[vc_row][vc_column width=”2/3″ el_class=”section section1″][vc_column_text]Why do many federal employees decide to retire before the new year? It’s because they can take advantage of their remaining annual leave they have left for a lump sum. This amount even surpasses the normal yearly carryover limit, but they have to do it before the next leave year begins.
When the agency starts to calculate the lump sum amount, they will estimate the number of unused hours of yearly leave forward should you have remained on the books. The amount given is based on what you would have gotten. In the amount are pay raises that you would have been given as well.
Your yearly carryover limit is dependent upon your federal status – postal employee or non-postal employee.
Postal Employees
- Also Read: 5 Things You Need to Know About Survivor Benefits as a Federal Employee or Retiree
- Also Read: How FEGLI Premium Changes Are Forcing Federal Employees to Reevaluate Their Plans
- Also Read: Why FEHB and Medicare Could Be the Most Important Decision You Make as a Retiree
Non-Postal Employees
If you’re a senior executive service member in the U.S. or its territories, the carryover is up to 720 hours. If not a senior executive service member, you can accrue and carry over no more than 240 hours of yearly leave for the next leave year. Any overseas employee can accrue and carryover at most 360 hours.
The leave year starts on the first day of the first pay period of the calendar year. For 2019 and non-postal employees, the new year starts Jan. 6, 2019. For postal employees, the new year begins Jan. 5, 2019.
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