Clarification of Unused Sick Leave

Written by: Michael Lawrence

Updated:
December 14 2005

Unused Sick Leave

Computation of Annuity
Under the General Formula
Chapter 50

Section 50B2.1-2 Length of Service

A. Creditable
Service for FERS
Computation
Purposes

Creditable service for FERS computation purposes includes:

* Service for which full FERS deductions were made and not refunded;

* Nondeduction service (for example, temporary or intermittent service) performed prior to January 1, 1989, if a deposit for such service is made (or deemed made under the alternative annuity provisions);

* Service for which Social Security taxes and full or reduced CSRS deductions were taken (if all CSRS deductions were not refunded);

EXCEPTIONS: If the CSRS deductions were refunded based o­n an application filed before the employee became covered under FERS , such service is creditable if a redeposit is made.

* Creditable periodsof military service performed prior to January 1, 1957; and

* Creditable periods of military serviceperformed after December 31, 1956, if a deposit such service is made prior to retirement.

Note : Except as noted in paragraph B below, unused sick lave is not creditable in the computation of a FERS basic annuity.

B. Employees With
a CSRS
Component

In determining creditiable service for a CSRS annuity cornponent, the rules in section 50A2. 1-2 apply with the folowing exceptions and additional rules that apply.

1. The amount of sick leave creditable is the lesser of:

* The employee's sick leave balance as of date of transfer to FERS; or

Elections of FERS Coverage
Chapter 11

Section 11A8.1-2 Credit for Service Upon Election of FERS

C. Service Subject to
CSRS or Social
Security o­nly

Crediting civilian service that was performed beformed before the effective date of the election and that was subject to either CSRS or Social Security, but not both, depends o­n the length
of such such service. If the the total amount of these two types of service performed before the effective date of the election of FERS totals:

* Less than 5 years, the srevice is creditable under FERS for computation purposes;

* 5 or more years, the service is credited under CSRS provisions for computation purposes
(that is, the employee is entitled to a CSRS component in his or her FERS annuity).

D. Military Service

If the employee is entitled to a FERS annuity with no CSRS annuity component, all military service performed beformed before the effective date of the FERS election is creditable
under CSRS rules.

If the employee is entitled to a CSRS annuity component in his or her FERS annuity, all military service performed prior to the effective date of the FERS election is creditable under CSRS rules.

E. Unused Sick Leave

Generally , unused sick leave is not creditable for annuity computation purposes under FERS, However, employees who elect FERS coverage and will have a CSRS annuity component may receive credit for unused sicl leave in the computation of the retirement benefit. The amount credited will be the lesser of:

* the unused sick leave balance as of the effective date of the FERS election; or

* the unused sick leave balance as of the date of retirement.

For additional information concerning crediting unused sick leave, see Chapter 20.CSRS and FERS Handbook August 1996