SECTION 1. Chapter 3 of the General Laws is hereby amended by inserting after section 18 the following section:-

Section 18B. Any payment of unused sick-leave or vacation allowance, or any combination thereof, to employees whose services terminated by death, dismissal, through no fault or delinquency of their own, or by retirement, shall not exceed an amount equal to 15 per cent of the employee’s annual salary.

SECTION 2. Section 31A of chapter 29 of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by adding the following subsection:-

(e) A payment made pursuant to subsections (a), (b), (c) or (d), or any combination thereof, shall not exceed an amount equal to 15 per cent of the employee’s annual salary.

SECTION 3. Section 19A of chapter 35 of the General Laws, as so appearing, is hereby amended by inserting after the word “therefor”, in line 14, the following words:- ; provided further, that a payment, if made individually or in combination with a payment of unused sick-leave, shall not exceed an amount equal to 15 per cent of the employee’s annual salary; and provided further, that no payment of unused sick-leave, if made individually or in combination with a payment of vacation allowance shall exceed an amount equal to 15 per cent of the employee’s annual salary.

SECTION 4. Said section 19A of said chapter 35, as so appearing, is hereby further amended by inserting after the word “therefor”, in line 30, the following words:- ; provided further, that a payment, if made individually or in combination with a payment of unused sick-leave, shall not exceed an amount equal to 15 per cent of the employee’s annual salary; and provided further, that no payment of unused sick-leave, if made individually or in combination with a payment of vacation allowance shall exceed an amount equal to 15 per cent of the employee’s annual salary.

SECTION 5. Section 111E of chapter 41 of the General Laws, as so appearing, is hereby amended by inserting after the word “therefor”, in line 10, the following words:- ; provided further, that a payment, if made individually or in combination with a payment of unused sick-leave, shall not exceed an amount equal to 15 per cent of the employee’s annual salary; and provided further, that no payment of unused sick-leave, if made individually or in combination with a payment of vacation allowance shall exceed an amount equal to 15 per cent of the employee’s annual salary.

SECTION 6. Notwithstanding chapter 150E of the General Laws, or any general or special law to the contrary, any collective bargaining agreement in effect immediately before the effective date of this act shall continue in effect; provided however, a collective bargaining agreement entered into after the effective date of this act shall be subject to this act and shall not make any provisions for payment of unused sick-leave or vacation allowance or both that exceeds 15 per cent of an employee’s annual salary.