AD-581 LUMP SUM PAYMENT AND LEAVE AUDIT
The AD-581 Lump Sum Payment form is used to pay out annual leave balances, compensatory leave and credit hours for employees who have separated from federal service. It is also used to pay out interim payments, which are payments for employees who are not separating from the rolls but are no longer eligible to earn leave due to a change in work schedule.
When an employee separates from federal service, it is important that the AD-581 be completed for any outstanding annual, sick, compensatory and credit leave hours on the database, including the negative leave balances. If there is a negative leave balance, it should specify on the form whether to forgive the leave or collect it. An example of forgiving negative annual or sick leave balances is if an employee died or terminated with a disability. Only in these types of situations should negative leave be forgiven. The leave audit for the current year should also be attached with the AD-581. If it is for a negative leave balance, then the history of leave audits is needed, beginning with the year the leave went below zero. This form helps to ensure that the leave balances on the database agree with what is specified on the AD-581. If there is a discrepancy on the leave hours recorded on the database, versus the AD-581 form, then our Leave and Compensation Team will go through the leave audit and adjust the balances, if necessary. It is important to have the leave audit so that we can take care of any outstanding leave discrepancies efficiently. When the AD-581 and leave audit are not received in HRO, then the employee's personnel record never drops from the current database to the history database, and the leave record is not generated. That prevents the Official Personnel Folder from being sent to the records center. Also, we have possible unpaid monies that may be due or not due to an employee.
If you have any questions on how to complete the AD-581 Lump Sum Payment form, please contact your servicing HRO processing associate. For questions on how to complete the leave audit, please contact your servicing HRO wage associate in the Leave and Compensation Team.