/Irrevocable Letter of Retirement (ILR) participation:  A percentage of sick leave balance is sent to Bencor in a tax deferred manner each anniversary of your participation in DROP.

***The percentage of hours paid each year is as follows:
            Year 1 20% of balance of hours
            Year 2 25% of balance of hours
            Year 3 33% of balance of hours
            Year 4 50% of balance of hours
            Year 5 100% of remaining balance of hours

If the employee leaves DROP/ILR early, then we calculate a Year 5 sick leave deposit at the time of your departure from OCPS.


An overview of your BENCOR plans.  

The link for your FICA Alternative Plan video is: BENCOR Fica Alternative Plan

The link to your Special Pay Plan video is: BENCOR Special Pay Plan