RASL Payment Expectations: 

As stated in the RASL literature, communicate to retirees that the first RASL payment is generally available 60-90 days after a qualified and complete application has been received by the GAO (not 60-90 days after retirement, as some retirees assume). With an unexpected surge in applications received during the summer months and since applications are processed in the order received, it is now taking closer to 90 days to fully process applications. Reinforcing this message will ensure all RASL applicants have the appropriate payment expectations.

Deferred Compensation:

Applicants retiring prior to October 25, who wish to utilize deferred compensation in the current calendar year, must ensure their application is processed by their agency and sent to RASL as soon as possible and within 30 days of their termination in order to meet the December 31 IRS deferral deadline. If the application is not received in time, deferred compensation will not be possible in the current calendar year. Applicants retiring on or after October 25 can defer in early in the next calendar year.

Note: The information below is a brief summary of the Retiree Accumulated Sick Leave program. Please refer to Topic 55, Section 75 of the State of Arizona Accounting Manual (SAAM) and to A.R.S. §§ 38-615, 38-616 for complete program requirements.

The Arizona Retiree Accumulated Sick Leave (RASL) Program offers an officer or employee of the State of Arizona the opportunity for payment of accumulated (unused) sick leave at retirement. To be eligible for the program, the individual must meet the following requirements:

• Have an accumulated sick leave balance of 500 or more hours at the date of termination from employment; and  
• The accumulated sick leave hours must be available for use at the time of termination; and
• Must establish a retirement date from an “Authorized Retirement System” that is effective within 31 calendar days after the date of termination from state employment (the retiree must have an effective retirement date on file with an Authorized State Retirement System); and 
• Complete and return the Retiree Accumulated Sick Leave (RASL) Program Application and Certification Form (GAO-SL-50) and appropriate Checklist (see below) to the Arizona Department of Administration, General Accounting Office within 180 calendar days following the effective retirement date. Both the retiree and agency sections must be completed before submission to the General Accounting Office.

Authorized Retirement Systems include: the Arizona State Retirement System (ASRS), the Corrections Officer Retirement Plan (CORP), the Optional Retirement Program (ORP) established by the Arizona Board of Regents, the Public Safety Personnel Retirement System (PSPRS), or be an employee of a state university under the jurisdiction of the Arizona Board of Regents who participates in a Federal Retirement System.

Although Arizona law (A.R.S. § 38-764 (I)) allows certain ASRS members to retire and receive a pension without termination of employment, the RASL Program requires a termination with retirement.

Although A.R.S. § 38-615 has been changed effective 9/30/09 to grant the Department of Administration the authority to make lump sum payments for all who are RASL eligible, a change to the payment policy is not being made at this time.

Payment without deferred compensation

If the individual (retiree) meets the requirements listed above, the first payment for the accumulated sick leave is normally made between 60 to 90 days from receipt of a properly completed Form GAO-SL-50 and Checklist by the General Accounting Office. Any second payment is typically sent one year later, with any final payment sent two years after the first payment.   

Deferred compensation option

As an alternative to a payment, the retiree may be eligible to rollover a portion of a payment into the State of Arizona sponsored deferred compensation program.  To make a rollover into the deferred compensation program, the retiree must meet, at a minimum, the following requirements:

• Enroll in the state sponsored deferred compensation program prior to termination from state service; and
• Complete and return Form GAO-SL-50 and Checklist within 30 calendar days after termination of state employment (the retiree does not have 180 days to submit Form GAO-SL-50 and Checklist with this option); and  
• Submit a “Deferral Notification Form” directly to the state sponsored deferred compensation provider. To determine an estimated deferral amount, refer to the “Deferred Compensation Calculator” below.

If an eligible individual dies prior to enrollment in the program or prior to receiving all payments, the beneficiary or estate should contact the General Accounting Office to determine eligibility and to claim the payment.