Buyout and LWOP

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Q. Does leave without pay status affect the possibility for buyout?  Does LWOP status affect retirement calculations?

A. Buyouts are targeted at positions or units where an agency wants to encourage employees to leave. If one were offered to you, the fact that you are on LWOP wouldn’t affect your ability to accept it. LWOP only affects your retirement calculation if it exceeds six months in any calendar year. No credit is given for LWOP in excess of six months.

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

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