FERS Retirement Credit for unused sick leave stalls:

[Skooby]

http://asmc.typepad.com/viewpoint/

FERS Retirement Credit for unused sick leave stalls: The House version of the FY 2010 Defense Authorization bill includes the authority to provide payment for uused sick leave to retiring federal workers covered under the Federal Employees Retirement System (FERS). Currently, only workers in the Civil Service Retirement System (CSRS) can apply unused sick leave when they calculate their length of service to determine retirement pay. But now, after bouncing around Congress since it was introduced in late 2007, the proposal appears to have reached another roadblock. The Senate did not include it in its version of the Defense Authorization bill, and reports from the Hill indicate that conferees may not include it in the final conferenced bill. We have reported on congressional progress on this benefit for the last three years. It appears that we may still be following its progress in 2010.

 

[Texarkandy]

I was very interested in this issue -but having just retired (with over 1300 hrs of SL on the books) it doesn't really matter anymore.

Guess I should have taken it since I find out near the end your agency doesn't really give a whit about you or all those days you went above & beyond anyway - oh well

 

[Skooby]

I was very interested in this issue -but having just retired (with over 1300 hrs of SL on the books) it doesn't really matter anymore.

Guess I should have taken it since I find out near the end your agency doesn't really give a whit about you or all those days you went above & beyond anyway - oh well

Wow, that's too bad. I've got about 600 hours of sick leave now and i'm still not retiring for another 25-30 years(i'm 32). So i'm hoping they pass this legislation...

 

[Frixxxx]

Wow, that's too bad. I've got about 600 hours of sick leave now and i'm still not retiring for another 25-30 years(i'm 32). So i'm hoping they pass this legislation...

It's cyclical....they'd pass it, then retract it.....then give it back,.....then take it away...:suspicious:

 

[merlin]

I was very interested in this issue -but having just retired (with over 1300 hrs of SL on the books) it doesn't really matter anymore.

Guess I should have taken it since I find out near the end your agency doesn't really give a whit about you or all those days you went above & beyond anyway - oh well

That's exzctly the reason I tried to use every hour before I retired. Had 1600 hours used 1400. Lost 200.

 

[Scout333]

FYI, Better news!

Key Gains in Conference Report Include FERS Sick Leave Credit
The Defense Authorization conference report released today retains several important NTEU-sought provisions that will benefit federal employees and retirees, including language allowing workers under the Federal Employees Retirement System (FERS) to get credit for unused sick leave.

NTEU led a lengthy fight to build congressional support for this provision permitting FERS employees to count sick leave toward their retirement calculation, a right employees under the Civil Service Retirement System (CSRS) already have. It will be phased in over four years with a 50 percent credit through Dec. 31, 2013, and a 100 percent credit beginning Jan. 1, 2014.

The report also corrects an anomaly in the CSRS which penalizes federal employees who choose part-time work toward the end of their career by not calculating their pension correctly. CSRS employees will now be able to receive proper credit for their previous full-time work.

In another victory for federal employees, the conference report allows FERS employees who return to federal service to redeposit their retirement contributions and receive credit for prior years of service. It would also convert the non-foreign cost-of-living adjustment system to a locality pay system over several years.

Finally, the report repeals the authority for the National Security Personnel System (NSPS), a personnel system proposed by the previous administration that sought to undermine the collective bargaining and due process rights of Department of Defense employees. As long as NSPS was in place, there was a danger that similar regressive practices could be adopted government-wide. NTEU waged a successful legal and legislative battle against efforts to impose similar rules on employees of the Department of Homeland Security.

NTEU appreciates the hard work of many congressional supporters in ensuring that these key provisions made it into the final conference report. Among them are House Majority Leader Steny Hoyer (D-Md.); Reps. Ike Skelton (D-Mo.), Chris Van Hollen (D-Md.), Stephen Lynch (D-Mass.), Edolphus Towns (D-N.Y.) and James Moran (D-Va.); as well as Sen. Daniel Akaka (D-Hawaii).

The report now goes to the House and Senate for a final vote, but Congress is expected to approve it.

 

[Show-me]

Pass or no pass, I plan to use mine at full value.

 

[James48843]

Link to full report:

http://www.rules.house.gov/111/LegText/111_hr2647cr_txt.pdf

The sick leave provision is at section 1901.

 

[Elgallo]

4 years til full credit given for SL is Bravo Sugar. Just another way for them to screw those of us within a few years of retirement.

After 30 years of government service, I want full credit, and I want it now!

 

[Texarkandy]

4 years til full credit given for SL is Bravo Sugar. Just another way for them to screw those of us within a few years of retirement.

After 30 years of government service, I want full credit, and I want it now!

Well, it would have been nice I s'pose -but, it's funny how with just one week retired it just doesn't matter that much now. It is what it is.

 

[Show-me]

Re: FERS Retirement Credit for unused sick leave goes to a vote.

The final agreement would allow federal agencies to re-employ federal retirees on a limited, part-time basis without offset of annuity; permit Federal Employees Retirement System (FERS) workers to initially credit half, and later all, of their unused sick leave toward retirement; and provide for retirement equity for Federal employees in Hawaii, Alaska and the U.S. Territories. The Conference Agreement is expected to pass the House and Senate.

http://postalreporternews.com/2009/...senate-conference-committee-no-more-fers-flu/

I am shocked! :nuts:

 

[Gumby]

After 30 years of government service, I want full credit, and I want it now!

Did you voluntarily give up CSRS for FERS? The ability to keep SL and add to years of service was one of the reasons I stayed in CSRS.
2800 hrs of SL looks pretty good to me.

 

[CountryBoy]

Another Article from Fedsmith on unused sick leave.

http://www.fedsmith.com/article/2142/what-value-four-years-your-life.html

"No doubt, some readers will get more money from by getting credit for unused sick leave that will count toward their retirement annuity. How much money you will get from this will vary. For your sake, I hope being able to get by financially during your retirement is not dependent on this extra amount because it probably won't give you that much extra.

For an example, check out John Grobe's article on FERS, Sick Leave and Your Future Retirement. In his example, an employee with a high-three average of $60,000 and 1500 hours of unused sick leave would get an additional $400 per year.

Nothing will be definite until Congress passes a law and the President signs the bill. But, for now, it seems likely the credit for unused sick leave will pass in Congress."

"But here is the kicker. Those who have been delaying making a decision on retirement in hopes that they will get more money are probably going to be disappointed.

You will not get the full credit for your unused sick leave for the first four years the new bill is effective. Here is a statement from the press release on the conference report that outlines changes that have been agreed on:

"Phases in the allowance of unused sick leave (emphasis supplied) to be applied toward length of service for purposes of computing a retirement annuity under the Federal Employee Retirement System."

The credit feature for FERS employees with unused sick leave is not going to happen overnight."


CB

 

[Show-me]

Sick Leave Phase In...

October 13, 2009 - 4:00am

Under a phase-in plan okayed by Congress, FERS employees who want to get full credit for unused sick leave will have to wait until January 1, 2014 to retire. They can leave earlier than that, but if they do, they will get only partial credit toward retirement under the phase-in rules.


The change, which will give FERS employees the same incentive to save sick leave that has long been enjoyed by CSRS employees, is part of the compromise Defense Authorization bill heading for the White House.

Between 70 and 80 percent of all federal workers (mostly people hired after the mid-1980s) are under the FERS plan. Congress set it up to succeed the old Civil Service Retirement System. CSRS was great for lifers. But fewer than 30 percent of all feds work long enough to be eligible for government retirement benefits. So Congress setup the FERS program in the mid-1980s with a very generous 401k plan option and Social Security. Both of them are "portable" in the sense that they can be transferred to another job in the private sector.

In going from CSRS to FERS Congress made some trade-offs.

FERS workers get a tax-deferred government match of up to 5 percent to their Thrift Savings Plan accounts. CSRS employees don't.

FERS workers contribute less to the civil service retirement fund but do pay for and earn Social Security credits.

CSRS employees get a full cost of living adjustment each year, regardless of their age at retirement. FERS employees get a diet-COLA (1 percentage point less than the rise in inflation) and only after they reach age 62.

Right now that's a moot point since there will not be a January cost of living adjustment for Federal retirees, military retirees or people who get Social Security benefits.

After years of lobbying, groups representing federal workers, managers and retirees finally convinced Congress to give FERS employees the same incentive to save sick leave it gave, years ago, to CSRS workers. It works like this: When you are otherwise eligible to retire you can credit unused sick leave toward your service time. Adding one year of sick leave (2080 hours) to service time will boost a CSRS annuity about 2 percent. Adding the same time to a FERS annuity will increase it about 1 percent.
But the change for FERS employees isn't immediate.

Here's a summary of the new FERS sick leave credit, courtesy of the Federal Managers Association:

• "The conference committee approved a measure which would credit FERS employees for unused sick leave at the time of retirement. Due to concerns over the cost of the provision, lawmakers approved language that would phase in the credit over four years.

"During this time period, FERS employees would receive a 50 percent credit for unused sick leave; FERS employees who retire after January 1, 2014 will receive full credit for their unused sick leave, placing them on par with their Civil Service Retirement System (CSRS) counterparts. The FERS sick leave phase-in marks a compromise over legislation approved in the House-passed version of the FY10 Defense Authorization Act."

http://www.federalnewsradio.com/?nid=20&sid=1784010
​

 

[Show-me]

I have mixed feelings about the whole thing. I am pleased to have the benefit but I am disturbed that it had to be "slipped" into a Defense bill.

IMO, this is one of the fundamental problems with our Legislative Branch.

 

[CountryBoy]

That's how they are going to get the Socialized Medical plan passed, by attaching, as admendments to a bill that has already been approved by the house. Wait and see. Run'em all off.

 

[Texarkandy]

Well, as previously stated - it's neither here-nor-there with me anymore as I've just recently retired

but -

those still working and not feeling quite up to snuff on any particular mornings will have to consider whether it's financially better to

A. drag themselves into work to save the s/l & get 50% service time credit for it when they retire.

or

B. take the s/l & earn 100% of the service time credit, plus get paid for it, plus get TSP matching funds.

hmmmmm.

 

[James48843]

We should know today whether FERS Sick leave provision survives.

The Senate began debate yesterday on the Defense Authorization bill, which contains the language on FERS Sick leave. It's been through the House, the Senate, back to the House, and now the Senate is taking up the final conference report yesterday and today.

They may vote on the final conference report today.

Senate considers final conference report on HR 2647 starting at 9:30a.m. today.

http://www.senate.gov/pagelayout/legislative/d_three_sections_with_teasers/calendars.htm

 

[Show-me]

Help me with the math real quick.

Say for simple math sake my base is $100,000 a year and I save 2080 hours of sick leave before I retire. Mind you I drag myself to work on day I don't feel well and my production is weak, I make errors, I make co-workers sick too.

Now, 2080 hours is one man year added to my retirement with a high three of $100k, so that adds 1% to my high three retirement for FERS or $1,000.

I would have to live well over 100 years to recoup the full face value of the sick leave and that is not counting the 10 holidays or TSP matching funds.

At $100k salary that equals $48.07 a hour wages.

So, using just 3 sick days or have Doctor/Dentist appointment a year, or 24 hours, that will equal more than the added benefit to my FERS.

ROFLMAO

I don't feel well I will USE my sick leave. Doctor and Dentist appointments, dependent care for wife, kids, parents, etc.

Is my math wrong, please help?

 

[James48843]

The problem isn't using a sick day when you need it. And it's not about recouping "full face value", as you put it.

The problem is that there is no incentive NOT to use a LOT of that sick leave in the last year or two, when you DON'T need it. The FERS FLU means people are taking a day here, taking a day there, and by the time it's over, they are just gone a whole lot.

While this solution doesn't automatically solve everything, it takes away the incentive to be gone all the time.


Now, one more thought-

In the private sector-
The President has proposed allowing sick leave to be cashed out (at full face value) IF it is put into a 401(k) retirement account.

How much of a leap is it then to do likewise for TSP and Federal employees?

Not a big leap.


But first, this Senate bill today is the first step in getting something in place to curb FERS Flu and issue fundamental fairness for the work force i.e. CSRS vs. FERS equality in treatment.