Federal Sick Leave Conversion Calculator
This calculation uses the OPM standard of 2,087 hours per year. 1 month is calculated as 174 hours. Remaining hours are converted to days based on the OPM conversion chart (approx. 5.8 hours per day).
How to Calculate Unused Sick Leave for Federal Retirement
For federal employees under both the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS), unused sick leave is a valuable asset. Instead of losing these hours when you retire, they are converted into additional service credit, which increases your monthly annuity for life.
The OPM 2,087-Hour Rule
The Office of Personnel Management (OPM) calculates retirement credit based on a standard work year of 2,087 hours. This is the magic number used to determine how much time your sick leave balance adds to your actual "length of service." It is important to note that sick leave cannot be used to make you eligible for retirement; it can only be added to your service time after you have already met the age and service requirements for retirement.
The Conversion Formula
- 1 Year of Credit: 2,087 hours
- 1 Month of Credit: Approximately 174 hours
- 1 Day of Credit: Approximately 5.8 hours
Step-by-Step Calculation Example
Let's say a FERS employee retires with 1,200 hours of unused sick leave. Here is how that translates into a higher pension:
- Convert to Months: Divide 1,200 by 174 (the monthly equivalent). 1,200 / 174 = 6.89.
- Identify Whole Months: This gives you 6 full months of service credit.
- Calculate Remaining Days: Multiply the 6 months back into hours (6 * 174 = 1,044). Subtract this from your total: 1,200 – 1,044 = 156 hours left.
- Convert Remaining Hours to Days: Using the OPM chart, 156 hours roughly equates to 26 or 27 days.
In this example, the employee adds 6 months and 27 days to their total service history, which could potentially bump a 29-year career into a 30-year career for calculation purposes.
Why You Shouldn't "Burn" Sick Leave
Many employees consider taking "sick leave marathons" just before retirement. However, because sick leave is added to your total service time, it increases your "High-3" average calculation indirectly. For a FERS employee earning 1% (or 1.1%) of their High-3 per year of service, having an extra 6 months of credit translates to a permanent, cost-of-living-adjusted increase in your monthly check for the rest of your life.
Impact on Your Annuity
To see the financial impact, use this logic: if you add 2,087 hours (1 year) of sick leave and your High-3 average salary is $100,000, your annual pension increases by $1,000 (1% of $100,000). Over a 30-year retirement, that unused sick leave is worth $30,000 plus COLA increases.
Key Considerations
- FERS vs. CSRS: Since 2014, both systems receive 100% credit for unused sick leave.
- Partial Months: OPM only adds full months and days to your service credit. Any hours left over after the day conversion are generally discarded.
- Insurance: Sick leave conversion does not affect your health insurance or life insurance premiums; it only affects the pension amount.