the TRUE value of sick leave when retiring

hadenuff · Oct 23, 2016

Was looking into retiring. I followed the advice of the PO and saved a boatload of sick leave over the years, just in case I needed it for that major medical emergency that was so likely to happen. You don't want to get stuck. I was going to have sick leave banked and plenty of it!!! Seven months of sick leave was plenty. While working, a day of sick leave is equal to a days pay with all the benefits, ie: Social security tax is withheld (+), SS payments at retirement are based on your salary. TSP is contributed to (+), money is going into and is hopefully growing in your TSP account. Upon retiring with 36 years (actual work) with seven months of unused sick leave, (36 years/7 months), I would receive a $1525 annuity/month from the Post office. From Social Security, another $1500/month. And, I could draw off the $380,000 in my TSP. Don't forget, unused sick leave is tacked on to actual work years.

You've heard of Paul Harvey?......Now.......the rest of the story............. Had I used all of my sick leave before I retired, I would receive $1500 annuity/month. From Social Security, another $1600/month and my TSP would have been worth in excess of $400,000

Seven months of sick leave is worth $25...... an additional $25 a month to my monthly annuity.

hadenuff · Oct 23, 2016

If you don't quite understand my first post. 140 sick days=7 months

The additional annuity of $25 for 7 months of unused sick leave. $25/month X 12 months=$300/year X 20 years=$6000

For the next 20 years, if I'm still around, I will get a grand total of $6000

The value of 1 sick day=$230 140 sick days X $230=$32,200.... subtract taxes and deductions and you will end up with at least half in your pocket ($16,100).............. A little better than the $6000 spread out over 20+ years.

Just thought I'd make it a little clearer!!!

Dfielder · Nov 5, 2016

I wrote an article on using sick leave. Posting it below:

Should you get the “FERS Flu” before Retirement?

I get this question at every retirement seminar.   It’s a good question and if you call Shared Services and ask their opinion…. wait you can’t call Shared Services and ask random questions these days and they SURE WON’T give you an opinion.   If you aren’t retiring in the next three months they tell you to send them a letter.   Anyway, if you ask your manager should you or shouldn’t you use your sick leave before retirement you won’t get an honest answer because they don’t want to deal with you not being at work right? Well here’s the nitty-gritty on should you or shouldn’t you.   You can make the choice for yourself.

Let’s look at what you get for your sick leave.   Starting in January of 2014 FERS employees started getting full credit for their sick leave. Prior to that they were getting 50% credit.   So if a postal employee had a years worth of sick leave that would add to the calculation of his pension.   Sick Leave cannot be used to meet service requirements however.   So if you had 29 actual year of service and had one year of sick leave and wanted to retire at your MRA with 30 years of service you would still have to actually work the 30 years.   However, once you served your 30 years you would be paid for 31 years factoring in your sick leave.

So the government uses 2,087 hours for a full year of work.   Let’s look at an example to see what your sick leave is worth.   If you have a high-three average salary of $56,000 each hour of sick leave is worth.   A full year of sick leave would ad 1% more to the employees pension.   So in this case having the full year of sick leave would add $560/year to the employees pension.   Let’s look at this employee taking 2 months of sick leave before he retires. How would that affect his pension?   Well if 1 year of sick leave adds $560 then if we divide that $560/2087 work hours in a year then that gives you $.268/hour of sick leave. If this employee takes 160 hours of sick leave then that will affect his pension check $42.88 a year.   Keep in mind the employee will get paid his full salary of $4,666 while on sick leave.

If the employee is retired 30 years he will have lost $1286 in pension payments but he made $4,666 during that one month he took off before he retired.   Kind of a no-brainer huh?

David Fielder

President

Postal Benefits Group

Office: 636-875-5306

Cell:     315-540-2802

<a href="mailto

avid@postalbenefitsgroup.net">David@postalbenefitsgroup.net</a>

vax · Nov 11, 2016

Ask if you should use sick leave? They would ask for Dr excuse for every day used! It was hard enough to call in sick in N Va! Used very little it was such a pain in the rear to use here!