Retirement Services

Quality Benefits for the Federal Family

United States 

Office of 

Personnel Management 

The Federal Government’s Human Resources Agency 

Benefits Administration Letter 

Number 11 - 102 Date: February 22, 2011

Subject: Guidance on National Defense Authorization Act for Fiscal Year 2010 

Provisions on Sick Leave for FERS Retirees 

Purpose: The purpose of this Benefits Administration Letter (BAL) is to provide 

guidance concerning the benefits under the Federal Employees Retirement System 

(FERS) that have been affected by section 1901 of the “National Defense Authorization 

Act for Fiscal Year 2010”, Public Law 111-84, signed on October 28, 2009. 

Background: Section 1901 of Public Law 111-84, added paragraph 

5 U.S.C. § 8415(l)(2). That paragraph provides that any individual who separates for 

retirement, or dies while in active employment between the date of enactment ( October 

28, 2009) and December 31, 2013, will have added to his or her total creditable service 

for annuity computation purposes, “the applicable percentage of the days of unused sick 

leave to his credit under a formal leave system.” The provisions of 

5 U.S.C. § 8415(l)(2)(B)(i)-(ii) state that the “applicable percentage” of unused days of 

sick leave is 50% with respect to persons who separate or die in service between October 

28, 2009, and December 31, 2013, and, 100% with respect to those persons who separate 

or die in service on or after January 1, 2014. 

The question has arisen as to whether 50% of accumulated sick leave of an employee 

retiring under the Federal Employees Retirement System (FERS), between 

October 28, 2009, and December 31, 2013, remains available for recredit to the retiring 

employee in case of reemployment, pursuant to 5 C.F.R. § 630.502. 

Decision: It is our conclusion that the 50% of unused sick leave of a FERS employee 

that is not part of the “applicable percentage” of sick leave that can be used for 

computation of a FERS annuity for an individual separating between October 28, 2009, 

and December 31, 2013, remains to that individual’s credit under 5 C.F.R. § 630.502 for 

recredit in the instance of reemployment. 
 Retirement Services

Quality Benefits for the Federal Family

Guidance: 

For separations for retirement under FERS prior to October 28, 2009 

Only the amount of unused sick leave not used in the computation of a CSRS component 

will be available for recredit. If the separation occurred: 

 Before the amendment of the regulations repealing the three-year restriction, then 

the unused sick leave would be deemed to have expired as of the lapse of the 

three-year period; or, 

 On or after December 2, 1994, (the amendment of 5 C.F.R. § 630.502 repealing 

the three-year restriction), then the unused sick leave would remain available for 

recredit upon reemployment indefinitely. 

For separations for retirement under FERS occurring between October 28, 2009, 

and December 31, 2013 

50% of the total unused sick leave not used in the computation of a CSRS component of 

an individual retiring under FERS shall be creditable for purposes of annuity 

computation. The remaining 50% of the total unused sick leave shall be treated as sick 

leave which can be recredited upon reemployment, and shall remain available for 

purposes of recredit on reemployment indefinitely. 

For separations for retirement under FERS occurring on and after January 1, 2014 

100% of the hours of unused sick leave not used in the computation of a CSRS 

component shall be used for purposes of computation of the FERS annuity. None of the 

hours of unused sick leave at the time of separation shall be available for recredit, 

pursuant to 5 C.F.R. §S 630.502 and 630.405, in the event of reemployment. 

For all periods of time

The amount of sick leave that is available for credit in the computation of a FERS annuity 

is considered used in the annuity computation, (even if the credit does not result in an 

additional month of service in the annuity computation), and may not be recredited upon 

reemployment under 5 C.F.R. § 630.502. 

Agencies should identify any FERS employees who were initially retired on or after 

October 28, 2009, reemployed, and have subsequently retired again before the issuance 

of this BAL. This information should be provided to Michael Evans, 

Michael.Evans@opm.gov, or Phil Gardner, Philip.Gardner@opm.gov . 

 William Zielinski 

 Associate Director 

 Retirement Services