Cashing Out Annual Leave at Retirement

As with many government benefits, your payout amount could change based on certain circumstances. When it comes to your annual leave, you could end up walking away with more than you had originally planned for.

No matter which part of the government you work for, there is one goal every federal employee is working toward: retirement. Along with financial security and some relaxation, there are several benefits to look forward to when you retire, including cashing in your annual leave. Which, for many, can easily become the cherry on top of a retirement sundae.

But how much annual leave do government employees actually qualify for? Well, the answer simply depends on what type of employee you are.

Annual Leave Expectancies for Federal Employees

Postal Service Employees

  • Postal Career Executive Service (PCES): Lump-sum payment of unlimited hours
  • Executive and Administrative Scale (EAS): Lump-sum payment of a maximum of 560 hours, plus any earned and unused time you accrued during your year of retirement
  • Union-contracted: Lump-sum of a maximum of 440 hours

Non-Postal Service Employees

  • Senior Executive Service (SES): Lump-sum payment of a maximum of 720 hours (certain employees may be entitled to an unlimited amount of hours)
  • Employees working in the U.S. and its territories: Can accumulate and carry over a maximum of 240 hours year-to-year
  • Overseas employees: Can accumulate and carry over a maximum of 360 hours year-to-year

As with many government benefits, your payout amount could change based on certain circumstances. When it comes to your annual leave, you could end up walking away with more than you had originally planned for. This can happen if you had planned to take leave time but ultimately weren’t able to for personal- or work-related reasons.

Don’t Bank on Your Annual Leave

Cashing in your annual leave might be a nice ‘bonus’ that comes along with retirement  — especially if you’ve saved up ample time — but you shouldn’t rely on it to carry you over the threshold. While it’s important to calculate how much annual leave you can count on, there are several other steps federal employees need to take when it comes to planning for retirement.

Insight Benefits Counselors is extensively trained on the complexities of federal benefits, including retirement planning. Our effective, three-step process can help you get on the right track towards retirement, and it all starts with a 20-minute phone call.

 

Contact us to get started with Insight Employee Benefits Counselor today.

 

Read the full article at: www.fedweek.com

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