[Naval Officer's Entitlement to Liquidation of Leave at Higher Grade]

The Defense Finance and Accounting Service requested a decision on whether a retired naval officer should have his excess leave liquidated at the grade he held when he retired or the grade he reverted to upon confirmation of his retirement. GAO held that: (1) the officer was serving in a position that entitled him to the higher rank at the time of his retirement; (2) by the time of his retirement, the officer's appointment to the higher rank had expired and he reverted to the lower grade because of the delay in confirmation; (3) the Senate confirmed his retirement at the higher rank the day after he retired; (4) the Board for the Correction of Naval Records corrected the officer's military records to show that he retired a month earlier and was retained on active duty after that; and (5) since the officer retired at the higher grade, he should have his excess leave liquidated at that grade. Accordingly, the claim was allowed.