Federal Employees News Digest

Federal Benefits Q&A

Question: How does taking LWOP one day a pay period effect my service comp date? How does it affect my high three and how might it negatively affect my FERS retirement annuity?

Answer: In other words, is your question: what is the effect on your retirement of working part time during the last of your Federal service (working 72 hours a pay period rather than 80 hours a pay period)? The answer is not that much as your FERS annuity will be computed based on full time service including a full last year SF 50 salary. However, the full-time equivalent annuity will be modified by the a ratio equal to the total number of hours you worked during your Federal service divided by the full-time equivalent. This ratio should be in the range of 98 to 99 percent.

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Edward A. Zurndorfer Certified Financial Planner
Mike Causey Columnist
Tom Fox VP for Leadership and Innovation, Partnership for Public Service
Mathew B. Tully Legal Analyst

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