Leave Without Pay (LWOP)
What Is Leave Without Pay (LWOP)?
Leave Without Pay (LWOP) is a temporary nonpay status and nonduty status (or absence from a prescheduled tour of duty) granted at the request of you, the employee. Employees can request and have LWOP approved for a variety of different reasons. The information below explains the impact LWOP has on your benefits. This benefits summary is not intended for employees who go on LWOP for recall to the military. If you are going on LWOP for military purposes, please read the information under our Uniformed Services section. This benefits summary is not intended for employees who are in non-pay status for a portion of a pay period which results in insufficient pay for Federal Employees’ Health Benefits (FEHB) and/or Federal Employees’ Group Life Insurance (FEGLI).
LWOP and Your Benefits
Annual and Sick Leave
If you are in a nonpay status for an entire pay period, no annual or sick leave is earned for that pay period. If you are in a nonpay status during part of one or more pay periods, you will continue to earn leave until the nonpay time totals 80 hours. Then leave is reduced by the amount you earn during a pay period.
Federal Employees Health Benefits (FEHB)
During a period of LWOP, your enrollment may continue for up to 365 days of leave without pay unless you want it to terminate or do not respond to the written notice sent to you from your employing office about continuing coverage during a period in LWOP status. If you choose to continue your coverage, you must pay the full employee's premium for every pay period that your enrollment continues. You can pay either on a current basis to your servicing payroll office, or when you return to work. If you choose to terminate your enrollment, your coverage continues for 31 days under the temporary extension of coverage. Your enrollment will terminate if you:
- Return the LWOP FEHB Election Form, electing to terminate your enrollment.
- Do not sign and return the LWOP FEHB Election Form within 31 days of receipt (45 days if you live overseas).
If you terminate your FEHB coverage, you and your eligible family members may convert to a non-group contract and you may re-enroll in any FEHB plan when you return to a pay and duty status, without waiting for an Open Season. If you terminate your coverage under the LWOP provisions, it is not considered a break in the continuous coverage necessary for continuing your health insurance into retirement. However, the termination period will not count toward satisfying the required five years of continuous coverage.
You can find more information about how LWOP affects your health benefits on OPM's Leave Without Pay Status and Insufficient Pay page.
Federal Employees' Group Life Insurance (FEGLI)
Life insurance continues without cost to you for up to one year while in a nonpay status. After one year of LWOP, your life insurance will be terminated. However, you will be given the opportunity to convert to a non-group policy. The Office of Federal Employees Group Life Insurance (OFEGLI) must receive the request for conversion within 31 calendar days of the date on the conversion notification you receive from your agency (60 days if overseas) or within 60 calendar days after the date of the terminating event (90 days if overseas), whichever is earlier.
Thrift Savings Plan (TSP)
No money will be contributed to your TSP account while you are in a LWOP status, nor will the agency contribute matching funds. You cannot make a deposit for missed contributions while on LWOP.
If you have a TSP loan you should send a copy of your LWOP Notification of Personnel Action (LWOP SF 50) to:
Thrift Savings Plan
PO Box 385021
Birmingham, AL 35238
FAX: 1-866-817-5023
You can make direct payments on your loan while in a nonpay status by sending a personal check or money order to the TSP. Be sure to write your Social Security number and loan number on the check or money order, and send it with a TSP Loan Payment Coupon.
When you return to pay status, TSP must be notified of your date of return. Your TSP loan payments must resume when you return to pay status. If your loan payments have not been kept up to date, your loan will be reamoritized automatically.
For more information, please see TSP's Fact Sheet, Effect of Nonpay Status on Your TSP Account.
Federal Employees Dental and Vision Insurance Program (FEDVIP)
If you are currently enrolled in FEDVIP and are in LWOP for two consecutive pay periods, you will be switched to a direct bill method of payment. This means you will receive a bill at your home address for your premiums, and you must pay this bill or your coverage will be terminated. Premiums paid by direct bill are not pre-tax. When you return to pay status, notify BENEFEDS at 1-877-888-3337 immediately so the premium payment method can be returned to deduction from salary (pre-tax). For more information, visit the BENEFEDS website at www.benefeds.com.
Flexible Spending Accounts (FSA)
If you are enrolled in FSAFEDS, you must notify them as soon as you know you are going to be in a LWOP status. Contact an FSAFEDS Benefits Specialist toll-free at 1-877-372-3337, Monday through Friday, 9:00 am to 9:00 pm Eastern Time. FSA allotments are not withheld when you enter LWOP. If you have not accelerated (pre-paid) your allotment, your FSA account(s) will be frozen, and you will be ineligible for reimbursement of any health care expenses incurred during that period until the benefit periods ends or until you return to pay status and begin making allotment payments again. Dependent care expenses incurred may be reimbursed up to your account balance for that benefit period. For more information, refer to the Leave Without Pay (LWOP) and Qualifying Life Event (QLE) quick reference guides, located on the FSAFEDS website. If you return to pay status after the end of the benefit period, you will have another opportunity to enroll in the FSA program.
Long Term Care Insurance (LTCI)
If you are enrolled, Long Term Care Insurance (LTCI) continues when you enter LWOP as long as you continue to pay the premiums. If your premiums are being deducted through payroll deduction, you must contact LTC Partners to select a different payment option, such as direct billing or automatic bank withdrawal. Upon your return to a pay and duty status, contact LTC Partners again if you wish to go back to payroll deduction. You can contact the LTC Partners at 1-800-582-3337 or via the web at www.ltcfeds.com.
Credit towards Retirement
All LWOP in excess of 6 months in a calendar year is not creditable toward your retirement service computation date. Exception: If you are on LWOP in conjunction with an approved Federal Workers' Compensation Claim, all periods of LWOP are fully creditable.