| FOR IMMEDIATE RELEASE March 7, 1997 |
CONTACT: Elizabeth Humphrey (202) 606-1800 mehumphr@opm.gov |
Washington, D.C.-- Employees who fall short on time-in-service for retirement eligibility, but face the loss of their jobs due to downsizing, can apply their accrued annual leave in order to reach the eligibility threshold, under interim rules issued today by OPM. The new rules also address the use of accrued annual leave for employees, in the same situation, to continue health benefits coverage in retirement.
Recently enacted legislation allows employees who are being involuntarily separated to use their annual leave to achieve initial eligibility for retirement and/or continued health benefits coverage. This right is extended to employees who are transferred or relocated. Since January 1993, agencies have the authority to retain on annual leave an employee who received a specific reduction in force notice so that the employee may establish initial eligibility for retirement, and/or for continuance of health benefits into retirement. The new rules now give employees who are involuntarily separated the right to use their annual leave to achieve initial eligibility for retirement and/or continued health benefits coverage. In addition this right extends to relocation situations, including transfer of function. OPM Director King said, "The new rules provide a humane approach allowing federal employees close to retirement and affected by downsizing to use their leave and retire with full benefits." The new rules will be published in the Federal Register on Monday, March 10 1997.End
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