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39 <br />work that an employee is required to work according to their specific workday <br />schedule. <br /> <br />K. Payment for Unused Sick Leave. <br /> <br />Definition. All employees hired or appointed into the bargaining unit prior to <br />Council approval of this 2022 MOU (as this section does not apply to employees <br />hired or appointed into the bargaining unit after Council approval of this 2022 <br />MOU), except for those involved in disciplinary termination, shall be entitled to <br />payment under the following provisions: <br /> <br />1. After ten (10) years of cumulative full-time service with the City, each <br />qualified employee shall be entitled to payment for one-third (1/3) of the <br />total sick leave benefit credited to their account upon the effective date of <br />such termination, not to exceed a maximum limit of 427 hours, at the rate <br />of pay in effect on the date of such termination. <br /> <br />a. At their option, an employee may convert the above lump sum <br />payment option into the retiree health account fund, held by the <br />SAPOA for the purposes of retiree health insurance or long term <br />care insurance premiums to the extent necessary to provide the <br />employee and their designated eligible dependents, if any, with <br />benefits under the health insurance program maintained by the <br />Association. For unused sick leave benefits had this option not been <br />elected, not to exceed a maximum of 640 hours. <br /> <br />2. After 15 years of cumulative full-time service with the City, each qualified <br />employee shall be entitled to credit for two-thirds (2/3) of the total sick leave <br />benefit credited to their account upon the effective date of such termination, <br />not to exceed a maximum limit of 1,040 hours, calculated at the rate of pay <br />in effect on the date of such termination. This credit shall be applied into <br />the retiree health account fund, held by the SAPOA for the purposes of <br />retiree monthly health insurance premiums or toward long-term care <br />insurance premiums, beginning on the effective date of termination. <br /> <br />3. After 20 years of cumulative full-time service with the City, each qualified <br />employee shall be entitled to one of two options: (a) payment for 1/3 of the <br />total sick leave benefit credited to their account upon the effective date of <br />such termination, not to exceed a maximum limit of 533 hours, at the rate <br />of pay in effect on the date of such termination, or (b) credit for 2/3 of the <br />total sick leave benefit credited to their account upon the effective date of <br />such termination, not to exceed a maximum limit of 1,040 hours. <br /> <br />4. After 25 years of cumulative full-time service with the City, each qualified <br />employee shall be entitled to one of two options: (a) payment for 2/3 of the <br />total sick leave benefit credited to their account upon the effective date of <br />such termination, not to exceed a maximum limit of 1,040 hours, at the rate <br />of pay in effect on the date of such termination, or (b) credit for 2/3 of the