Rules of Unpaid Leave

As a tool of last resort when sick and annual leave run dry, federal employees can take time off without pay under certain circumstances, such as to complete military duty or to recover from a prolonged illness.

In fact, a 1993 law entitles federal workers to 12 weeks of unpaid leave annually to care for sick family members, or for the birth or adoption of a child.

But the rules surrounding leave without pay (LWOP) are complex and can result in a loss of benefits if not followed closely.

Health Insurance: Enrollment in the Federal Employees Health Benefits Program continues for up to a year -- 365 days exactly -- under LWOP. The government continues to pay its portion of the costs during that time, and is responsible for advancing the employee's share, too. Employees can opt to pay the agency for that advance at the time or have it withheld from their paycheck upon returning to work. If employees return to paid service for more than four months, the 365-day clock restarts if they need to go on LWOP again.

Thrift Savings Plan: Employees on LWOP cannot contribute to the TSP, and the agency ceases contributions as well. Employees also are not eligible for a loan from their TSP savings during this time. They can, however, continue to reallocate existing TSP savings among the funds. In addition, they can make an in-service withdrawal, provided they meet the age or financial hardship requirements.

Pensions: Up to six months under LWOP every calendar year is still creditable service in tallying defined retirement pensions, at no cost to the employee.

Annual and Sick Leave: Employees who use 80 hours or more of LWOP in one pay period forgo the annual and sick leave they would have acquired during that time.

Promotions: Up to 30 days in LWOP status can still be credited as career experience toward a promotion.

Life Insurance: Employees can keep their coverage, at no cost, for up to a year.

In general, LWOP is granted by supervisors on a case-by-case basis at the request of an employee. There are three cases in addition to those designated in the family care law where employees are guaranteed the status: workers called up to serve in the reserves or National Guard, disabled veterans who need medical treatment and employees receiving workers' compensation for on-site injuries.

Agencies have their own policies for granting LWOP status. For example, the Fish and Wildlife Service allows immediate supervisors to grant leave without pay for 10 days. Regional and assistant directors can approve it up to one year, and beyond that the director of the agency needs to grant approval.