If You’re Laid Off
• Unused leave
You can take a lump sum payment for your unused leave, or transfer all or a portion of the payment to your Savings Plus account.
Lump sum payment: You will receive the payment as part of your final compensation. Your unused leave payment will be taxable as ordinary income.
Savings Plus transfer: If you transfer unused leave credit to a Savings Plus 401(k) and/or 457 account, you won’t owe taxes on this money until you withdraw it. Any unused leave credit you transfer to Savings Plus counts toward the annual contribution limits for 401(k) and/or 457 plans. To make this transfer, submit a Request to Defer Lump Sump Separation Pay form, available from your personnel office and the Savings Plus Web site.
