A beneficiary retires in April as specified in the employer's plan, and he receives
a $10,000 lump-sum payment for accumulated unused sick leave. The lump-sum payment
is not “wages” for earnings test purposes. For information on retirement pay and income
that is not wages for earnings test purposes, see RS 01402.326 and RS 02505.045.
If the employer's plan provides a lump-sum payment of accumulated unused sick leave
when the employment relationship terminates and the plan does not specify retirement
as a condition, consider the wages for earnings test purposes and count in the last
month of employment.