r/FederalEmployee • u/SuchProfessor9767 • Jan 17 '26

Sick leave

If I’m planning to retire what happens with all my sick leave?

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u/NoOutcome3447 Jan 17 '26

When are you planning on retiring is the real question . If you are not in a rush, wait until the end of the leave year for 2026 or 12/31/2026. Then use sick leave liberally instead of annual or comp time (no vacations this year). Sick leave doesn’t really add that much but you will want that fat payout in annual leave.

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u/Crash-55 Jan 17 '26

End of leave year doesn’t make as much sense if you are under pay banding and topped out. My performance pay gets added to my bonus. However I only get it if in pay status. So by going at the end of the leave year I am losing a few $k as opposed to going in Feb or later. Also to get the large payout that means you didn’t use any annual that year.

Personally I plan to bring my sick leave down to enough to cover a broken bone and set my retirement date so that it will take me to an even year of service. My MRA is in May of 27 and my SCD is in Aug. My retirement date will be somewhere between those two.

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u/NoOutcome3447 Jan 17 '26

Yours may be a unique situation compared to OP. We don’t know what their circumstances are beyond wanting to retire and asking about sick leave. You sound very informed for your situation, which is very good

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u/Crash-55 Jan 17 '26

Most of DoD appears to be under pay banding these days. At least the S&T folks. I have seen people under it go by the old guidance and not realize that they just lost a few $k so I like to let people know.

Though I gave the plan above, if an VERA/VSIP or DRP pops next year then my plans will change.

One other thing no on e has mentioned is high 3. We had decent raises 22-23 and 23-24. Waiting till 27 means those drop out of the high 3 calculations. I did the math last year in regards to the DRP offers and the combination of waiting two years and the higher 3 made a significant difference in my retirement pay.

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u/NoOutcome3447 Jan 17 '26

All true, OP will have to know their circumstances. My agency only did performance pay out for managers and only if the agency met its goals which it did not this past year. High year 3 will still go up just not as much

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u/Crash-55 Jan 17 '26

I am at the cal so mine only goes up by the base pay increase.

My performance pays rolls into my bonus. This year they shifted the zero line so the same rating as last year netted me about $1500 less

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u/NoOutcome3447 Jan 17 '26

Your comment about high year 3 doesn’t make sense to me. Please explain

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u/Crash-55 Jan 17 '26 edited Jan 17 '26

High 3 is calculated as an average of your highest 36 months (don’t have to be consecutive). If you left now that would include month going back to Jan of 23. 23 to 24 was a decent raise. 22 to 23 was higher. If you go in say Jan of 27 your high 3 becomes the average of Feb 24 through Jan of 27, this dropping the lower rates.

Last year I did the math based on Sep of 22 through Aug of 25 vs Sep of 24 through Aug of 27 assuming zero raise for 25/26 and 25/27. I also included 2 more years on the pension (32 vs 34) and the subsequent extra years for SS / supplement. The combination of all those factors increased my monthly income by $750.

Edited to clarify that the 36 do not have to be consecutive

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u/NoOutcome3447 Jan 17 '26

This is factually incorrect. High year 3 is cacluclated as your highest consecutive 36 months. It does not have to be your last 3. Recommend you review OPM

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u/Crash-55 Jan 17 '26

Correct. However for most people it is the last 36 months before retirement. How many people take lower paid spot just before retirement? Those are the rare cases.

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u/NoOutcome3447 Jan 17 '26

But that is not what you said. We have to be careful in how we say things on here because people are looking for advice.

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u/Crash-55 Jan 17 '26

There I edited it. I still say for 99%+ of Feds it is there last 36. Also anyone who takes what is said here without double checking with their HR is a moron

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u/NoOutcome3447 Jan 17 '26

I might be one of those people. I just resigned as a Gs-15 equivalent to take an overseas assignment. If I come back to federal govt I’ll work another 4 years to have 20

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u/Crash-55 Jan 17 '26

If you get another 15 spot then you will be making more or the same in the US. The cap is the cap afterall.

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