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LUMP-SUM PAYMENTS
FOR ANNUAL LEAVE
A Federal employee is entitled to receive a lump-sum payment
for any unused annual leave when he or she separates from Federal
service or enters on active duty in the armed forces and elects
to receive a lump-sum payment. Generally, a lump-sum payment
will equal the pay the employee would have received had he or
she remained employed until expiration of the period covered by
the annual leave. |
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How is a lump-sum payment calculated? |
A lump-sum payment is calculated by multiplying the number of
hours of accumulated and accrued annual leave by the employee's
applicable hourly rate of pay, plus other types of pay the
employee would have received while on annual leave, excluding
any allowances that are paid for the sole purpose of retaining
a Federal employee in Government service (e.g., retention
allowances and physicians comparability allowances). |
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What types of pay are included in a lump-sum payment? |
The types of pay included in a lump-sum payment are:
- Rate of basic pay
- Locality pay or other similar geographic adjustment
- Within-grade increase (if waiting period met on date
of separation)
- Across-the-board annual adjustments
- Administratively uncontrollable overtime pay, availability
pay, and standby duty pay
- Night differential (for FWS employees only)
- Regularly scheduled overtime pay under the Fair Labor
Standards Act for employees on uncommon tours of duty
- Supervisory differentials
- Nonforeign area cost-of-living allowances and post
differentials
- Foreign area post allowances
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What if an employee returns to Federal service? |
In calculating a lump-sum payment, an employee's annual leave
is projected forward for all workdays the employee would have
worked if he or she had remained in Federal service. By law,
holidays are counted as workdays in projecting the lump-sum
leave period. If an employee is reemployed in the Federal service
prior to the expiration of the period of annual leave (i.e.,
the lump-sum leave period), he or she must refund the portion
of the lump-sum payment that represents the period between the
date of reemployment and the expiration of the lump-sum period.
An amount of annual leave equal to the days or hours of work
remaining between the date of reemployment and the expiration
of the lump-sum leave period is recredited to the employee. |
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Reference: |
5
CFR part 550, subpart L (effective September 7, 1999) |
U.S. Office of Personnel Managment