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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.


    • The short answer is that your lump-sum payment for unused annual leave will automatically be reduced by 25 percent to cover potential tax liabilities. Out of that 25 percent, deductions will be taken for taxes — federal, state (if applicable), and local (if applicable) — but not for any premiums to cover your health or life insurance. Those deductions will be taken from your final paycheck or first annuity payment, whichever is applicable.

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