Until a law effective October 28, 2009 (P.L. 111-84) FERS employees generally could not receive credit for unused sick leave as part of their FERS basic federal retirement benefit. There was an exception allowing certain registered nurses in the Veterans Health Administration to credit unused sick leave. There was also an exception that FERS employees with a CSRS component in their annuity (such as those who transferred from CSRS to FERS during one of the open seasons for electing to change retirement plans) could receive such credit toward the CSRS component, but only the lesser of:
* the amount of sick leave to their credit upon retirement; or * the amount of sick leave to their credit at the end of their CSRS service time.
For FERS employees taking immediate retirement since October 28, 2009 and for survivor annuities beginning since that date due to death in service:
* If the employee has a CSRS component in the annuity, the amount of sick leave at the date of transfer from CSRS to FERS or the amount at retirement or death, whichever is less, is fully creditable toward the CSRS component. Any unused sick leave above the amount creditable toward the CSRS portion is 50 percent creditable toward the FERS portion.
* If there is no CSRS component, 50 percent of unused sick leave is creditable toward the FERS annuity. See the example above for the formula, bearing in mind the 50 percent reduction as applicable.
The prior exception allowing full crediting for certain registered nurses in the Veterans Health Administration continues to apply. Full crediting of unused sick leave will apply to all FERS annuities or death in service survivor annuities that begin in calendar year 2014 and after.