[Decision Concerning Former FCC Employee's Lump-Sum Leave Payment]

The Federal Communications Commission (FCC) requested a decision regarding a retired employee's entitlement to credit for annual leave he accrued during the last two pay periods before he retired. FCC did not credit the employee with the leave in his lump-sum leave payment because it believed that to do so would violate the restriction against granting terminal leave immediately prior to separation from service, since it knew in advance of the employee's retirement plans. GAO held that, since the employee was present for and performed duty on the last administrative workday of the pay period in which he retired, the leave he used immediately prior to that day did not violate the terminal leave restriction. Accordingly, FCC should credit the employee with the annual leave he accrued during his last two pay periods.