PFE Distance Guide (PDG) 26E5 Practice Test

Terminal leave is the leave taken to bridge the period between the last day of active duty and retirement or separation. It’s charged against your accrued leave, so you use up your remaining days while still receiving pay and allowances until your official separation date. This arrangement keeps the retirement or separation process orderly and ensures a smooth transition.

Other leave types aren’t designed for this bridging purpose: vacation leave is just annual rest time during service, convalescent leave is for medical recovery, and emergency leave covers urgent personal matters. None of them are specifically aligned with timing retirement or separation in the same way terminal leave is.