U.S. Office of Personnel Management - Ensuring the Federal Government has an effective civilian workforce

CPM 2006-11

November 3, 2006

MEMORANDUM FOR HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES

This is to inform you of two changes in pay and leave administration policies resulting from the enactment of the Fiscal Year 2007 National Defense Authorization Act (the Act), which was signed into law by President George W. Bush on October 17, 2006 (Public Law 109-364).

Accrual of Annual Leave for Members of the Uniformed Services on Terminal Leave Performing Dual Employment

Section 1101 of the Act amends 5 U.S.C. 5534a to entitle an individual appointed to a civilian position while on terminal leave pending retirement from a uniformed service to accrue annual leave in the manner specified in section 6303(a) of title 5, United States Code, for a retired member of a uniformed service. This means agencies must determine the annual leave accrual rate for an individual appointed to a civilian position while on terminal leave pending military retirement in the same manner as determining the annual leave accrual rate for a retired member of a uniformed service appointed to a civilian position. The agency may count only certain military service as creditable service for the purpose of determining the employee's annual leave accrual rate (e.g., actual service during a war declared by Congress or while participating in a campaign or expedition for which a campaign badge is authorized and active duty when retirement was based on a disability received as a direct result of armed conflict or caused by an instrumentality of war and incurred in the line of duty during a period of war as defined in 38 U.S.C. 101(11). This provision became effective on October 17, 2006.

Extension of Authority to Waive Annual Limitation on Total Compensation Paid to Federal Civilian Employees

Section 1105 of the Act amended section 1105 of Public Law 109-163 to provide authority (under specified conditions) to waive the premium pay cap provisions under 5 U.S.C. 5547 in calendar year 2007. Previously, the waiver authority was limited to calendar year 2006. The amendment also increases 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. Under this provision, the head of an agency may exercise the waiver authority for an employee who performs work while in an overseas location that is in the area of responsibility of the commander of the United States Central Command, in direct support of or directly related to a military operation (including a contingency operation as defined in section 101(13) of title 10, United States Code). Under the amended section 1105, a covered employee may receive premium pay in calendar year 2007 to the extent that such premium pay would not cause the employee's aggregate amount of basic pay and premium pay payable in calendar year 2007 to exceed $212,100. We have attached an updated version of the Summary of Key Common Elements in Department of Defense and State Department Policies Implementing Section 1105 of Public Law 109-163, as amended by Section 1105 of Public Law 109-364, for Calendar Year 2007. (We previously issued the Key Common Elements for calendar year 2006 to agency Chief Human Capital Officers in May 2006.) We strongly encourage all other agencies to adopt policies that are consistent with the key elements of the Department of Defense and State Department policies in their implementation of section 1105.

Additional Information

For additional information, agency Chief Human Capital Officers and/or Human Resources Directors should contact their assigned OPM Human Capital Officer. Employees should contact their agency human resources office for assistance.

cc: Chief Human Capital Officers
      Human Resources Directors