A. There is created in the general fund a separate account to be known as the “sick leave qualifying account,” to be used for payments made to certain city employees on account of sickness for the purpose of excluding such payments from the meaning of “wages” under Federal Old Age and Survivor’s Insurance.

B. The finance director shall develop an accounting plan and payroll procedures sufficient to meet the requirement of federal statutes and regulations for the purpose of implementing subsection A of this section.

C. This sick leave account shall apply to all officers and employees of the city including those subject to the Law Enforcement Officers and Firefighters Act (LEOFF Act; Chapter 41.26 RCW). Uniformed employees covered under the LEOFF Act – Plan 1, shall apply for disability retirement under the provisions of RCW 41.26.120.

D. Payments to employees pursuant to this section shall be included in compensation reported to the Employees’ Retirement System.

E. The finance director shall budget sums adequate to cover payment of sick leave during each fiscal year and periodically transfer to the sick leave account in the general fund moneys sufficient to reimburse the sick leave account for payments on account of sickness as provided in this section. Funds placed in the sick leave account shall lapse at the end of the fiscal year.

F. All other leaves of absence with pay regardless of how denominated shall not, in accordance with Social Security law and regulations, be excludable as taxable wages under OASI. (Ord. 3564 §§ 1 – 6, 1980.)