Why Your Sick and Annual Leave Might Be the Best Short-Term Disability Plan You Never Noticed

Hi Friends, Mike Lanway here with AllAboutFERS.com

Today I want to talk about something that’s easy to overlook—your sick leave and annual leave. Most of us think of leave as vacation time or sick days when we catch the flu. But in my years of working with federal employees, I’ve come to see these as more than just days off. They are a powerful part of your overall financial protection.

Leave Is More Than a Perk — It’s a Safety Net

If you’re in the FERS system, you’ve got access to two types of leave that can serve as a short-term disability plan, especially when life throws you something unexpected.

• Sick Leave: There’s no cap on how much you can accumulate. That means if you’re healthy now, every hour you bank is a cushion for later.
  
• Annual Leave: You can carry over up to 240 hours from one year to the next, and you can build much more within a single year if needed.
  

So why does that matter?

Because if something happens—an injury, a surgery, a serious diagnosis—these hours can become income protection. They can keep your bills paid, your job secure, and your peace of mind intact.

Build a Strategy, Not Just a Balance

Now, I know life doesn’t always let us bank leave the way we’d like to. Emergencies come up. Family needs arise. But when you can plan ahead, you should.

Start thinking about your leave as part of a short-term disability strategy:

• Set a target number of hours based on your lifestyle and needs.
  
• Build up your sick and annual leave gradually.
  
• Talk to your HR office about what counts, how to carry it over, and what happens when you leave federal service.
  

And just as importantly—know your backup options.

What If You Don’t Have Enough Leave?

Sometimes you don’t have the hours you need. That’s where two other protections come in:

1. Leave Bank: This is a pooled resource you can draw from if you qualify. It’s essentially a way to borrow leave when yours runs out—something worth signing up for before you actually need it.
   
2. Short-Term Disability Insurance: There are private policies you can explore, but you’ll want to make sure the provider understands federal leave policies. Not all do. Look for a company that works specifically with FERS employees so you’re not left hanging.
   

This Isn’t Just About Time Off—It’s About Peace of Mind

The ability to recover, to care for a loved one, or to simply breathe during a tough season of life—without losing income—is invaluable. It’s not glamorous. It’s not often talked about. But it might just be one of the most important planning tools in your FERS toolkit.

So my advice?

Start thinking of your leave not just as time, but as protection. It’s one more way your FERS benefits are working behind the scenes to take care of you—and one more reason not to underestimate the value of your federal career.

If you want help thinking through how your leave balances fit into your bigger financial plan, visit AllAboutFERS.com. That’s what we’re here for.

Take care,
Mike Lanway