B-48070, MARCH 7, 1945, 24 COMP. GEN. 659

B-48070: Mar 7, 1945

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EVEN THOUGH THE LEAVE PERIOD OVER WHICH THE LUMP-SUM PAYMENT IS COMPUTED EXTENDS INTO THE NEXT CALENDAR YEAR AND. IS ALSO APPLICABLE IN THE CASE OF SUCH AN EMPLOYEE WHO DOES NOT ELECT TO BE PAID FOR HIS LEAVE UNTIL AFTER JANUARY 1. WHILE NO PAY ROLLS ARE REQUIRED TO BE FORWARDED TO THE GENERAL ACCOUNTING OFFICE IN CONNECTION WITH CLAIMS FOR UNPAID COMPENSATION AND LUMP-SUM LEAVE PAYMENTS UNDER SECTION 2 OF THE ACT OF DECEMBER 21. PROVIDED THERE BE FURNISHED AN ADMINISTRATIVE REPORT OTHERWISE SHOWING THE AMOUNT DUE AND THE BASIS UPON WHICH EACH CLASS OF CLAIM IS COMPUTED. BREAK IN SERVICE" AS DEFINED BY SECTION 1.1 (G) OF THE ANNUAL SICK LEAVE REGULATIONS AND BY SECTION 2 (C) OF THE EXECUTIVE REGULATIONS RESPECTING WITHIN-GRADE PROMOTIONS NOW IS TO BE REGARDED AS BEGINNING TO RUN FROM THE LAST DAY OF ACTIVE DUTY PRECEDING THE PERIOD OVER WHICH THE LUMP-SUM PAYMENT IS COMPUTED. 24 COMP.

B-48070, MARCH 7, 1945, 24 COMP. GEN. 659

LUMP-SUM LEAVE PAYMENTS WHERE, AT OR NEAR THE END OF A CALENDAR YEAR, AN EMPLOYEE RESIGNS OR ENTERS THE ARMED FORCES WITH MORE THAN 90 DAYS' ANNUAL LEAVE TO HIS CREDIT, THE LUMP-SUM PAYMENT AUTHORIZED BY THE ACT OF DECEMBER 21, 1944, FOR ALL ACCUMULATED AND CURRENT ACCRUED LEAVE MAY INCLUDE PAYMENT FOR ALL CURRENT ACCRUED LEAVE AS WELL AS THE 90 DAYS' ACCUMULATED LEAVE, EVEN THOUGH THE LEAVE PERIOD OVER WHICH THE LUMP-SUM PAYMENT IS COMPUTED EXTENDS INTO THE NEXT CALENDAR YEAR AND, UNDER THE ACT OF DECEMBER 17, 1942, ONLY 90 DAYS' ANNUAL LEAVE MAY BE CARRIED OVER FROM ONE YEAR TO THE NEXT. THE HOLDING HEREIN TO THE EFFECT THAT AN EMPLOYEE HAVING MORE THAN 90 DAYS' ACCUMULATED AND CURRENT ACCRUED ANNUAL LEAVE WHO LEAVES HIS CIVILIAN POSITION AT OR NEAR THE END OF A CALENDAR YEAR TO ENTER THE ARMED FORCES MAY BE PAID A LUMP SUM UNDER THE ACT OF DECEMBER 17, 1942, ALLOWING ONLY 90 DAYS' ANNUAL LEAVE TO BE CARRIED OVER FROM ONE YEAR TO THE NEXT, IS ALSO APPLICABLE IN THE CASE OF SUCH AN EMPLOYEE WHO DOES NOT ELECT TO BE PAID FOR HIS LEAVE UNTIL AFTER JANUARY 1. THE LUMP-SUM LEAVE PAYMENT AUTHORIZED BY SECTION 2 OF THE ACT OF DECEMBER 21, 1944, TO BE MADE TO THE DESIGNATED BENEFICIARY OR ESTATE OF A DECEASED EMPLOYEE SHOULD BE COMPUTED OVER THE PERIOD BEGINNING WITH THE DAY FOLLOWING THE DATE OF DEATH, REGARDLESS OF THE TIME OF DAY AT WHICH DEATH OCCURS. WHILE NO PAY ROLLS ARE REQUIRED TO BE FORWARDED TO THE GENERAL ACCOUNTING OFFICE IN CONNECTION WITH CLAIMS FOR UNPAID COMPENSATION AND LUMP-SUM LEAVE PAYMENTS UNDER SECTION 2 OF THE ACT OF DECEMBER 21, 1944, DUE IN THE CASE OF DECEASED EMPLOYEES, PROVIDED THERE BE FURNISHED AN ADMINISTRATIVE REPORT OTHERWISE SHOWING THE AMOUNT DUE AND THE BASIS UPON WHICH EACH CLASS OF CLAIM IS COMPUTED, IT WOULD BE PREFERABLE FOR THE ADMINISTRATIVE REPORT TO TAKE THE FORM OF ONE SHORT FORM PAY ROLL SHOWING AS SEPARATE ITEMS THE AMOUNT OF UNPAID COMPENSATION DUE AND THE LUMP-SUM LEAVE PAYMENT, INCLUDING THE BASIS UPON WHICH EACH HAS BEEN COMPUTED. THE LUMP-SUM LEAVE PAYMENT STATUTE OF DECEMBER 21, 1944, DOES NOT AFFECT THE RULES AND REGULATIONS CONTROLLING THE TRANSFER OF SICK LEAVE UPON TRANSFER OR REAPPOINTMENT OF EMPLOYEES AND THE GRANTING OF WITHIN GRADE PROMOTIONS UNDER THE ACT OF AUGUST 1, 1941, EXCEPT THAT THE 30 DAY ,BREAK IN SERVICE" AS DEFINED BY SECTION 1.1 (G) OF THE ANNUAL SICK LEAVE REGULATIONS AND BY SECTION 2 (C) OF THE EXECUTIVE REGULATIONS RESPECTING WITHIN-GRADE PROMOTIONS NOW IS TO BE REGARDED AS BEGINNING TO RUN FROM THE LAST DAY OF ACTIVE DUTY PRECEDING THE PERIOD OVER WHICH THE LUMP-SUM PAYMENT IS COMPUTED. 24 COMP. GEN. 511, AMPLIFIED. WHERE AN EMPLOYEE IS GRANTED ANNUAL LEAVE WITHOUT ADVANCE NOTICE THAT HE IS TO RESIGN DURING OR AFTER THE LEAVE PERIOD WITHOUT RETURNING TO DUTY, THE SEPARATION DATE MAY BE FIXED, IN THE LIGHT OF THE LUMP-SUM LEAVE PAYMENT STATUTE OF DECEMBER 21, 1944, TO COINCIDE WITH THE TERMINATION DATE OF THE PAY-ROLL PERIOD CURRENT WHEN NOTICE OF THE RESIGNATION IS RECEIVED IN THE ADMINISTRATIVE OFFICE, AND A LUMP-SUM PAYMENT MADE FOR ANY LEAVE EXTENDING BEYOND THAT DATE, SO AS NOT TO REQUIRE PAY-ROLL ADJUSTMENTS; HOWEVER, ADJUSTMENT OF LEAVE ON LEAVE SHOULD BE MADE IN ACCORDANCE WITH SECTION 4.2 (B) OF THE ANNUAL AND SICK LEAVE REGULATIONS. 24 COMP. GEN. 511, AMPLIFIED.

COMPTROLLER GENERAL WARREN TO THE PRICE ADMINISTRATOR, OFFICE OF PRICE ADMINISTRATION, MARCH 7, 1945:

I HAVE YOUR LETTER OF FEBRUARY 8, 1945, SUBMITTING FOR DECISION SEVERAL QUESTIONS RELATIVE TO THE APPLICATION OF THE ACT OF DECEMBER 21, 1944, 58 STAT. 845, PUBLIC LAW 525.

THE QUESTIONS WILL BE STATED AND ANSWERED IN THE ORDER PRESENTED.

1. AN EMPLOYEE HAD TO HIS CREDIT 838 HOURS OF ANNUAL LEAVE AS OF DECEMBER 26, 1944, AT THE CLOSE OF WHICH DATE HE ENTERED ON MILITARY FURLOUGH AND APPLIED FOR HIS LEAVE. MAY HE BE PAID IN A LUMP SUM FOR THE ENTIRE AMOUNT OF ANNUAL LEAVE TO HIS CREDIT, OR SHOULD THE GRANT BE LIMITED TO 752 HOURS, COUNTING 32 HOURS FROM DECEMBER 27 THROUGH DECEMBER 31 PLUS 720 HOURS, THE MAXIMUM ACCUMULATION ALLOWED UNDER PUBLIC LAW 806-77TH CONGRESS (56 STAT. 1052/?

2. WOULD YOUR ANSWER TO QUESTION 1 BE THE SAME IF THE EMPLOYEE ENTERED ON MILITARY FURLOUGH ON DECEMBER 26, 1944, BUT DID NOT ELECT UNTIL AFTER JANUARY 1, 1945, TO BE PAID FOR HIS ANNUAL LEAVE?

3. WOULD YOUR ANSWER TO QUESTION 1 BE THE SAME IF THE EMPLOYEE HAD RESIGNED RATHER THAN ENTERED ON MILITARY FURLOUGH?

SECTION 1 OF THE ACT OF DECEMBER 21, 1944, SPECIFICALLY PROVIDES THAT THE LUMP-SUM PAYMENT SHALL REPRESENT COMPENSATION "FOR ALL ACCUMULATED AND CURRENT ACCRUED * * * LEAVE.' (ITALICS SUPPLIED.) HENCE, WHILE THE DATE OF AN EMPLOYEE'S SEPARATION FROM THE SERVICE, OR LAST DAY OF ACTIVE CIVILIAN SERVICE IMMEDIATELY PRIOR TO ENTRANCE INTO THE ARMED FORCES, IS DURING THE LATTER PART OF A CALENDAR YEAR, HE MAY BE PAID FOR BOTH THE ANNUAL LEAVE ACCUMULATED UP TO THE END OF THE PRECEDING YEAR, NOT TO EXCEED 90 DAYS, PLUS THE UNUSED CURRENT YEAR'S ACCRUED LEAVE TO HIS CREDIT AT THE DATE OF SEPARATION OR MILITARY FURLOUGH. THE FACT THAT THE LEAVE IF GRANTED PURSUANT TO THE PROCEDURE IN EFFECT PRIOR TO DECEMBER 21, 1944, WOULD HAVE EXTENDED OVER INTO THE NEXT YEAR, HAS NO BEARING UPON THE MATTER; THAT IS TO SAY, THE TOTAL AMOUNT OF LEAVE NEED NOT BE REDUCED TO 90 DAYS AS OF JANUARY 1 OF THE NEXT YEAR. HENCE, AN EMPLOYEE WHO IS SEPARATED FROM THE SERVICE ON DECEMBER 31, OR WHOSE LAST DAY OF ACTIVE CIVILIAN DUTY PRIOR TO ENTRANCE INTO THE ARMED FORCES IS DECEMBER 31, COULD HAVE TO HIS CREDIT A MAXIMUM OF 116 DAYS OF ANNUAL LEAVE--- 90 DAYS ACCUMULATED UP TO THE END OF THE PRECEDING YEAR AND 26 DAYS CURRENT ACCRUED LEAVE EARNED DURING THE YEAR ON THE LAST DAY OF WHICH HIS ACTIVE SERVICE TERMINATED- - FOR WHICH A LUMP-SUM PAYMENT WOULD BE PAYABLE TO REPRESENTING THE COMPENSATION AT THE SALARY RATE RECEIVED AS OF DECEMBER 31, COMPUTED OVER THE PERIOD BEGINNING JANUARY 1 OF THE NEXT YEAR. ACCORDINGLY, THE EMPLOYEE MENTIONED IN QUESTION IS ENTITLED TO BE PAID A LUMP SUM REPRESENTING COMPENSATION AT THE RATE PAYABLE AS OF DECEMBER 26, 1944, WHICH WOULD HAVE BEEN EARNED OVER 838 HOURS (104 DAYS, 6 HOURS) ANNUAL LEAVE. ALSO, QUESTIONS 2 IND 3 ARE ANSWERED IN THE AFFIRMATIVE. REFERRING TO QUESTION 2, THE DELAY IN ELECTION TO BE PAID FOR THE LEAVE DOES NOT CHANGE THE EFFECTIVE DATE OF SEPARATION OR MILITARY FURLOUGH. SEE DECISION OF JANUARY 16, 1945 (B-46831, 24 COMP. GEN. 528, ANSWER TO QUESTION 3).

4. ON DECEMBER 16, 1944, AN EMPLOYEE APPLIED FOR ALL OF THE SICK LEAVE TO HIS CREDIT TO BE FOLLOWED BY TERMINAL ANNUAL LEAVE. THE SICK LEAVE EXPIRED ON DECEMBER 23. THUS, ON DECEMBER 21, 1944, THE EFFECTIVE DATE OF THE ACT, THE EMPLOYEE WAS IN A "TERMINAL SICK LEAVE STATUS.' WOULD THE EFFECTIVE DATE OF HIS RESIGNATION BE DECEMBER 23, THUS QUALIFYING HIM FOR A LUMP SUM PAYMENT FOR HIS TERMINAL ANNUAL LEAVE?

IN DECISION OF FEBRUARY 14, 1945, B-47583, 24 COMP. GEN. 616, IT WAS STATED:

THE ACT OF DECEMBER 21, 1944, PUBLIC LAW 525, AUTHORIZES PAYMENT IN A LUMP SUM FOR ACCUMULATED AND CURRENT ACCRUED ANNUAL OR VACATION LEAVE TO THE CREDIT OF AN EMPLOYEE UPON SEPARATION FROM THE SERVICE. THE STATUTE HAS NO EFFECT WHATEVER UPON THE GRANTING OF SICK LEAVE IMMEDIATELY PRIOR TO SEPARATION UNDER THE LAWS, REGULATIONS, AND DECISIONS OF THIS OFFICE CONTROLLING THE GRANTING OF SICK LEAVE. * * *

THE DECISION HELD THAT THE DATE OF SEPARATION IS THE TERMINATION DATE OF THE SICK LEAVE; HENCE, IN THE CASE HERE PRESENTED THE EFFECTIVE DATE OF SEPARATION WOULD BE DECEMBER 23, 1944--- SUBSEQUENT TO THE EFFECTIVE DATE OF THE LUMP-SUM LEAVE LAW. ACCORDINGLY, THIS QUESTION IS ANSWERED IN THE AFFIRMATIVE.

5. IF AN EMPLOYEE APPLIES FOR AND IS GRANTED HIS ACCRUED SICK LEAVE BEGINNING AFTER DECEMBER 21, 1944, FOLLOWED BY TERMINAL ANNUAL LEAVE, WOULD THE RULE OUTLINED IN REPLY TO QUESTION 4 APPLY? ARE WE CORRECT IN ASSUMING THAT REGULAR SEMI-MONTHLY PAYMENTS SHOULD BE MADE FOR "TERMINAL" SICK LEAVE?

THE FIRST PART OF THE QUESTION IS ANSWERED IN THE AFFIRMATIVE. YOUR ASSUMPTION STATED IN THE SECOND PART OF THE QUESTION IS CORRECT.

6. AN EMPLOYEE DIED AT 11 A.M. ON JANUARY 18, 1945. IT HAS BEEN THE PRACTICE TO ALLOW SALARY FOR THE ENTIRE DAY ON THE DATE OF DEATH, REGARDLESS OF THE HOUR OF DEMISE IF THE EMPLOYEE WAS OTHERWISE IN A PAY STATUS. FROM WHAT DATE AND HOUR SHOULD THE LUMP SUM PAYMENT FOR ANNUAL LEAVE BE COMPUTED? IF YOU RULE THAT THE LEAVE MUST BE COMPUTED FROM THE HOUR OF DEATH, MAY WE CONTINUE TO PAY SALARY FOR THE ENTIRE DATE OF DEATH IF THE EMPLOYEE HAD NO ANNUAL LEAVE TO HIS CREDIT?

IN DECISION OF SEPTEMBER 9, 1929, 9 COMP. GEN. 111, IT WAS HELD (QUOTING FROM THE SYLLABUS):

PAYMENT MAY BE MADE TO THE ONE LEGALLY ENTITLED THERETO OF THE COMPENSATION DUE A DECEASED EMPLOYEE OF THE UNITED STATES UP TO AND INCLUDING THE DATE OF DEATH, BUT PAYMENT MAY NOT BE MADE TO INCLUDE ANY DATE LATER THAN THAT ON WHICH THE EMPLOYEE WAS LAST KNOWN TO BE ALIVE.

THAT RULE HAS BEEN APPLIED BY THIS OFFICE IN THE SETTLEMENT OF CLAIMS AND ACCOUNTS REGARDLESS OF THE TIME DURING THE DAY THAT DEATH OCCURS. CHANGE IN THAT RULE IS REQUIRED BY REASON OF THE LUMP-SUM LAW. HENCE, IN THE CASE PRESENTED, THE LUMP-SUM PAYMENT FOR ANNUAL LEAVE SHOULD BE COMPUTED BEGINNING WITH JANUARY 19, 1945, THE DAY FOLLOWING DATE OF DEATH.

7. UNPAID SALARY DUE TO A DECEASED EMPLOYEE IS PAYABLE TO THE ESTATE, WHEREAS THE LUMP SUM PAYMENT FOR ANNUAL LEAVE MAY BE DUE A DESIGNATED BENEFICIARY. DOES YOUR OFFICE REQUIRE THAT SEPARATE PAYROLLS BE PREPARED FOR EACH TYPE OF PAYMENT? IF ONLY ONE PAYROLL IS REQUIRED, SHOULD THE TWO TYPES OF PAYMENTS BE SHOWN AS ONE OR TWO ENTRIES ON THE ROLL?

ALL CLAIMS IN DEATH CASES OF BOTH CLASSES MENTIONED IN THIS QUESTION SHOULD BE FORWARDED TO THE GENERAL ACCOUNTING OFFICE FOR SETTLEMENT. FORM 1055 EXECUTED BY THE CLAIMANT OR CLAIMANTS SHOULD BE FORWARDED, IF POSSIBLE. SEE DECISION OF JANUARY 13, 1945, B-46726, 24 COMP. GEN. 522, ANSWER TO QUESTION (4). WHILE NO PAY ROLLS ARE REQUIRED TO BE FORWARDED TO THIS OFFICE IN DEATH CASES PROVIDED THERE BE FURNISHED AN ADMINISTRATIVE REPORT OTHERWISE SHOWING THE AMOUNT DUE AND THE BASIS UPON WHICH COMPUTED AS TO EACH CLASS OF CLAIM, THIS OFFICE WOULD PREFER THAT THE ADMINISTRATIVE REPORT TAKE THE FORM OF ONE SHORT-FORM PAY ROLL SHOWING TWO ITEMS, ONE FOR THE AMOUNT OF UNPAID COMPENSATION DUE THE DECEDENT TO INCLUDE DATE OF DEATH, AND THE OTHER THE LUMP-SUM PAYMENT FOR LEAVE, INCLUDING THE BASIS UPON WHICH THE AMOUNTS HAVE BEEN COMPUTED.

8.DECISION B-46683 DATED JANUARY 11, 1945, HAS BEEN CONSTRUED TO PROHIBIT THE RECREDITING OF SICK LEAVE EVEN WHEN AN INDIVIDUAL IS REEMPLOYED WITHIN 30 DAYS AFTER HAVING RECEIVED A LUMP SUM PAYMENT. INASMUCH AS THE CIVIL SERVICE COMMISSION UNDER PROPER AUTHORITY HAS DEFINED "BREAK IN SERVICE" AS "SEPARATION FROM THE FEDERAL SERVICE FOR A PERIOD OF 30 OR MORE CALENDAR DAYS" ( SECTION 1.1 (G) OF THE LEAVE REGULATIONS), CLARIFICATION OF THE RULE WOULD BE APPRECIATED. PLEASE CLARIFY ALSO THE STATUS OF THE "30-DAY RULE" USED IN DETERMINING RIGHTS TO WITHIN GRADE PROMOTIONS AND REEMPLOYMENT BENEFITS WHEN A LUMP SUM PAYMENT FOR ANNUAL LEAVE IS INVOLVED.

QUESTION AND ANSWER 5, DECISION OF JANUARY 11, 1945, B-46683, 24 COMP. GEN. 511, WERE STATED AS FOLLOWS:

5. HOW DOES PUBLIC LAW 525 AFFECT THE FOLLOWING CONDITIONS RELATIVE TO THE STATUS OF A PERSON RE-EMPLOYED EITHER AT THE SAME GRADE OR AT A DIFFERENT GRADE PRIOR TO THE EXPIRATION OF THE PERIOD COVERED BY THE LUMP- SUM PAYMENT?

(A) PRIOR SERVICE TOWARD A WITHIN-GRADE PROMOTION UNDER THE PROVISIONS OF PUBLIC LAW NO. 200, 77TH CONGRESS.

(B) TRANSFER OF ACCRUED SICK LEAVE.

(C) RE-EMPLOYMENT RIGHTS. * * * * * * * *

QUESTION 5 IS NOT ENTIRELY CLEAR, BUT, AS UNDERSTOOD, IT MAY BE STATED THAT THE LAST DAY OF ACTIVE SERVICE OF AN EMPLOYEE RECEIVING A LUMP-SUM PAYMENT FOR LEAVE WILL BE THE DATE OF SEPARATION FROM THE SERVICE AND ANY PERIOD BETWEEN THAT DATE AND THE DATE OF REEMPLOYMENT, EITHER IN THE SAME OR A DIFFERENT AGENCY, MUST BE REGARDED AS A BREAK IN SERVICE FOR THE PURPOSE OF DETERMINING RIGHTS TO WITHIN-GRADE PROMOTIONS, TRANSFER OF SICK LEAVE AND REEMPLOYMENT BENEFITS, EVEN THOUGH THE PERIOD USED AS THE MEASURE FOR COMPUTING THE LUMP SUM PAYMENT FOR LEAVE OTHERWISE WOULD BRIDGE OVER THE BREAK IN SERVICE IN WHOLE OR IN PART.

THE QUESTION AS HERE PRESENTED INDICATES A MISUNDERSTANDING BY YOUR OFFICE AS TO THE EFFECT OF THAT DECISION. THE ONLY RULE INTENDED TO BE STATED IN THE ABOVE-QUOTED QUESTION AND ANSWER IS THAT THE LAST DAY OF ACTIVE DUTY IS TO BE REGARDED AS THE DATE OF SEPARATION FROM THE SERVICE, THAT WHEN SUCH SEPARATION OCCURS THERE IS A BREAK IN SERVICE, AND THAT THE PERIOD OVER WHICH THE LUMP-SUM PAYMENT FOR LEAVE IS COMPUTED IS NOT TO BE REGARDED AS "SERVICE" SO AS TO PREVENT A "BREAK IN SERVICE" WITHIN THE MEANING OF REGULATIONS CONTROLLING THE TRANSFER OF SICK LEAVE AND THE GRANTING OF WITHIN-GRADE PROMOTIONS. THE ACT OF DECEMBER 21, 1944, HAS NO EFFECT UPON THE TRANSFER OF SICK LEAVE OR THE GRANTING OF WITHIN-GRADE PROMOTIONS. SEE DECISION OF FEBRUARY 14, 1945, B-47583, 24 COMP. GEN. 616, A PART OF WHICH IS QUOTED IN THE ANSWER TO QUESTION 4, SUPRA. ACCORDINGLY, THE ABOVE-QUOTED DECISION OF JANUARY 11, 1945, DOES NOT "PROHIBIT THE RECREDITING OF SICK LEAVE EVEN WHEN AN INDIVIDUAL IS REEMPLOYED WITHIN 30 DAYS AFTER HAVING RECEIVED A LUMP-SUM PAYMENT" (QUOTING FROM QUESTION 8), AND THAT DECISION SHOULD NOT BE SO CONSTRUED. IN OTHER WORDS, THE RULES AND REGULATIONS CONTROLLING THE TRANSFER OF SICK LEAVE UPON TRANSFER OR REAPPOINTMENT OF EMPLOYEES FROM ONE POSITION TO ANOTHER, AND THE RULES AND REGULATIONS CONTROLLING THE GRANTING OF WITHIN- GRADE PROMOTIONS IN EFFECT PRIOR TO DECEMBER 21, 1944, CONTINUE IN EFFECT AFTER THAT DATE, EXCEPT THAT THE PERIOD OF THE 30-DAY "BREAK IN SERVICE" AS DEFINED BY SECTION 1.1 (G) OF THE LEAVE REGULATIONS AND BY SECTION 2 (C) OF THE "REGULATIONS GOVERNING WITHIN-GRADE SALARY ADVANCEMENTS," EXECUTIVE ORDER NO. 8882, DATED SEPTEMBER 3, 1941, BEGINS TO RUN FROM THE LAST DAY OF ACTIVE DUTY PRIOR TO THE BEGINNING OF THE PERIOD OVER WHICH THE LUMP-SUM PAYMENT FOR ANNUAL LEAVE IS COMPUTED, RATHER THAN FROM THE LAST DAY OF TERMINAL ANNUAL LEAVE, WHICH WAS THE RULE PRIOR TO DECEMBER 21, 1944.

9. AN EMPLOYEE TENDERS HIS RESIGNATION DURING A PERIOD OF ANNUAL LEAVE, OR AFTER HE HAS EXHAUSTED HIS ANNUAL LEAVE, AND THE ADMINISTRATIVE OFFICE HAD NO KNOWLEDGE WHEN THE LEAVE WAS GRANTED THAT THE EMPLOYEE WOULD NOT RETURN TO DUTY. WHAT IS THE EFFECTIVE DATE OF TERMINATION: (A) THE LAST DAY OF ACTUAL DUTY, (B) THE DATE OF THE RESIGNATION NOTICE, (C) THE DATE THE RESIGNATION NOTICE IS RECEIVED IN THE ADMINISTRATIVE OFFICE, OR (D) THE DATE OF ACCEPTANCE OF THE RESIGNATION BY THE PROPER ADMINISTRATIVE AUTHORITY?

IN DECISION OF JANUARY 11, 1945, B-46683, IT WAS HELD, IN ANSWER TO QUESTION 2 THEREIN, THAT ,TERMINAL ANNUAL OR VACATION LEAVE MAY NOT BE GRANTED IMMEDIATELY PRIOR TO SEPARATION FROM THE SERVICE IN ANY CASE WHERE IT IS KNOWN IN ADVANCE THAT THE EMPLOYEE IS TO BE SEPARATED FROM THE SERVICE.' (ITALICS SUPPLIED.) WHERE ANNUAL LEAVE IS GRANTED IN ACCORDANCE WITH THE USUAL PROCEDURE WITHOUT KNOWLEDGE BY THE ADMINISTRATIVE OFFICE THAT THE EMPLOYEE IS TO RESIGN, BUT THE EMPLOYEE DOES RESIGN DURING OR AFTER THE PERIOD OF THE ANNUAL LEAVE ALREADY PROPERLY GRANTED, THE DATE OF SEPARATION BASED UPON THE RESIGNATION MAY BE FIXED ADMINISTRATIVELY SO AS NOT TO REQUIRE ADJUSTMENTS IN PAY ROLLS. HENCE, IN SUCH CASES THE DATE OF SEPARATION FROM THE SERVICE MAY BE FIXED ADMINISTRATIVELY TO COINCIDE WITH THE TERMINATION DATE OF THE PAY ROLL PERIOD CURRENT WHEN NOTICE OF THE RESIGNATION IS RECEIVED IN THE ADMINISTRATIVE OFFICE, AND A LUMP-SUM PAYMENT MADE FOR ANY LEAVE EXTENDING BEYOND THAT DATE. HOWEVER, IN THAT CONNECTION REFERENCE IS MADE TO THE FOLLOWING RULE STATED IN DECISION OF FEBRUARY 29, 1944, 23 COMP. GEN. 638 (QUOTING FROM THE SYLLABUS):

UNDER THE ANNUAL AND SICK LEAVE REGULATIONS EFFECTIVE JANUARY 1, 1944, AN EMPLOYEE DOES NOT IN ANY CASE EARN LEAVE ON LEAVE GRANTED OVER A PERIOD IMMEDIATELY PRECEDING SEPARATION FROM THE SERVICE, AND IF LEAVE ON LEAVE HAS BEEN GRANTED ERRONEOUSLY BECAUSE OF THE FACT THAT THE ADMINISTRATIVE OFFICE HAD NO ADVANCE INFORMATION THAT THE EMPLOYEE INTENDED TO RESIGN AT THE TERMINATION OF HIS LEAVE, A CHARGE PROPERLY IS FOR ASSERTING AGAINST THE EMPLOYEE FOR THE OVERDRAWN LEAVE REPRESENTING THA AMOUNT OF COMPENSATION WHICH ACTUALLY WAS PAID FOR THE PERIOD OF LEAVE ON LEAVE. THAT RULE STILL IS IN EFFECT (SEE SECTION 4.2 (B) OF THE CURRENT LEAVE REGULATIONS EFFECTIVE JANUARY 1, 1945), AND WOULD REQUIRE A CHARGE TO BE RAISED AGAINST ANY EMPLOYEE WHOSE SEPARATION DATE BASED UPON A RESIGNATION IS FIXED AS ABOVE AUTHORIZED AFTER ALL HIS LEAVE HAD EXPIRED. ALSO, IN MAKING A LUMP-SUM PAYMENT FOR THE REMAINDER OF THE LEAVE RUNNING AFTER THE EXPIRATION DATE AS ABOVE AUTHORIZED, THERE SHOULD BE WITHHELD ANY PAYMENT FOR LEAVE WHICH WOULD HAVE ACCRUED AFTER THE LAST DAY OF ACTIVE DUTY (LEAVE ON LEAVE).