18+ yrs and contemplating my exit around 1st QTR 2025. Does anyone know how they handle unused vacation? I'll have approximately 6 weeks. Financial advisor states he believes they no longer compensate monetarily for unused vacation; if not taken, you lose it. Anyone have insight?
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Be careful because you are getting bad advice here and from your advisor. You do get a separate check for any unused vacation.
It is now earned each month, but you will get a check separately for this.
Getting paid for unused vacation is nice, but suggest you don’t time it solely because of it. Interest rates will have the greatest impact if you plan to take pension as a lump sum. Lower interest rates means a larger lump sum. Most people target leaving toward the end of the quarter. I left one quarter too late and took a small hit on my lump sum due to rising interest rates. However, I gained significantly more by rolling the lump sum into an IRA and investing wisely.
Fire financial advisor. Should have left 3 years ago to capture full year of vacation benefits on Jan 1. Even the <5 year olds figured that one out.
We never got paid for floating holidays.
For those with 30+ years, you now get 3 days vacation on the first of each odd numbered month and 2 days on the first of each even numbered month.
If you retire Dec 31, wouldn't the rates hit the next year? Isn't that the most optimal time?
Plus, you can then cashout the whole last year vacation too?
Or, I guess Jan 2nd. You then get the floating holidays.
Never retire at year end unless you absolutely have to do so due to rising interest rates. That’s not the situation now. Wait until January so your non-qualified retirement payments won’t stack on top of regular income for taxes. True you don’t get your full vacation entitlement anymore, but you do get the new years holiday, 3 floaters, and your January vacation entitlement.
The difference was you used to get all your vacation Jan 1. Now, you accumulate a bit every month… so, leaving q1 means you won’t have accumulated q2-q4 vacation.
Given that, and falling rates… it’s FAR better to just mail it in and do nothing until Dec 31 and retire at YE.
use it you wont get paid for it.
Don't get paid for unused vacation. Not since 2023
You can only carry over 10 days unless you get special permission. Jan 1 you get the holiday plus three floaters plus 1/12 of your annual vacation entitlement rounded up to nearest whole number. Your option to run those days as vacation or take pay in lieu, but if running the days as vacation you must come back and work a full day in the office in January after taking the vacation Generally you are much better off running the days because they are pension bearing whereas pay in lieu is not.