FERS Sick-Leave Credit
FERS Sick-Leave Credit Becomes Law
President Obama signed legislation on October 28, 2009 that allows federal workers who retire under the Federal Employees Retirement System (FERS) to receive credit for sick leave when they retire. The new benefit was included among a number of pay and retirement provisions in a compromise version of the 2010 Defense Authorization bill.
The law allows FERS-covered workers to receive a 50% credit for unused sick leave until December 31, 2013. Starting on January 1, 2014, they will receive full credit. Employees covered under the Civil Service Retirement System (CSRS) already receive credit for sick leave when they retire.
The legislation also includes a provision that would make it easier for federal agencies to rehire retirees (for a limited time) without forcing them to take a cut in their annuity checks.
Other provisions include:
1. A provision that would allow employees who chose to work part-time at the end of their careers to use a higher salary figure in calculations for how the reduced work factors into their retirement benefits.
2. A provision that moves workers in Hawaii, Alaska, the Virgin Islands and other U.S. territories from cost-of-living adjustments to a locality-pay system.
3. A provision that allows FERS employees who left and then returned to government service to redeposit savings in the retirement system and earn credit for years they previously worked.