The IRS and the Social Security Administration have told employees they will no longer approve requests for advanced annual leave or advanced sick leave until further notice, according to reporting from Government Executive. Both agencies, now led by the same official, notified employees of the change and indicated that pending requests would not be approved.
For many federal employees, the announcement is primarily an internal personnel policy affecting two agencies. But it also highlights a federal leave benefit that many employees know little about until they need it. If you’re approaching retirement, understanding how advanced leave works — and what happens if you retire before repaying it — can help you avoid an unexpected financial surprise.
How advanced leave works
Advanced leave is not a separate category of leave. It allows an agency to approve leave hours that an employee has not yet earned, with the expectation that those hours will be repaid through future leave accrual.
Under OPM guidance, agencies may advance sick leave in limited circumstances. Depending on the reason for the absence, a full-time employee may receive up to 240 hours (30 days) of advanced sick leave for certain serious medical conditions, pregnancy, childbirth, adoption, or qualifying family-care situations. Other approved uses, such as routine medical appointments, certain family-care needs, or bereavement-related purposes, are generally limited to 104 hours.
Advanced annual leave operates under a different rule. According to OPM, an agency may, at its discretion, advance no more annual leave than an employee is expected to earn during the remainder of the current leave year.
Both types of advanced leave are discretionary. OPM advises agencies to consider factors such as the employee’s expected return to duty, the agency’s need for the employee’s services, and the value of retaining the employee before approving an advance. In other words, advanced leave has never been an automatic entitlement.
Advanced leave also creates an obligation to repay the leave through future accrual. If an employee separates from federal service before the leave has been earned back, the government generally requires repayment of the unearned leave, and the agency may recover the amount from money otherwise payable upon separation. An important exception applies if the employee separates because of disability, retires on disability, or dies.
Why retirement planning makes this especially important
The repayment requirement is particularly important for employees nearing retirement. If you retire while you still have an outstanding advanced leave balance, you may be required to repay those hours if they have not been earned back before separation.
Rather than simply reviewing your leave balance, consider checking whether your leave records reflect a negative annual or sick leave balance or whether your agency indicates that you still have advanced leave outstanding. If you’re unsure, your human resources office can explain whether any repayment obligation remains before you finalize your retirement date.
The recent changes at IRS and SSA do not alter the government-wide rules governing advanced leave. Other agencies continue to have the authority to approve or deny advanced leave under OPM regulations and their own internal policies. The recent announcements simply serve as a reminder that advanced leave is a discretionary benefit that agencies may choose to restrict or suspend.
Unions are pushing back
Both major unions representing IRS and SSA employees say the changes go beyond a simple policy adjustment. In a statement, the National Treasury Employees Union called the IRS’s move “an illegal violation of the collective bargaining agreement, but it’s unnecessarily cruel and harmful” to employees dealing with a medical crisis or caring for a sick family member. NTEU disputes any suggestion that employees have been abusing the benefit and says it plans to challenge the change under its contract.
At SSA, AFGE Council 220 has raised similar concerns. Council President Jessica LaPointe told Government Executive that advanced leave has functioned as a kind of informal short-term or long-term disability coverage for employees, pointing to cases involving cancer treatment, car accidents, and caregiving for sick children or elderly parents. She said, “we have workers going through cancer treatment,” among other examples, and argued the benefit has been used to supplement what she described as low wages for many frontline employees — not abused.
What options remain if advanced leave isn’t available
Employees who cannot receive advanced leave may still have other options, although each works differently.
- Voluntary Leave Transfer Program. Employees experiencing a qualifying medical emergency may receive donated annual leave from other federal employees. Availability depends on coworkers choosing to donate leave, and there is no guarantee that sufficient donated leave will be available.
- Family and Medical Leave Act (FMLA). Eligible employees may qualify for job-protected leave under the FMLA for certain medical or family situations. Unless the employee substitutes accrued paid leave, however, FMLA leave is generally unpaid.
- Leave banks. Some agencies participate in voluntary leave bank programs that allow members to receive leave during qualifying medical emergencies under separate program rules.
Each of these programs serves a different purpose, and none functions exactly like advanced leave. For employees facing a lengthy medical absence before retirement, understanding these differences ahead of time can make it easier to prepare financially if an unexpected illness or family emergency occurs.
The takeaway
Whether you work at IRS, SSA, or another federal agency, advanced leave is worth understanding as part of your overall retirement planning. Know whether you have any outstanding advanced leave that must still be earned back, remember that approval is discretionary rather than guaranteed, and familiarize yourself with other leave programs that may be available if you experience a medical emergency.
As retirement approaches, a brief conversation with your agency’s human resources office can help confirm your leave status and ensure there are no unexpected repayment obligations waiting when you separate from federal service.