Ask The Experts: Retirement

By Reg Jones

LWOP and benefits

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Q: I will be on long-term 12 to 18 months of LWOP. Can you tell me the impact on my retirement (FERS), health benefits, life insurance and any taxes due. How do I pay these premiums to continue my benefits in the future, especially when I retire.

A: The answers to all your questions except taxes due will be found at www.opm.gov/oca/leave/HTML/LWOP_eff.asp. For the tax question, you’ll have to go to the Internal Revenue Service.

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LWOP calculation

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Q: I have been employed in law enforcement for the past 13 years. Early in my career, I was ill and had leave without pay for 2 months. If I left the LEO position in seven years for a non-LEO federal position, will I have to take into account the 2 months of LWOP in ensuring I have 20 years in an LEO position? Also, am I correct that I can work 20 years in a LEO position then 4 years in a non-LEO position and retire at 50 with a law enforcement retirement?

A: As a rule, periods of leave without pay that don’t exceed six months are treated as if you were still on the job for retirement purposes. However, you’ll need to check with your personnel office to see if there are any variations to that rule affecting LEOs of which I’m unaware. As for your second question, yes, you can take a noncovered position after having served in a covered position for 20 years and retire at age 50.

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LWOP and retirement

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Q. Does my retirement date get postponed if I use leave without pay?

A. Only if you exceed six months of LWOP in a calendar year.

Facing a hostile work environment

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Q: I am a 48-year-old employee with 18 years of government service in the U.S. Postal Service and the Veterans Affairs Department. I am on a two-week leave of absence due to stress from my supervisor and would like to resign without filing action so that I may find other government employment. What is the longest unpaid absence I can take so that I may try another type of employment while on unpaid leave status?

A: If you didn’t report to work, you’d be considered to be absent without leave and your agency could begin the process of separating you by adverse action. On the other hand, if you requested leave without pay (LWOP), you’d be able to do that only for as many days as had been approved by your supervisor. Once again, if you failed to report for work at the end of that time period, your supervisor could begin adverse action proceedings to separate you.

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LWOP for mental health

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Q: I am a FERS rural carrier for the U.s. Postal Service. I have 13 years in as a full-time carrier. Every year I use all of my annual leave, however, I have more than 100 sick days unused. I am a healthly person in general, but in 2010, I did have to use three weeks of sick leave (under FMLA) to care care for my father. I would like to take more time off. If I have coverage of my route and the time I take off does not conflict with other carriers and their requested time off, can I be refused leave-without-pay? My boss has told me he has the final decision of whether to approve a request. His “scores” should not reflect an employee taking too much LWOP. I am in a position where I need to take time off for my mental sanity and find my time away is needed to keep my motivation at work. I work hard for the post office and am proud to represent. I think mental health is an important issue, and is often overlooked. Many people use their “sick leave” for reasons less than what they are allocated for. My use of maybe two weeks worth of days, not all at once, and after my AL has been used, is what I am questioning. I realize that during my LWOP time off I would not earn salary or benefits during this time, but to me the time off is well worth it. I read in section 514, that up to two years of LWOP could be taken, with conditions of course.

A: The granting of leave-without-pay is left to a supervisor’s discretion and may be limited by agency internal policy.

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Working while on LWOP

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Q: I am a career federal employee. I still have a couple of years before I can retire. I have a family emergency on the other side of the U.S.  that I must attend to for several months. I have tried for months to find another federal job in that city, but have had no luck. I do have a hardship transfer approval. I have been told by my supervisors that I could use leave without pay. My question is this: Can I hold a nonfederal job while I am taking LWOP? I will need income when I move, and if I cannot find a federal job, I have to work somewhere.

A: There is nothing that would bar you from taking a nonfederal job while you are on leave without pay. However, what you do shouldn’t interfere with the purpose for which the LWOP is granted.

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Unused annual leave and LWOP

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Q: I’m a Federal Employees Retirement System employee who is about to take three-plus years’ leave without pay from my job to serve with an overseas international organization. What are the rules regarding unused annual leave?  I plan to return to this job upon completion of the overseas posting.  Can I cash in my days now? Will they be returned if I don’t use them, or may I use them after commencing my overseas post, in effect starting the other job while on “LWOP-leave”?

A: You cannot cash in your unused annual leave when you go on LWOP, nor may you use it while on LWOP. The full amount will be recredited to you when you return from your overseas tour.

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Family leave to care for aging relatives

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Q: I’m a Federal Employees Retirement Service employee, 54 years old with 25 years of service. I have a 91-year-old father with Alzheimer’s disease who requires full-time care. Is there any program where I could take an early retirement to care for him?  Also, I have an upcoming background investigation due. If I didn’t provide this, could I be fired, but still be eligible for immediate retirement?

A: Along with receiving approval for the use of annual or sick leave, you could request up to 12 weeks of unpaid leave under the Family and Medical Leave Act. Whether you would be eligible for discontinued service retirement if you were fired would depend on the nature of the action used to separate you. You’d have to discuss this with your agency before making a decision.

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LWOP vs. medical retirement

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Q. I am an Air Force civilian serving a three-year tour overseas, I have completed four years of government service as of March 20, 2010 and I am 41 years old. However, I suffered a serious spine injury in March 2009 ,which caused me to be on Leave Without Pay due to a work-related injury beginning in April 2009 to January 2010. Since I have been overseas during my convalescence, my housing allowance was misreported and reduced and my post allowance was eliminated. My personnel office calls this an “government incentive for employees to return to work.” Because I was being “starved out,” I returned to work in January part time. I am having difficulty sitting on my job since I returned back to work. and I cannot take my medication during the day. I cannot afford to live and raise two school age children on the $36,000 medical disability that I would receive should I medically retire ,as I am a single parent. I have 16 quarters on Social Security but need 20 for medical disability. My DOL OWCP pay would be substantial to live on but it is not considered retirement. I just learned three days ago that my doctors are now determining that my injury/symptoms are now considered to be chronic and will continue to substantially limit my mobility, and ability to stand, walk, sit, lift, etc. I have completed over 100 medical appointments trying to restore my function and I soon to be scheduled for occupational assessment at home and work. I am quite concerned that I am going to be medically retired and put out on the streets while overseas.

A. Remaining on workers compensation is the best financial option you have at present. However, to protect yourself, you should also apply for disability retirement under FERS. If you do that, you must also file for disability retirement under Social Security. Whether you would be eligible to apply for a Social Security disability benefit depends on your age and the number of credits you have under Social Security. To see where you stand, go to www.ssa.gov/retire2/credits3.htm. If approved for disability retirement under FERS, for the first 12 months you would receive 60 percent of your high-3 average salary, minus 100 percent of any Social Security disability benefit. After that you would get 40 percent of your high-3, minus 60 percent of any Social Security disability benefit.

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High 3 retirement calculation & LWOP

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Q. I am currently on approved Leave Without Pay due to a work injury and I am receiving federal compensation benefits. I am nearing regular retirement age and I am concerned about my high-3 retirement calculation. I have been on LWOP for 3 years. Will the salary I would have earned during these years be used in my calculation? I also understand that a new law may increase by retirement calculation for lost TSP contributions.

A. As long as you are on LWOP and receiving compensation, that time will be treated as if you were still on the job, both for length of service and high-3 computation purposes.

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