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Under the 2023 Sick Leave Agreement with BNSF, all unused sick leave days, as well as all PL days converted to sick leave, are to be paid out the following year under one of two methods. If a cashout of PL days is desired, those days must be converted to sick leave by the last day of the year to be eligible. If you had unused days from 2024, you must choose your payment method in January 2025. You can choose to receive a cash payment for the total days remaining, or you can choose to have the amount contributed to your 401k plan. Payments cannot be split between the two options.
For members choosing the cash payout, the amount will be subject to the supplemental federal tax rate, as well as any applicable state taxes. For those opting to have their unused sick leave contributed to their 401k, it will be a tax deferred contribution (no state or federal tax withheld). However, the funds will be subject to railroad retirement taxes. If this election is chosen, the funds will be deposited at payroll close in the first half of February and RR retirement taxes will be withheld from your next regular paycheck. If you have not made your election, please remember to do so by the January 31st deadline. Elections can be made by contacting your timekeeper or emailing EngTimeKeepSupp@bnsf.com.
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