Retirement Policy

fedweek.com: paid time off proposal lacking detail, no fix for parental leave yet If you’d rather use your hours for vacation rather than as a lump-sum payment, it’s better to schedule and use it up over the course of your last year. Image: Andre Bonn/Shutterstock.com

Some employees who plan to retire late in a year think about taking an extended vacation before going out, using up accumulated annual leave rather than taking it as a lump-sum payment afterward. Within limits that’s permitted; just don’t create a situation in which it appears you are trying to burn off leave.

According to OPM, while an employee has the right to use annual leave for vacations, rest and relaxation, and personal business, it is subject to the right of the supervisor to schedule the time at which it can be taken. As a rule, it wouldn’t be in your supervisor’s best interest to have you filling a position but doing no work while there’s work to be done. And if you are planning to retire, your agency can’t hire a replacement until you are off the rolls.

Even if your supervisor is willing to let you burn off your leave, a Comptroller General ruling nixes that idea. B-46683, 24 Comp. Gen 511 states that “terminal annual or vacation leave may not be granted immediately prior to separation from the service in any case where it is known in advance that the employee is to be separated from the service.”

That doesn’t mean that you can’t take a few days off before the end of the year or before you retire. You can, with the approval of your supervisor. However, for your supervisor to approve it, the amount you request needs to be reasonable. Even then, most agencies will require that you be at work on the day you retire in order to complete the processing needed to separate you from the service.

If you’d rather use that time as vacation rather than as a lump-sum payment, it’s better to schedule and use it up over the course of your last year.

DoD Announces Civilian Volunteer Detail in Support of Immigration Enforcement

Urban Policing Order Calls for Hiring Federal LEOs, Deputized Guard Unit

Ruling on CFPB Job Cuts Could Affect Challenges to Other RIFs and Reorgs

Schnitzer: How to Challenge a Federal Reduction in Force (RIF) in 2025

See also

Attorney Schnitzer: How to Challenge a Federal Reduction in Force (RIF) in 2025

Alternative Federal Retirement Options; With Chart

Primer: Early out, buyout, reduction in force (RIF)

Retention Standing, ‘Bump and Retreat’ and More: Report Outlines RIF Process

Deferred and Postponed Annuities Under CSRS and FERS

FERS Retirement Guide 2023