Cashing in on Annual Leave at Retirement

federal workers - Aubrey Lovegrove

A major reason that most of the federal employees consider retirement at the turn of the year is that it allows them to cash in the annual leave they had not used to their credit at the moment of retirement as a lump sum. This occurs even past the normal annual carryover limit, supposed they retire before the start of their new year leave.

To calculate the lump-sum payment, the agency of the employee projects all the hours of annual leave that are unused and are forwarded as if the individual is still on the rolls. The lump sum will be figured based on what they receive. Entailed in the amount will be any raises in pay that a person could have been entitled to if they stayed on the job for an equivalent period. It is essential to note that regular pay increment takes effects during the first full pay period of the year.

Carry-over limits on an annual basis are determined if an individual is a postal or non-postal worker.

Postal Service Employees that are members of the Postal Career Executive Service (PCES) receive a lump-sum payment of their unused annual leave for an unlimited amount. Those under the Executive and Administrative Scale (EAS) that is composed of supervisors, managers, postmasters and non-bargaining unit employees get their lump sum for 560 hours together with their unused annual leave at the year they retire. Clerks or letter carriers are usually covered by union contracts for organizations such as APWU and NALC, and they will get a lump-sum payment of a maximum of 440 hours.

For Non-Postal Service Members that have been employed under the level of senior executive around the U.S. or any of its territories will have the ability to accumulate and carry-over a maximum of 240 hours of their annual leave to the following year leave. On the other hand, employees from overseas can accumulate and carry over 360 maximum hours. For Senior Executive Service members they can carry over 720 hours.

For non-postal workers, leave years for all employees will start on the first day of the first paying period in a calendar year for 2019-leave year it will start on January 6, 2019, for all the postal staffs and the day prior to the postal employees.

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