Unused Sick and Annual Leave

Your unused sick or annual leave may be used as service credit at retirement if you are retiring 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 are counted as a full month of service credit. You may use this type of service credit to:

  • satisfy requirements for retirement, including retirement under the Rule of 80,
  • increase the annuity payment amount, and
  • satisfy requirements for GBP insurance as a retiree.

Note: Employees hired on or after September 1, 2009, cannot use unused sick and annual leave to reach retirement eligibility. Employees in this group can use unused sick and annual leave to increase their annuity.

Example #1 for an employee hired before September 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
  • 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 on or after September 1, 2009

  • 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.
  • Susie will receive three months of service credit at retirement that can be used to increase her annuity. It cannot be used to meet retirement eligibility. 

Example #3 regardless of hire date

  • Sam has 44 hours of unused sick leave.
  • 44 hours of unused sick leave is not enough for at least one month of service credit. He needs 160 hours for the first month of service credit.