Q: I retired on Dec. 31, 2010, and received the lump sum compensation for unused leave days. The amount exceeds the $14,160 allowed to earn before Social Security reduction. Will my Social Security benefit be reduced because the lump sum I received? A: No, the Social Security earnings limit only applies to earnings from wages and self employment.
Browsing: sick leave
Q: Upon my CSRS retirement from the United States Postal Service, will I be permitted to withdraw my annuity, my accrued sick leave, my TSP and accrued vacation in separate lump amounts to they can be reinvested in private accounts, later to be inherited by my children? A: You can’t withdraw your annuity in a lump sum. Instead, when you retire, you will receive monthly annuity payments. Neither will you be able to receive a lump sum for any unused sick leave. That leave will have been added to your actual service and used to increase the amount of your…
Q: I will retire in 2014 under FERS with about 12.5 years of service. My high-3 will be approximately $62,000 and I know I will get a lump sum for any annual leave, but I’m a bit confused on the sick leave. I will have about 1,100 hours of sick leave accrued and the online calculator I used to determine how much that will add to my retirement says it will give me $8 per month more by using that sick leave. I thought the whole idea behind allowing FERS employees to use their sick leave toward retirement was that…
Q: I have read all the questions about sick leave. As a CSRS employee I have over the max years for credible service to receive 80 percent of my high three. I know my 2,087 hours of sick will garner me another 2 percent added onto the 80 percent. My question is, if I have more than the 2,087 hours of sick leave will I just loose those hours. A: There is no limit to the amount of unused sick leave for which you can receive credit when your annuity is computed.
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.
Q: You recently answered a question regarding sick leave credit, outlining the formula used to determine the credit at retirement. Does the same formula apply to a worker who works a 4-10 work week? A: Yes.
Q: I served two dependent-restricted tours in South Korea (1988-1989 and 2001-2002). I retired from the Army in 2006. I now work for the Army as a civilian. Does the time I spent in Korea count toward leave accrual? For example, I accrue four hours of annual and sick leave per pay period. Would that time allow me to accrue six hours per pay period, and would I get that credit from the time I began my federal civilian service in March 2009? A: No, it wouldn’t. For retired members of the military, leave accrual credit is only given for…
Q: Under the Federal Employees Retirement System, after 20 years, your annuity is figured at 0.011 percent of your high-3 salary average multiplied by your years of service. Below 20 years, the percentage used is 0.01. With the new law allowing 50 percent of unused sick time to be used for annuity calculations, can that time also be used to meet the 20-years-of-service criterion? A: Let’s first get the computational facts straight. The standard FERS formula is as follows: 0.01 x your high-3 x your years of creditable service. The 0.011 multiplier is only used if you retire at age…
Q: Under FERS, after 2013 or 2014 (whenever you get full credit for sick leave), if you retire under MRA 10+, will the sick leave add on, or add service months to help reduce the 5 percent reduction per year? I am 54 with 20 years of FERS service. A: No, it won’t. While unused sick leave will be added to your years of service and used to increase the amount of your annuity, it won’t alter your age. You will still be penalized 5 percent for every year (5/12 percent per month) that you are under age 60.
Q: I am trying to determine the best date to retire at the end of 2013. I want to maximize the amount of lump-sum leave I would be entitled to and also to take advantage of the new FERS sick leave policy. The pay period calendar shows that pay period 26 for 2013 begins Dec. 29, 2013, and ends Jan. 11, 2014. I plan to have my 240 hours of annual leave carry over and my earned leave for 2013 of 208 hours at the end of 2013, for a lump-sum payout of 448 hours. If I retire Jan. 10,…