Does unused sick leave increase your federal pension? Yes. Once you are eligible for retirement, your unused sick leave can be converted into additional service credit for calculating your pension.
Unused sick leave does not increase your high-three average salary, and it cannot be used to meet the minimum service requirement or make you eligible to retire sooner. Its value comes from increasing the amount of creditable service used in your final pension calculation.
Depending on your accumulated balance, this additional service credit could meaningfully increase your retirement benefit. Before leaving federal service, review your sick leave balance and understand how it may affect your pension rather than assuming the unused time has no value.
Federal retirement calculations depend on your retirement system and individual service record. Confirm your estimate with your agency’s HR department or a qualified federal retirement professional.
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