If you accumulate more than the annual limit, with certain exceptions you must either use or lose those excess hours by the end of the leave year. Image: Kerlon/Shutterstock.com
By: FEDweek StaffAnnual leave is one of the most important benefits provided to federal employees. The amount you earn is based on your years of federal service, including creditable military service.
If you are a full-time employee who has less than three years of service, you earn 13 days of annual leave per year (4 hours per pay period); if you have more than three but fewer than 15, you earn 20 days (6 hours per pay period); and if you have 15 or more years, you earn 26 days (8 hours per pay period).
If you are a part-time employee with fewer than three years of service, you earn one hour of annual leave for every 20 hours you are in a pay status; if you have three but fewer than 15 years, you earn 1 hour for each 13 hours; and if you have 15 or more, you earn 1 hour for each 10 hours.
As a rule, if you want to take annual leave, it must be approved in advance by your supervisor. However, there are circumstances where that may not be necessary. For example, if you are dealing with a personal or family emergency or during inclement weather when your agency may open on time but permit non-emergency personnel to take unscheduled leave.
Most non-Postal Service employees can accumulate 30 days of annual leave (240 hours). However, there are exceptions. For example, overseas employees may accumulate 45 days (360 hours), and those in the Senior Executive Service and equivalent levels 90 days (720 hours). Postal Service bargaining unit employees have an annual limit of 55 days (440 hours) and Executive Administrative Schedule employees 70 days (560 hours).
If you accumulate more than the annual limit, with certain exceptions you must either use or lose those excess hours by the end of the leave year. For example, if you moved from a higher leave-ceiling job to one with a lower one, you can keep the amount you brought with you until it is used up.
Also, if you had to forfeit annual leave that was scheduled in writing well in advance, either because of illness or agency needs, that leave can be restored. In general, this restored leave must be used within two years.
You will receive a lump sum payment for accrued and unused annual leave when you leave government or retire. A lump-sum leave payment represents all the days you would have worked if you had remained in federal service. (Holidays are counted as workdays when making that projection.)
The lump-sum payment is based primarily on your rate of basic pay plus any locality pay or similar geographic adjustment. However, it may also include other types of pay you otherwise would have received, such as administratively uncontrollable overtime, supervisory differentials, regularly scheduled overtime pay under the Fair Labor Standards Act, non-foreign area cost-of-living allowances and post differentials, and foreign area post allowances.
With the exception of SES and foreign area employees, the maximum number of hours for which a lump-sum payment will be made is 240, plus any additional leave accumulated during the year prior to retiring.
When you receive your lump-sum payment, several deductions will be taken out of it. For example, federal income tax, Medicare taxes, and – for FERS employees – Social Security (FICA) taxes. However, no deductions will be taken out for such things as health and life insurance premiums or TSP contributions.
Because the lump-sum payment is projected forward, if you are reemployed by the federal government before the expiration of the lump-sum leave period, you’ll have to pay back the portion that represents the time between the date of your reemployment and the expiration of the lump-sum period. The days you buy back will be re-credited to your annual leave account.
Note: If you are retiring, your annual leave can’t be used to increase your length of service nor can it be used in determining your high-3 average salary. You’ll just have to settle for a lump-sum payment.
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