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Your employer may use a schedule in which employees are 100 percent vested in employer contributions after 3 years of service (cliff vesting). Under graduated vesting, an employee must be at least 20 percent vested after 2 years, 40 percent after 3 years, 60 percent after 4 years, 80 percent after 5 years, and 100 percent after 6 years. If your automatic enrollment 401(k) plan requires employer contributions, you vest in those contributions after 2 years.
Retire at the end of the year to get the maximum lump sum leave payment. FERS employees should consider retiring on Dec. 31, 2006. advantage of the 3-day grace period by retiring on Wednesday, Jan. 3, 2007. Most federal employees are limited to carrying over 240 hours of annual leave each year. In addition to the carryover leave, employees with more than 15 years of service. accumulate an additional 208 hours of annual leave each year.