STWS Advisor, Jennifer Meyer, writes about OPM's recent guidance on annual leave for feds
On August 10, 2020, OPM issued an interim rule to allow some federal employees to carry forward more than the traditional 240 hours (30 days) of annual leave into 2021. This ruling is intended to provide for employees who may not be able to take leave due to the nature of the work involved in managing the COVID-19 virus national emergency.
The legislation was introduced in May 2020 by Rep. Jennifer Wexton (D-VA) who stated, “During the unprecedented challenges of COVID-19, our federal workers are stepping up and working tirelessly to help Americans weather this crisis. It is all hands-on deck right now and taking time off is not an option for many federal employees. Federal workers should not be forced to lose their benefits while they carry out the essential work of government. We owe it to them to protect what they’ve earned.”
Under current rules, an agency may restore annual leave that was forfeited only if the annual leave was scheduled in writing before the start of the third biweekly pay period prior to the end of the leave year. The new regulations provide that once the agency head or designee has made appropriate determinations, employees who would forfeit annual leave in excess of the maximum annual leave allowable carryover because of their work to support the nation during a time of national emergency, will have their excess leave deemed to have been scheduled in advance and therefore subject to leave restoration.
As for the implementation of the rule, OPM will notify agencies that they may utilize this authority to restore annual leave to employees whose work is considered essential for the particular national emergency. This follows a similar pattern to prior emergencies like the Y2K (Year 2000) transition and response to the terrorist acts of 9/11/2001. Upon notification, it is up to the agency head (or designee) to identify any employees who would be covered.
The new rule was also drafted to include the same policies for future national emergencies. This will streamline the process so that going forward agencies can act efficiently in times of crisis. This will ensure federal employees are able to focus on their important work during times of national crisis knowing they will not lose the leave they are entitled to.
**Written by Jennifer Meyer, Financial Planner. The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Jennifer Meyer and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.**
OPM, Use It or Lose It