Annuity computation


Q. If you end up with 12½ months of sick leave, and 20 years and six-and-a-half months of service, would your retirement be based on 21 years, seven months, or would you lose the half month of sick leave and half month of service, and therefore use 21 years and six months to compute your retirement?

A. Your basic annuity will be determined by your years and full months of service. So, to use your example, you’d get credit for a combination of your actual service and unused sick leave. Hours that don’t add up to a full month will be dropped.


About Author

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


  1. Reg’s answer doesn’t seem to agree with what’s stated in RI 83-8, CSRS Retirement Facts – Credit for Unused Sick Leave Under CSRS. Page 3 of that publication gives an example of an annuity computation where 16 days of actual service and 24 days of earned sick leave were combined for a total of 40 days, which then added one extra month to the annuity computation, and then the extra 10 days were dropped.

  2. Company pension scheme i had when i retired through disability. Waiver of contributions which i was entitled to but is was axia advisor who never ever replied back to me. Company went into receivership when i was 51 and receivers told me to get in touch with friends life who took it over i sent a registered fax and said after i filled pension forms in and the put me into a anulty which goes to the DWP. Never give me answers over my waiver of contribution and no answer’s about the life cover i had. Thanks

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