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Unused Sick and Annual Leave

For most members, unused sick and/or annual leave may be used as service credit at retirement if you retire directly from state employment. You must have 160 hours to receive the first month of sick or annual leave service credit. Additional fractions of 160 hours count as a full month of service credit.

Example #1 for an employee hired before 9/1/2009 

  • Seth has 75 hours of unused annual leave and 225 hours of sick leave.
  • 225 hours of unused sick leave divided by 160 = 1.406; rounds to 2 months of service credit.
  • 75 hours of unused annual leave is not enough for at least one month of service credit. He needs 160 hours for the first month of service credit.
  • Seth will receive two months of service credit at retirement that can be used to increase his annuity. It can also be used to meet retirement eligibility.

Example #2 for an employee hired between 9/1/2009 – 9/1/2013  

  • Susie has 322 hours of unused annual leave and 159 hours of sick leave.
  • 159 hours of unused sick leave is not enough for at least one month of service credit. She needs 160 hours for the first month of service credit.
  • 322 hours of unused annual leave divided by 160 = 2.013; rounds to 3 months of service credit.
  •  Susie will receive three months of service credit at retirement that will increase her annuity. It cannot be used to meet retirement eligibility.

Example #3 for an employee hired after 9/1/13  

  • Frank has 281 hours of unused annual leave and 654 hours of sick leave.
  • 281 hours of unused annual leave divided by 160 = 1.76; rounds to 2 months of service credit.
  • Frank can only use his annual leave to increase his annuity if he does not take it as a lump sum payment from his agency at retirement.
  • 654 hours of unused sick leave divided by 160 = 4.09; rounds to 5 months of service credit.
  • Frank will receive 5 months of service credit at retirement that will increase his annuity. It cannot be used to meet retirement eligibility.