Great video, two big takeaways, didn't realize on the sick leave chart you rounded up, and that the calculation is done once you add up the circumstances (time in service + deposited military time + sick time) and then what doesn't add up to 30 days is then dropped.
Thanks again for your feedback.. I'm glad you learned both of those things; they're important. I want people to also remember that sick leave doesn't work in a vacuum - adding in the creditable service from civilian and military deposited time before dropping anything - is critical.
As I'm in the "home stretch" of my federal employment, your tutorials are very helpful and relevant towards my research in understanding and preparing for my retirement. Thank you so much.
if I retire at age 57 and a half and have well over 1400 hrs SL(my approximate balance now at age 53) to make up for another half year, will my FERS supplement be calculated as if I retired at age 58?, in other words the higher FERS monthly supplemental amount with the additional year of total service I could gain from the SL added to my service?
Thanks so much for your question. First please do know that sick leave doesn't make you eligible to retire; only once you're eligible do we add in the sick leave. If you retire at 57 (assuming that is your Minimum Retirement Age) and you have 1,400 of sick leave, it will add 8 mths 2 days to the calculation of your FERS retirement - it will NOT add to your FERS Supplement. Here's a video I did explaining sick leave. th-cam.com/video/Al-omDxrTVI/w-d-xo.htmlsi=MRgKH7nzAFlgXDnb
thank you very much for your response- I will have 36 yrs of service and be age eligible at 57, I would like to take advantage of the FERS supplemental amount for the years prior to age 62, between the pension and supplement and drawing from my 401k to replace most of my income as needed- I was wondering- how often can you adjust your 401K withdrawal amounts- is it only yearly?@@debbiehatch8016
When I crunched the numbers, using one month of sick leave ie 160 hrs towards my pension equaled $5 more a month in pension. I'll try to use up all my sick leave before retiring. 60 dollars a year that is ridiculous!!
@@debbiehatch8016 Yeah I realize that. I've been with the feds since 1988. I believe this is just a smoke screen to get ppl from burning their leave if they think they're getting "something" for unused sick leave. Their getting something that close to NOTHING!
Except for any unique situation, I think this the way to go. When you use it you get PAID. Not crunch the numbers, but what's better a day's pay NOT WORKING or (in your case) 5 bucks a month for life. Also, when you USE the sick ... you're also accruing more sick leave. Every 20 days of sick leave you use, earns you a day of sick leave. So again, bounce that off 5 bucks or a days pay? (And what if you take that day's pay and put in high yield bank account for 20 years?) There's a discussion here, but not debate. Money now is better than money at the end.
Plus, there is that little ethical thing about using sick leave if you aren't actually sick...just sayin! If I project my currently-earned sick leave out another 5 years (when I plan to retire, and barring any lengthy illnesses), it's going to add another 5-6 months to my pension calculations, which will be somewhere around $50-$60 per month. I'll be saving mine to the extent possible.
Yes. Additionally, none of us knows when/if we might be sick, diagnosed with something that doesn't allow us to continue to work, get in accident or anything like that. I view sick leave as an insurance policy of sorts.
Hit your MRA with 30 years then start using sick leave. One year of sick leave only adds 1% to your pension. Using it makes financial sense plus you’re still earning leave and sick leave. Also you’d be making TSP contributions.
That could be true. Maybe. I'd like to add a few things though. (a) It is important for people to understand that sick leave does not operate in a vacuum. When I add my civilian and military creditable service together, if I have days that total less than 30, keeping sick leave to round out that month can be a very good idea. I had a student last week whose co-worker used all of her sick leave and ended up losing 25 days of creditable service towards annuity computation. Had she held on to just 5 days of sick leave, she would not have lost anything. (b) FERS employees received absolutely zero credit for sick leave prior to 1/1/13. The fact that we can now add it to retirement is actually pretty awesome. It adds only 1% per year X high 3. That is true. Depending on how long I live in retirement (that could be decades) the more beneficial it could be to have that additional 1% as guaranteed income. (c) Sick leave is an insurance benefit. We don't know when we might actually get sick. If I use all of my sick leave and then something happens, I don't have that benefit to fall back on. We are authorized to use sick leave only when we are sick or to go to medical appointments and the like. We cannot "simply" use sick leave because we are getting ready to retire. Definitely not trying to argue with you GLC but I do want to make sure people see the whole picture. It's not quite as simple as some make it seem.
I have a question about leave in general. I know if you are a 20 year military retiree and you then transfer to the civilian side you start off with 4 hours a pay period. My question is what if your medically retired from the military with 15 years and you switch over to civilian side. Will you start off with 8 hours a pay period?
Thanks for the question. No. "Military retirees may receive credit for all active military service ONLY if one of the following three conditions is met: (a) the uniformed services retirement was based on disability that either resulted from an injury or disease received in the line of duty as a direct result of armed conflict or was caused by an instrumentality of war and was incurred in the line of duty during a period of war as defined in sections 101 and 301 of title 38, United States Code. (b) the uniformed services retiree was employed in a civilian position subject to the Leave Act on November 30, 1964, and has been continuously employed without a break in service of more than 30 days since that date. (c) the individual first becomes eligible for a uniformed services annuity while serving as a civilian employee. This includes reservists who qualify for an annuity, as well as employees who are recalled to active duty, qualify for uniformed services retirement, and then are restored to Federal civilian employment. This exemption applies only to the current period of civilian employment. If the employee separates and is reemployed later, the restrictions will apply." www.opm.gov/policy-data-oversight/data-analysis-documentation/personnel-documentation/servicecreditleave.pdf
I spent 15 years in the reserves before joining the dept of state. as a federal employee the dept of state calculated that I had completed over 2 years of service that I could PAY to have that time counted towards my retirement. They DID apply my time towards my leave accrual rate. It took some time for them to apply my military time but I received a lump sum of leave and my rate increased from 4 hours to 6 hours a pay period.
@@hrobbins Yes. Here's the difference - this happens in class a lot - people change one thing which changes the entire answer. YOU did not retire; and even if you did/do, it will be through the Reserves. That time can count both towards leave and, as you've correctly stated, retirement if you make a deposit. The first poster didn't do 15 years but rather DID retire with 20 years of active duty time. Your situations are not the same.
Most do usually burn through their sick leave because of the low payout throughout the year. For me, I use sick leave when needed. If I get a extra few dollars at the end of my term when they add the left overs, then that's just plush.
I hear you. There are definitely two trains of thought. Many employees keep it as "money in the bank" to add to their pension. Others use it and are paid at that time.
Only problem with that is, its only 15 to 20 dollars more in your pension. Better off using it and get the whole check at the end of the last year you have left.
Great video thanks I am a Postal worker under the Fers System, for 24 years, and I am 65 years old planning to retire about the end of the year, actually I have over 800 hours of sick leave, and over 400 hours of annual leave. It is good idea use some of the sick leave before I retired?
Hi Walter. What is your sick leave balance exactly? And what is your retirement SCD? Your sick leave (years, months and days) is added to your total length of time (is it exactly 24 years or some years, months and days?). That being the case, I can't give you a factual answer without more information. Happy to help if you care to share - either here or feel free to email me: debbie@pinnaclepersonnelservices.com
Great video, two big takeaways, didn't realize on the sick leave chart you rounded up, and that the calculation is done once you add up the circumstances (time in service + deposited military time + sick time) and then what doesn't add up to 30 days is then dropped.
Thanks again for your feedback.. I'm glad you learned both of those things; they're important. I want people to also remember that sick leave doesn't work in a vacuum - adding in the creditable service from civilian and military deposited time before dropping anything - is critical.
As I'm in the "home stretch" of my federal employment, your tutorials are very helpful and relevant towards my research in understanding and
preparing for my retirement. Thank you so much.
That makes me very happy. Thanks for letting me know! Happy impending retirement.
Use it all. Retired Fed here.
if I retire at age 57 and a half and have well over 1400 hrs SL(my approximate balance now at age 53) to make up for another half year, will my FERS supplement be calculated as if I retired at age 58?, in other words the higher FERS monthly supplemental amount with the additional year of total service I could gain from the SL added to my service?
Thanks so much for your question. First please do know that sick leave doesn't make you eligible to retire; only once you're eligible do we add in the sick leave. If you retire at 57 (assuming that is your Minimum Retirement Age) and you have 1,400 of sick leave, it will add 8 mths 2 days to the calculation of your FERS retirement - it will NOT add to your FERS Supplement.
Here's a video I did explaining sick leave. th-cam.com/video/Al-omDxrTVI/w-d-xo.htmlsi=MRgKH7nzAFlgXDnb
thank you very much for your response- I will have 36 yrs of service and be age eligible at 57, I would like to take advantage of the FERS supplemental amount for the years prior to age 62, between the pension and supplement and drawing from my 401k to replace most of my income as needed- I was wondering- how often can you adjust your 401K withdrawal amounts- is it only yearly?@@debbiehatch8016
If I have 30 years of service, my calculation will be 30 x 1%. If I have six months worth of sick leave, will my calculation then be 30.5 x 1%?
Yes, that’s correct.
Unless you’re at least 62 when you retire, then it would be 1.1% x 30 or 30.5 x high three.
When I crunched the numbers, using one month of sick leave ie 160 hrs towards my pension equaled $5 more a month in pension. I'll try to use up all my sick leave before retiring. 60 dollars a year that is ridiculous!!
Prior to 1/1/2013, FERS employees received nothing for their sick leave. It was use or lose. Now at least we have the choice....
@@debbiehatch8016 Yeah I realize that. I've been with the feds since 1988. I believe this is just a smoke screen to get ppl from burning their leave if they think they're getting "something" for unused sick leave. Their getting something that close to NOTHING!
Except for any unique situation, I think this the way to go. When you use it you get PAID. Not crunch the numbers, but what's better a day's pay NOT WORKING or (in your case) 5 bucks a month for life. Also, when you USE the sick ... you're also accruing more sick leave. Every 20 days of sick leave you use, earns you a day of sick leave. So again, bounce that off 5 bucks or a days pay? (And what if you take that day's pay and put in high yield bank account for 20 years?) There's a discussion here, but not debate. Money now is better than money at the end.
Plus, there is that little ethical thing about using sick leave if you aren't actually sick...just sayin! If I project my currently-earned sick leave out another 5 years (when I plan to retire, and barring any lengthy illnesses), it's going to add another 5-6 months to my pension calculations, which will be somewhere around $50-$60 per month. I'll be saving mine to the extent possible.
Yes. Additionally, none of us knows when/if we might be sick, diagnosed with something that doesn't allow us to continue to work, get in accident or anything like that. I view sick leave as an insurance policy of sorts.
Hit your MRA with 30 years then start using sick leave. One year of sick leave only adds 1% to your pension. Using it makes financial sense plus you’re still earning leave and sick leave. Also you’d be making TSP contributions.
That could be true. Maybe. I'd like to add a few things though. (a) It is important for people to understand that sick leave does not operate in a vacuum. When I add my civilian and military creditable service together, if I have days that total less than 30, keeping sick leave to round out that month can be a very good idea. I had a student last week whose co-worker used all of her sick leave and ended up losing 25 days of creditable service towards annuity computation. Had she held on to just 5 days of sick leave, she would not have lost anything. (b) FERS employees received absolutely zero credit for sick leave prior to 1/1/13. The fact that we can now add it to retirement is actually pretty awesome. It adds only 1% per year X high 3. That is true. Depending on how long I live in retirement (that could be decades) the more beneficial it could be to have that additional 1% as guaranteed income. (c) Sick leave is an insurance benefit. We don't know when we might actually get sick. If I use all of my sick leave and then something happens, I don't have that benefit to fall back on. We are authorized to use sick leave only when we are sick or to go to medical appointments and the like. We cannot "simply" use sick leave because we are getting ready to retire.
Definitely not trying to argue with you GLC but I do want to make sure people see the whole picture. It's not quite as simple as some make it seem.
I have a question about leave in general. I know if you are a 20 year military retiree and you then transfer to the civilian side you start off with 4 hours a pay period. My question is what if your medically retired from the military with 15 years and you switch over to civilian side. Will you start off with 8 hours a pay period?
Thanks for the question. No.
"Military retirees may receive credit for all active military service ONLY if one of the following three conditions is met:
(a) the uniformed services retirement was based on disability that either resulted from an injury or disease received in the line of duty as a direct result of armed conflict or was caused by an instrumentality of war and was incurred in the line of duty during a period of war as defined in sections 101 and 301 of title 38, United States Code.
(b) the uniformed services retiree was employed in a civilian position subject to the Leave Act on November 30, 1964, and has been continuously employed
without a break in service of more than 30 days since that date.
(c) the individual first becomes eligible for a uniformed services annuity while serving as a civilian employee. This includes reservists who qualify for an annuity, as well as employees who are recalled to active duty, qualify for uniformed services retirement, and then are restored to Federal civilian employment. This exemption applies only to the current period of civilian employment. If the employee separates and is reemployed later, the restrictions will apply."
www.opm.gov/policy-data-oversight/data-analysis-documentation/personnel-documentation/servicecreditleave.pdf
I spent 15 years in the reserves before joining the dept of state. as a federal employee the dept of state calculated that I had completed over 2 years of service that I could PAY to have that time counted towards my retirement. They DID apply my time towards my leave accrual rate. It took some time for them to apply my military time but I received a lump sum of leave and my rate increased from 4 hours to 6 hours a pay period.
@@hrobbins Yes. Here's the difference - this happens in class a lot - people change one thing which changes the entire answer. YOU did not retire; and even if you did/do, it will be through the Reserves. That time can count both towards leave and, as you've correctly stated, retirement if you make a deposit. The first poster didn't do 15 years but rather DID retire with 20 years of active duty time. Your situations are not the same.
@@debbiehatch8016 oh I see. Thank you.
@@hrobbins Thanks for the opportunity to explain the difference.
Most do usually burn through their sick leave because of the low payout throughout the year. For me, I use sick leave when needed. If I get a extra few dollars at the end of my term when they add the left overs, then that's just plush.
I hear you. There are definitely two trains of thought. Many employees keep it as "money in the bank" to add to their pension. Others use it and are paid at that time.
Only problem with that is, its only 15 to 20 dollars more in your pension. Better off using it and get the whole check at the end of the last year you have left.
Great video thanks
I am a Postal worker under the Fers
System, for 24 years, and I am 65 years old planning to retire about the end of the year, actually I have over 800 hours of sick leave, and over 400 hours of annual leave.
It is good idea use some of the sick leave before I retired?
Hi Walter. What is your sick leave balance exactly? And what is your retirement SCD? Your sick leave (years, months and days) is added to your total length of time (is it exactly 24 years or some years, months and days?). That being the case, I can't give you a factual answer without more information. Happy to help if you care to share - either here or feel free to email me: debbie@pinnaclepersonnelservices.com