Terminal Leave

A retiring employee may elect terminal leave unless the employee is retiring from state service to avoid dismissal for gross misconduct. (1) Employees Subject to State Retirement. Employees who are members of the Tennessee Consolidated Retirement System and are entitled to terminal leave shall be compensated for their terminal leave prior to the effective date of their retirement. (2) Termination of Benefits. On the date terminal leave begins, an employee shall: (a) Cease to be in a leave earning status. (b) Cease to be eligible for salary increases or salary adjustments. The salary rate in effect on the day before the employee begins terminal leave shall be used to determine terminal leave payments. (3) Accounting for Terminal Leave: (a) Saturdays, Sundays and Legal Holidays. Saturdays, Sundays and official holidays shall not be used in computing terminal leave unless such days are considered as workdays for the employee in the employee’s job assignment. To be paid for a holiday while on terminal leave an employee shall be on terminal leave past the holiday. (b) Beginning and Ending of Terminal Leave Period. Terminal leave shall begin the next workday following the last day in active pay status. Active pay status is a term applied to an employee who is actually working or who is using paid leave other than paid terminal leave or sick leave bank leave. The day after the last day of terminal leave shall be the employee’s official date of separation.