How Sick Leave Can Help You Maximize Your Pension

Free Copy of My Book: Building Wealth In the TSP: Your Road Map To Financial Freedom as A Federal Employee:
app.hawsfederaladvisors.com/f...
FREE WEBINAR: "The 7 Biggest FERS Retirement Mistakes":
app.hawsfederaladvisors.com/7...
Want to schedule a consultation? Click here:
bit.ly/work_with_us_haws
Submit a question here:
app.hawsfederaladvisors.com/q...
I am a practicing financial planner, but I'm not your financial planner. Please consult with your own tax, legal and financial advisors for personalized advice.

[@INJURYCOMP]

Nice, informative video. I want to add that the "drop off days" you refer to are called "use or lose" SL days when the employee talks to the H.R. Rep for Retirement counseling. I will tell you this. I Retired taking my 2,900 + hours of S.L. Yes, I could have taken a year + of S.L. before I retired. I didn't want to live life like a hermit to do that. I didn't want to come up with some sickness to do that. When I Retired I did stuff that I wanted to do and did not have to LQQK over my shoulder to see who was watching. I was over Injury Compensation and Attendance Control and FMLA and other things while working (I don't do those things anymore! Don't ask and I won't tell! 🙂). I have been retired for about 10 years now and that year and a half of SL I have not only adds to my monthly Pension - it adds up when they give me a COLA percentage increase every year. Advice for the younger folks - SAVE your SL the best you can. I saw way too many examples of employees needing SL for illnesses later in their Career and not having any to live on. They used SL in their younger years to do things like going to amusement parks or other things.

[@frostyjim2633]

I retired with around 6 months of LWOP time because I wasted all my sick and annual and it still wasn't enough. It was the best thing I ever did, I'm happy to have blown off so many days

[@rjmurray5128]

At 600 hrs. to date, trying to stay healthy with about maybe another 7-8 yrs. to go. Adding to your TIS really helps or take a needed vacay to reset your morale and get your bearings right again. Take care of yourselves folks and God Bless.

[@jeffpadilla9891]

My sick leave will boost me to 21 years at retirement instead of 20.

[@neilpatel3750]

Take the sick leave for a year. Get paid for that year and still add a year to your service. But if you retire with leave it only adds years in service and you lose that year of pay.

[@gregthomas2448]

Ok I retired at 55 in 2022, I had zero sick leave from a couple injuries late in my career. I did however have 7K check in annual leave when I punched out. SL is …. Nuff said. If you work for the government you will understand KMA

[@clb24]

Sick Leave is to help finance life...when you or a loved one is sick. Most Americans aren't in a position to whine about "saving it nets me less value". Save it and if you or your spouse or kids didn't get too sick in 30 years to need it count it as a Blessing and move on.

[@stevekuehl3013]

Excellent video!

[@PlanYourFederalBenefits]

Thank you very much!

[@cdmak1]

12 years till I'm even eligible, why am I watching this? I can't help it, I love thinking about retirement. I have always heard that its better to use the leave , because it takes SO much to make up another year. Might as well take a crap ton of paid sick days in your last year or two, and bank up as much AL as possible in the last year. Ideally, you would have WAY over the use or lose AL limit the retirement year, and take home a nice, fat check.

[@chrisrains2316]

My logic may be off but if you're going out the year you turn 62 it helps you to have a birthday in December versus January or February. Stack that leave before the end of the leave year. Of course, our B-day is luck of the draw.😁

[@INJURYCOMP]

You're doing the right thing. Learning about Retirement you are eligible. Folks that knew me heard me say, "Another day 'till Retirement!" when they spoke to me. - 15 years before I was eligible.

[@ceecee-thetransplantedgardener]

First - great video. Second, you don't control the system, you're just explaining the system. Thank you. But here's my conundrum: To date, I barely use my sick leave - averaging 15-18 hours a year for the general Dr and Dentist appts, etc. This year, I've taken zero. So, based on my sick leave balance and current wage, I have over $70K in sick leave accumulated. Converting that to my annual pension means I would have to live 50 years after retirement to see the full benefit of that $70k. I recognize for many employers the sick leave doesn't get counted at all - so I am not ungrateful. Just doing the math and wondering if this benefit could be improved?

[@Dave-sw2dm]

Yep. Math. Makes you sick thinking about it. Might have to call in tomorrow.

[@krggallagher8200]

So if I used all my sick leave before retirement..say 2080 hours one year at 75k per year... Instead of getting credit..that would net me a thousand extra per year...it would take me 75 years to break even... Instead of getting an extra year of retirement....So I'm going to save it...I could use the extra 1000 a year when I'm 145....

[@user-jx3dg9gy1v]

So how do they figure more than 2081 hours built up? Do you lose everything above that total or do you add the difference above it?

[@shopgirl6673]

I’m resigning at 55 w/ 31.5 yrs of service so will not be eligible and plan to use all of my Annual Leave before Ieaving the service. KMA is definitely true!

[@jhartmac100]

You will get the Supplemental SS which is great for 7 years, but why not take the check paid out for annual?

[@shopgirl6673]

Actually, I’m forfeiting FERS Supplement since not fully retiring with MRA which is 57, but will be taking 55 T Rule instead and deferred/unreduced pension at 57.

[@INJURYCOMP]

And what about your Health Benefits?

[@shopgirl6673]

Health insurance under spouse who has better coverage than federal health benefits! Federal employees are getting screwed with increase in premium and less coverage.

[@user-om1zp1wl8w]

I read that you have to have 20 years of actual.service and sick leave can not put you over the top. I hope you are correct as I have 19 years 7 month with sick leave that converts to 8 months.

[@charleswatkins6402]

Can you please do a segment on phased retirement?

[@PlanYourFederalBenefits]

Sure. I also have many videos that go over that topic. Here is a link to one: kzbin.info/www/bejne/qp-al6mIj5JljLs&pp=ygUvaGF3cyBmaW5hbmNpYWwgcGxhbm5pbmcgd29ya2luZyBpbnRvIHJldGlyZW1lbnQ%3D

[@vic3294]

Does the 62+20 apply to the 6C? I thought the 6C requires a retirement by age 57...

[@edwardgrobe2848]

It's worth it if you are a CERS retiree. It adds up to very little for FERS retiree's.

[@jeffpadilla9891]

Not true, it can bump a person to retirement early if you want yo retire or give you extra time after your 20 years.

[@BUY_YOUTUBE_VIEWS_d069]

Got me in the mood

[@fessit]

Great video. Thanks for sharing. I did not know how this worked until now. I believe using sick leave for other than sickness is unlawful.

[@goththicus]

Question: let’s say you’re planning to retire at 62 with 10 years of service and your date of government service started in July. You have enough sick leave that equates to 4 months can you technically retire 4 months earlier?

[@PlanYourFederalBenefits]

Yes, because you already reached 5 years of service at age 62.

[@karinhall2793]

What if you go out on the VERA. Does your sick leave go towards your years of service.

[@PlanYourFederalBenefits]

Great question. Yes, sick leave counts towards your years of service for your pension calculation but unused sick leave does not count towards your eligibility to retire.

[@flu38]

So if I am 61 with 30 years of service and 2100 hours of sick leave. If I were to retire at 61, would I get the boost with the 1.1% multiplier? Thanks. Love your videos.

[@salsaverde3521]

I'd love to hear about that, I'm going at 57 As young as possible,

[@kirkdeweese7334]

No. It can add to your time in service, but it cannot add to your age. You still have to hit 62 before retirement, to get the extra 10%.

[@chrisrains2316]

I actually read an article where a lady retired at 61 years and 10 months (over 20 years actual service) and did a postponed retirement to not draw her pension until after 62. I believe even her own government HR folks said she was good for the 10 percent bump. When the smoke cleared it turns out she wasn't. 2 months short. Everything I've seen points to having to walk out the door after your 62nd birthday if you want the 10 percent. Believe me I wouldn't mind being wrong on this.

[@flu38]

Makes sense, need to cross over the age of 62 to get the additional 10% bump. Thanks.

[@edgarnieves2543]

Unrelated but does USPS do the match to Roth contributions on a TSP?

[@robertbrown2098]

USPS match goes to traditional TSP although you make Roth contributions.

[@droops63]

I'm 61 as of Spring 2024, plan on retiring after I turn 62. I have 30+ years of service. Is the 10% pension bonus for retiring after you turn 62 calculated only on my years of service, or on years of service plus my sick leave?

[@PlanYourFederalBenefits]

The 10% bonus is to your pension. So, this would entail actual years of service and sick leave. Great question!

[@35goingon90]

Can you clarify for me two things? I am investing 40% of my income and hope to retire at 49/50, with 20/21 years in fers. I believe I would be able to take my pension at 60 due to 20+ years(without healthcare and diet cola starts at 62). Then it sounds like from this video my sick leave would not give me any benefit to increasing the pension due to leaving early?

[@PlanYourFederalBenefits]

Great question! If you retire at age 50 with 21 years of service, sick leave will not affect your pension (as a traditional FERS). And with at least 20 years of service, your pension becomes available at age 60.

[@michealsizemore1]

What if I stop working at MRA (age 57 with 14 years of service) and then defer retirement to age 62. Would I still be able to count my sick leave toward retirement.

[@jhartmac100]

I don't think that sick time sits on the books like that

[@michealsizemore1]

@@jhartmac100 Yeah. It is all tough to navigate. I will most likely just work til I am 62 or 63.

[@AD-ui2pz]

I have 33 years now and will retire with 36 years at age 57 plus over 1,400 hrs of SL- I do know the SL gets considered for my FERS pension over 8 months added to my service so i’ll leave at least with 37 years for that since i’ll go in july maybe - my question is this - DOES SL GET CONSIDERED TO BOOST MY FERS SUPPLEMENT AS WELL?

[@PlanYourFederalBenefits]

Great question! No, sick leave is meant to be a social security semi-substitute, so sick leave will not affect the FERS supplement.

[@serapheum]

Your SL gets paid at your current salary rate. It is ALWAYS more cost effective to use it up while you are still working.

[@Dave-sw2dm]

Only if you are using it to work one more year. I treat mine like short term disability. You never know what can happen when you are older and need the leave to fight cancer, heart surgery, etc. Treat it like an insurance.

[@Noname-fw7uo]

What people may not be factoring in is the TOTAL effect saving your sick leave has. If you increase your years of service by adding in sick leave your pension is higher. Additionally your COLA’s will be higher every year because your original pension was higher due to banking your sick leave.

[@Dave-sw2dm]

@@Noname-fw7uo You will never come close to what you can get by using your sick leave though. If you use a year of sick leave to increase your years of service you will get the same retirement pay, but an extra year of full salary.

[@winterversion]

​@@Dave-sw2dmI never understood that approach. What are you doing, calling in sick for a whole year straight?

[@Dave-sw2dm]

@@winterversion , I would if I needed to, or if my organization would tolerate it. If you are topped out with only COLA to look forward to, you could be sick one or two days a week the last 3 years before you retire as long as it wasn’t a huge burden on your work unit. When you get old it is pretty easy to have an excuse to call in. I myself use accumulated sick leave as short term disability insurance in case I am really ill when I am old.

[@mikenadeau8704]

What if you retire a few months before actually turning 62? Does sick leave count if it takes you to the required date to get the 1.1% FERS? I'm thinking probably not, but just hoping I'm wrong.

[@jeffpadilla9891]

I know to get the 1.1 you have to have minimum 20 years and be age 62. If you plan your retirement date say 30 days before you turn 62 and you have enough sick leave for 30 days it should push you to the 1.1 bump. I would always check with someone from your HR department that deals in retirement.

[@serapheum]

@@jeffpadilla9891 I don't think it works like that. You need to be 62 when you retire to get the 1.1%

[@Dave-sw2dm]

Only if you are out on sick leave.

[@jhartmac100]

yes you must stay on the roles in sick leave until you reach 62.........

[@peterandretta8328]

I must not be comprehending this 2,087 hour example. It’s impossible that’s a years worth. I’m a federal employee and I earn 4 hours sick per pay. The math puts that at 104 hours sick per year. What am I missing here?

[@PlanYourFederalBenefits]

Great question. Unlike annual leave, sick leave can accrue over the course of your entire career. Many Feds end up with thousands of sick leave in retirement.

[@peterandretta8328]

@@PlanYourFederalBenefitsI understand that but in the example in the video at timestamp 5:10, you state that 2,087 hours is about a year’s worth. Which of course is not possible. At least not for me. Do you mean that 2,087 hours can equal up to an extra year in retirement income? I must have gotten off track while watching the video.

[@alrocky]

@@peterandretta8328 40 hours week * 52 weeks = 2080 hours per year. If retiring with 30 years of working service plus 1 year of unused sick leave equals 31 years of creditable years toward retirement for your pension. Say you made $70,000 your last year before retirement. The difference between 30 years of service and 31 years of service over 30 years of pension pay will not come close to that $70,000 worth of unused sick leave.

[@lylebailey-sq2ek]

21k is only 1k extra for that year of sick leave that makes it only 83 dollars extra per mo. not worth it.

[@brentski76]

Are special provision employees (LEOs, ATCs, firefighters) eligible for the pension bonus in the same way as other FERS employees (eg, the one who works until 62 and has 20 years)? I ask because the mandatory retirement age for such employees is 57 therefore they cannot work until age 62. Thanks for your videos and service. Very helpful.

[@wallys7016]

Why isn’t sick leave paid like annual leave?

[@lylebailey-sq2ek]

no

[@PlanYourFederalBenefits]

Great question! Here's a video that explains a little more: kzbin.info/www/bejne/np7RhmWhnstqntU&ab_channel=HawsFederalAdvisors

[@roachtoasties]

I doubt a person with 20 years length of service would have 2,087 of sick leave saved. That would require them to have taken no sick leave at all for their entire federal career. Extremely unlikely. Even if they're an extremely healthy and lucky person, they probably took at least a week off per year, on average, for doctor's appointments and really being sick. So deduct 800 hours for a more typical example.

[@winterversion]

I haven't used any sick leave in probably 5 years. I have so much use or lose annual leave that I just use that for any sick days, appointments, etc. Save all your sick leave as free long term disability insurance, plus the pension bonus, as this video describes.

[@jd1811]

I never took SL, always used AL for any sickness. When I retired I got about a year and a quarter credit for the sick leave for a total of 30 years service credit, was totally worth it!

[@LuckyGuy954]

The most you can credit up to is 1 year more so if you have more than that you better use it.

[@winterversion]

@@LuckyGuy954 I had never heard about this stipulation. Do you have a reference for this?

[@LuckyGuy954]

@@winterversion I stand corrected it’s look like they were just stating the one year as the basis for the what would constitute as the percentage. At a glance it look like they were stating the max time would be a year added which would essentially be 20 years of unused sick leave to get that year credit

[@kennguyen4540]

I lost over $70K when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I find one source to recover my money, at least $10k profits weekly. Thanks so much Mrs Georgia Robinson

[@kennguyen4540]

She's mostly on Telegrams app with the name below.

[@kennguyen4540]

investwithrobinson💯,, that's it