Entitlement to Discontinued Service Retirement

The Defense Logistics Agency requested a decision on whether two of its employees may be retroactively granted discontinued service retirements. The two employees received reduction in force notices and offers of employment for positions which were in a different classification series than their former positions and which involved additional duties. The employees questioned whether the reduction in force and realignment qualified them for discontinued service retirements. They were incorrectly advised that declining the position offers would not qualify them for discontinued service retirements. They appealed this decision and the determination that their positions were not being abolished so as to entitle them to an early retirement was sustained. After the realignment, the agency received an Office of Personnel Management (OPM) advisement that another employee in identical circumstances was eligible for the discontinued service retirement. When the agency requested an OPM ruling on the two employees in question, they were advised to ask GAO for authorization of retroactive separation dates for these employees. If retroactive separations were authorized, OPM would treat the employees as having retired on February 29, 1980, and as having served as reemployed annuitants thereafter. The agency did not submit the employees' cases to OPM until after the effective date of realignment. This had the effect of depriving the employees of their option to elect discontinued service retirements. But for this administrative error, their right to elect discontinued service retirements would have been preserved. If the employees had been afforded this option, they would have elected the discontinued service retirements and their retirements would have been effected. The employees are entitled to be separated retroactively as of February 29, 1980, in order to receive discontinued service retirements.