Does sick leave count towards FERS retirement? This is a common question among federal employees who are planning for their future. The Federal Employees Retirement System (FERS) is a comprehensive retirement plan that includes three components: the Basic Benefit Plan, the Social Security benefit, and the Thrift Savings Plan. Understanding how sick leave affects your retirement benefits is crucial for making informed decisions about your career and retirement planning.
The Federal Employees’ Group Life Insurance (FEGLI) program is another important aspect of FERS. It provides life insurance coverage for federal employees and their families. However, sick leave does not directly contribute to the amount of life insurance coverage you receive under FEGLI. The coverage amount is determined by the employee’s salary and the insurance options they choose, not by the number of sick days they take.
When it comes to the Basic Benefit Plan, which is the core of FERS, sick leave does not count towards your retirement service credit. The Basic Benefit Plan provides a pension to eligible employees upon retirement, and the amount of the pension is based on the employee’s salary and the number of years of creditable service. Creditable service includes full-time, part-time, and temporary service, but it does not include sick leave.
However, there is an exception to this rule. If you are a federal employee who has been on extended sick leave due to a long-term illness or injury, you may be eligible for a special type of leave called “sick leave buyback.” This allows you to purchase additional service credit for the time you were on sick leave. The cost of this service credit is based on your salary at the time you were on leave and the number of years you were on leave. By purchasing this credit, you can increase your total creditable service and potentially receive a higher pension upon retirement.
It is important to note that the sick leave buyback option is not available to all federal employees. It is only available to those who have been on extended sick leave due to a long-term illness or injury. Additionally, the cost of purchasing this service credit can be significant, so it is important to carefully consider whether it is a viable option for your retirement planning.
In conclusion, while sick leave does not count towards FERS retirement service credit in most cases, there are exceptions for those who are on extended sick leave due to a long-term illness or injury. Understanding how sick leave affects your retirement benefits can help you make informed decisions about your career and retirement planning. If you have any questions about your specific situation, it is always a good idea to consult with a financial advisor or a human resources representative at your workplace.
