Unused sick leave is added to the number of years and months of service for annuity computation purposes. The sick leave is not used to compute your "high-3" average salary or to meet the minimum length of service for retirement eligibility. There is no limit to the amount of sick leave that can be added to the earned service of an eligible employee.
If you transfer to the Federal Employees Retirement System (FERS) from CSRS and have a CSRS component of your retirement annuity, the amount of sick leave used in the computation is the lesser of your sick leave balance at the time you transferred to FERS or your sick leave balance at retirement. FERS employees without a CSRS component do not receive credit for sick leave in the computation of their annuity.
How to Convert Sick Leave to Service. To convert the sick leave to years and month of service find the number of hours in the table closest to the number of hours of your unused sick leave. The horizontal column shows the number of months and the vertical column the number of days. If the number of hours falls between two figures shown on the table, use the next higher figure. Example, 1102 hours of sick leave equals 6 months 10 days of additional creditable service