Lump-sum payment for annual leave balance


Q: If I retire at the end of fiscal year 2010 — on Sept. 30 — can I delay cashing out my annual leave balance until 2011, when I would be in a lower income tax bracket?

A: No, you can’t. Lump-sum payments are automatic and are made when your finance office completes the close-out of your employment records. As a rule, the payment is made at the same time your final paycheck is issued.


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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

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