B-152776, NOV. 8, 1963

B-152776: Nov 8, 1963

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WE HAVE BEEN INFORMALLY ADVISED BY A REPRESENTATIVE OF YOUR OFFICE THAT THE VOUCHER REPRESENTS PAYMENT FOR 11 HOURS OF ANNUAL LEAVE DUE A SEPARATED EMPLOYEE (GRADE GS-12) THAT WOULD HAVE EXTENDED PAST JANUARY 5. PROVIDES IN PART AS FOLLOWS: "THAT WHENEVER ANY CIVILIAN OFFICER OR EMPLOYEE OF THE FEDERAL GOVERNMENT * * * IS SEPARATED FROM THE SERVICE * * * HE SHALL BE PAID COMPENSATION IN A LUMP SUM FOR ALL ACCUMULATED AND CURRENT ACCRUED ANNUAL OR VACATION LEAVE TO WHICH HE IS ENTITLED UNDER EXISTING LAW. SUCH LUMP-SUM PAYMENT SHALL EQUAL THE COMPENSATION THAT SUCH EMPLOYEE WOULD HAVE RECEIVED HAD HE REMAINED IN THE SERVICE UNTIL THE EXPIRATION OF THE PERIOD OF SUCH ANNUAL OR VACATION LEAVE * * * " THE LUMP-SUM PAYMENT IS TO BE COMPUTED ON THE BASIS OF THE EMPLOYEE'S RIGHTS AT THE TIME OF SEPARATION UNDER ALL APPLICABLE LAWS AND REGULATIONS AT THAT TIME WHICH WOULD HAVE AFFECTED HIS COMPENSATION HAD HE REMAINED IN THE SERVICE FOR THE PERIOD COVERED BY HIS LEAVE.

B-152776, NOV. 8, 1963

TO MRS. MILDRED O. YOUNG, BUREAU OF PUBLIC ROADS, DEPARTMENT OF COMMERCE:

THIS REFERS TO YOUR LETTER OF OCTOBER 25, 1963, REFERENCE 34-27, WITH ENCLOSURES, REQUESTING A DECISION FROM OUR OFFICE CONCERNING THE COMPUTATION OF A LUMP-SUM LEAVE PAYMENT FOR AN EMPLOYEE WHOSE ANNUAL LEAVE EXTENDS BEYOND JANUARY 1, 1964.

THE VOUCHER ENCLOSED SHOWS A TOTAL OF $63.25 DUE THE SEPARATED EMPLOYEE FOR THE PERIOD SEPTEMBER 29, 1963, THROUGH OCTOBER 12, 1963. WE HAVE BEEN INFORMALLY ADVISED BY A REPRESENTATIVE OF YOUR OFFICE THAT THE VOUCHER REPRESENTS PAYMENT FOR 11 HOURS OF ANNUAL LEAVE DUE A SEPARATED EMPLOYEE (GRADE GS-12) THAT WOULD HAVE EXTENDED PAST JANUARY 5, 1964, THE BEGINNING OF A NEW PAY PERIOD AT THE RATE OF $5.75 PER HOUR UNDER COMPENSATION SCHEDULE II OF THE FEDERAL SALARY REFORM ACT OF 1962.

THE FEDERAL SALARY REFORM ACT OF 1962, PUB.L. 87-793, 76 STAT. 841, PROVIDES THAT COMPENSATION SCHEDULE II SHALL BECOME EFFECTIVE WITH THE FIRST PAY PERIOD BEGINNING AFTER JANUARY 1, 1964, THE EFFECTIVE DATE FOR THE BUREAU OF PUBLIC ROADS BEING JANUARY 5, 1964.

SECTION 1 OF THE ACT OF DECEMBER 21, 1944, 58 STAT. 845, 5 U.S.C. 61B, AS AMENDED, PROVIDES IN PART AS FOLLOWS:

"THAT WHENEVER ANY CIVILIAN OFFICER OR EMPLOYEE OF THE FEDERAL GOVERNMENT * * * IS SEPARATED FROM THE SERVICE * * * HE SHALL BE PAID COMPENSATION IN A LUMP SUM FOR ALL ACCUMULATED AND CURRENT ACCRUED ANNUAL OR VACATION LEAVE TO WHICH HE IS ENTITLED UNDER EXISTING LAW. SUCH LUMP-SUM PAYMENT SHALL EQUAL THE COMPENSATION THAT SUCH EMPLOYEE WOULD HAVE RECEIVED HAD HE REMAINED IN THE SERVICE UNTIL THE EXPIRATION OF THE PERIOD OF SUCH ANNUAL OR VACATION LEAVE * * * "

THE LUMP-SUM PAYMENT IS TO BE COMPUTED ON THE BASIS OF THE EMPLOYEE'S RIGHTS AT THE TIME OF SEPARATION UNDER ALL APPLICABLE LAWS AND REGULATIONS AT THAT TIME WHICH WOULD HAVE AFFECTED HIS COMPENSATION HAD HE REMAINED IN THE SERVICE FOR THE PERIOD COVERED BY HIS LEAVE. SEE 26 COMP. GEN. 102. THE FEDERAL SALARY REFORM ACT OF 1962, PUB.L. 87-793, 76 STAT. 841, INCREASED THE EXISTING RATES OF BASIC COMPENSATION PROVIDED BY SECTION 603 (B) OF THE CLASSIFICATION ACT OF 1949, AS AMENDED. THAT ACT WAS APPROVED OCTOBER 11, 1962, AND COMPENSATION SCHEDULE II WAS TO BE EFFECTIVE ON THE FIRST DAY OF THE FIRST PAY PERIOD BEGINNING ON OR AFTER JANUARY 1, 1964. HENCE, WITH RESPECT TO EMPLOYEES SEPARATED FROM THE SERVICE AFTER THE DATE OF THE FEDERAL SALARY REFORM ACT OF 1962, AND WHOSE UNUSED ANNUAL LEAVE COVERS A PERIOD EXTENDING BEYOND THE EFFECTIVE DATE OF COMPENSATION SCHEDULE II, IT IS CLEAR THAT, HAD THEY REMAINED IN THE SERVICE UNTIL THE EXPIRATION OF SUCH ANNUAL OR VACATION LEAVE, THEY WOULD HAVE RECEIVED COMPENSATION AT THE INCREASED RATES PROVIDED BY COMPENSATION SCHEDULE II, FOR SO MUCH OF THE PERIOD AS EXTENDS BEYOND THE FIRST PAY PERIOD BEGINNING ON OR AFTER JANUARY 1, 1964. THEREFORE, THE LUMP-SUM PAYMENT OF THE FORMER EMPLOYEE PROPERLY SHOULD REFLECT THE COMPENSATION CHANGE EFFECTED BY COMPENSATION SCHEDULE II OF THE FEDERAL SALARY REFORM ACT OF 1962, BEGINNING JANUARY 5, 1964.

THE VOUCHER WHICH IS RETURNED HEREWITH MAY BE CERTIFIED FOR PAYMENT IF OTHERWISE CORRECT.