How soon will I receive the lump sum FERS payment (for unused annual leave) after I separate from service?
You should receive it within approximately 4 to 6 weeks after your separation's effective date and it will be deposited directly into your bank account.
Lump-sum payments after separation from service: what to expect
The timeframe for receiving a lump-sum payment after separating from service depends on the type of payment and your specific situation. Here's a general overview:
1. Unused annual leave
After your separation personnel action is processed, a lump-sum payment for any unused annual leave is generated.
You should receive it within approximately 4 to 6 weeks after your separation's effective date and it will be deposited into your bank account.
2. Retirement contributions
If you choose to withdraw your retirement funds, you'll need to submit the appropriate application (SF-3102 for FERS or SF-2802 for CSRS) along with a copy of your separation SF-50 30 days after your separation.
You should then receive your refund in approximately 4 to 6 weeks.
3. Severance pay
Severance payments accrue on a day-to-day basis and are paid at the same pay period intervals as salary payments.
Most severance packages are paid as a one-time lump sum, issued on or around the date of your final paycheck.
4. Pension lump sum buyouts
If you're considering a lump-sum pension buyout, the timeframe can vary and depends on factors such as negotiations with the plan administrator and any required court orders.
It's advisable to consult with an experienced attorney and financial expert to navigate this process effectively.
Read more on this at OPM’s website: https://www.opm.gov/policy-data-oversight/pay-leave/leave-administration/fact-sheets/lump-sum-payments-for-annual-leave/
