[ Previous Page] [ Home Page ]
The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us) STATE OF MICHIGAN FRANK J. KELLEY, ATTORNEY GENERAL Opinion No. 6273 February 22, 1985 COUNTIES: Termination of accumulated sick leave fringe benefit upon retirement for county officers A county board of commissioners may prospectively terminate or reduce a salaried county officer's fringe benefit entitlement to a payment of accrued sick leave upon retirement previously authorized by the board. Honorable Connie Binsfeld State Senator Capitol Building Lansing, Michigan You have requested my opinion on a question related to the payment of accumulated sick leave to county officers at the time of their retirement from county office. Your question is: 'Whether or not the provisions of [1879 PA 154, Sec. 1(1), as amended,] MCLA 45.421[; MSA 5.1101] prohibit the County Board of Commissioners from terminating or reducing during the current term of service a salaried county officer's fringe benefit entitlement to an accrued sick leave payment upon retirement?' As background to your question you state: 'In 1969, the Wexford Board of Commissioners adopted a sick leave policy [for county officers] which includes cash payment upon retirement of accumulated sick leave not to exceed a certain number of days . . .. '[T]he Wexford Board of Commissioners is examining the feasibility of revising its policy of paying accrued sick leave to elected officials who retire. This change might entail either a reduction or elimination of this benefit and might apply to current officers during their current terms. 'An issue has been raised that this change might be prohibited by [1879 PA 154, Sec. 1(1), as amended,] MCLA 45.421[; MSA 5.1101]. This statute prohibits a county board from diminishing the annual salary of each salaried county officer during his or her current term of service. The Commissioners are uncertain if this prohibition is limited only to salaries or if it also extends to fringe benefits, such as accrued sick leave.' 1879 PA 154, supra, Sec. 1(1), provides: 'The annual salary of each salaried county officer, which is by law fixed by the county board of commissioners, shall be fixed by the board before November 1 each year and shall not be diminished during the term for which the county officer has been elected or appointed, but may be increased by the board during the officer's term of office.' [Emphasis added.] It has been recognized that sick leave is part of 'compensation'; it is not 'salary.' In Michigan State Police Command Officers' Association Inc, v Department of Public Safety, 80 Mich App 278, 281; 263 NW2d 47 (1977), lv den, 402 Mich 902 (1978), it is stated: 'In People v Lay, 193 Mich 476, 488; 160 NW 467 (1916), 'salary' is defined as 'a periodical allowance made as compensation to a person for his official or professional services or for his regular work'. In Beach v Kent, 142 Mich 347, 356; 105 NW 867 (1905), it is defined as 'a fixed annual or periodical payment for services depending upon the time and not upon the amount of service rendered'. By statute and by Supreme Court definition 'salary' is paid for service, not sick leave.' As to a fringe benefit which is not salary, there is no prohibition in 1879 PA 154, Sec. 1(1), supra, against prospectively reducing or terminating such benefits during the officer's term. In OAG, 1977-1978, No 5334, p 553, 554 (July 21, 1978), it was concluded that payment by a county board of commissioners of dues of the State Bar Association or other professional organization on behalf of the county prosecutor is a fringe benefit of employment and may be terminated by the board at any time: 'It will be noted that 1879 PA 154, Sec. 1, supra, employs the term 'salaries' which has been defined as a periodic allowance made as payment to a person for his official or professional services or for his regular work. People v Lay, 193 Mich 476, 488; 160 NW 467 (1916). This term is distinguishable from the broader term 'compensation' which includes salaries, fees or commissions, and fringe benefits. Holmes v State Officers Compensation Commission, 57 Mich App 255; 226 NW2d 90 (1974). This case settles the question and it is clear that in this state the term 'salaries' does not include fringe benefits.' It is noted that termination or reduction of fringe benefits have to be made prospectively, that is prior to rendition of services. Fringe benefits earned by county officers prior to a change in policy would not be affected. It is my opinion, therefore, that a county board of commissioners may prospectively terminate or reduce a salaried county officer's fringe benefit entitlement previously authorized by the board to a payment of accrued sick leave upon retirement. It is my further opinion that any accumulated sick leave fringe benefits earned by a county officer prior to such termination are payable to the county officer upon his or her retirement. Frank J. Kelley Attorney General
[ Previous Page] [ Home Page ]