How Vacation Pay Affects Your Pension

3+ Years Before Retirement

Overview

If compensation for unused vacation is included in your salary used to calculate your pension, your lifetime pension allowance will be greater, though there are limits. We suggest you understand this topic at least 3 years prior to retirement. See our section on How Unused Vacation Leave Affects Your Retirement Allowance on our How Your Pension is Calculated page.

How Vacation Pay Affects Your Pension