B-124592, MAY 6, 1958

B-124592, MAY 6, 1958

TO HONORABLE R. B. TOOTELL, GOVERNOR, FARM CREDIT ADMINISTRATION:

YOUR LETTER OF MARCH 21, 1958, CONCERNS OUR DECISION OF DECEMBER 1, 1955, B-124592, TO YOU, WHEREIN WE HELD THAT UNDER THE FACTS AND CIRCUMSTANCES THEN STATED IT WAS NOT AT ALL CLEAR THAT LUMP-SUM PAYMENTS FOR LEAVE WERE PROPER WHEN OFFICERS AND EMPLOYEES OF THE CORPORATIONS WERE, WITHOUT BREAK IN SERVICE, APPOINTED TO POSITIONS IN THE FARM CREDIT ADMINISTRATION, OR VICE VERSA. FURTHER WE ADVISED THEREIN THAT THE STATUS OF THOSE EMPLOYEES CONCERNING THE APPLICABILITY OF FEDERAL STATUTES, INCLUDING SECTION 205 (E) OF THE ANNUAL AND SICK LEAVE ACT OF 1951, AS AMENDED, 67 STAT. 138, WHICH RELATES TO GOVERNMENT EMPLOYEES GENERALLY, SHOULD BE FINALLY RESOLVED BY LEGISLATION, AND THAT UNTIL SO RESOLVED THE ADMINISTRATIVE PRACTICE OF MAKING LUMP-SUM PAYMENTS SHOULD BE DISCONTINUED AS BEING OF QUESTIONABLE LEGALITY.

YOU POINT OUT THAT SINCE OUR DECISION YOU HAVE CEASED MAKING SUCH PAYMENTS. YOU FURTHER POINT OUT THAT NOW YOU ARE ENCOUNTERING PROBLEMS IN INDIVIDUAL CASES BECAUSE OF DIFFERENCES BETWEEN THE MAXIMUM ACCUMULATION LIMITS OF THE ANNUAL AND SICK LEAVE ACT OF 1951, AS AMENDED, AND THOSE IN EFFECT IN THE LEAVE SYSTEMS IN THE BANKS--- CORPORATIONS--- UNDER THE SUPERVISION OF YOUR AGENCY. YOU CITE AN EXAMPLE, NAMELY, THAT ON JANUARY 1, 1958, AN EMPLOYEE TRANSFERRED FROM A FEDERAL LAND BANK TO THE FARM CREDIT ADMINISTRATION. HIS ACCUMULATED MAXIMUM BALANCE ALLOWED BY THE BANK FROM WHICH TRANSFERRED -- 60 DAYS ANNUAL LEAVE--- WAS ACCUMULATED IN DECEMBER 1945 AND HAS BEEN CARRIED FORWARD EACH YEAR. CURRENTLY, HE HAS 556 HOURS OF ANNUAL LEAVE AND THE MAXIMUM LIMIT OF 720 HOURS OF SICK LEAVE. YOUR FIRST QUESTION IS WHETHER YOU MAY CREDIT THE EMPLOYEE WITH HIS CURRENT LEAVE BALANCE--- 556 HOURS--- AND ESTABLISH 60 DAYS AS HIS ANNUAL LEAVE CEILING TO BE CARRIED FORWARD UNTIL SUCH TIME AS USED IN ACCORDANCE WITH THE SAVINGS PROVISIONS OF THE ANNUAL AND SICK LEAVE ACT OF 1951.

YOUR SECOND QUESTION IS WHETHER AN EMPLOYEE WHO TRANSFERRED FROM ONE OF THE BANKS TO THE FARM CREDIT ADMINISTRATION PRIOR TO OUR DECISION OF DECEMBER 1, 1955, AND WHO RECEIVED A LUMP-SUM PAYMENT FOR HIS ANNUAL LEAVE NOW MAY BE CREDITED WITH THE SICK LEAVE EARNED WHILE EMPLOYED BY THE BANK BUT NOT TRANSFERRED AT THE TIME OF THE CHANGE IN EMPLOYMENT.

THE QUESTIONS PRESENTED CONCERN OFFICERS AND EMPLOYEES OF THE CORPORATIONS UNDER REGULATORY CONTROL AND SUPERVISION OF THE FARM CREDIT ADMINISTRATION. THEIR STATUS WHILE EMPLOYED BY THE CORPORATIONS, AS WE POINTED OUT IN OUR DECISION OF DECEMBER 1, 1955, LONG HAS BEEN A VEXING PROBLEM. HOWEVER, UPON THEIR TRANSFER TO OR APPOINTMENT BY THE FARM CREDIT ADMINISTRATION UNQUESTIONABLY THEY BECOME FEDERAL EMPLOYEES AND, CONSEQUENTLY THEY BECOME SUBJECT TO THE PROVISIONS OF SECTION 205 (E) OF THE LEAVE ACT. THAT SECTION READS AS FOLLOWS:

"IN THE CASE OF TRANSFER OF AN OFFICER OR EMPLOYEE BETWEEN POSITIONS UNDER DIFFERENT LEAVE SYSTEMS (OTHER THAN TRANSFERS INVOLVING POSITIONS EXEMPTED UNDER SECTION 202 (B) (1) (B), (C), OR (H), WITHOUT A BREAK IN SERVICE, THE ANNUAL AND SICK LEAVE TO THE CREDIT OF SUCH OFFICER OR EMPLOYEE SHALL BE TRANSFERRED TO HIS CREDIT IN THE EMPLOYING AGENCY ON AN ADJUSTED BASIS IN ACCORDANCE WITH REGULATIONS TO BE PRESCRIBED BY THE CIVIL SERVICE COMMISSION.'

WE HELD IN OUR DECISION, 33 COMP. GEN. 85, IN THE ANSWER TO QUESTION 4 (B) THAT THE AMOUNT OF LEAVE PERMITTED TO BE TRANSFERRED SHOULD, IN NO EVENT, EXCEED THE AGGREGATE AMOUNT OF LEAVE WHICH THE EMPLOYEES IN THE AGENCY TO WHICH TRANSFERRED ARE PERMITTED TO ACCUMULATE. THAT MAXIMUM ACCUMULATION UNDER SECTION 203 (C) OF THE ANNUAL AND SICK LEAVE ACT OF 1951, AS AMENDED BY SECTION 3 OF THE ACT OF JULY 2, 1953, 67 STAT. 137, NOW IS 30 DAYS. THAT AMOUNT PLUS THE AMOUNT OF CURRENT LEAVE ACCRUED TO THE DAY OF TRANSFER REPRESENTS THE MAXIMUM AMOUNT OF ANNUAL LEAVE THAT CAN BE CREDITED TO THE EMPLOYEE HERE INVOLVED. SEE 33 COMP. GEN. 209. THE SAVINGS PROVISIONS OF THE 1951 ACT HAVE NO APPLICATION HERE. YOUR FIRST QUESTION IS ANSWERED ACCORDINGLY.

CONCERNING YOUR SECOND QUESTION, THE TRANSFER OF SICK LEAVE ALSO SHOULD BE MADE IN ACCORDANCE WITH SECTION 205 (E) OF THE AMENDED 1951 LEAVE ACT, AND SECTION 30.702 OF THE ANNUAL AND SICK LEAVE REGULATIONS, PAGE Z1-354, FEDERAL PERSONNEL MANUAL, IF IT BE ADMINISTRATIVELY DETERMINED THE EMPLOYEE IS PROPERLY ENTITLED THERETO. SEE 32 COMP. GEN. 310.