HR Order DOJ1200.1: Part 2. Compensation: Chapter 2-7, Lump-Sum Payments for Annual Leave (October 5, 1999)

A. References.

B. Policy.

1. This chapter supplements the statute and regulations by establishing the Department's policy on certain issues involving lump-sum payments for accumulated and accrued annual leave.
    
2. Employees on Mixed Tours of Duty.
    
   1. Except as provided in paragraph B.2.b. of this chapter, the accumulated and accrued annual leave of an employee on a mixed tour of duty who moves from a part-time or full-time schedule to an intermittent schedule will be held in abeyance. The annual leave will be recredited when the employee returns to a part-time or full-time schedule.
       
   2. When it is known that an employee on a mixed tour of duty who moves from a part-time or full-time schedule to an intermittent schedule will not be returning to a part-time or full-time schedule, a component will make a lump-sum payment for accumulated and accrued annual leave when the employee moves to the intermittent schedule.
3. Non-Title 5 Payments.  Components with authority to make payments under a legal authority other than title 5, United States Code, will follow these guidelines in determining whether such payments should be included in a lump-sum payment for accumulated and accrued annual leave:
   1. A payment that is similar in nature to a type of payment listed in 5 CFR 550.1205(b) will be included in a lump-sum payment;
       
   2. A payment that is not similar in nature to a type of payment listed in 5 CFR 550.1205(b) that would be paid during a period of annual leave, will be included in a lump-sum payment; and
       
   3. A payment that is not similar in nature to a type of payment listed in 5 CFR 550.1205(b), that would not be paid during a period of annual leave, will not be included in a lump-sum payment.

   Example: Basic pay and locality pay under an administratively-determined (AD) pay system are similar in nature to basic pay and locality pay under the General Schedule. Therefore, they are included in a lump-sum payment.

   Example: Overtime pay for immigration officers under the Act of 1931 is not similar in nature to any of the types of pay listed in 5 CFR 550.1205(b). Therefore, it is not included in a lump-sum payment.

4. Refunding a Lump-Sum Payment. An employee who is reemployed during the time period covered by the lump-sum payment is required to refund the portion of the lump-sum payment that corresponds to the period of reemployment (excluding any restored annual leave that was included in the lump-sum payment), as follows:
    
   1. The amount to be refunded is the gross amount of the lump-sum payment for the period of reemployment, before any deductions or withholdings.
       
   2. If the amount to be refunded is 15 percent of disposable pay or less, the entire refund will generally be collected in a single payment, unless an installment agreement is approved by an authorized official.
       
   3. If the amount to be refunded is more than 15 percent of disposable pay, the employee may request repayment via installment payments.
       
   4. Collection via installment payments will be made by salary offset, except that repayment must be completed by the earliest of the following dates:
       

        (1)  6 months after the date of reemployment (or where established in writing by the component head or designee, the end of a maximum repayment period greater than 6 months, but not to exceed 12 months);
      
        (2)  the expected end of the period of reemployment.

5. When the full amount has been refunded, the component will recredit the annual leave.

C. Documentation.

1. A component will make a written determination as to whether each type of payment subject to paragraph B.3. of this chapter will be included in a lump-sum payment. This determination must be available for review by the Department or appropriate third parties.

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