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Washington, D.C.—The leader of the nation’s largest independent union of federal employees today welcomed legislation that would provide a one-time lump-sum payment for unused sick leave to federal workers covered under the Federal Employees Retirement System (FERS).

This system covers federal employees who mostly began working in 1984 or later; at present, they earn no credit toward retirement for unused sick leave. This is unlike their counterparts who are covered under the older Civil Service Retirement System (CSRS) and receive credit toward their pensions for unused sick leave.

President Colleen M. Kelley of the National Treasury Employees Union (NTEU) applauded the measure, expected to be introduced by Rep. James Moran (D-Va.) and co-sponsored by Rep. Frank Wolf (R-Va.), as both “a reasonable and welcome step to correct some of the disparity in treatment for FERS retirees.” Federal employees in the two retirement systems often work side-by-side.

“I am pleased to see both the increased congressional dialogue on this issue and the legislative proposal, which NTEU supports,” said President Kelley.

Under the Moran/Wolf bill, FERS retirees will receive a lump sum payment for unused sick leave above 500 hours when they retire. The amount would vary for each retiree but be calculated on 15 percent of the salary’s hourly rate for unused sick leave that exceeds 500 hours, up to $10,000.

The Virginia congressman said the Congressional Research Service has produced data from a sampling of federal employees showing that CSRS employees eligible to retire have an average 1,364 hours of accrued sick leave. Under present law, CSRS-covered employees are able to have that unused sick leave credited in the calculation of their pension.

The Moran bill would require that employees satisfy the age and service requirement for immediate or early retirement under FERS. The legislation would provide an incentive for FERS employees to retain their sick leave rather than lose any benefit from it when they retire, as is now the case.

As the largest independent federal union, NTEU represents 150,000 employees in 31 agencies and departments.