Is an employee required to pay back a lump-sum payment for annual leave when he or she is reemployed in the Federal Government?
A – Yes. Under 5 U.S.C. 6306, when an individual who received a lump-sum payment for accumulated and accrued annual leave under 5 U.S.C. 5551 is reemployed in the Federal service before the end of the period covered by the lump-sum payment, he or she must refund to the employing agency an amount equal to the pay covering the period between the date of reemployment and the expiration of the lump-sum period. The refund is deposited in the Treasury of the United States to the credit of the employing agency. The refund is based on the rate of pay used to compute the lump-sum payment; e.g., an employee who received a lump-sum payment based on a GS-7 special salary rate must refund the lump-sum payment based on that same pay rate, even if he or she is reemployed at a lower grade level that is not covered by special salary rates.
Related Questions
- Are refunds of lump-sum payments for annual leave required of Federal employees who are reemployed in a temporary appointment of less than 90 days?
- Is an employee required to pay back a lump-sum payment for annual leave when he or she is reemployed in the Federal Government?
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