Request for Reconsideration of Claims Group Settlement

A former Army employee appealed the settlement by the Claims Division which disallowed his request for payment of a lump-sum annual leave at a higher rate than the rate at which it was paid. He was paid one lump-sum payment at the higher rate at the time of his retirement and a lower payment at the end of his temporary part-time reemployment. The employee contended that he was entitled to the higher rate as he had been incorrectly and untimely counseled by the Army. Improper counseling does not give an employee the right to receive his lump-sum annual leave payment at a higher rate than the grade to which he was appointed at the time of his final separation. Reemployment within the period covered by leave limits the amount of the lump-sum payment that the employee may retain and terminates any vesting of rights to a lump-sum payment that may have occurred at separation. When the employee separated from the service, his agency correctly paid him for his annual leave at the grade level to which he was appointed. Accordingly, the Claims Division settlement was sustained.