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shall be excluded from the definition of sick leave for the purposes of this section. 18.1.6 Accumulated sick leave credits shall be reduced by the value of the sick leave compensated as provided in the above paragraph and the remaining balance shall be accumulated to a maximum of one -thousand two -hundred (1200) hours (2400 hours for Battalion Chiefs who work a fifty-six (56) hour work week). 18.1.7 If an employee terminates his/her employment, for reasons other than death, retirement or discharge, compensation in lieu of unused sick leave shall be paid in accordance with the terms provided for an employee who may elect to receive compensation in lieu of sick leave credits, prorated to the date of termination of service. Employees who have ten (10) years of service and who retire from City employment with benefits from PERS or who die while in the employ of the City shall be eligible to receive fifty percent (50%) of accrued unused sick leave. In the event of the death of an employee, such payments shall be made to the designated beneficiary filed with the Director of Finance, or, in the event no designated beneficiary has been chosen, the beneficiary listed in the employee's insurance policy will receive the payment of such unused sick leave as provided under the provisions for an employee who elects to receive compensation in lieu of sick leave credits. Employees discharged shall not be eligible for payment of unused sick leave. 18.1.8 If an employee's illness results in an absence from work for three (3) or more days, a doctor's certificate or other reasonable proof of illness may be required by the City. 18.1.9 If a supervisor believes there is an abuse of sick leave, the supervisor may require the employee to provide medical verification for all future sick leave absences for a period of ninety (90) days. 18.2 Industrial Disability Leave 18.2.1 A management unit employee who is employed by the City as of March 31, 1983, who suffers any disability arising out of and in the course of his/her employment as defined by the Workers' Compensation laws of the State of California, shall be entitled to industrial disability leave without loss of compensation for the period of such industrial disability to a maximum of one (1) year, or upon retirement, whichever comes first. Employees hired on or after April 1, 1983, shall be entitled to industrial disability leave without loss of compensation for the period of such industrial disability to a maximum of sixty (60) days or until retirement, whichever occurs first. During the period the employee is paid by the City, the employee shall assign or endorse to the City any benefit payments received as a result of