“Hi Micah and Tammy, I’m a Federal employee with 30 years in, and 5 years out from retirement. Can you explain how unused Sick and Annual leave are handled at retirement? I understand that unused SL balances can increase your annuity but I don’t understand the formulas. Thank you.” -Cheryl
Let’s start with annual leave which is paid to you in a lump sum when you separate or retire from federal employment.
For example:
If you retire on December 31, 2021 and have an annual leave balance of 448 hours…
Wait! How did you get 448 hours of annual leave?
You carried over 240 hours of A/L from 2020 (if you had more than this, you could have had 25% of use or lose leave restored in 2021, but the additional leave cannot be paid in a lump sum). Then, in 2021, you didn’t use any annual leave and you earn leave at the rate of 8 hours / pay period. There are 26 pay periods in a year and you retired at the end of pay period 26.
26 x 8 = 208
208 + 240 = 448
Example: | Years | Months | Days | |
Total Service | 30 | 6 | 18 | |
Sick Leave (1,300 hours) | + | 7 | 15 | |
30 | 13* | 33* | ||
Years and months for Calculation | 31 | 2 | 3 |
*1 month = 30 days and 12 months = 1 year
Converting Unused Sick Leave | ||||||||||||
Days | Months | |||||||||||
| 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 |
0 | 0 | 174 | 348 | 522 | 696 | 870 | 1044 | 1217 | 1391 | 1565 | 1739 | 1913 |
1 | 6 | 180 | 354 | 528 | 702 | 875 | 1049 | 1223 | 1397 | 1571 | 1745 | 1919 |
2 | 12 | 186 | 360 | 533 | 707 | 881 | 1055 | 1229 | 1403 | 1577 | 1751 | 1925 |
3 | 17 | 191 | 365 | 539 | 713 | 887 | 1061 | 1235 | 1409 | 1583 | 1757 | 1931 |
4 | 23 | 197 | 371 | 545 | 719 | 893 | 1067 | 1241 | 1415 | 1589 | 1762 | 1936 |
5 | 29 | 203 | 377 | 551 | 725 | 899 | 1073 | 1246 | 1420 | 1594 | 1768 | 1942 |
6 | 35 | 209 | 383 | 557 | 731 | 904 | 1078 | 1252 | 1426 | 1600 | 1774 | 1948 |
7 | 41 | 215 | 388 | 562 | 736 | 910 | 1084 | 1258 | 1432 | 1606 | 1780 | 1954 |
8 | 46 | 220 | 394 | 568 | 742 | 916 | 1090 | 1264 | 1438 | 1612 | 1786 | 1960 |
9 | 52 | 226 | 400 | 574 | 748 | 922 | 1096 | 1270 | 1444 | 1618 | 1791 | 1965 |
10 | 58 | 232 | 406 | 580 | 754 | 928 | 1102 | 1275 | 1449 | 1623 | 1797 | 1971 |
11 | 64 | 238 | 412 | 586 | 760 | 933 | 1107 | 1281 | 1455 | 1629 | 1803 | 1977 |
12 | 70 | 244 | 417 | 591 | 765 | 939 | 1113 | 1287 | 1461 | 1635 | 1809 | 1983 |
13 | 75 | 249 | 423 | 597 | 771 | 945 | 1119 | 1293 | 1467 | 1641 | 1815 | 1989 |
14 | 81 | 255 | 429 | 603 | 777 | 951 | 1125 | 1299 | 1473 | 1646 | 1820 | 1994 |
15 | 87 | 261 | 435 | 609 | 783 | 957 | 1131 | 1304 | 1478 | 1652 | 1826 | 2000 |
16 | 93 | 267 | 441 | 615 | 789 | 962 | 1136 | 1310 | 1484 | 1658 | 1832 | 2006 |
17 | 99 | 273 | 446 | 620 | 794 | 968 | 1142 | 1316 | 1490 | 1664 | 1838 | 2012 |
18 | 104 | 278 | 452 | 626 | 800 | 974 | 1148 | 1322 | 1496 | 1670 | 1844 | 2018 |
19 | 110 | 284 | 458 | 632 | 806 | 980 | 1154 | 1328 | 1502 | 1675 | 1849 | 2023 |
20 | 116 | 290 | 464 | 638 | 812 | 986 | 1160 | 1333 | 1507 | 1681 | 1855 | 2029 |
21 | 122 | 296 | 470 | 643 | 817 | 991 | 1165 | 1339 | 1513 | 1687 | 1861 | 2035 |
22 | 128 | 301 | 475 | 649 | 823 | 997 | 1171 | 1345 | 1519 | 1693 | 1867 | 2041 |
23 | 133 | 307 | 481 | 655 | 829 | 1003 | 1177 | 1351 | 1525 | 1699 | 1873 | 2046 |
24 | 139 | 313 | 487 | 661 | 835 | 1009 | 1183 | 1357 | 1530 | 1704 | 1878 | 2052 |
25 | 146 | 319 | 493 | 667 | 841 | 1015 | 1188 | 1362 | 1536 | 1710 | 1884 | 2058 |
26 | 151 | 325 | 499 | 673 | 846 | 1020 | 1194 | 1368 | 1542 | 1716 | 1890 | 2064 |
27 | 157 | 331 | 504 | 678 | 852 | 1026 | 1200 | 1374 | 1548 | 1722 | 1896 | 2070 |
28 | 162 | 336 | 510 | 684 | 858 | 1032 | 1206 | 1380 | 1554 | 1728 | 1902 | 2075 |
29 | 168 | 342 | 516 | 690 | 864 | 1038 | 1212 | 1386 | 1560 | 1733 | 1907 | 2081 |
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“I am 59 and planning to retire a year from now. My wife will retire at the same time (but at age 61, not a federal employee). We are planning
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7 CLASSIC RETIREMENT MISTAKES Federal Employees Make
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