How does sick leave convert to service credit for FERS retirement?

OPM uses the 2087-hour chart: 174 hours of unused sick leave = 1 month of additional service credit. 2,087 hours = 1 full year. FERS employees receive 100% credit for all unused sick leave for retirements on or after January 1, 2014 (50% from 2010 through 2013; CSRS has always received full credit).

How much does sick leave add to my FERS pension?

The formula is: (sick leave months / 12) × FERS multiplier × High-3 salary. For example, 800 hours of sick leave converts to 4 months and 18 days of credit. At a $95,000 high-3 with the 1% multiplier, that adds approximately $364/year — or about $9,100 over a 25-year retirement.

Can I use sick leave to meet FERS retirement eligibility?

No. Sick leave credit cannot be used to establish retirement eligibility (e.g., reaching the minimum service requirement). It only applies AFTER you have already met eligibility requirements, adding to the annuity calculation.

What happens to sick leave if I leave federal service before retirement?

If you leave without retiring, unused sick leave is not paid out and is not transferable. However, unlike annual leave, a sick leave balance is recredited to your account if you are later reemployed by the federal government — so it is not permanently forfeited.

Should I save my sick leave or use it before retiring?

Generally, do not drain sick leave before retiring. Unlike annual leave, sick leave is not paid out as a lump sum when you retire — it converts to pension credit instead. Using it all before retirement means forfeiting that pension boost. An 800-hour balance is typically worth several thousand dollars in lifetime pension income — enter your own high-3 in the calculator above for a personalized estimate.

What is the FERS multiplier — 1% or 1.1%?

The 1.1% multiplier applies if you retire at age 62 or older with at least 20 years of creditable service. The standard 1.0% multiplier applies otherwise, including MRA+10 retirees and those taking early retirement (VERA).

Was the sick leave credit always 100% for FERS employees?

No. FERS employees received no credit for unused sick leave before 2010. The National Defense Authorization Act for Fiscal Year 2010 granted 50% credit starting in 2010, and the NDAA for Fiscal Year 2013 raised it to 100% for retirements on or after January 1, 2014. CSRS employees have always received full credit.

How many sick leave hours does the average federal retiree have?

A commonly cited estimate puts the median federal retiree near 800 unused sick leave hours, though OPM does not publish a formal distribution. Federal employees earn sick leave at 4 hours per biweekly pay period — about 104 hours (13 days) per year — with no accrual cap, so an 800-hour balance reflects roughly eight or more years of earning, net of any sick leave used.

Does sick leave affect survivor benefits?

Yes, the sick leave credit increases the total service credit used in the annuity calculation, which in turn slightly increases the base pension. Survivor benefit elections are based on this higher pension amount.

How do I find my sick leave balance?

Check your Leave and Earnings Statement (LES) issued each pay period, your agency HR system, or your electronic Official Personnel Folder (eOPF). Your agency HR Benefits Officer can also provide an official balance.

Calculator

FERS Sick Leave Conversion

See how much your unused sick leave adds to your retirement pension. FERS retirees receive 100% service credit for all unused sick leave under the OPM 2,087-hour conversion chart.

Reviewed by Jonathan D., 20-year federal employee · Formulas verified against OPM.gov · Updated June 2026

Editorial note — not financial advice

This tool is independent journalism and education for federal employees. It is not financial, legal, tax, or investment advice, and FedTools is not your fiduciary. Verify anything you read here with your HR Benefits Officer, a fee-only financial planner, or a qualified tax professional before acting. See our editorial standards and terms for details.

Your retirement inputs

Unused sick leave hours

Check your latest LES or eOPF. Federal employees earn 4 hrs per pay period (13 days/yr).

High-3 average salary

Your highest 36 consecutive months of basic pay, including locality.

Years of FERS service

Creditable civilian service, not counting the sick-leave conversion.

Retirement age

Used to determine if you qualify for the 1.1% multiplier (age 62+ with 20+ years).

FERS annuity multiplier

1.1% applies if you retire at 62+ with at least 20 years of service. Otherwise 1.0%.

1.0% (standard)1.1% (age 62+, 20+ years)

What your sick leave is worth

Your sick leave adds 4 mo 18 days of service credit, $364 per year, and $9,100 in lifetime value.

4 mo 18 days

Added service credit

4.6 months · OPM 2,087-hr chart

$364/yr

Extra annual pension

For life · FERS COLA rules apply

$30

Extra per month

Added to your annuity

$9,100

Lifetime value

Over a 25-year retirement

Extra annuity = (Sick leave hours ÷ 174 ÷ 12) × Multiplier × High-3. Every 174 hours of unused sick leave converts to one month of service credit. Sick leave boosts your pension but cannot establish retirement eligibility.

OPM 2,087-hour sick leave conversion chart
Sick leave hours	Service credit	Decimal years
174 hrs	1 month	0.083
522 hrs	3 months	0.250
870 hrs	5 months	0.417
1,044 hrs	6 months	0.500
1,566 hrs	9 months	0.750
2,087 hrs	1 year	1.000

Source: OPM Sick Leave Conversion Chart — 5 U.S.C. § 8415 (FERS). Based on a 2,087-hour federal work year.

Sick leave tips for federal employees

Do not drain sick leave before retiring — unlike annual leave, it is not paid out in a lump sum; it converts directly to pension credit.

You earn sick leave at 4 hours per biweekly pay period (13 days/year). There is no accrual cap — it carries over indefinitely.

FERS employees received 50% sick-leave credit from 2010 through 2013, and none before 2010. All FERS employees retiring on or after January 1, 2014 receive 100% credit.

Sick leave is not used to establish retirement eligibility — only creditable worked service counts toward the minimum service requirement.

OPM uses your official leave records. Verify your balance in your agency HR system or eOPF before retiring.

How the OPM 2,087-hour conversion works

When a FERS employee retires, OPM takes the unused sick-leave balance and converts it to additional service credit using a fixed chart based on a 2,087-hour work year — the official federal work-year standard. Every 174 hours of unused sick leave equals one additional month of service credit.

That service credit is added to your total creditable service before OPM applies the FERS annuity formula: High-3 × total service years × multiplier. It will not, however, make you eligible to retire — only actual worked service counts toward the age-and-service thresholds.

The FERS sick leave formula

Extra annuity = (Sick leave months ÷ 12) × Multiplier × High-3

Worked example: 1,044 hours of sick leave

Inputs: 1,044 sick-leave hours · $100,000 High-3 · 1% multiplier

Step 1 1,044 ÷ 174 = 6.0 months exactly

Step 2 6 months ÷ 12 = 0.5 years

Step 3 0.5 × 1% × $100,000 = $500 / year additional annuity

Lifetime value $500 × 25 years = $12,500

From 50% to full credit

FERS employees once received no credit for unused sick leave. The NDAA for FY2010 introduced 50% credit, and the NDAA for FY2013 raised it to 100% for retirements on or after January 1, 2014.

FERS versus CSRS sick-leave credit by retirement period
Period	FERS credit	CSRS credit
Before 2010	No credit	100%
2010 – 2013	50% of unused	100%
Jan 1, 2014 – present	100% full credit	100%

All current FERS employees retiring today receive full (100%) credit. The transition and partial-credit rules are historical only.

Last reviewed June 2026 · we monitor legislative changes affecting federal retirement.

The typical retiree's balance

Illustrative estimates of how unused sick-leave balances tend to be distributed at federal retirement — OPM does not publish an official distribution.

Estimated sick-leave balance and extra annuity by percentile
Percentile	Sick leave	Credit added	Extra annuity*
25th percentile	~350 hrs	2 months	~$195/yr
Median (50th)	~800 hrs	4 mo 18 d	~$445/yr
75th percentile	~1,400 hrs	8 months	~$778/yr
Full-year credit	2,087 hrs	1 year	~$1,160/yr

*Based on a GS-12 Step 5 Washington-DC locality salary ($116,071, 2026 rates) and the 1% FERS multiplier. The median retiree gains roughly $11,100 in additional lifetime pension income from unused sick leave alone.

Should you save your sick leave?

Reasons to preserve it

Converts to pension credit worth real dollars over a 25-year retirement.

No accrual cap — your balance carries over indefinitely.

Acts as an effective "annuity savings account" for retirement planning.

FERS sick leave earns at 4 hrs/pay period — about 104 hrs/year of potential credit.

When using it makes sense

Genuine illness — that is exactly what it is for.

Family care under FMLA-qualifying events.

If you already have a large balance and a low salary, the marginal value of more hours decreases.

Important: Sick leave cannot be used to bridge to retirement eligibility, avoid a reduction-in-force, or as terminal leave. Any attempt to use sick leave for non-medical reasons risks disciplinary action — use annual leave for personal time and preserve sick leave for its conversion value.

Related tools & guides

FERS Retirement Calculator

Calculate your full pension including sick-leave credit, survivor benefits, and COLA.

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High-3 Salary Calculator

Find your highest 36 consecutive months of basic pay — required for this calculation.

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TSP Growth Calculator

Project the savings that sit alongside your pension at retirement.

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VERA Eligibility Checker

Check whether you qualify for early retirement under the Voluntary Early Retirement Authority.