Sick Leave Provision a New Twist

The language on FERS sick leave seeks to address a longstanding complaint by employees in that system, that they generally don’t get credit for unused sick leave in their retirement benefits calculation whereas employees under CSRS do. The main proposal under consideration this year would provide FERS employees with a cash payment at retirement of up to $10,000 for unused sick leave. However, the language cleared by the House would make the FERS policy more closely reflect that under CSRS: those retiring in the first three years after enactment would get service credit for three-fourths of their unused sick leave, and those retiring afterward would get full credit. The fate of both the TSP and sick leave provisions are uncertain, however, since the White House has threatened to veto the bill to which they were attached.