Washington, D.C. 20530

December 29, 2006

MEMORANDUM FOR BUREAU HUMAN RESOURCES OFFICERS

As a result of the enactment of the John Warner National Defense Authorization Act for Fiscal Year 2007 (NDAA) on October 17, 2006, two changes have been made to pay and leave administration (see attached memorandum by the Office of Personnel Management(OPM) dated November 3, 2006). In its memorandum, the OPM announced an extension of authority to waive the annual premium pay limitation for 2007, including an amendment reflecting an increase to the annual limitation on basic pay and premium pay allowed under the waiver authority from $200,000 in calendar year 2006 to $212,100 in calendar year 2007.

The NDAA and the OPM's memorandum also provide guidance to agencies on determining the leave accrual rates for Federal employees who are hired while they are on "terminal leave" pending retirement from the military service. Effective October 17, 2006, agencies must determine the annual leave accrual rates for such individuals on terminal leave in the same manner as for retired members of a uniformed service appointed to civilian positions. My office is aware of a January 11, 2006, decision by the OPM (prior to the recent legislative changes) which uses a different way of determining accrual rates for employees hired while on terminal leave. We are in the process of resolving the issue of whether retroactive adjustments prior to October 17, 2006, are appropriate and will provide your staffs with guidance as soon as it becomes available.

You may access this information concerning any of the matters above at the following site:http://www.opm.gov/oca/compmemo/2006/2006-11.asp.

If there are any questions regarding the above information, please contact Denise Corbitt on (202) 353-7786, or by e-mail at Denise.V.Corbitt@usdoj.gov.

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