Did you know that your monthly pension benefit from MOSERS is based on your final average pay and credited service? This service credit can include unused sick leave.

To calculate your pension benefit, each block of 168 hours of unused sick leave will be converted into one month of service credit at retirement. This will increase the amount of your benefit payment every month in retirement.

For example, if you have 336 hours of unused sick leave, you will receive credit for an additional two months of service (336/168 = 2) when your retirement benefit is calculated. Keep in mind that there is no partial credit for unused sick leave. Any amount less than 168 hours will not be counted as additional service credit.

It’s important to note that unused sick leave does not affect your retirement eligibility. In other words, it does not allow you to retire sooner, it only increases your benefit amount. You must meet both the age and service requirements for your plan to be eligible to retire.

Using sick leave near your retirement date may change previous benefit estimate amounts you have received. As you get closer to retirement, pay close attention to the number of hours you have accrued in sick leave. MOSERS can only use the final sick leave balance reported to us by your last employer.

When unused sick leave doesn’t count:

• MSEP 2011 members: If you left state employment after January 1, 2018, and prior to early or normal retirement eligibility, you will not receive service credit for unused sick leave. If you remain employed until you reach early or normal retirement eligibility, you will receive one month of credited service for every 168 hours of unused sick leave.
• MSEP members: If you leave state employment prior to early or normal retirement eligibility, you will not receive service credit for your unused sick leave.
• Legislators, statewide elected officials, and judges: You do not accrue sick leave.

Sick leave and BackDROP

If you are eligible for and elect BackDROP, you will receive credit for unused sick leave accrued during your BackDROP period. It will not make you eligible for retirement (or BackDROP) sooner but will increase the amount of your payment once you have retired.

Unused annual leave

Your unused annual leave has no impact on your MOSERS pension benefits.

The amount of annual leave you may get paid for is determined by your employer, not by MOSERS. Your employer may have a limit on how much they will pay out. Limits can vary from one employer to another.

We encourage you to check with your agency’s human resources office well in advance of your retirement date to learn about your specific employer’s guidelines for annual and sick leave accrual and usage.