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Sick Leave Cashout at Separation 

Last updated 02/05/2026

When you retire from the Auburn School District, you may be eligible to convert a portion of your unused, accrued sick leave into a retirement benefit. This is commonly referred to as Sick Leave Cash-out at retirement and is separate from the annual January sick elave buy back option.

How the sick leave cash-out works

  • At retirement, if desired you submit a request to cash-out your unused sick leave using the form below.

  • Auburn School District reviews your eligibility and unused sick leave balance.

  • Under Washington rules, sick leave is converted using a 4-to-1 formula: for every 4 hours of unused sick leave, you receive 1 hour of pay (based on your final hourly rate).

  • State rules limit the amount that can be converted at separation due to retirement to up to 180 days of eligible accumulated sick leave.

  • If you qualify, this is paid out into a Veba medical expense account tax free the month following your retirement.

Why there is a cap

The retirement cash-out is capped (up to 180 days), so employees who build very large sick leave balances may not be able to convert amounts above that maximum at retirement.

Important notes

  • You can only cash out sick leave at retirement when you separate due to retirement (not for a typical resignation).

  • Your specific eligibility and the exact payment method (e.g., VEBA/medical expense plan) may depend on your bargaining agreement and the retirement process you complete.

  • This benefit is used to help pay for eligible medical expenses and/or premiums after retirement, not for non medical expenses. 

 Sick Leave Cash-out Upon Retirement Form

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