Federal Pay Period Calendar

When a Federal Employee May Want to Retire Just a Little Later

) In summary, I discussed:

 

Finish the pay period, in order to get your usual increment of sick and annual leave, Better to retire the last part of the month instead of early the next month, because you will not —unless you are in the old CSRS system—be paid your annuity for the month in which you retire, and January is better than late December, so you are paid for your accumulated annual leave at the higher rate of the new calendar year. (Of course, this only works when no pay freeze is in effect!)

There is another situation I did not mention but that may impact your decision. Let me explain.

In calculating the FERS annuity supplement, a retiree receives earnings credit only through the end of the previous year. For example, if you retire as a FERS employee on May 24, your earnings history will run through December 31 of the year before. You will not receive credit for the year of your retirement. You see what’s coming, don’t you? 

If Joe is eligible to retire on December 29, the last day of the pay period, he might be wise to postpone his retirement until on or after January 1 of the next year (the next calendar year, not the next fiscal year). This way, when his supplement is calculated he will get full credit for his earnings in the year just ended. If his retirement date is effective on December 29, he will receive -0- credit.

How much difference will it make for Joe? 

For each year of FERS service, the average employee who retires is paid an annuity supplement of approximately $42 per month. Joe is 58.5 years old when his retirement starts. So, from retirement to the day his supplement ends (age 62) is 3.5 years, or 42 months.   But the “cost” of this benefit is the one-time loss of one month’s annuity.

Of course, knowing how it works is not quite enough. In order to have a really good idea of what to do, you will need to run your individual numbers.

United States Federal Holidays in 2009: Official Government ...

U.S. federal holidays are mandated by Congress in Title 5 (Section 6103) of the United State Code. In 2009, there are eleven federal holidays in all - three in January, two in November, and one every other month of the year except March, April, June, and August.

What are the Federal Holidays in 2009?

The United States Code specifies the following official government holidays in 2009:

New Year’s Day - December 25th. The only religious holiday recognized by Congress, Christmas Day, always falls on December 25th. Company Holidays: Many U.S. Employees Get Off Work Based on Official Federal Holidays

Private companies in the U.S. typically choose to observe a set number of holidays every year. For example, a company that allows ten holidays each year may break down the holiday calendar into individual holidays, two-day holiday breaks, and personal holidays. An example could be one day off for New Year’s Day, Memorial Day, Fourth of July, and Labor Day plus two days off for Thanksgiving (day of Thanksgiving and the day after) and Christmas (Christmas day plus one other day). Two days off for Thanksgiving and Christmas allows for extra time off during the two winter holidays that usually involve lots of family time and extensive travel. The final two holidays may be “preference” or “floating” holidays to be taken at the employee’s discretion. This allows employees to create their own breaks, either to observe religious holidays, extend an existing holiday to several days, or simply create a mini-vacation any time during the year. Other popular company holidays are on President’s Day or Good Friday.

If a holiday falls on a Saturday or Sunday, most companies designate the Friday before or Monday after the holiday as the day of observance.

2009 Post Office Holidays: Will the Mail Run on Legal Holidays?

Many U.S. citizens wonder which days the postal service observes because the mail does not run on those days. The USPS (United States Postal Service) website has posted 2009 postal holidays; the post office will be closed on all of the federal holidays noted above for 2009, with the exception of Inauguration Day. Read more about post office closings in 2009 Postal Holidays, U.S. Post Office Closings.