The extra pay period means extra annual leave, although the same limits still apply. Image: Kerlon/Shutterstock.com
By: FEDweek StaffOPM has issued guidance on the effect of rare 27th pay period this year, a result of the standard pay period and leave year cycles having started on January 1 rather than a number of days into January as is usual.
That applies to the large majority of federal employees, although some are under pay period/leave year cycles that started January 8; they have the usual 26 pay periods.
For employees under the standard cycle resulting in 27 pay periods this year, the extra pay period means one more pay period of accumulation of annual leave at the rate—4, 6 or 8 hours, depending on years of service—applying to them, says a memo on chcoc.gov.
However, the extra pay period does not change the limits on carrying annual leave into the next leave year, it says. For most employees that limit is 240 hours, but a limit of 360 hours applies to those working overseas and one of 720 hours applies to SES, senior level and senior scientific and professional employees.
“Any accrued annual leave in excess of the maximum allowed by law will be forfeited if not used by the final day of the leave year. As provided in statute, an agency may restore annual leave that was forfeited due to an exigency of the public business or sickness of the employee only if the annual leave is scheduled in writing before the start of the third biweekly pay period prior to the end of the leave year (i.e., by December 2, 2023),” it says.
Although the memo does not address it, sick leave also accumulates on a per pay period basis, which would mean an additional four hours credited for 2023. Unused sick leave can be carried forward without limit. (Note: Part-time employees accrue both annual and sick leave on a prorated basis.)
The memo adds: “Although most employees will have 27 leave pay periods, most employees will still have 26 pay days in calendar year 2023. Leave accrual is affected by the number of pay periods, not the number of pay days, in a calendar year. This means that any regular payments or payroll deductions that are made each pay day will also remain at 26 in 2023.”
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See also,
Calculating Service Credit for Sick Leave At Retirement
FERS Supplement vs The 10% Pension Bonus
How Your FERS, Social Security and TSP Payments Get Taxed
Where Should I Put My TSP in Retirement
