I know we talked about this earlier last week, but here's a little more detail.
As part of the Defense Authorization bill signed on Oct. 28th, those employees covered by the Federal Employees Retirement System, known as FERS, will now receive credit for unused sick leave at retirement. This will allow you to “add on” to your time-in-service in the computation of the annuity benefit.
FERS employees who retire before Jan. 1, 2014, will receive a 50 percent time-in-service credit for unused sick leave.
FERS employees who retire on or after January 1, 2014, will receive full time-in-service credit for their unused sick leave.
You cannot apply unused sick leave to satisfy the eligibility requirements for retirement. You must have the required years of service to make you eligible.
How will this benefit you? The more sick leave you accumulate, the higher your retirement annuity will be.
I don't know about you, but for me, sick leave is the ultimate insurance policy. Few other companies allow you to roll over your accumulated leave, which guarantees your income through any sickness, especially long-term illness.
But if you’re healthy and able to save your leave, you’ll also be able to reap financial rewards at the end of your career. (I never was sick, except for that blasted cold I got after flying kites in the rain.)
What do you think? Do most people know about this new provision? Do you think it will make a difference? Take the poll in the upper-right corner and then leave your comment here.
P.S. If you want to see how this will affect your personal situation, you can find FERS retirement calculators on the Internet.