If you’re thinking of retiring in 2023, it’s not too early to start picking a date. For federal employees covered under the Civil Service Retirement System (CSRS), CSRS Offset, or the Federal Employees Retirement System (FERS), the date you choose can help you accumulate additional annual leave for a larger lump sum payout.
The OPM’s 2023 Annual Leave Calendar
For 2023, the leave year begins January 1, 2023 and ends January 13, 2024. The deadline to schedule “Use or Lose” annual leave is December 2, 2023. “Use or lose” annual leave is the amount of accrued annual leave in excess of the maximum annual leave limitation you can carry over.
Keep in mind that some agencies may use a different leave year calendar. That’s why you should check with your Human Resources Department or Personnel Office to help determine your accrued annual leave.
Your lump sum payment for accrued annual leave will be directly deposited into the same bank account used for your regular paychecks within 10 to 40 days after your retirement date.
“It’s a good idea to meet with your agency’s HR office to learn more about the entire retirement process.”
Under FERS, CSRS or CSRS Offset
If you’re covered under CSRS or CSRS Offset, the best dates to retire in 2023 are January 28, February 25, Sept 2 and Sept 30. You can retire up to the third day in any month and be on the annuity roll for that month with your first annuity payment coming the following month. If you retire after the third day of the month, you’ll be on the annuity roll for the following month.
Under FERS, the general rule of thumb is to retire on the last day of the month and it doesn’t matter which day of the week it may be. That’s why the best dates to retire in 2023 are January 28, September 30, February 25 and December 31. You’ll be on the annuity roll in the following month regardless of which date in a month you retire.
When To Submit Your Retirement Date To OPM
OPM recommends submitting your date two to three months before the retirement date (month, day, and year) that you’ve chosen. This enables the OPM to start processing your retirement application and calculating your annuity benefits.
Make a point to meet with your agency’s HR office to learn more about the entire retirement process. You can discuss topics like the start date of your annuity, your High-3 salary, cost-of-living adjustments and any questions you may have. Also consider working with an FRC® trained advisor who understands your federal retirement benefits.
