Part of the 2021 pandemic relief and stimulus law includes a $570 million fund for Federal Employees.
No-Cost Webinars for Federal EmployeesThe new Federal Employee Leave Fund, created by Congress in March as part of the “American Rescue Plan,” is an added benefit for Feds that are currently and personally impacted by the pandemic. The fund will pay a maximum of 600 hours of additional paid leave, equivalent to 15 weeks, however, the weekly amounts are capped at $1400. Therefore, the maximum a fed could receive is $21,000 ($1400 x 15). Congress’ intention when creating the leave fund was to “create a backstop for feds in a dire situation.”
There have been misconceptions surrounding the law, one of which purports that all federal workers will receive an additional $21,000 stimulus payment. Another revolves around a requirement for a federal employee to utilize all their available sick and annual leave before they can have access to this new leave. Both of these suppositions are untrue. While there was once a rule in the legislation that did require annual and sick leave to be used up first, congress dropped it before the economic relief act was passed. As for specific eligibility, one of the following situations must apply for a federal employee to use the leave. They need to:
Frustratingly, OPM has yet to issue guidance to Federal Agencies regarding the leave fund. Some agencies, such as USPS, have taken the initiative to provide their employees with their own guidance on how the leave can be utilized until word from OPM is received.
Until Next Time,
The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
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