[vc_row][vc_column width=”2/3″ el_class=”section section1″][vc_column_text]Today, we address the importance of sick leave. Initially, sick leave allows employees to miss work due to sickness or to seek for medical attention. Nowadays, the reasons why sick leave is granted have evolved to include bereavement, funerals, adoption, and family care. What’s more, sick leave hours can be used to increase an employee’s annuity.
Subsequently, any unused sick leave hours are aggregated into retirement months. For CSRS retirees, every month of unused sick leave increments their annuity by 0.6%. This means that for six months of unused sick leave, your annuity increases by 1%. Likewise, 12 months of sick leave increase an employee’s annuity by 2%. For FERS retirees, a year of unused sick leave increases annuities by 1% or 0.833% for every month. However, if one retires at age 62 with 20 years of service the multiplier changes from 1% to 1.1%.
- Also Read: 3 Reasons Certain Federal Employees Can Retire Years Earlier Than Their Peers Without Penalties
- Also Read: CSRS Retirement in 2024: Are You Making the Most of What This Classic Plan Has to Offer?
- Also Read: Roth IRA Basics for Beginners: What’s There to Learn?
Unfortunately, sick leave can’t be used to claim retirement eligibility. Typically, it only applies where you’ve met the requirements of age and service years. Unused sick leave days are not credited where one leaves federal service before eligibility and applies for a deferred annuity.
In case you re-join federal service, sick leave hours are typically re-credited. Even so, if you receive a full salary and annuity, upon retiring you won’t receive any credit for unused sick leaves as well as any other while in service. This is because there is no recomputation of your annuity to cater for the new service period.[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_single_image image=”27829″ img_size=”292×285″ style=”vc_box_shadow”][/vc_column][/vc_row][vc_row][vc_column width=”1/3″][vc_single_image image=”28001″ img_size=”279×273″ style=”vc_box_shadow”][/vc_column][vc_column width=”2/3″][vc_custom_heading text=”Withdrawing from the TSP” font_container=”tag:h2|font_size:20px|text_align:left|color:%23363636″ google_fonts=”font_family:Raleway%3A100%2C200%2C300%2Cregular%2C500%2C600%2C700%2C800%2C900|font_style:500%20bold%20regular%3A500%3Anormal” css=”.vc_custom_1527247146075{margin-bottom: 20px !important;}”][vc_column_text]You have several withdrawal options that you can choose from. Partial withdrawals are allowed in a single payment. You can also make a full withdrawal with any one or any combination of the following methods:
- A single (lump sum) payment
- A series of monthly payments
- A life annuity (Thrift Savings Plan Lifetime payment options).
A combination of any of these three full withdrawal options is called a “mixed withdrawal.” You can have the Thrift Savings Plan transfer all or part of any single payment or, in some cases, a series of monthly payments, to a traditional IRA or an eligible employer plan by completing the TSP-70 form. Payments to you can be deposited directly into your checking or savings account using electronic funds transfer (EFT).[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width=”2/3″][vc_custom_heading text=”Spouse’s Rights” font_container=”tag:h2|font_size:20px|text_align:left|color:%23363636″ google_fonts=”font_family:Raleway%3A100%2C200%2C300%2Cregular%2C500%2C600%2C700%2C800%2C900|font_style:500%20bold%20regular%3A500%3Anormal” css=”.vc_custom_1527247169854{margin-bottom: 20px !important;}”][vc_column_text]If you are a married Thrift Savings Plan participant (even if you are separated from your spouse), spouses’ rights apply to annuity purchases. If you are a married FERS or uniformed services participant with a total account balance of more than $3,500 and you are making a full withdrawal of your account, your spouse is entitled by law to an annuity with a 50% survivor benefit, level payments, and no cash refund. If you choose any other withdrawal option or combination of options by which your entire account balance is not used to purchase this particular type of annuity, your spouse must sign the statement on your withdrawal form that waives his or her right to that annuity.[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_single_image image=”28002″ img_size=”279×273″ style=”vc_box_shadow”][/vc_column][/vc_row]
