Sick Time Payouts Spike with Early Retirement

ST. PAUL, Minn. (AP) - The state of Minnesota allows its workers to store away unused sick days over time, and take them as payouts upon retirement.

Those payouts usually cost the state about $14 million per year.

But the St. Paul Pioneer Press reports this year, Minnesota exceeded its annual sick time payout total by June 30, because thousands of workers took early-retirement incentives as the state tried to balance the budget.

Now, leaders of a joint committee that reviews state employee contracts say they will take an aggressive stance in looking at all forms of compensation - including sick-time severance.

The state and unions say the payouts offset wages in the public sector, which they say fall below what employees could earn in the private work force.

(Copyright 2011 by The Associated Press.  All Rights Reserved.)