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  • How is annual leave payout calculated
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  • A federal employee will receive a lump-sum payment for any unused annual leave hours when he or she separates from federal service.



    Edward A. Zurndorfer

    A federal employee will receive a lump-sum payment for any unused annual leave hours when he or she separates from federal service.

    Separation from federal service includes leaving federal service before being eligible to immediately retire (this includes leaving under a deferred retirement and a “postponed” retirement) and retiring under an immediate retirement from federal service.

    A lump-sum payment for any unused annual leave hours equals the pay the employee would have received had he or she remained employed until expiration of the period covered by the annual leave.

    Calculating a Lump-Sum Payment for Unused Annual Leave Hours

    A federal agency calculates the lump-sum payment of a departing or retiring employee by multiplying the number of hours of accumulated and unused annual leave by the employee’s applicable hourly rate of pay plus other types of pay the employee would have received while on annual leave.

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