How Will Furloughs Affect Your Retirement?

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By on August 13, 2013 in Retirement with 0 Comments

The involuntary furloughs this year are causing retirement concerns among older employees.  Specifically, will the time off impact my total service time, regarding the calculation of my annuity?

The related question is whether the lost wages will result in a lower high-three salary, which would also impact the annuity.

Good news!   Unless your total time off due to LWOP (leave without pay) and furloughs during the calendar year exceeds 6 months, there will be no affect on the calculation of your retirement annuity.  It will be as though you were never gone.

Reference: OPM Guidance on Furloughs (page 15)

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About the Author

Robert Benson served 35 years in various Federal agencies, as both a management analyst and IT specialist. He is a graduate of Northwestern University.