Reserve for Employee Benefits & Accrued Liabilities
This reserve is used to fund payments of the monetary value of accrued and accumulated, but unused and unpaid sick leave, personal leave, vacation leave, holiday leave time allowances granted in lieu of overtime compensation earned by employees and due upon
their termination of employment by retirement or otherwise.
This fund cannot be used to pay for items such as: retirement incentives, FICA and Medicare payments and retiree health insurance.
General Municipal Law, Article 2 §6-p
Source of Funds:
Funds may be placed into this reserve from excess fund balance, budgetary appropriations and other funds that may be legally appropriated or, transferred pursuant to GML or Education Law 3651, by BOE resolution.
Voter approval is not required to fund this reserve.
Use of Reserve:
This reserve is used when an employee separates from the District and payment of accumulated leave is required. These transactions flow through the budget via a budget revision with the offsetting revenue coming from a drawdown of this reserve.
Voter approval is not needed to expend funds
Funds cannot be used to pay lump sum “retirement incentives” paid upon retirement under a collective bargaining agreement.
This reserve was created on June 30, 2002.
This reserve should be funded at 100% of the accrued liability for unused accumulated leave time, computed annually.
Balance at June 30, 2021:
- Originally intended to offset the GASB 45 liability, this reserve should be retained for that purpose, should be retained for that
purpose, should enabling legislation be authored