Request for Reconsideration of Incentive Pay Claim

An individual requested reconsideration of a decision that would require him to refund his incentive pay to the Government. The claimant, a former officer of the Commissioned Corps of the Public Health Service (PHS), executed an agreement to remain in PHS for 1 year in exchange for variable pay, in addition to his regular pay and allowances. The claimant voluntarily left active duty before the end of the 1-year commitment. He was subsequently required to refund all of the incentive pay that he received pursuant to the agreement. On appeal, he claimed that: (1) he was never informed of the pertinent regulations concerning repayment; (2) the armed services' regulations require only a prorated repayment; and (3) since he was allowed credit for unused annual leave in his new agency indicating continuing Federal agency service, he should be allowed the variable incentive pay. GAO held that regulations which promulgated applicable legislation apply only to the uniformed services and do not apply to other Government service and, since they provide that no part of the payment is earned unless the medical officer serves a minimum of 1 year with PHS, the payment made upon execution of the agreement must be refunded. Accordingly, the previous decision was sustained.