Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Pension Compensation topic
No spam. Unsubscribe anytime.
Bedford County retirement board: unused leave payouts not pensionable under Act 96; solicitor guidance sought
Summary
At its March 3 meeting, the Bedford County Retirement Board heard that unused vacation and sick-leave payouts should be excluded from pensionable compensation under Act 96; staff confirmed past practice included those payouts and the board agreed to seek county solicitor guidance and update plan documents.
David Reichert, a consultant with Foster & Foster, told the Bedford County Retirement Board on March 3, 2026, that the statutory definition of “compensation” under Act 96 excludes unused vacation and unused sick leave from pensionable earnings. Reichert said counties must still issue those payouts, but they should not be used to calculate retirement benefits.
Reichert told the board that historical practices in Bedford County had included unused leave payouts in pension calculations, which in some cases inflated retirees’ final average pay. “Historically, Bedford County did include these payouts, which inflated final average pay for some retirees,” he stated during the overview of compensation under Act 96. Reichert recommended the board consult the county solicitor to confirm the proper application of the statute before changing administrative practice.
Chief Clerk Debra Brown and staff member Melissa Cottle confirmed to the board that the county’s current practice has been to include unused leave payouts in pension calculations. Board members agreed that, once solicitor guidance is received, the Summary Plan Description and internal procedures should be updated prospectively and documented in writing to avoid future inconsistencies.
Reichert also noted that some jurisdictions allow employees to convert unused vacation into additional service time (which can affect pension calculations), but he said Bedford County’s existing policies and cost considerations make that option impractical here.
On sick leave payouts, staff member Melissa Cottle referenced the employee handbook provision specifying payment of unused sick leave at $25 per day. The board clarified that this payout will continue, will be issued as a separate check, and will not be included in pension calculations going forward.
Next steps: the board requested solicitor advice on applying Act 96 to Bedford County’s practices; after receiving legal guidance, staff will prepare updates to the Summary Plan Description and related procedures.
