OPM Memo: Recredit of Sick Leave for Re-employed FERS Retirees

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The following is a Memo released by the Office Of Personnel Management (OPM)
Recredit of Sick Leave for Re-employed FERS Annuitants Who Retire Between October 28, 2009, and December 31, 2013

The U.S. Office of Personnel Management has been asked whether employees covered by the Federal Employees Retirement System (FERS) who retire between October 28, 2009, and December 31, 2013, with 50 percent of their sick leave having been credited toward their FERS annuity computation, could have the remaining 50 percent of their sick leave recredited to their sick leave account if they return to Federal service as reemployed annuitants.  The answer is yes.  Agencies should recredit reemployed annuitants the 50 percent of sick leave that was not used in their FERS annuity computation.  For employees who retire or die in service on or after January 1, 2014, all unused sick leave to the employees’ credit will be creditable for annuity computation purposes.  Further, for FERS employees who retire on or after January 1, 2014, 100 percent of their sick leave will be used in the annuity computation, consequently, no sick leave will remain for recredit should the retirees later return to Federal service.

Agencies must take action to identify FERS employees who initially retired on or after October 28, 2009, and who have since returned to Federal service as reemployed annuitants, to ensure that the employees have received recredit of the 50 percent of sick leave that was not used in the computation of their annuities.

Background

Section 1901 of the National Defense Authorization Act for Fiscal Year 2010 (Public Law 111-84, October 28, 2009) amended 5 U.S.C. 8415 to provide that employees covered by FERS who retire on an immediate annuity, or die while in active employment leaving a survivor or survivors, between October 28, 2009 (the date of enactment of the statute), and December 31, 2013, will receive credit for 50 percent of their unused sick leave towards their total creditable service for annuity computation purposes.

Additional Information

For additional information, please refer to Benefits Administration Letter Number 11- 102, Guidance on National Defense Authorization Act for Fiscal Year 2010 Provisions on Sick Leave for FERS Retirees.

Agency Human Resources (HR) Directors may also contact their assigned OPM Human Capital Officers.  Reemployed annuitants should contact their agency human resources or benefits offices for assistance.

From: Charles D. Grimes III
Acting Associate Director

4 thoughts on “OPM Memo: Recredit of Sick Leave for Re-employed FERS Retirees”

  2. I think I’ll just sit at home and collect my last 6 months of sick leave! I like the thought of getting paid for nothing!

  3. The USPS does not re-hire retirees. It prefers casuals, TEs and PSEs. Most retirees lose their annuities when rehired by the federal government, so it doesn’t make sense.

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