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. The suspension applies to new and pending requests and does not affect employees’ ability to use annual or sick leave they have already accrued. Employees who previously received advanced leave may still carry negative leave balances that generally must be eliminated through future leave accrual or another permitted repayment method.
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, creating a negative leave balance that normally must be eliminated through future leave accrual or another repayment method permitted under federal leave rules.
Under Office of Personnel Management 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, or 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. Limits for part-time employees are prorated according to their work schedules.
Advanced annual leave operates under a different rule. According to OPM’s advanced annual leave guidance, 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. If an employee separates from federal service before the leave has been earned back, the government generally requires repayment of the unearned amount. The agency may recover the debt from a final paycheck or other money otherwise payable to the employee. Important exceptions apply when an employee dies, retires because of disability, or resigns or separates because of a disability that prevents the employee from returning to work or continuing in federal service. An ordinary voluntary retirement, however, does not by itself eliminate an outstanding advanced leave debt.
Why retirement planning makes this especially important
The repayment requirement is particularly important for employees nearing retirement. If you voluntarily retire while you still have an outstanding advanced annual or sick leave balance, you will generally be required to repay the unearned amount unless a specific exception applies. That means the timing of your retirement can matter. An employee who delays retirement long enough to earn back the advanced leave may reduce or eliminate the amount owed. An employee who retires before the balance has been restored may face a deduction from money otherwise payable at separation or another collection process established by the agency.
Rather than simply reviewing your total annual and sick leave balances, check whether your leave records show a negative balance or indicate that advanced leave remains outstanding. If you’re unsure, your human resources or payroll office should be able to explain whether a 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 announcements serve as a reminder that advanced leave is a discretionary benefit that an agency may restrict or suspend.
Unions are pushing back
Unions representing employees at IRS and SSA say the changes go beyond a routine personnel-policy adjustment.
In a statement responding to the IRS decision, National Treasury Employees Union President Doreen Greenwald called the move “an illegal violation of the collective bargaining agreement” and said it was unnecessarily harmful to employees facing medical crises or caring for sick family members. NTEU disputes the suggestion that IRS employees have abused advanced leave and says it intends to challenge the suspension, including on collective-bargaining grounds.
The American Federation of Government Employees has raised similar concerns. AFGE Council 220 President Jessica LaPointe told Government Executive that advanced leave has provided an important financial bridge for employees who otherwise may not have employer-provided short-term or long-term disability coverage. LaPointe pointed to employees undergoing cancer treatment, recovering from car accidents or other emergencies, and caring for sick children or elderly parents. She argued that the benefit has been used to help employees manage legitimate medical and caregiving emergencies rather than being routinely abused.
Government Executive also reported that AFGE filed a grievance over the SSA policy change and alleges that the agency repudiated a provision of its collective bargaining agreement. Those allegations remain the union’s legal position and have not been finally resolved.
What options remain if advanced leave isn’t available
Federal employees who cannot receive advanced leave may still have other options, although each works differently and none guarantees a continued paycheck throughout an extended absence.
Voluntary Leave Transfer Program
Employees experiencing a qualifying medical emergency may be able to receive donated annual leave from other federal employees through the Voluntary Leave Transfer Program. Availability depends on other employees choosing to donate leave, and there is no guarantee that sufficient donated leave will be available. In some circumstances, donated annual leave received for the applicable medical emergency may also be used to liquidate advanced sick leave.
Family and Medical Leave Act
Eligible federal employees may qualify for job-protected leave under the Family and Medical Leave Act for certain medical and family circumstances. FMLA leave is generally unpaid unless an employee substitutes an available form of paid leave. Job protection can be valuable, but unpaid leave may still create a significant financial burden for an employee dealing with a lengthy illness or family emergency.
Voluntary leave banks
Some agencies operate voluntary leave bank programs. Employees who participate in a leave bank may be able to receive leave during a qualifying medical emergency under the rules established by the agency’s program. Employees generally must enroll in the leave bank and satisfy its membership and eligibility requirements. Participation and benefits can vary by agency.
Leave without pay
An agency may also approve leave without pay, commonly called LWOP. Although LWOP allows an employee to remain away from work without using paid leave, it can affect income and, during an extended absence, may affect certain federal benefits. Employees considering a lengthy period of LWOP should ask their human resources office how it could affect retirement service credit, health insurance premiums, life insurance, within-grade increases and other employment benefits.
The takeaway
Whether you work at IRS, SSA or another federal agency, advanced leave is worth understanding as part of your overall retirement planning. Approval is discretionary rather than guaranteed, and using advanced leave creates a negative balance that normally must be repaid.
If you’re approaching retirement, confirm whether you have any outstanding advanced annual or sick leave. A normal voluntary retirement generally does not erase the debt, and your agency may recover the unearned amount from money otherwise payable to you when you separate. A brief conversation with your agency’s human resources or payroll office can help confirm your leave status, explain any repayment options and ensure there are no unexpected advanced-leave obligations waiting when you retire.
Official OPM Sources on Advanced Leave
For more detail, see the official OPM fact sheets and program pages referenced in this article:
- Advanced Sick Leave — OPM’s core fact sheet on advanced sick leave limits, qualifying reasons, and repayment rules
- Advanced Annual Leave — OPM’s core fact sheet on advanced annual leave limits and repayment on separation
- Sick Leave (General Information) — General sick leave rules, including advanced sick leave caps
- Sick Leave for Personal Medical Needs — Advanced sick leave for an employee’s own medical, dental, or optical care
- Annual Leave (General Information) — General annual leave rules and accrual
- Family and Medical Leave (FMLA) — Job-protected unpaid leave option
- Voluntary Leave Transfer Program — Donated leave from coworkers during a medical emergency
- Voluntary Leave Bank Program — Agency leave bank programs for qualifying emergencies
- OPM Leave Administration — OPM’s full index of leave fact sheets and underlying statutes/regulations