Retiring Soon? Restored Use-or-Lose and Retirement

From: NTEU National President Tony Reardon, February 27, 2019
SUMMARY: The IRS confirmed that if an employee decides to retire before their leave is restored, they will receive a supplemental lump sum check accounting for the restored leave.

In a chapter presidents’ memorandum issued yesterday, I notified you that the IRS has informed us that the restoration of “use or lose” leave from the 35-day partial government shutdown may take up to six months. Since the chapter presidents’ memo was issued, we have received questions from several chapter leaders asking whether employees who retire before their “use or lose” leave from the shutdown is restored will receive credit for the leave.

We immediately raised this issue with the IRS and the agency notified us that, if an employee decides to retire before their leave is restored, she/he will receive a supplemental lump sum check accounting for the restored leave. In addition, the agency informed us that the National Finance Center will be issuing a “Bulletin” on this subject within the next few days and it will be offering an automated process for all agencies to get this completed. The IRS further indicated that it is working on the final guidance to management along with a listing of employees who are eligible for “use or lose” annual leave restoration.