Tennessee Code Title 8. Public Officers and Employees § 8-50-808

(a) The estate of any employee, on the employee's death, or the estate of any deceased employee which is being compensated for terminal leave on June 3, 1981, shall be compensated for the employee's unused and accrued sick leave in the same manner that the estates of deceased employees are compensated for terminal leave.

(b) An employee may designate a beneficiary to receive payment for accrued annual, sick leave and compensatory leave upon the employee's death. Unless an employee designates differently, the beneficiary shall be the same as designated for receipt of retirement benefits with the Tennessee consolidated retirement system.