[Retroactive Substitution of Sick Leave for Annual Leave]

The Department of Energy requested a decision concerning an employee's entitlement to substitute sick leave for annual leave which she had used in the calendar year prior to the year in which she retired. GAO noted that: (1) an employee may choose to substitute sick leave for accrued annual leave if the request is timely and the agency approves; (2) an employee may restore forfeited annual leave for use in the following year if an illness occurs during an approved period of leave; and (3) at the close of the leave year, an employee will have no excess leave if he uses forfeitable annual leave in lieu of sick leave. GAO found that the employee did not have any annual leave subject to forfeiture at the end of the leave year immediately preceding the leave year in which she retired. Accordingly, the agency may not retroactively substitute any sick leave for annual leave and may not recredit any annual leave for lump-sum payment purposes in the succeeding leave year.