# OPM Updates Federal Leave Credit Policy

The Office of Personnel Management (OPM) has clarified discretionary agency authority to credit prior non-Federal and uniformed service experience toward annual leave accrual rates for newly appointed or reappointed federal employees following a 90-day break in service. Agencies must proactively determine the relevance and necessity of such prior experience before the employee's start date, as retroactive approvals are not permitted. Once credited, this leave accrual rate becomes permanent after one year of continuous federal service. This policy update affects federal human capital management practices and has implications for contractors managing workforce benefits and planning employee transitions.

- Agencies are required to make leave credit determinations prior to employee onboarding, impacting HR and contracting timelines.
- Contractors supporting federal workforce administration should adjust benefit planning and compliance processes to align with OPM's guidance.
- This policy may influence contractor labor cost projections and employee retention strategies due to changes in leave accrual calculations.
- Procurement professionals should consider these human capital factors when structuring contracts involving federal employee transitions or service continuity.

**Jurisdictions:** federal
**Industries:** Professional Services
**Topics:** Regulatory Compliance
**Published:** September 14, 2026

### Government Entities
- Office of Personnel Management (OPM)

### Key Quotes
> The head of an agency, or his or her designee, must make the determination to approve an employee's qualifying prior work experience before the employee enters on duty - the determination cannot be made retroactively.
> — Original poster

### Sources
- [Creditable service](https://www.reddit.com/r/FedEmployees/comments/1wgh8jv/creditable_service) - reddit-fedemployees