**HOURS OF DUTY AND LEAVE**

**1. REASON FOR ISSUE:** To amend Department of Veterans Affairs (VA)
policy in VA Handbook 5011, Part III, Chapter 3 regarding lump sum
payments.

**2. SUMMARY OF CONTENTS/MAJOR CHANGES:** This directive contains Hours
of Duty policy for employees in executive pay levels regarding the
disposition of lump sum payments for leave when transferring between
positions under different leave systems or separating from Federal
service. This amendment will be incorporated in the electronic version
of VA Handbook 5011 located on the [Office of Human Resources Management
and Labor Relations Web site](http://vaww.va.gov/ohrm).

**3. RESPONSIBLE OFFICE:** Worklife and Benefits Service (058) of the
Office of the Deputy Assistant Secretary for Human Resources and Labor
Relations.

**4. RELATED HANDBOOK:** VA Handbook 5011, Hours of Duty and Leave.

**5. RESCISSIONS:** None

**CERTIFIED BY: BY DIRECTION OF THE SECRETARY**

**OF VETERANS AFFAIRS:**

/s/Robert N. McFarland /s/R. Allen Pittman

Assistant Secretary for Assistant Secretary for Human

Information and Technology Resources and Administration

ELECTRONIC DISTRIBUTION ONLY

provides for leave accrual, accumulated and accrued leave will be
credited to the employee\'s account irrespective of the differences in
the accrued rates. For example, an employee serving in an appointment
under section 7401(l) who is converted to an appointment under section
7406 as a resident will have the leave earned under the section 7401(l)
appointment credited to the leave account under the latter appointment.
**NOTE:** *This example assumes the individual would be entitled to
payable leave as a resident. If the individual were transferring to a
nonpayable leave system, he or she would receive a lump-sum payment for
the accrued annual leave.*

\(b\) An employee converted to a position in which no payable leave is
earned will be given a lump-sum payment as provided in subparagraph (a)
above.

\(c\) Graduate nurse technicians employed in VHA are covered by
5 U.S.C., chapter 63. If the appoint-ment of the graduate nurse
technician is converted to a full-time nurse in VHA during the biweekly
pay period, the individual will be considered in a graduate nurse
technician status for leave purposes until the end of such pay period.
Annual leave will be credited under the leave system for nurses from the
beginning of the first complete biweekly pay period under the
appointment as a registered nurse.

\[(d) When an employee transfers without a break in service to a
position exempted from the leave system, (e.g., to a Presidential
appointment in the executive pay level or a comparable position), the
employees' regular annual leave is held in abeyance until it is either
(a) liquidated by lump sum payment upon the employee's separation or
death, (b) liquidated in one or more partial payments, or a single full
payment, during the employee's service in the exempted position, or (c)
re-credited upon the employee's reemployment without a break in service
to a position subject to the leave provisions in this Chapter or in 5
USC Chapter 63. Any annual leave restored to the employee's credit under
paragraph 6.f.(1)(d) of this Chapter must be liquidated by a lump sum
payment if the employee elects not to retain his or her leave benefits.
A career Senior Executive Service member accepting a Presidential
appointment may elect to retain his or her leave benefits and therefore
continue to accumulate and use annual leave, including restored annual
leave.\]

\(2\) **Separation for Advocating Overthrow of the Government of the
United States.** When separation of an employee is for advocating or
being a member of an organization that advocates the overthrow of the
Government of the United States by force or violence, no lump-sum
payment will be made for annual leave remaining to the employee\'s
credit (23 Comp. Gen. 677).

\(3\) **Death.** On the death of an employee, compensation for all
accumulated and current accrued annual leave will be paid in an amount
equal to the compensation the decedent would have received had the
employee remained in the service until the expiration of the period of
such annual leave.

d\. **Credit and Recredit of Sick Leave**

\(1\) **Changes During Employment in VHA.** An employee serving in an
appointment which provides for leave accrual who is subsequently
converted or appointed without a break in service to another type of
appointment which also provides for leave accrual will be credited with
sick leave to the employee\'s account irrespective of any difference in
accrual rates.

\(2\) **Recredit of Sick Leave.** Sick leave will be recredited to an
employee upon reemployment after a break in service. Sick leave will
also be recredited to an employee after being changed from a
leave-earning to non-leave-earning status in the service and later being
returned to a leave-earning status.

e\. **Reemployment During Period Covered by Lump-Sum Payment.** An
employee who previously served under the VHA leave system and is
reemployed in VA under an appointment within the purview of the leave
provisions of this chapter during the period covered by lump-sum payment
will refund to VA an amount equal to the compensation covering the
period between the date of reemployment and the end of the period
covered by the lump-sum payment. It is the responsibility of the
appointment officer to ascertain if new appointees are entering on duty
prior to the expiration of leave represented by lump-sum