(1) The division shall implement a program whereby an employee may, upon termination of employment or retirement, elect to convert any unused annual leave or paid time off into any of the employee's designated deferred compensation accounts that:
(a) are sponsored by the Utah State Retirement Board; and
(b) are qualified under Section 401(k) or Section 457 of the Internal Revenue Code.
(2) Any annual leave or paid time off converted under Subsection (1) shall be converted into the employee's deferred compensation account at the employee's pay rate at the time of termination or retirement.
(3) No employee may convert hours of accrued annual leave or paid time off to the extent that any hours so converted would exceed the maximum amount authorized by the Internal Revenue Code for each calendar year.