[Query Concerning Proper Rate of Annual Leave Accrual]

GAO was asked for a decision regarding the proper rate at which annual leave may accrue for a civilian employee of the Marine Corps. The employee had suffered a service-connected disability while serving on active duty and was placed on the temporary disability retired list. He subsequently received a civilian appointment, at which time he was given credit for his active duty time and began to accrue annual leave. The agency later questioned the propriety of crediting the employee with the military service and proposed reducing his rate of leave accrual and his accrued leave balance. GAO found that: (1) a member's service time may not be credited for annual leave accrual purposes while he is in a temporary disabled retired status; (2) upon removal from that status, a member is only entitled to credit to his annual leave account for the period of temporary disability retirement if he is separated with severance pay; (3) a member is only entitled to resume receiving credit to his annual leave account as of the date of his removal from the temporary disabled retirement status if he is placed in a nonretirement status; and (4) the leave account of a civilian employee who was erroneously credited with annual leave must be corrected and, if the result is a negative leave balance, any overpayment to the employee is subject to possible waiver. Accordingly, the employee's leave balance required adjustment.