Break in service vs. annual leave payout


Q: I will be retiring under CSRS and plan on returning as a rehired annuitant under the National Defense Authorization Act hiring authority for the part-time re-employment of civilian retirees. What is the minimum break in service necessary to obtain a payout for unused annual leave?

A: You misunderstand how the process works. When you retire, your unused annual leave will be projected forward as if you were still on the payroll. When you return to work for the government, you will have to repay any part of the lump-sum annual leave payment that overlaps with your period of re-employment. For example, if you received a payment for 30 days (240 hours) and went back to work after 7 days (56 hours), you’d have to refund 23 days (184 hours) of the money you received.


About Author

Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to

Leave A Reply