Choosing the right retirement date can affect when your FERS annuity begins, how much leave you earn, and whether you receive payment for unused annual leave. For federal employees planning to retire in 2027, three factors matter most: the end of the month, the end of the pay period, and the end of the leave year.
There is no single best date for everyone, but coordinating these calendars can help you make a more informed decision.
Why Does the End of the Month Matter?
For most immediate voluntary FERS retirements, your annuity begins on the first day of the month after you separate.
For example, retiring on October 30, 2027, generally means your annuity begins November 1. If you retire in the middle of October, your annuity generally still begins November 1, leaving a longer gap between your final day of work and your annuity commencement date.
Remember that your annuity commencement date is not necessarily the date you receive your first payment. OPM processing can delay that payment.
Why Does the Pay Period Matter?
Federal employees generally earn annual and sick leave by completing a full biweekly pay period. Annual leave accrual is typically 4, 6, or 8 hours per pay period, depending on years of service. Full-time employees generally earn four hours of sick leave per full pay period.
Separating before the end of a pay period can mean forfeiting that period’s leave accrual. When comparing otherwise similar retirement dates, completing a full pay period can be an advantage.
What Are the Best Retirement Dates in 2027?
These dates offer different planning advantages, depending on your agency’s payroll calendar and your circumstances.
| Retirement date | Potential advantage |
| Saturday, May 29 | Falls near month-end and may align with a pay-period end. The annuity generally begins June 1. |
| Saturday, October 30 | Falls just before month-end. The annuity generally begins November 1, and the date may align with a pay-period end. |
| Friday, December 31 | The final day of the month and calendar year. The annuity generally begins January 1, 2028. |
| Saturday, January 9 | The end of the 2026 leave year for most federal employees. It may be relevant when planning around unused annual leave. |
Important: Confirm the applicable pay-period dates with your agency. Not every federal employee follows the same payroll calendar, and a date that works well for one agency may not work the same way for another.
How Does the Leave Year Affect Your Decision?
For most federal employees, the 2026 leave year ends January 9, 2027, and the 2027 leave year ends January 8, 2028.
Most employees can carry over up to 240 hours of annual leave. Any use-or-lose leave remaining at the end of the leave year is generally forfeited.
When you retire, eligible unused annual leave is generally paid out in a lump sum. Separating before the leave year ends may allow you to receive payment for eligible use-or-lose leave before it is forfeited. Unused sick leave is not paid out, although it may be credited toward a retirement annuity calculation under applicable rules.
Consider the size of your leave balance when choosing a date, particularly if you have substantial use-or-lose leave.
What Should You Check Before Retiring?
Before submitting your application:
- Confirm your retirement eligibility and projected annuity.
- Check your agency’s pay-period and leave-year calendars.
- Review your annual leave balance and use-or-lose hours.
- Determine whether your date affects eligibility for the 1.1% multiplier.
- Ask HR about application deadlines and separation dates that fall on weekends or holidays.
The bottom line: The best FERS retirement date in 2027 depends on your pension eligibility, leave balance, and agency payroll calendar. Planning around month-end, pay-period completion, and the leave year can help you avoid unnecessary losses and make a more informed transition into retirement.
Frequently Asked Questions
What is the best month to retire under FERS? Retiring near the end of a month can be advantageous because an immediate voluntary FERS annuity generally begins on the first day of the following month. Your pay period and leave balance also matter.
When does the 2027 federal leave year end? For most federal employees, the 2027 leave year ends January 8, 2028. Confirm your agency’s calendar before making a decision.
Do federal employees get paid for unused annual leave when they retire? Eligible employees generally receive a lump-sum payment for unused annual leave. Unused sick leave is not paid out, but is credited toward your service. It can even help you qualify for the 1.1% multiplier if it pushes your service to the 20-year requirement.
