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Lump Sum Leave Payments

A final lump sum payment is normally processed when an employee separates from Federal service. Under certain conditions a lump sum payment can be made when NOAC 352, Termination Appointment-In, is processed.

In addition, lump sum payments are also payable to:

  • Employees who enter the Armed Forces or who transfer to public international organizations and who do not elect to retain their annual leave to their credit.
  • Employees who transfer to positions not under a leave system to which annual leave may be transferred.
  • Part-time/full-time (PT/FT) employees who change to an intermittent work schedule.
  • Intermittent employees for whom there have not been established regular tours of duty during each administrative workweek.
  • Temporary employees engaged in construction work at hourly rates.
  • Employees of the Senate or House of Representatives.
  • Employees of any corporation under the supervision of the Farm Credit Administration (FCA) if any member of the corporation’s board of directors is elected or appointed by private interests.

A lump sum is not payable to an employee who transfers to a position to which his/her annual leave is transferable, or to a student trainee employed continuously with intermittent duty status between PT/FT tours of duty.

The lump sum payment to which an employee is entitled is equal to the pay that would have been received had the employee remained in service until the expiration of the period of annual leave. The lump sum payment is to be computed on the basis of an employee’s rights at the time of separation under all applicable laws and regulations existing at the time which would have affected pay had the employee remained in service for the period covered by the leave. In some cases, this may result in the lump sum being paid at a dual rate. If the employee is indebted to the Government at the time of separation and the final salary is insufficient to recover the debt, the annual amount of compensatory leave payment (or other payable leave) will be offset to collect for the indebtedness.

This section will show how to enter data to pay an employee separated from the Federal service a lump sum for accumulated and current accrued annual leave.

Before beginning, the following information is needed:

  • Form AD-581, Lump Sum Leave Compensatory Time Payments (verify all data provided by the employee)
  • Annual/Sick Leave
  • Form AD-334, Statement of Earnings and Leave