🏥 The FERS Sick Leave Mistake That Could Cost You Thousands

If you’ve spent decades banking sick leave, you need to hear this:

It doesn’t show up in your retirement check—unless you use it the right way.

Under FERS, unused sick leave isn’t paid out.

But it can still boost your pension for life—if you retire under the right conditions and time your exit carefully.

Mess it up, and you could leave tens of thousands of dollars on the table.

Most Feds Get This Part Wrong

Here’s what they don’t tell you:

• ✅ Sick leave adds to your creditable service time

• ❌ But it’s not counted if you take a deferred retirement

• ⌛️ It’s rounded down to the nearest full month

• 💸 And it’s worth nothing if you retire just short of a conversion threshold

That’s why precise—down to the day—timing matters.

Here’s How It Actually Works

Think of sick leave as pension fuel, not a payout.

But you don’t see it in your pension check line-item—it’s quietly added to your total service when OPM calculates your annuity.

Let’s say your pension formula gives you $200/month per year of service.

Adding 6 months = +$100/month for life = $1,200/year.

Over 20 years? That’s $24,000 just from not burning your sick leave.

✅ 3 Moves to Lock In Your Sick Leave Credit

1. Audit your balance now.

Grab your latest LES. HR won’t always hand this to you during retirement prep.

2. Know your conversion cutoff.

Sitting at 2,050 hours? Wait until you hit 2,087 to get a full year.

Even 30 hours short could cost you thousands in lifetime pension.

3. Time your retirement date with precision.

Retiring one day too early can forfeit an entire month of credit.

Sick leave is only credited after you’ve earned it—and it’s not prorated.

Bottom Line

You earned that sick leave.

Don’t waste it by retiring blind.

It’s not a bonus check—but it is a lifelong raise... if you plan it right.

Best,
Federal Wealth Retirement

P.S. Could These 3 “Weird” Moves Let You Retire at 58?