B-70596, NOVEMBER 28, 1947, 27 COMP. GEN. 301

B-70596, NOVEMBER 28, 1947, 27 COMP. GEN. 301

LEAVES OF ABSENCE - ANNUAL - LUMP-SUM PAYMENTS; MAXIMUM ACCUMULATION LIMITATIONS UNDER SECTION 1 OF THE ACT OF DECEMBER 21, 1944, WHENEVER A LUMP SUM IS PAID TO AN EMPLOYEE FOR ACCUMULATED ANNUAL LEAVE UPON SEPARATION, AND SUCH EMPLOYEE THEREAFTER IS REEMPLOYED UNDER THE SAME LEAVE SYSTEM PRIOR TO THE EXPIRATION OF THE PERIOD OVER WHICH THE LUMP SUM WAS COMPUTED, AN AMOUNT EQUAL TO THE COMPENSATION COVERING THE PERIOD BETWEEN THE DATE OF REEMPLOYMENT AND THE EXPIRATION OF THE LEAVE PERIOD MUST BE REFUNDED TO THE EMPLOYING AGENCY AND THE AMOUNT OF LEAVE REPRESENTED THEREBY CREDITED TO THE EMPLOYEE, REGARDLESS OF THE AMOUNT OF LEAVE FOR WHICH THE LUMP SUM WAS PAID, EXCEPT TO THE EXTENT THAT LEAVE CREDIT THEREFOR WOULD BE PROHIBITED. APPLYING THE 90-DAY MAXIMUM ANNUAL LEAVE ACCUMULATION PROVISIONS OF THE ACT OF DECEMBER 17, 1942, AS TERMINATED BY SECTION 3 OF THE ACT OF JULY 25, 1947, THE MAXIMUM ANNUAL LEAVE CREDITABLE AT THE BEGINNING OF 1948 TO EMPLOYEES WHO HAD 60 OR MORE DAYS' LEAVE WHEN SEPARATED AND REEMPLOYED UNDER CONDITIONS REQUIRING REFUND OF SO MUCH OF THE LUMP-SUM LEAVE PAYMENT AS EQUALS THE UNEXPIRED PORTION OF THE LEAVE PERIOD, IS THE BALANCE REMAINING AFTER CHARGING THE 1947 LEAVE CREDIT WITH THE TOTAL NUMBER OF DAYS USED OR FOR WHICH NO LUMP-SUM REFUND WAS REQUIRED AND THE ACCUMULATED LEAVE CREDIT AS OF JANUARY 1, 1947, WITH ANY RESULTING EXCESS. 27 COMP. GEN. 120, AMPLIFIED. THE MAXIMUM ANNUAL LEAVE CREDITABLE AT THE BEGINNING OF 1948 PURSUANT TO THE 90-DAY MAXIMUM LEAVE ACCUMULATION PROVISIONS OF THE ACT OF DECEMBER 17, 1942, AS AFFECTED BY THE TERMINATION THEREOF BY SECTION 3 OF THE ACT OF JULY 25, 1947, TO AN EMPLOYEE WHO, IN 1947, WAS SEPARATED FROM SERVICE AND REEMPLOYED UNDER CONDITIONS REQUIRING REFUND OF SO MUCH OF THE LUMP- SUM LEAVE PAYMENT AS EQUALS THE UNEXPIRED PORTION OF THE LEAVE PERIOD, IS NOT AFFECTED BY THE MANNER OF COLLECTING THE REFUND, SUCH AS BY PAY PERIOD INSTALLMENTS, ALTHOUGH RECREDIT OF THE LEAVE REPRESENTED BY THE REFUND ADMINISTRATIVELY MAY BE DENIED UNTIL REFUND ACTUALLY HAS BEEN MADE.

ACTING COMPTROLLER GENERAL YATES TO THE SECRETARY OF THE ARMY, NOVEMBER 28, 1947:

REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 22, 1947, REQUESTING DECISION UPON EIGHT SPECIFIC QUESTIONS ARISING OUT OF THE APPLICATION OF THE PROVISIONS OF SECTION 1, PUBLIC LAW 525, 78TH CONGRESS, APPROVED DECEMBER 21, 1944, 58 STAT. 845, WHEN ACCUMULATIONS OF ANNUAL LEAVE IN EXCESS OF 60 DAYS ARE INVOLVED. THE INTRODUCTORY PART OF YOUR LETTER, INCLUDING QUESTIONS (1) AND (2), IS AS FOLLOWS:

IN THE ADMINISTRATION OF THE LANE ACT ( PUBLIC LAW 525, 78TH CONGRESS, 58 STAT. 845) QUESTION HAS ARISEN AS TO THE APPLICATION OF THE FIRST PROVISO OF SECTION 1, RELATING TO REFUNDS UPON REEMPLOYMENT, WHEN ACCUMULATIONS OF ANNUAL LEAVE IN EXCESS OF 60 DAYS ARE INVOLVED. THE QUESTION ARISES FROM THE WORDING OF THE ACT OF 17 DECEMBER 1942, 56 STAT. 1052, VIZ., " * * * THE LEAVE UNUSED * * *, NOT IN OTHER FORM COMMUTED OR COMPENSATED, SHALL BE ACCUMULATED FOR SUCCEEDING YEARS UNTIL IT TOTALS NOT EXCEEDING NINETY DAYS.' ( ITALICS SUPPLIED.)

A SPECIFIC CASE HAS BEEN PRESENTED FOR INSTRUCTIONS: EMPLOYEE A WAS SEPARATED BY REDUCTION IN FORCE ON 28 JUNE 1947 AND PAID A LUMP SUM FOR ANNUAL LEAVE COVERING THE PERIOD 29 JUNE THROUGH 10 OCTOBER (584 HOURS ANNUAL LEAVE) AND WAS REEMPLOYED ON 14 JULY 1947 IN ANOTHER ARMY DEPARTMENT INSTALLATION UNDER CIRCUMSTANCES REQUIRING A REFUND COVERING THE UNEXPIRED PORTION OF THE LUMP-SUM LEAVE PERIOD. ON 30 DECEMBER 1946 THIS EMPLOYEE HAD ACCUMULATED 640 HOURS (80 DAYS) ANNUAL LEAVE. YOUR DECISION IS REQUESTED ON THE FOLLOWING QUESTIONS:

(1) SHOULD THE EMPLOYEE BE REQUIRED TO REFUND (A) THE AMOUNT NECESSARY TO COVER THE ENTIRE UNEXPIRED PORTION OF THE LUMP-SUM PERIOD INVOLVING 512 HOURS (64 DAYS) OR (B) THE AMOUNT NECESSARY TO COVER ONLY 60 DAYS (THAT IS, THROUGH 6 OCTOBER 1947/?

(2) WHAT WOULD BE THIS EMPLOYEE'S MAXIMUM ANNUAL LEAVE ACCUMULATION FIGURE FOR APPLICATION AT THE END OF 1947 AND FUTURE YEARS: (A) 80 DAYS; (B) 65 DAYS, HIS ACTUAL UNUSED ANNUAL LEAVE BALANCE ON 24 JULY 1947, BASED ON A RECREDIT OF 64 DAYS LEAVE UPON REEMPLOYMENT; OR (C) 60 DAYS?

THE WORDS,"NOT IN OTHER FORM COMMUTED OR COMPENSATED," AS USED IN THE ACT OF DECEMBER 17, 1942, 56 STAT. 1052, QUOTATION FROM WHICH IS CONTAINED IN THE FIRST PARAGRAPH OF YOUR LETTER, SUPRA, WERE PLACED IN THAT ACT (WHICH, IN EFFECT, WAS REPEALED BY SECTION 3 OF PUBLIC LAW 239, APPROVED JULY 25, 1947, 61 STAT. 451, 453) BECAUSE OF CERTAIN PROVISIONS OF LAW EXISTING AT THE TIME THE ACT WAS INTRODUCED WHICH ALLOWED COMPENSATION FOR ACCRUED LEAVE NOT GRANTED TO DEPARTMENTAL AND FIELD EMPLOYEES OF THE NAVY DEPARTMENT AND COAST GUARD AND EMPLOYEES OF THE FIELD SERVICES OF THE WAR DEPARTMENT AND OF THE PANAMA CANAL. SEE SECTION 7 OF THE ACT OF JUNE 28, 1940, 54 STAT. 676, 679, AND SECTIONS 2 AND 3 OF THE ACT OF JUNE 3, 1941, 55 STAT. 241, 242. THOSE WORDS WERE INTENDED TO MAKE CLEAR THAT AS TO LEAVE WHICH HAD BEEN COMMUTED OR FOR WHICH COMPENSATION HAD BEEN RECEIVED IN ACCORDANCE WITH SUCH ACTS, THERE WOULD BE NO ACCUMULATION FOR THE 90- DAY TOTAL ALLOWABLE LEAVE ACCUMULATION. THEY HAVE NO APPLICATION TO PAYMENTS MADE IN ACCORDANCE WITH THE LANE ACT ( PUBLIC LAW 525, 78TH CONGRESS, 58 STAT. 845). SECTION 1 OF THAT ACT PROVIDES:

THAT WHENEVER ANY CIVILIAN OFFICER OR EMPLOYEES OF THE FEDERAL GOVERNMENT OR THE GOVERNMENT OF THE DISTRICT OF COLUMBIA IS SEPARATED FROM THE SERVICE OR ELECTS TO BE PAID COMPENSATION FOR LEAVE IN ACCORDANCE WITH THE ACT OF AUGUST 1, 1941, AS AMENDED BY THE ACT OF APRIL 7, 1942, OR SECTION 4 OF THE ACT OF JUNE 23, 1943, HE SHALL BE PAID COMPENSATION IN A LUMP SUM FOR ALL ACCUMULATED AND CURRENT ACCRUED ANNUAL OR VACATION LEAVE TO WHICH HE IS ENTITLED UNDER EXISTING LAW. SUCH LUMP-SUM PAYMENT SHALL EQUAL THE COMPENSATION THAT SUCH EMPLOYEE WOULD HAVE RECEIVED HAD HE REMAINED IN THE SERVICE UNTIL THE EXPIRATION OF THE PERIOD OF SUCH ANNUAL OR VACATION LEAVE: PROVIDED, THAT IF SUCH EMPLOYEE IS REEMPLOYED IN THE FEDERAL SERVICE OR IN OR UNDER THE GOVERNMENT OF THE DISTRICT OF COLUMBIA UNDER THE SAME LEAVE SYSTEM PRIOR TO THE EXPIRATION OF THE PERIOD COVERED BY SUCH LEAVE PAYMENT, HE SHALL REFUND TO THE EMPLOYING AGENCY AN AMOUNT EQUAL TO THE COMPENSATION COVERING THE PERIOD BETWEEN THE DATE OF REEMPLOYMENT AND THE EXPIRATION OF SUCH LEAVE PERIOD, AND THE AMOUNT OF LEAVE REPRESENTED BY SUCH REFUND SHALL BE CREDITED TO HIM IN THE EMPLOYING AGENCY. IN THE CASE OF REEMPLOYMENT IN THE FEDERAL SERVICE THE SUM SO REFUNDED SHALL BE RECOVERED INTO THE TREASURY AS " MISCELLANEOUS RECEIPTS," AND IN CASE OF REEMPLOYMENT IN OR UNDER THE GOVERNMENT OF THE DISTRICT OF COLUMBIA THE SUM SO REFUNDED SHALL BE COVERED INTO THE TREASURY TO THE CREDIT OF THE DISTRICT OF COLUMBIA: PROVIDED FURTHER, THAT THE LUMP-SUM PAYMENT HEREIN AUTHORIZED SHALL NOT BE REGARDED, EXCEPT FOR PURPOSES OF TAXATION, AS SALARY OR COMPENSATION AND SHALL NOT BE SUBJECT TO RETIREMENT DEDUCTIONS.

WHENEVER A PAYMENT IS MADE UNDER THAT SECTION OF THE STATUTE TO AN EMPLOYEE FOR ACCUMULATED OR ACCRUED ANNUAL LEAVE DUE UPON SEPARATION FROM THE GOVERNMENT SERVICE, AND THE EMPLOYEE THEREAFTER IS REEMPLOYED IN THE FEDERAL SERVICE OR IN OR UNDER THE GOVERNMENT OF THE DISTRICT OF COLUMBIA UNDER THE SAME LEAVE SYSTEM PRIOR TO THE EXPIRATION OF THE PERIOD OVER WHICH THE PAYMENT WAS COMPUTED, THE EMPLOYEE MUST REFUND TO THE EMPLOYING AGENCY AN AMOUNT EQUAL TO THE COMPENSATION COVERING THE PERIOD BETWEEN THE DATE OF REEMPLOYMENT AND THE EXPIRATION OF THE LEAVE PERIOD. THE AMOUNT OF LEAVE REPRESENTED BY THE REFUND IS TO BE CREDITED IN THE EMPLOYING AGENCY. NO EXCEPTION TO THIS PROCEDURE IS PROVIDED REGARDLESS OF THE AMOUNT OF LEAVE FOR WHICH A LUMP-SUM PAYMENT IS MADE, AND NO EXCEPTION IS AUTHORIZED EXCEPT TO THE EXTENT THAT A LEAVE CREDIT THEREFOR WOULD BE PROHIBITED. 25 COMP. GEN. 592. ACCORDINGLY, IN ANSWER TO QUESTION (1) THE EMPLOYEE SHOULD BE REQUIRED TO REFUND THE AMOUNT NECESSARY TO COVER THE ENTIRE UNEXPIRED PORTION OF THE LUMP-SUM LEAVE PERIOD INVOLVING 512 HOURS (64 DAYS).

WITH REFERENCE TO QUESTION (2) IT WAS HELD IN DECISION OF AUGUST 25, 1947, B-68709, 27 COMP. GEN. 120 (QUOTING THE SYLLABUS):

IRRESPECTIVE OF THE METHOD USED BY THE PARTICULAR AGENCY FOR CREDITING ANNUAL LEAVE (AT THE BEGINNING OF THE YEAR, ON A PAY-PERIOD BASIS, ETC.), PERSONNEL SUBJECT TO THE ANNUAL LEAVE ACT OF MARCH 14, 1936, FOR THE FULL CALENDAR YEAR 1947 SHOULD BE PERMITTED TO CHARGE ALL ANNUAL LEAVE--- NOT EXCEEDING 26 DAYS--- TAKEN DURING SUCH YEAR AGAINST THE 26 DAYS' ANNUAL ACCRUAL GRANTED BY SAID ACT, RATHER THAN AGAINST ACCUMULATED LEAVE CREDIT AS OF THE END OF THE PRECEDING CALENDAR YEAR, WHETHER TAKEN BEFORE OR AFTER AN EQUIVALENT AMOUNT OF LEAVE HAD ACCRUED, ONLY THE EXCESS OVER 26 DAYS TO BE CHARGED AGAINST THE ACCUMULATED LEAVE CREDIT.

APPLYING THE 90-DAY MAXIMUM ANNUAL LEAVE ACCUMULATION PROVISIONS OF THE ACT OF DECEMBER 17, 1942, AS AFFECTED BY TERMINATION THEREOF BY SECTION 3 OF THE ACT OF JULY 25, 1947, THUS RESTORING THE PREVIOUSLY EXISTING 60-DAY LIMITATION, THE MAXIMUM ANNUAL LEAVE WHICH MAY BE CREDITED AT THE BEGINNING OF THE CALENDAR YEAR 1948 (SUBJECT TO THE 90 DAY LIMITATION) TO EMPLOYEES WHO HAD 60 OR MORE DAYS OF LEAVE CREDIT AS OF JULY 24, 1947, IS THE TOTAL LEAVE ACCUMULATED ON JANUARY 1, 1947, PLUS ANY ACCRUAL THEREAFTER TO JULY 24, 1947, WHICH HAD NOT BEEN USED TO THAT DATE. COMP. GEN. 341, AMPLIFIED. IN APPLYING THAT DECISION TO THE FACTS PRESENTED AND ASSUMING THAT THE TOTAL LEAVE CREDIT FROM BOTH EMPLOYMENTS DURING THE CALENDAR YEAR 1947 WILL BE 25 DAYS, THERE FIRST SHOULD BE CHARGED AGAINST THE 25 DAYS LEAVE CREDIT FOR 1947 THE TOTAL NUMBER OF DAYS THAT THE EMPLOYEE WAS IN AN ANNUAL LEAVE WITH PAY STATUS OR FOR WHICH HE RECEIVED A LUMP-SUM PAYMENT WHICH HE WAS NOT REQUIRED TO REFUND. THE EXCESS WOULD BE FOR CHARGING AGAINST THE 80 DAYS' ANNUAL LEAVE WHICH HAD ACCUMULATED ON DECEMBER 31, 1946. THE BALANCE WOULD BE THE MAXIMUM ANNUAL LEAVE ACCUMULATION FIGURE AT THE BEGINNING OF THE CALENDAR YEAR 1948. THIS EMPLOYEE'S LEAVE ACCOUNT FOR THE VARIOUS SIGNIFICANT DAYS MAY BE ILLUSTRATED IN THE FOLLOWING MANNER:

JAN. JUNE JULY JULY DEC.

1, 28, 14, 24, 31,

1947 1947 1947 1947 1947

NUMBER OF DAYS ACCUMULATED LEAVE ---------------------------------

80 ------ ------ ------- ------

NUMBER OF DAYS LEAVE EARNED, 1947 ----------------------------------

12 1/2 12 1/2 13 1/2 25

NUMBER OF DAYS LEAVE TAKEN, 1947 (INCLUDING RETAINED LUMP-SUM PAYMENT) --

19 1/2 28 1/2 28 1/2 28 1/2

LEAVE BALANCE ----------------------------------------------------

80 73 64 65 76 1/2 OF COURSE, THE 76 1/2 DAYS REPRESENT THE MAXIMUM POSSIBLE ANNUAL LEAVE ACCUMULATION FIGURE AS OF DECEMBER 31, 1947, AND WOULD BE FOR REDUCING BY THE AMOUNT OF ANY ADDITIONAL LEAVE TAKEN DURING THE CALENDAR YEAR 1947, AFTER REEMPLOYMENT ON JULY 14, 1947.

YOUR LETTER CONTINUES:

IN THE CASE RECITED IN THE PRECEDING PARAGRAPH THE PROBLEM IS COMPLICATED BY REASON OF THE REFUND BEING MADE BY PAY PERIOD INSTALLMENTS. ACCORDANCE WITH THE DEPARTMENT'S REGULATIONS, THE ANNUAL LEAVE INVOLVED IN THE REFUND IS NOT AVAILABLE FOR USE UNTIL THE REFUND IS COMPLETED (SEE L1- 32 FEDERAL PERSONNEL MANUAL). HENCE, THIS QUESTION ARISES:

(3) SINCE THE LEAVE WILL NOT ACTUALLY BE "CREDITED" TO THE EMPLOYEE'S ACCOUNT UNTIL AFTER 24 JULY 1947, WILL HIS MAXIMUM ACCUMULATION FIGURE FOR ANNUAL LEAVE BE AFFECTED (QUESTION (2) ABOVE) ?

AS INDICATED IN 24 COMP. GEN. 522, 523, THE LUMP-SUM LEAVE ACT WOULD SEEM TO CONTEMPLATE AN IMMEDIATE REFUND OF THAT PART OF THE LUMP-SUM PAYMENT WHICH IS TO BE REFUNDED AND SUCH REQUIREMENT ORDINARILY SHOULD BE MADE A CONDITION PRECEDENT TO THE REEMPLOYMENT. ALSO, AS STATED IN DECISION OF OCTOBER 24, 1946, B-60657, 26 COMP. GEN. 259, 262, IN THE EVENT THAT AN EMPLOYEE TO WHOM A LUMP-SUM PAYMENT HAS BEEN MADE IS REEMPLOYED IN A POSITION UNDER THE SAME LEAVE SYSTEM PRIOR TO THE EXPIRATION OF THE PERIOD OVER WHICH THE LUMP-SUM PAYMENT WAS COMPUTED, THE ONLY PROCEDURE PROPERLY FOR FOLLOWING IS TO OBTAIN A REFUND FROM THE EMPLOYEE OF AN AMOUNT EQUAL TO THE GROSS COMPENSATION EARNED IN HIS ORIGINAL POSITION COVERING THE PERIOD BETWEEN THE DATE OF REEMPLOYMENT AND THE EXPIRATION OF THE LEAVE PERIOD WHICH AMOUNT MUST BE COVERED INTO THE TREASURY AS " MISCELLANEOUS RECEIPTS" AND THE EMPLOYEE MUST BE CREDITED WITH THE AMOUNT OF LEAVE REPRESENTED BY THE REFUND. THE DUTY AND RESPONSIBILITY OF COLLECTING THE REFUND IS IMPOSED BY STATUTE UPON THE REEMPLOYING AGENCY, BUT THE MANNER OF COLLECTING THE REFUND MAY NOT AFFECT THE ANSWER TO QUESTION (2), ALTHOUGH UNDER AUTHORITY CONTAINED IN SECTION 1 OF THE ANNUAL LEAVE ACT, APPROVED MARCH 14, 1936, 49 STAT. 1161, THE ADMINISTRATIVE OFFICE, WITHIN ITS DISCRETION, MAY REFUSE TO GRANT LEAVE REPRESENTED BY THE REQUIRED REFUND UNTIL THE REFUND ACTUALLY HAS BEEN MADE.

YOUR LETTER CONTINUES FURTHER AS FOLLOWS:

ANOTHER SITUATION IS ILLUSTRATED BY THE FOLLOWING EXAMPLE: EMPLOYEE B WAS SEPARATED ON 18 JULY 1947 AND PAID A LUMP-SUM FOR 668 HOURS (83 1/2 DAYS) ANNUAL LEAVE AND WAS REEMPLOYED ON 18 AUGUST 1947 UNDER CIRCUMSTANCES REQUIRING A REFUND. ON 31 DECEMBER 1946, THIS EMPLOYEE HAD ACCUMULATED 720 HOURS (90 DAYS) ANNUAL LEAVE. THESE QUESTIONS ARISE:

(4) SHOULD THE EMPLOYEE BE REQUIRED TO MAKE REFUND FOR (A) THE ENTIRE UNEXPIRED PORTION OF THE LUMP-SUM LEAVE PERIOD INVOLVING 508 HOURS (63 1/2 DAYS) ANNUAL LEAVE OR (B) ONLY THAT PORTION OF THE PERIOD INVOLVING 60 DAYS (THROUGH 10 NOVEMBER BECAUSE IT IS ASSUMED IN THIS INSTANCE THAT REFUND FOR 11 NOVEMBER WOULD NOT BE REQUIRED/?

(5) WHAT WOULD BE THIS EMPLOYEE'S MAXIMUM ANNUAL LEAVE ACCUMULATION FIGURE FOR APPLICATION AT THE END OF 1947 AND FUTURE YEARS:(A) 90 DAYS; (B) 60 DAYS; OR (C) THE ACTUAL AMOUNT OF LEAVE INVOLVED IN THE UNEXPIRED PORTION OF THE LUMP-SUM PERIOD UPON REEMPLOYMENT, IN THIS CASE 63 1/2 DAYS?

THE CASE IN THE PRECEDING PARAGRAPH IS ALSO COMPLICATED BY THE FACT THAT THE REFUND WILL NOT BE COMPLETED UNTIL THE LAST INSTALLMENT IS COLLECTED BY DEDUCTION FROM THE EMPLOYEE'S PAY FOR THE PERIOD ENDING 13 ^DECEMBER 1947, AT WHICH TIME THE LEAVE INVOLVED WILL BE CREDITED TO THE EMPLOYEE'S ACCOUNT AND MADE AVAILABLE FOR USE.

IN LINE WITH THE ANSWER TO THE PRECEDING QUESTIONS, QUESTION (4) MAY BE ANSWERED BY STATING THAT THE EMPLOYEE MUST MAKE A REFUND OF AN AMOUNT REPRESENTING THE ENTIRE UNEXPIRED PORTION OF THE LUMP-SUM LEAVE PERIOD AND WITH REFERENCE TO QUESTION (5) THE MAXIMUM ANNUAL LEAVE ACCUMULATION FIGURE FOR APPLICATION AT THE END OF THE CALENDAR YEAR 1947 WOULD BE FOR COMPUTING IN THE MANNER INDICATED IN THE ANSWER TO QUESTION (2) WHICH, UNDER THE FACTS STATED, WOULD RESULT IN 72 1/2 DAYS ILLUSTRATED IN A MANNER SIMILAR TO THAT USED IN THE ANSWER TO QUESTION (2) AS FOLLOWS: JAN. JULY AUG. DEC.

1, 18, 18, 31,

1947 1947 1947 1947

NUMBER OF DAYS ACCUMULATED LEAVE ---- 90 ---- ---- -----

NUMBER OF DAYS LEAVE EARNED, 1947 --- ---- 14 14 23

NUMBER OF DAYS LEAVE TAKEN, 1947 (INCLUDING RETAINED LUMP-SUM PAYMENT) -- ---------------------------- ---- 20 1/2 40 1/2 40 1/2

LEAVE BALANCE ----------------------- 90 83 1/2 63 1/2 72 1/2 ALSO, IN LINE WITH THE ANSWER TO QUESTION (2), THE 72 1/2 DAYS REPRESENT THE MAXIMUM POSSIBLE ANNUAL LEAVE ACCUMULATION FIGURE AS OF DECEMBER 31, 1947, AND WOULD BE FOR REDUCING BY THE AMOUNT OF ANY ADDITIONAL LEAVE TAKEN REEMPLOYMENT ON AUGUST 18, 1947.

THE REMAINING PART OF YOUR LETTER IS AS FOLLOWS:

ON THE BASIS OF EXISTING PROBLEMS THERE WILL UNDOUBTEDLY ARISE A THIRD SITUATION PRESENTING A SLIGHTLY DIFFERENT PROBLEM, WHICH IS ILLUSTRATED BY THE FOLLOWING EXAMPLE: AN EMPLOYEE IS SEPARATED ON 15 NOVEMBER 1947 AND PAID A LUMP-SUM LEAVE PAYMENT COVERING 560 HOURS (70 DAYS) AND IS REEMPLOYED ON 24 NOVEMBER 1947. THE UNEXPIRED PORTION OF THE LUMP-SUM PERIOD INVOLVES ANNUAL LEAVE AMOUNTING TO 520 HOURS (65 DAYS). THE REFUND IS NOT TO BE COMPLETED UNTIL FEBRUARY 1948, AT WHICH TIME THE LEAVE WILL BE "CREDITED" TO HIS ACCOUNT. THE EMPLOYEE WAS IN THE SERVICE ON 24 JULY 1947, AT WHICH TIME IT WAS DETERMINED (IN ACCORDANCE WITH B-68709, 25 AUGUST 1947) THAT HIS MAXIMUM ANNUAL LEAVE ACCUMULATION FIGURE WAS 90 DAYS. IN ORDER TO PROVIDE ADEQUATE INSTRUCTIONS TO OPERATING PERSONNEL YOUR OPINION IS REQUESTED ON THE FOLLOWING QUESTIONS, YOUR DECISION IN 25 COMP. GEN. 592 HAVING BEEN CONSIDERED:

(6) SHOULD AN EMPLOYEE IN THESE CIRCUMSTANCES BE REQUIRED TO REFUND AN AMOUNT TO COVER (A) THE ENTIRE UNEXPIRED PORTION OF THE LUMP-SUM LEAVE PERIOD OR (B) ONLY 60 DAYS LEAVE?

(7) WOULD THE FACT THAT THE LUMP-SUM PERIOD EXTENDS FROM ONE CALENDAR YEAR TO THE NEXT AFFECT YOUR DECISION?

(8) WHAT WOULD BE AN EMPLOYEE'S MAXIMUM ANNUAL LEAVE ACCUMULATION FIGURE UNDER THESE CIRCUMSTANCES FOR APPLICATION AT THE END OF 1947 AND FUTURE YEARS:

(A)67 1/2 DAYS, BASED ON RECREDIT OF 65 DAYS AND ACCRUAL OF 2 1/2 DAYS THROUGH 27 DECEMBER 1947, NO LEAVE TAKEN BEFORE THE END OF THE YEAR; OR (B) 60 DAYS?

IN ORDER TO PROVIDE FOR CURRENT OPERATIONS THE DEPARTMENT HAS ISSUED INSTRUCTIONS TO COLLECT REFUNDS FOR THE ENTIRE UNEXPIRED PORTIONS OF LUMP- SUM LEAVE PERIODS AND TO RECREDIT ALL THE LEAVE REPRESENTED IN THOSE REFUNDS. ARE THE PRINCIPLES OF YOUR DECISIONS ON THE ABOVE QUESTIONS TO BE APPLIED RETROACTIVELY TO COVER ALL CASES OF EMPLOYEES WHICH HAVE BEEN REEMPLOYED SINCE 24 JULY 1947 AND LEAVE CREDITED TO THEIR ACCOUNTS UNDER THE DEPARTMENT'S CURRENT INSTRUCTIONS?

BECAUSE THE END OF THE YEAR IS RAPIDLY APPROACHING, THERE IS A POSSIBILITY THAT SOME EMPLOYEES MIGHT BE PENALIZED BECAUSE THEY WILL NOT HAVE AN OPPORTUNITY TO BE GRANTED ALL THE LEAVE WHICH MAY BE IN EXCESS OF THAT WHICH THEY MAY CARRY FORWARD TO 1948. HENCE, YOUR EARLY CONSIDERATION OF THESE QUESTIONS WILL BE GREATLY APPRECIATED.

THE PRINCIPLES EMBODIED IN THE ANSWERS TO YOUR FIRST THREE QUESTIONS ALSO ARE FOR APPLICATION TO THESE QUESTIONS. ACCORDINGLY, IN ANSWER TO QUESTION (6) THE EMPLOYEE MUST BE REQUIRED TO REFUND AN AMOUNT TO COVER THE ENTIRE UNEXPIRED PORTION OF THE LUMP-SUM LEAVE PERIOD. QUESTION (7) IS ANSWERED IN THE NEGATIVE. WITH REFERENCE TO QUESTION (8) THE MAXIMUM ANNUAL LEAVE ACCUMULATION FIGURE AT THE END OF THE CALENDAR YEAR 1947 IS NOT POSSIBLE OF COMPUTATION FROM THE FACTS SUBMITTED--- THERE NOT BEING SHOWN, FOR INSTANCE, THE AMOUNT OF LEAVE TO EMPLOYEE'S CREDIT ON JANUARY 1, 1947, THE NUMBER OF DAYS FOR WHICH THE LUMP-SUM PAYMENT WAS COMPUTED, ETC. HOWEVER, SUCH FIGURE WOULD BE FOR COMPUTING BY APPLYING THE PRINCIPLES HEREIN APPLIED TO QUESTIONS NOS. (2) AND (5).

THE PRINCIPLES OF THIS DECISION WOULD, UNDER EXISTING LAW, BE FOR APPLICATION IN ALL CASES OF REEMPLOYMENT DURING THE CALENDAR YEAR 1947.