|Subchapter 4630 - Absence and Leave
Section B - Annual Leave
Subsection g - Lump Sum Payments
| Lump Sum Payment
A cash payment (lump sum) for unused annual leave, which includes restored leave, is paid when an employee:
In determining whether or not to make lump sum payments for unused annual leave, Programs must:
Reference: Federal Register, Vol. 64 No. 130, page 36764 col. 1, dtd July 8, 1999, and email from OHCM-USDA, dtd March 3, 2005.
If restored annual leave is included in a lump sum payment then it may not be recredited if an employee is reemployed before the expiration of the lump sum period (5 CFR 550.1207 [a]).
Programs are required to make a lump sum payment for restored annual leave when an employee enters active duty.
| Computation of Lump Sum Payment
Lump sum payments:
The period covered by the lump sum is not creditable as Federal service or for leave earning purposes.
Lump sum payments exclude: hazard duty pay, environmental differentials, Sunday premium pay, and retention allowances.
||Form AD-581 , Lump Sum Leave or Compensatory Time Payments, must be completed to initiate payment for unused annual leave. A leave audit also must be completed in support of the AD-581 if there is a discrepancy between the NFC data base and the employee's time and attendance records. The management official with the authority to approve time and attendance records must sign the AD-581. Programs may choose to retain this authority at a higher level. The completed form (and audit, if appropriate) must be forwarded to the SPO for processing.|
| Refund of Lump Sum Payment
An employee must refund a lump sum payment to the gaining agency when he/she is:
Collection of the lump sum may not be waived. The lump sum may be paid in installments or in total, but it must be paid within 1 year after the date of reemployement.
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