Request for Decision Concerning Lump Sum Payment for Annual Leave

GAO was requested to decide on the propriety of an additional payment to a Navy civilian employee for the lump sum due for annual leave upon retirement. The employee was hired locally in Guam and was erroneously granted home leave. Upon the employee's retirement, the Navy reconstructed his annual leave account and charged the employee's account with the number of days he had taken home leave. According to applicable regulations, the employee was entitled to a waiver of the home leave erroneously granted and taken because it was granted due to an administrative error, and there was no indication of fraud, misrepresentation, fault, or lack of good faith on the part of the employee. The annual leave, therefore, was recredited to his account. Additionally, due to an administrative error, the employee was led to believe that he was entitled to carry over 45 days of annual leave as opposed to 30 days. The employee carried over more than 30 days leave in several years prior to his retirement. According to applicable regulations, annual leave in excess of the 30 days may be restored, and the employee may be paid for all annual leave accrued as of the date of his retirement. The regulations provide for restoration of annual leave forfeited in excess of the maximum carryover when the forfeiture is due to an administrative error. Accordingly, GAO determined that the employee was entitled to receive an additional lump sum payment for the remainder of his claimed annual leave.