Q: How is unused sick leave calculated when a CSRS employee retires at the maximum 42-year tenure with an 80-percent annuity calculation? Would the annuity be higher then 80 percent based on the sick leave accumulated? Example: Federal Service of 42 years. Sick leave accumulated is 3,000 hours. Would the annuity be calculated at near 83 percent?
A: Yes. The 80-percent maximum is a cap on your earned annuity, the one based on your years of creditable service. It does not apply to unused sick leave or to additional annuity purchased through the Voluntary Contributions Program.
