Administrative Billings and Collections (ABCO)

Leave Buy Back

Employees who are entitled to injury compensation may elect to use sick leave and/or annual leave, pending approval of the injury claim by the Department of Labor (DOL), Office of Workers' Compensation Programs (OWCP), to avoid possible interruption of income. If the employee uses leave and the OWCP compensation claim is approved, they may arrange with their servicing personnel office to buy back the leave used and have it recredited to their account by changing the leave status to LWOP leave without pay. The employee may elect to buy the leave back using one of the following methods:

• Pay the full amount by check
• One-time payroll deduction for the full amount
• Repay in installments through payroll deductions

The Agency must submit the completed OWCP package to NFC, Government Insurance and Collections Directorate (GICD), Debt Management Services Branch (DMSB). Listed below are the documents that must be included in the package. Do not submit T&A Time and Attendance, leave audits, or copies of personnel actions.

• Form CA-7, Claim for Compensation
• Form CA-7a,Time Analysis Form
• Form CA-7b, Leave Buy Back (LBB) Worksheet/Certification and Election
• Form Letter CA-1208, Leave Approval Letter or CA-1208a, Leave Approval Letter
• Form AD-343, Payroll Action Request
• Department of Labor Check
• Department of Labor Benefit Statement

  Note: Form AD-343 must request NFC to create the LBB bill, listing the time frame, hours, and types of leave being repurchased. Packages submitted to DMSB must have an authorized signature certifying that the calculations have been reviewed and approved for processing by the Agency. Refer to the Non-Automated Processing procedure manual for additional information regarding leave buy back processing, which is available online at the NFC Web site. To view and/or print this procedure, select HR and Payroll Clients from the MyNFC drop-down menu on the NFC Home Page. At the HR and Payroll Clients page, select the Publications tab and from there select the Manual Pay Processing (MANPAY) category to access the Non-Automated Processing (NONAUTO) procedure manual.

Forward the completed package to the following address:

USDA/OCFO/NFC/GICD/DMSB
P. O. Box 61765
New Orleans, Louisiana 70161

The following steps will follow, upon receipt of the package:

1. DMSB will create an adjustment in SPPS Web Web-based Special Payroll Processing System to document that the DOL check was received. This information may be found under Agency Remarks. The payment can be viewed in ABCOINQ Administrative Billings and Collections Inquiry System, on the Receivable Record Screen, as a system code 91, found on the Debtor Number line. Refer to Option 2. Receivable Info (By Debtor ID and Bill Number) for detailed information.
2. DMSB will forward the original paperwork, along with a copy of the check, to the Payroll Processing Branch (PaPB).
3. PaPB verifies the calculations contained in the documents received and issues a request to ABCO Administrative Billings and Collections System to bill via SPPS Web.
4. ABCO establishes the bill in the system, as a system code 92. The OWCP payment applied can be seen on the ABCOINQ Receivable Record screen. Press PF6 to view the Description Text screen. Refer to Option 2. Receivable Info (By Debtor ID and Bill Number) for detailed information.
5. The employee will receive a notice along with a letter of repayment. If repayment arrangements are not made within 90 days of this notice, the money received from OWCP will be returned to DOL. Any money received from the employee will be refunded to the employee, and the OWCP leave buy back receivable will be canceled.

   Note: Agencies must ensure that all documentation provided displays a valid address to return DOL checks received, if required.

6. Once the debt has been paid in full, either by payroll deduction(s) or check, the Agency contacts the NFC Contact Center (NCC) to request a Restoration of Leave Letter from NFC's DMSB. Upon receipt of this letter, the Agency must restore the leave in the database using the Time Inquiry - Leave Update System (TINQ). Do not submit corrected T&As to change the annual and/or sick leave to LWOP. Refer to TINQ procedure manual for additional information, which is available online at the NFC Web site. To view and/or print this procedure, select HR and Payroll Clients from the MyNFC drop-down menu on the NFC Home Page. At the HR and Payroll Clients page, select the Publications tab and from there select the applicable category to access the procedure manual.