[Code of Federal Regulations]
[Title 5, Volume 1, Parts 1 to 699]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR550.1206]

[Page 552-553]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
                CHAPTER I--OFFICE OF PERSONNEL MANAGEMENT
 
PART 550--PAY ADMINISTRATION (GENERAL)--Table of Contents
 
  Subpart L--Lump-Sum Payment for Accumulated and Accrued Annual Leave
 
Sec. 550.1206  Refunding a lump-sum payment.

    (a) When an employee who received a lump-sum payment for accumulated 
and accrued annual leave under 5 U.S.C. 5551 is reemployed in the 
Federal service prior to the end of the period covered by the lump-sum 
payment, the employee must refund to the

[[Page 553]]

employing agency an amount equal to the pay included in the lump-sum 
payment under Sec. 550.1205(b) that covers the period between the date 
of reemployment and the expiration of the lump-sum leave period, except 
as provided in paragraphs (b) and (c) of this section. The agency must 
compute the refund based on the pay used to compute the lump-sum payment 
under Sec. 550.1205(b). However, annual leave restored under 5 U.S.C. 
6304(d) that was included in a lump-sum payment is not subject to refund 
if an agency reemploys the employee prior to the expiration of the lump-
sum leave period. The agency must subtract such restored annual leave 
from the lump-sum leave period before calculating the refund. An agency 
may permit an employee to refund the lump-sum payment for annual leave 
in installments, but may not waive collection. If an agency permits the 
lump-sum refund to be paid in installments, the employee must refund the 
lump-sum payment in full within 1 year after the date of reemployment.
    (b) An employee who is reemployed in a position listed in 5 U.S.C. 
6301(2)(ii), (iii), (vi), or (vii) is not required to refund a lump-sum 
payment under paragraph (a) of this section.
    (c) An employee who is reemployed in a position that has no leave 
system to which annual leave can be recredited is not required to refund 
a lump-sum payment under paragraph (a) of this section, except that 
individuals reemployed as Presidential appointees must refund a lump-sum 
payment and the annual leave will be held in abeyance, as provided in 
Sec. 550.1207(e).
    (d) An individual first hired by the District of Columbia government 
on or after October 1, 1987, who received a lump-sum payment upon 
separation from the District of Columbia government and who is employed 
by the Federal Government prior to the expiration of the lump-sum leave 
period must refund the lump-sum payment, and the agency must recredit 
the annual leave under Sec. 550.1207.
    (e) An employee who retired from the Federal Government and received 
a lump-sum payment under Sec. 550.1203 of this chapter, and who is 
reemployed under a temporary appointment of less than 90 days prior to 
the expiration of the lump-sum leave period, is required to refund the 
lump-sum payment, and the agency must recredit the annual leave under 
Sec. 550.1207. The employee may use the recredited annual leave during 
the temporary appointment.