[IRS Employee's Claim for Pay Retention Following Completion of Temporary Assignment]

The Internal Revenue Service (IRS) requested a decision as to whether an employee serving on a temporary assignment overseas was entitled to pay retention upon his return to his position in the United States. GAO held that: (1) any employee who suffers an involuntary reduction in grade or pay is entitled to retain the pay of his former position for 2 years if his employment was not on a temporary basis; and (2) although IRS erroneously designated the employee as an overseas limited appointee, the employee's assignment was temporary and he, therefore, was not entitled to retain the rate of pay he received during the reassignment. Accordingly, the claim was denied.