Accumulated sick leave plays a role in calculating a federal employee’s retirement benefits. While it does not directly increase the annuity itself, it contributes to the length of creditable service. This added service time can enhance an annuity by potentially placing the retiree in a higher bracket for annuity computation or by increasing the total years used in the calculation. The exact impact depends on the retirement system under which the individual falls the Civil Service Retirement System (CSRS) or the Federal Employees Retirement System (FERS). For both systems, the calculation involves converting unused sick leave hours into days and adding these days to the total years of service.
Recognizing the value of accumulated sick leave provides a more complete picture of retirement planning for federal employees. Accrued sick leave represents a tangible asset, earned throughout a career, that can positively affect retirement outcomes. Historically, the inclusion of sick leave in retirement computations underscored the value placed on employee health and well-being, encouraging responsible use while acknowledging its contribution to a full career of service. This consideration helps ensure federal retirees receive due credit for their entire work history.
