Changes

*The employee's "high-3" salary (the average salary for the highest 36 consecutive months of pay),

*The employee's "high-3" salary (the average salary for the highest 36 consecutive months of pay),

*A specified percentage (either 1% or 1.1% in most cases), and

*A specified percentage (either 1% or 1.1% in most cases), and

*The amount of "creditable Federal service" (in terms of years and months expressed as fractions of years, days of service less than 30 days in a month are excluded).

*The amount of "creditable Federal service" (in terms of years and whole months expressed as fractions of years, days of service less than 30 days in a month are dropped).

The "high-3" salary is usually the final 36 months of the employee's tenure, but may be an earlier period if an employee took a voluntary downgrade in pay.  The salary includes base pay, locality adjustments (pay increases to account for cost of living in certain metropolitan areas), and shift differentials, but does not include overtime (except for some categories involving mainly first responders), bonuses/awards, severance pay (including voluntary buyouts), cash out payments for unused annual leave and credit hours, or hazard pay.

The "high-3" salary is usually the final 36 months of the employee's tenure, but may be an earlier period if an employee took a voluntary downgrade in pay.  The salary includes base pay, locality adjustments (pay increases to account for cost of living in certain metropolitan areas), and shift differentials, but does not include overtime (except for some categories involving mainly first responders), bonuses/awards, severance pay (including voluntary buyouts), cash out payments for unused annual leave and credit hours, or hazard pay.

Although unused sick leave is added to "creditable Federal service"<ref>The conversion is based on a chart, where 2,087 hours equals one full year, for an example of the chart see http://www.federalretirement.net/sickleavechart.htm.  If actual unused sick leave falls between two amounts, the higher amount is used.</ref>, it cannot be used to make an ineligible employee eligible for retirement, nor to make an employee eligible for the increased 1.1% percentage.

Although unused sick leave is added to "creditable Federal service"<ref>The conversion is based on a chart, where 2,087 hours equals one full year, for an example of the chart see http://www.federalretirement.net/sickleavechart.htm.  If actual unused sick leave falls between two amounts, the higher amount is used.</ref>, it cannot be used to make an ineligible employee eligible for retirement, nor to make an employee eligible for the increased 1.1% percentage.

The actual calculation of creditable service adds years, months, and days separately for civilian employment, military employment repurchased, and unused sick leave.

The actual calculation of creditable service adds years, months, and days separately for civilian employment, military employment repurchased, and unused sick leave.  Days are then converted to months using 30 days as one month, with any remaining days dropped.

*For example, an employee with 33 years, 11 months, and 17 days of actual service time, plus four months and 20 days of unused sick leave, will be calculated as having 33 years, 15 months, and 37 days of time.

*For example, an employee with 33 years, 11 months, and 17 days of actual service time, plus four months and 20 days of unused sick leave, will be calculated as having 33 years, 15 months, and 37 days of time.

*The days are then converted to months at a rate of 30 days = one month, with any excess days lost (in this case, the 37 days will convert 30 days to one month, with the remaining seven days lost, leaving the employee with 33 years and 16 months).

*The days are then converted to months at a rate of 30 days = one month (in this case, the 37 days will convert 30 days to one month, leaving the employee with 33 years, 16 months, and seven days, but the seven days are then dropped leaving 33 years and 16 months).

*The months are then converted to years at a rate of 12 months = one year, with the remaining months shown as a fraction (in this case, the 16 months will convert 12 months to one year, leaving the employee with 34 years and four months, or 34 4/12 years for annuity calculation purposes).

*The months are then converted to years at a rate of 12 months = one year, with the remaining months shown as a fraction (in this case, the 16 months will convert 12 months to one year, leaving the employee with 34 years and four months, or 34 4/12 years for annuity calculation purposes).

No other types of earned leave are factored into the annuity calculation.  Unused annual leave hours are "cashed out" (paid to the employee, at his/her rate of pay at retirement).<ref>For OPM rules on annual leave at separation from Federal service see https://www.opm.gov/policy-data-oversight/pay-leave/leave-administration/fact-sheets/lump-sum-payments-for-annual-leave/</ref>  Where applicable, earned but unused credit hours are also cashed out upon retirement at the same rate as annual leave.<ref>For OPM rules on credit hours at separation from Federal service see https://www.opm.gov/policy-data-oversight/pay-leave/work-schedules/fact-sheets/credit-hours-under-a-flexible-work-schedule/ then click on topic titled "What Happens to Earned Credit Hours if an Employee Leaves Federal Employment or Transfers to Another Federal Department or Agency?"</ref>  Other types of unused leave (such as compensatory time off for travel outside normal duty hours, and time off awards given in lieu of cash) are not paid and are thus lost if not used before retirement.<ref>For OPM rules on travel compensatory leave see https://www.opm.gov/policy-data-oversight/pay-leave/pay-administration/fact-sheets/compensatory-time-off-for-travel-questions-answers-to-fact-sheet/ then click on topic titled "Q27. What happens to an employee's unused compensatory time off for travel upon separation from Federal service?"</ref><ref>For OPM rules on time off awards see https://www.opm.gov/policy-data-oversight/performance-management/performance-management-cycle/rewarding/time-off-awards/</ref>

No other types of earned leave are factored into the annuity calculation.  Unused annual leave hours are "cashed out" (paid to the employee, at his/her rate of pay at retirement).<ref>For OPM rules on annual leave at separation from Federal service see https://www.opm.gov/policy-data-oversight/pay-leave/leave-administration/fact-sheets/lump-sum-payments-for-annual-leave/</ref>  Where applicable, earned but unused credit hours are also cashed out upon retirement at the same rate as annual leave.<ref>For OPM rules on credit hours at separation from Federal service see https://www.opm.gov/policy-data-oversight/pay-leave/work-schedules/fact-sheets/credit-hours-under-a-flexible-work-schedule/ then click on topic titled "What Happens to Earned Credit Hours if an Employee Leaves Federal Employment or Transfers to Another Federal Department or Agency?"</ref>  Other types of unused leave (such as compensatory time off for travel outside normal duty hours, and time off awards given in lieu of cash) are not paid and are thus lost if not used before retirement.<ref>For OPM rules on travel compensatory leave see https://www.opm.gov/policy-data-oversight/pay-leave/pay-administration/fact-sheets/compensatory-time-off-for-travel-questions-answers-to-fact-sheet/ then click on topic titled "Q27. What happens to an employee's unused compensatory time off for travel upon separation from Federal service?"</ref><ref>For OPM rules on time off awards see https://www.opm.gov/policy-data-oversight/performance-management/performance-management-cycle/rewarding/time-off-awards/</ref>

Generally, an employee has the right to determine his/her "date of final separation" (i.e. the last day on the payroll; it does not have to be the final working day in a pay period<ref>However, an employee leaving service during a pay period will not earn annual leave or sick leave for that period.</ref>); the following day is the employee's retirement date.  The annuity does not begin until '''''one full calendar month''''' has passed since the employee's retirement.  Thus, an employee retiring on June 30 will have his/her annuity begin on August 1 (as the employee will be retired beginning July 1 and for the entire month of July), but an employee retiring on July 1 will not have his/her annuity begin until September 1 (as the employee will be retired beginning July 2 but not for the entire month of July, only in the following month -- August -- will the employee be retired for an entire month).

Generally, an employee has the right to determine his/her "date of final separation" (i.e. the last day on the payroll; it does not have to be the final working day in a pay period<ref>However, an employee leaving service during a pay period will not earn annual leave or sick leave for that period.</ref>), nor does (technically) the employee need to come into the office on that date (though some agencies or supervisors force the employee to do so or move their date to the actual last day of work); the following day is the employee's retirement date.  The annuity does not begin until '''''one full calendar month''''' has passed since the employee's retirement.  Thus, an employee retiring on June 30 will have his/her annuity begin on August 1 (as the employee will be retired beginning July 1 and for the entire month of July), but an employee retiring on July 1 will not have his/her annuity begin until September 1 (as the employee will be retired beginning July 2 but not for the entire month of July, only in the following month -- August -- will the employee be retired for an entire month).

Married employees must agree to provide spouses (or former spouses, in some cases), a survivor annuity (which pays a lower portion of salary to the surviving spouse or former spouse), unless the spouse or former spouse affirmatively consents in writing to forego the annuity.  (The only exception is if the spouse or former spouse cannot be located.)

Married employees must agree to provide spouses (or former spouses, in some cases), a survivor annuity (which pays a lower portion of salary to the surviving spouse or former spouse), unless the spouse or former spouse affirmatively consents in writing to forego the annuity.  (The only exception is if the spouse or former spouse cannot be located.)