The new National Defense Authorization Act (NDAA) for Fiscal Year 2010 now allows the use of accrued unused sick leave hours to be added to total service in computing the retirement annuity of Federal Employees Retirement System (FERS) employees. From October 28, 2009, through December 31, 2013, 50 percent of FERS employees’ accrued unused sick leave hours will be added in the computing of their retirement annuity. Retirees after December 31, 2013, will have 100 percent of accrued unused sick leave hours added.
This new rule permits the counting of accrued unused sick leave only to calculate a FERS employee’s annuity. Sick leave may not be counted in determining eligibility to retire. The final computation will be made by the Office of Personnel Management and will use the appropriate percentage — either 50 percent or 100 percent of actual accrued unused sick leave hours at the time of retirement.
The NDAA also changed the rule for FERS employees who took refunds of their retirement contributions and have been reemployed under FERS. Now with the new ruling, they have the opportunity to pay back the refunded amount, plus interest. The redeposit will allow credit for the service in the retirement computation. Survivors of death-in-service employees may also make this deposit.
— Integrated Communications and Branding,
Human Resources, 5-6-10
