Entitlement to Allowances for Quarters and Subsistence in Lump-Sum Payment Due Military Member Upon Retirement

Upon his retirement, an Air Force officer received a payment for 60 days of accrued leave, which consisted of basic pay for all 60 days and basic allowance for subsistence (BAS) and basic allowance for quarters (BAQ) for 54 of the days. The officer argued that he was entitled to be paid BAS and BAQ for all 60 days. At issue was whether the Department of Defense (DOD) regulation frustrates Congressional intent in an amendment which repealed the provision authorizing the inclusion of BAS and BAQ in the computation of lump-sum leave payments. The member carried over as preamendment leave the allowable maximum of 60 days' accrued leave into the 1977 fiscal year. However, at some point in a postamendment fiscal year prior to his retirement at the end of January 1979, the Air Force member took 6 days more leave than he had accrued for that fiscal year. Accordingly, those 6 days were charged to his carried-over amount, reducing it to 54 days. The member questioned whether the loss of carried-over leave with entitlement to inclusion of BAS and BAQ in his lump-sum payment should depend on when in the fiscal year a member takes leave. GAO held that the DOD regulation is in accord with the statutory purpose behind the amendment and the saving provision, and it was concluded that the member was not entitled to BAS and BAQ for the 6 days of leave.