This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

40475

Vol. 62, No. 145

Tuesday, July 29, 1997

OFFICE OF PERSONNEL

MANAGEMENT

5 CFR Part 550

RIN 3206–AF38

Pay Administration (General); LumpSum Payments for Annual Leave

AGENCY: Office of Personnel

Management.

ACTION: Proposed rule with request for

comments.

SUMMARY: The Office of Personnel

Management (OPM) is issuing proposed

regulations to establish a

Governmentwide policy for calculating

lump-sum payments for accumulated

and accrued annual leave for employees

who separate from the Federal service.

DATES: Comments must be received on

or before September 29, 1997.

ADDRESSES: Comments may be sent or

delivered to Donald J. Winstead,

Assistant Director for Compensation

Policy, Human Resources Systems

Service, Office of Personnel

Management, Room 6H31, 1900 E Street

NW., Washington, DC 20415 (FAX:

(202) 606–0824), or email at

payleave@opm.gov.

FOR FURTHER INFORMATION CONTACT:

Brenda Roberts, (202) 606–2858, FAX

(202) 606–0824, or email at

payleave@opm.gov.

SUPPLEMENTARY INFORMATION: The

Technical and Miscellaneous Civil

Service Amendments Act of 1992 (Pub.

L. 102–378, October 2, 1992) added

section 5553 to title 5, United States

Code, to give the Office of Personnel

Management regulatory authority for the

administration of lump-sum payments

for accumulated and accrued annual

leave. Under 5 U.S.C. 5551 and 5552,

such lump-sum payments are made

when an employee (1) separates from

the Federal service or (2) enters on

active duty in the armed forces and

elects to receive a lump-sum payment

for accumulated and accrued annual

leave. The lump-sum payment must

equal the pay the employee would have

received had he or she remained

employed until expiration of the period

of annual leave.

Section 6306 of title 5, United States

Code, provides that when an employee

is reemployed in the Federal service

prior to the expiration of the lump-sum

period, he or she must refund an

amount equal to the pay covering the

period between the date of

reemployment and the expiration of the

lump-sum period. In addition, an

amount of annual leave equal to the

days or hours of work remaining

between the date of reemployment and

the expiration of the lump-sum leave

period is recredited to the employee.

OPM is authorized to regulate this

requirement by 5 U.S.C. 6311.

OPM recognizes that agencies

currently calculate lump-sum payments

for annual leave and refunds based on

their interpretation of the broad

statutory language in 5 U.S.C. 5551,

5552, and 6306; OPM’s regulations on

lump-sum payments for employees who

receive nonforeign area cost-of-living

allowances, post differentials, or

availability pay; and additional

guidance provided by the former

Federal Personnel Manual, Comptroller

General opinions, court decisions, and

the Federal Wage System Operating

Manual. Consequently, agencies may

not have consistent policies for

including some types of pay in lumpsum payments for annual leave. On

March 3, 1995, OPM asked Directors of

Personnel for assistance in developing

proposed regulations on lump-sum

payments for annual leave. We received

comments from 30 agencies. Agency

opinions varied widely on what types of

pay should be included in or excluded

from lump-sum payments. After careful

consideration of all agency comments,

we are proposing Governmentwide rules

for determining how lump-sum

payments should be calculated. The

proposed regulations are designed to

ensure that lump-sum payments are

calculated consistently throughout the

Federal Government. When OPM issues

final regulations on lump-sum payments

for annual leave, they will not be made

retroactive. The final regulations will

apply only to lump-sum payments made

by an agency on or after the effective

date of the final regulations. The

following paragraphs summarize the

major provisions of the proposed

regulations.

Employees Eligible for a Lump-Sum

Payment

Generally, an employee is entitled to

a lump-sum payment for accumulated

and accrued annual leave when he or

she (1) separates or retires from Federal

service; (2) dies; or (3) transfers to a

position that is not covered by

subchapter I of chapter 63 of title 5,

United States Code, or to a position that

is covered by a different leave system,

when his or her accumulated and

accrued annual leave cannot be

transferred. In addition, section 1611 of

Pub. L. 104–201, September 23, 1996,

added paragraph (c) to 5 U.S.C. 5551 to

require the Department of Defense

(DOD) to pay a lump-sum payment to an

employee for any unused annual leave

that was restored under 5 U.S.C.

6304(d)(3) when the employee (1)

transfers to a position in any other

department or agency of the Federal

Government or (2) moves to a position

within DOD not located at an

installation undergoing closure or

realignment. This new entitlement to a

lump-sum payment for certain DOD

employees became effective on

September 23, 1996.

There are five exceptions to the

general rule that employees who

separate, die, or transfer are entitled to

a lump-sum payment:

(1) An employee who enters on active

duty in the armed forces may elect to

receive a lump-sum payment for

accumulated and accrued annual leave

or may request that the annual leave

remain to his or her credit until he or

she returns from active duty.

(2) An employee in a missing status

(as defined in 5 U.S.C. 5561(5)) on or

after January 1, 1965, is entitled to

receive a lump-sum payment for

accumulated and accrued annual leave

upon return or may elect to have the

annual leave restored in a separate leave

account under 5 U.S.C. 6304(d)(2). The

lump-sum payment is computed based

on the pay in effect at the time the

annual leave became subject to

forfeiture.

(3) An employee who transfers to a

position excepted from subchapter I of

chapter 63 of title 5, United States Code,

by 5 U.S.C. 6301(2)(x)-(xiii) (i.e., certain

Presidential appointees or designees)

may not receive a lump-sum payment

upon appointment to the new position.

The annual leave must be held in

abeyance for recredit if the employee is
40476 Federal Register / Vol. 62, No. 145 / Tuesday, July 29, 1997 / Proposed Rules

subsequently reemployed without a

break in service in a position to which

his or her annual leave may be

transferred. If the employee does not

return to a position to which his or her

annual leave can be transferred and later

becomes eligible for a lump-sum

payment, the lump-sum payment is

computed based on the pay in effect at

the time the employee initially

transferred to the excepted position. The

lump-sum period is projected beginning

on the effective date of the employee’s

separation, death, or transfer.

(4) An employee who transfers to a

position not covered by the Federal

leave system established under chapter

63 of title 5, United States Code, and to

which only a portion of his or her

annual leave may be transferred, will

have the remaining annual leave held in

abeyance for recredit until he or she is

subsequently reemployed without a

break in service in a position to which

his or her annual leave may be

transferred. If the employee does not

return to a position to which his or her

annual leave can be transferred and later

becomes eligible for a lump-sum

payment, the lump-sum payment is

computed based on the rate in effect at

the time the employee initially

transferred to the position to which only

a portion of his or her annual leave

could be transferred. The lump-sum

payment is paid by the current

employing agency. The lump-sum

period is projected beginning on the

effective date of the employee’s

separation, death, or transfer.

(5) An employee who has been

determined by an agency to be in a

continuing employment program under

which the employee is required to work

a ‘‘mixed tour of duty’’ will have his or

her annual leave held in abeyance

during intermittent duty and recredited

when he or she returns to full-time or

part-time employment. If the employee

separates, transfers, or dies during the

period of intermittent employment, he

or she is entitled to a lump-sum

payment for the annual leave held in

abeyance. (A ‘‘mixed tour of duty’’ is a

condition of employment for positions

in which a fluctuating workload

requires an employee to work full-time

or part-time for a portion of the year and

intermittent for the remainder.)

Employees not Eligible for a Lump-Sum

Payment

An employee is not entitled to a

lump-sum payment for accumulated

and accrued annual leave when he or

she (1) transfers between positions

covered by subchapter I of chapter 63 of

title 5, United States Code, except as

provided by 5 U.S.C. 5551(c); (2)

transfers to a position not covered by

subchapter I of chapter 63 of title 5,

United States Code, but to which his or

her accumulated and accrued annual

leave may be transferred under 5 U.S.C.

6308; (3) transfers to the government of

the District of Columbia or the U.S.

Postal Service; or (4) is concurrently

employed in more than one part-time

position and who separates from one of

the part-time positions. (If an employee

is employed in part-time positions in

different agencies, the annual leave

accumulated and accrued in the agency

from which the employee separates

must be transferred to the current

employing agency.)

Projecting the Lump-Sum Leave Period

A lump-sum payment for

accumulated and accrued annual leave

equals the pay an employee would have

received had he or she remained in the

service until expiration of the period of

annual leave. The period of leave used

for calculating the lump-sum payment

may not be extended due to any holiday

occurring after separation. Annual leave

donated under the Federal voluntary

leave transfer and leave bank programs

may not be included in a lump-sum

payment and does not serve to extend

the lump-sum leave period. (See 5 CFR

630.909(e)(2) and 630.1009(e)(1).)

Compensatory time off and unused

credit hours accumulated under a

flexible work schedule are not annual

leave. Therefore, they are not included

in a lump-sum payment and do not

serve to extend the lump-sum leave

period. Any remaining compensatory

time off or credit hours (not in excess of

24) may be paid separately as part of a

final salary payment when an employee

separates. (See 5 CFR 550.114(d) and

551.531(d) and 5 U.S.C. 6126.)

The lump-sum payment is projected

beginning on the first workday

(counting any holiday) occurring after

the date of separation, death, or transfer,

as applicable, and including subsequent

workdays and holidays. An agency must

project the lump-sum leave period so

that any annual leave restored under 5

U.S.C. 6304(d) is used before projecting

any accumulated annual leave to the

employee’s credit in his or her regular

annual leave account. (Under 5 CFR

630.306 and 630.309, annual leave that

is restored must be used by a certain

date. Projecting the lump-sum leave

period so that restored annual leave is

used before regular annual leave will

preclude the forfeiture of restored

annual leave for employees who are

reemployed in the Federal service prior

to the expiration of the lump-sum leave

period.)

Calculating the Lump-Sum Payment

Under 5 U.S.C. 5551, ‘‘the lump-sum

payment shall equal the pay (excluding

any differential under section 5925 and

any allowance under section 5928) the

employee or individual would have

received had he remained in the service

until expiration of the period of the

annual or vacation leave.’’ The term

‘‘pay’’ is not further defined in law. In

these proposed regulations, we have

attempted to offer an interpretation of

the ‘‘pay’’ to be included in a lump-sum

payment that is consistent with former

Federal Personnel Manual guidance,

Comptroller General opinions, and

agency practices.

The proposed regulations provide that

the following types of pay and

adjustments are to be included in a

lump-sum payment for annual leave:

(1) An employee’s rate of basic pay.

An employee’s rate of basic pay is

defined as the rate fixed by law or

administrative action for the position

held by the employee and includes any

applicable special salary rate

established under 5 U.S.C. 5305 or

similar provision of law or a special rate

for law enforcement officers under

section 403 of the Federal Employees

Pay Comparability Act of 1990; a

locality rate of pay under subpart F of

part 531 of title 5, Code of Federal

Regulations; a special law enforcement

adjusted rate of pay under subpart C of

part 531, including a rate continued

under § 531.307; and any continued rate

of pay under subpart G of part 531.

(2) Any statutory adjustments in pay

and any general system-wide increases

in pay that are authorized by law (or the

President’s alternative plan) under

sections 5303, 5304, 5304a, 5305, 5318,

5363, 5372, 5372a, 5376, 5382, or 5392

of title 5, United States Code, prior to

the date of separation, death, or transfer

and which become effective during the

lump-sum leave period. The lump-sum

payment is adjusted to reflect the

increased rate beginning on the effective

date of the pay adjustment.

(3) For a prevailing rate employee, the

scheduled rate of pay under 5 U.S.C.

5343 and any applicable wage

adjustment that is determined under 5

U.S.C. 5343 if the employee separates,

dies, or transfers after issuance of an

official order to conduct a wage survey

for his or her applicable wage area in

accordance with 5 CFR 532.231(d)(3)
Federal Register / Vol. 62, No. 145 / Tuesday, July 29, 1997 / Proposed Rules 40477

and which becomes effective during the

lump-sum leave period. The lump-sum

payment is adjusted to reflect the

increased rate beginning on the effective

date of the wage adjustment.

(4) A within-grade increase

authorized under 5 U.S.C. 5335 (if the

employee’s work is of an acceptable

level of competence) or under 5 U.S.C.

5343(e)(2) (if the employee’s work

performance rating is satisfactory or

better) and the employee has completed

the required waiting period prior to

separation, death, or transfer. (See 5

CFR 531.404 and 532.417.)

(5) Annual premium pay for standby

duty (5 U.S.C. 5545(c)(1)), annual

premium pay for administratively

uncontrollable overtime (AUO) work (5

U.S.C. 5545(c)(2)), and availability pay

for criminal investigators (5 U.S.C.

5545a). The lump-sum payment is

calculated using the percentage rate

received by the employee immediately

prior to separation, death, or transfer.

(6) For certain employees, night pay

earned for nonovertime hours (5 U.S.C.

5545), Sunday premium pay (5 U.S.C.

5546(a)), and night differential for

prevailing rate employees earned during

nonovertime hours (5 U.S.C. 5343(f)).

The amount of night pay and/or

Sunday premium pay to include in a

lump-sum payment is based on the

average amount of night pay and/or

Sunday premium pay earned by the

employee during the 12 administrative

workweeks immediately prior to

separation, death, or transfer (or a lesser

period if the employee was not

employed for the full 12 weeks prior to

separation, death, or transfer).

Night differential for prevailing rate

employees is included for all regularly

scheduled nonovertime periods of night

shift duty covered by the unused annual

leave as if the employee had continued

to work beyond the effective date of

separation. The night shift differential is

paid at the percentage rate received by

the employee for the last full workweek

immediately prior to separation. When

a night shift has been formally canceled

or an employee has been regularly

scheduled for continuous day shift work

on or before the date of separation, the

lump-sum leave payment is computed

on the day rate.

As a result of the decision in

Armitage, et. al. v. United States (Fed.

Cir. No. 92–5157, April 12, 1993),

employees who are regularly scheduled

to work on Sunday are entitled to

Sunday premium pay for periods of

paid leave. Based on this decision, OPM

revised its regulations in December 1994

to require the payment of Sunday

premium pay for periods of paid leave

or excused absence (5 CFR 550.171).

Under the proposed regulations, certain

employees covered by the Armitage

decision are entitled to include night

pay earned during nonovertime hours,

Sunday premium pay, and night

differential for prevailing rate

employees earned during nonovertime

hours in their lump-sum payments for

annual leave.

However, recently enacted legislation

prohibits the use of funds appropriated

by the Treasury, Postal Service, and

General Government Appropriations

Act, 1997, as contained in section 101(f)

of Public Law 104–208, the Omnibus

Consolidated Appropriations Act, 1997,

for the payment of Sunday premium pay

and night differential pay to employees

who do not actually perform work

during the time corresponding to such

Sunday premium or night differential

pay. This provision became effective on

September 30, 1996, and will expire on

September 30, 1997, unless legislation is

enacted to continue it. Employees

covered by this Act may not receive

Sunday premium and night differential

pay during periods of paid leave. The

restriction on paying Sunday premium

pay during periods when work is not

performed has been in effect for

employees of the Federal Aviation

Administration under the

Transportation and Related Agencies

Appropriations Acts for fiscal years

1995, 1996, and 1997.

(7) Overtime pay under the Fair Labor

Standards Act of 1938, as amended

(FLSA), for overtime hours regularly

scheduled during an employee’s

uncommon tour of duty as defined in 5

CFR 630.201.

(8) Nonforeign area cost-of-living

allowances under 5 U.S.C. 5941,

nonforeign area post differentials under

5 U.S.C. 5941, and foreign area post

allowances under 5 U.S.C. 5924(1) (as

authorized by section 220 of the U.S.

Department of State’s Standardized

Regulations (Government Civilians,

Foreign Areas)) if the employee was

receiving such differential or allowance

immediately prior to separation, death,

or transfer in the nonforeign or foreign

area. Current OPM regulations in 5 CFR

591.210(b)(1) already require a

nonforeign area cost-of-living allowance

and a nonforeign post differential to be

included in a lump-sum payment if the

employee separates in the nonforeign

area. However, it should be noted that

5 U.S.C. 5551 specifically excludes a

foreign area post differential (5 U.S.C.

5925) and foreign area danger pay (5

U.S.C. 5928) from lump-sum payments

for annual leave.

OPM proposes to delegate authority to

the head of each agency to determine

other kinds of pay authorized in statutes

other than title 5, United States Code,

that should be included in a lump-sum

payment, consistent with 5 U.S.C. 5551,

5552, and 6306. No other types of pay

or pay adjustments may be included in

a lump-sum payment for annual leave

unless specifically authorized by the

head of an agency through the authority

delegated by OPM.

Refund of Lump-Sum Payment

Under 5 U.S.C. 6306, when an

employee who receives a lump-sum

payment for accumulated and accrued

annual leave under 5 U.S.C. 5551 is

reemployed in the Federal service prior

to the end of the period covered by the

lump-sum payment, the employee must

refund to the employing agency an

amount equal to the payment covering

the period between the date of

reemployment and the expiration of the

lump-sum period. This rule applies

whether an employee is reemployed in

a position covered by chapter 63 of title

5, United States Code, or a different

formal leave system. The refund is

based on the pay used to compute the

lump-sum payment; e.g., an employee

who received a lump-sum payment

based on the pay for a GS–11 position

must refund the lump-sum payment

based on the same GS–11 pay, even if

he or she is reemployed at a lower or

higher grade level. The refund is

deposited in the Treasury of the United

States to the credit of the employing

agency.

An agency may permit an employee to

refund the lump-sum payment for

annual leave in installments. If an

agency permits the lump-sum refund to

be paid in installments, the employee

must pay the lump-sum payment refund

in full within 1 year after the date of

reemployment. The annual leave will be

recredited to the employee’s annual

leave account on the date the refund is

paid in full.

An employee who is reemployed in

the Federal service after the expiration

of the lump-sum period is not required

to refund any portion of a lump-sum

payment. An employee who is

reemployed prior to the expiration of

the lump-sum period in a Federal

position that does not have a formal

leave system and whose annual leave

cannot be recredited is not required to

refund any portion of a lump-sum

payment. Under 5 U.S.C. 6306(a), an

employee who is reemployed in a

position listed in 5 U.S.C. 6301(2)(ii),

(iii), (vi), or (vii) (i.e., an intermittent

position; a temporary, hourly-rate

position in construction work; a

position as an employee of either or

both Houses of Congress; or certain

positions in corporations supervised by
40478 Federal Register / Vol. 62, No. 145 / Tuesday, July 29, 1997 / Proposed Rules

the Farm Credit Administration) is not

required to refund any portion of a

lump-sum payment.

Recredit of Annual Leave

When an individual is reemployed in

the Federal service prior to the

expiration of the lump-sum leave period

in a position covered by subchapter I of

chapter 63 of title 5, United States Code,

an amount of annual leave equal to the

days or hours of work remaining

between the date of reemployment and

the expiration of the lump-sum leave

period must be recredited to the

employee by the employing agency.

Upon full payment of the lump-sum

payment refund, the agency must

recredit the employee’s annual leave to

his or her account. The recredited

annual leave is available for use by the

employee on or after the date it is

recredited.

When an individual is reemployed in

the Federal service prior to the

expiration of the lump-sum leave period

in a position covered by a different

formal leave system, the amount of

annual leave to be recredited to the

employee by the employing agency

must be converted based on the rules for

recrediting annual leave in 5 CFR

630.501(b).

If any part of the lump-sum refund is

for a period of annual leave restored

under 5 U.S.C. 6304(d), the restored

leave is credited in a separate leave

account, and the expiration date for its

use is the same date as that originally

established during the former

employment. If the originally

established expiration date for the

restored leave occurs before the date of

reemployment, a refund is required for

all of the unexpired portion, but none of

that restored leave may be recredited.

Therefore, an agency may wish to

consider delaying the date of

reemployment until expiration of the

period represented by restored annual

leave.

In most cases, the annual leave

recredited is subject to the maximum

annual leave limitation in 5 U.S.C.

6304(a), (b), (c), or (f), as appropriate, for

the position in which reemployed. For

example, if an employee is reemployed

in a position covered by 5 U.S.C.

6304(a), the maximum annual leave

limitation is 240 hours. If the annual

leave to be recredited is in excess of the

maximum annual leave ceiling

permitted for the position in which

reemployed, a new maximum leave

ceiling is established for the employee

as follows:

(1) If the maximum leave ceiling in

the former position (prior to separation

or transfer) is higher than the maximum

leave ceiling in the current position in

which reemployed, a new maximum

annual leave ceiling is established at the

lesser of: (a) The employee’s former

maximum annual leave ceiling at the

time of separation or transfer, or (b) the

amount of annual leave to be recredited.

The employee’s new maximum leave

ceiling is subject to reduction in the

same manner as provided in 5 U.S.C.

6304(c) until the employee’s

accumulated annual leave is equal to or

less than the maximum leave ceiling for

the position in which reemployed.

(2) If a member of the Senior

Executive Service (SES) had a personal

leave ceiling established under 5 CFR

630.301(d) prior to separation or transfer

that is higher than the maximum leave

ceiling in the current position in which

employed, a new personal leave ceiling

is established at the lesser of: (a) The

employee’s personal leave ceiling

established under 5 CFR 630.301(d)

prior to separation or transfer, or (b) the

amount of annual leave to be recredited.

The new personal leave ceiling is

subject to reduction in the same manner

as provided in 5 U.S.C. 6304(c) until the

employee’s accumulated annual leave is

equal to or less than the maximum leave

ceiling for the position in which

reemployed.

Under 5 U.S.C. 6306(b), when an

employee is reemployed in a position

listed in 5 U.S.C. 6301(2)(x)–(xiii) (i.e.,

certain Presidential appointees or

designees), the amount of annual leave

to be recredited is to be held in

abeyance and remain to the employee’s

credit. The employee will receive a

lump-sum payment for the annual leave

if he or she later separates, transfers, or

dies. If, instead, the employee transfers

to a position covered by chapter 63 of

title 5, or to a position covered by a

different formal leave system, the

annual leave to the employee’s credit

must be recredited to the employee by

the employing agency.

Income Tax and Deductions

Under 5 U.S.C. 5551, a lump-sum

payment to a separated or transferred

employee is considered pay for income

tax purposes. A lump-sum payment is

not subject to deductions for retirement

under the Civil Service Retirement

System or the Federal Employees

Retirement System, health benefits

under the Federal Employees Health

Benefits program, life insurance under

the Federal Employees Group Life

Insurance program, or savings under the

Thrift Savings Plan. An employee does

not accrue leave for the period covered

by the lump-sum payment. Finally, a

lump-sum payment is subject to

garnishment under parts 581 and 582 of

title 5, Code of Federal Regulations, and

to administrative offset (for collection of

debts to the Federal Government under

part 102 of title 4, Code of Federal

Regulations).

Regulatory Flexibility Act

I certify that these regulations will not

have a significant economic impact on

a substantial number of small entities

because they will affect only Federal

employees and agencies.

List of Subjects in 5 CFR Part 550

Administrative practice and

procedure, Claims, Government

employees, Wages.

Office of Personnel Management.

James B. King,

Director.

Accordingly, OPM is proposing to

amend part 550 of title 5 of the Code of

Federal Regulations as follows:

PART 550—PAY ADMINISTRATION

(GENERAL)

1. Subpart L is added to read as

follows:

Subpart L—Lump-sum Payment for

Accumulated and Accrued Annual Leave

550.1201 Purpose, applicability, and

administration.

550.1202 Definitions.

550.1203 Eligibility.

550.1204 Projecting the lump-sum leave

period.

550.1205 Calculating a lump-sum payment.

550.1206 Refund of lump-sum payment and

recredit of annual leave.

Subpart L—Lump-sum Payment for

Accumulated and Accrued Annual

Leave

Authority: 5 U.S.C. 5553, 6306, and 6311.

§ 550.1201 Purpose, applicability, and

administration.

(a) Purpose. This subpart provides

regulations to implement sections 5551,

5552, and 6306 of title 5, United States

Code, and must be read together with

those sections. 5 U.S.C. 5551 and 5552

provide for a lump-sum payment for

accumulated and accrued annual leave

when an employee enters on active duty

in the armed forces and elects to receive

a lump-sum payment for accumulated

and accrued annual leave or separates

from Federal service. 5 U.S.C. 6306

requires that when an employee is

reemployed in the Federal service prior

to the expiration of the lump-sum

period, he or she shall refund an

amount equal to the pay covering the

period between the date of

reemployment and the expiration of the

lump-sum period.
Federal Register / Vol. 62, No. 145 / Tuesday, July 29, 1997 / Proposed Rules 40479

(b) Applicability. This subpart applies

to—

(1) Any employee who separates, dies,

or transfers under the conditions

prescribed in § 550.1203; and

(2) Any employee or any individual

employed by a territory or possession of

the United States who enters on active

duty in the armed forces and who elects

to receive a lump-sum payment for

accumulated and accrued annual leave.

(c) Administration. The head of an

agency having employees subject to this

subpart shall be responsible for the

proper administration of this subpart.

§ 550.1202 Definitions.

In this subpart—

Accumulated and accrued annual

leave means any annual leave

accumulated and accrued, as these

terms are defined in § 630.201 of this

chapter, plus any annual leave credited

to an employee under 5 U.S.C. 6304(c)

and § 630.301(d) of this chapter and any

annual leave restored under 5 U.S.C.

6304(d). Accumulated and accrued

annual leave does not include annual

leave received by a leave recipient

under the voluntary leave transfer and

leave bank programs under subchapters

III and IV of chapter 63 of title 5, United

States Code, and annual leave advanced

to an employee under 5 U.S.C. 6302(d).

Administrative workweek has the

meaning given that term in § 610.102 of

this chapter.

Agency means—

(1) An executive agency and a

military department as defined in

sections 105 and 102 of title 5, United

States Code, respectively; and

(2) A legislative or judicial agency or

a unit of the legislative or judicial

branch of the Government that has

positions in the competitive service.

Employee has the meaning given that

term in 5 U.S.C. 2105.

Lump-sum payment means a final

payment to an employee for

accumulated and accrued annual leave.

Mixed tour of duty means a condition

of employment for positions in which a

fluctuating workload requires an

employee to work full-time or part-time

for a limited portion of the year and

intermittent for the remainder.

Rate of basic pay means the rate of

pay fixed by law or administrative

action for the position held by an

employee before any deductions and

exclusive of additional pay of any kind.

Transfer means the movement of an

employee to another position without a

break in service of 1 or more workdays.

§ 550.1203 Eligibility.

(a) A lump-sum payment for

accumulated and accrued annual leave

shall be paid when an employee—

(1) Separates or retires from the

Federal service;

(2) Dies; or

(3) Except as provided in paragraphs

(c), (d), and (e), of this section, transfers

to a position that is not covered by

subchapter I of chapter 63 of title 5,

United States Code, or to a position that

is covered by a different leave system,

when his or her accumulated and

accrued annual leave cannot be

transferred.

(b) An employee who has unused

annual leave that was restored under 5

U.S.C. 6304(d)(3) shall receive a lumpsum payment for the restored annual

leave from the Department of Defense

(DOD) when the employee transfers to a

position in any other department or

agency of the Federal Government or

moves to a position within DOD not

located at an installation undergoing

closure or realignment.

(c) An employee who enters on active

duty in the armed forces may elect to

receive a lump-sum payment for

accumulated and accrued annual leave

or may request that his or her annual

leave remain to his or her credit until

return from active duty. However, any

annual leave previously restored under

5 U.S.C. 6304(d) may not be credited

and may be paid in a lump-sum

payment when the employee enters

active duty.

(d) An employee who transfers to a

position in a public international

organization under 5 U.S.C. 3582 may

elect to receive a lump-sum payment for

accumulated and accrued annual leave

or may request that his or her annual

leave be held in abeyance for recredit

upon reemployment without a break in

service in the Federal service. If the

employee chooses to receive a lumpsum payment and is reemployed in the

Federal service within 6 months after

transfer to a public international

organization, he or she shall refund the

amount of the lump-sum payment to the

agency. An amount of leave equal to the

leave represented by the refund shall be

credited to the employee’s account

under § 550.1206.

(e) Except as provided in paragraph

(d)(1) of this section, an employee who

transfers to a position excepted from

subchapter I of chapter 63 of title 5,

United States Code, by 5 U.S.C. 6301(2)

(x)–(xiii) shall not receive a lump-sum

payment upon appointment to the new

position. The accumulated and accrued

annual leave shall be held in abeyance

for recredit when the employee is

subsequently reemployed without a

break in service in a position to which

his or her accumulated and accrued

annual leave may be transferred.

(f) An employee shall receive a lumpsum payment for any annual leave

restored under 5 U.S.C. 6304(d) upon

transfer to a position excepted by 5

U.S.C. 6301(2) (x)–(xiii). If the employee

later becomes eligible for a lump-sum

payment under the conditions specified

in this section, a lump-sum payment

shall be paid at that time for the annual

leave held in abeyance. The lump-sum

payment shall be computed under

§ 550.1205(b) based on the pay the

employee was receiving immediately

before the date of the transfer to the

position excepted by 5 U.S.C. 6301(2)

(x)–(xiii).

(g) An employee who transfers to a

position that is not covered by

subchapter I of chapter 63 of title 5,

United States Code, and to which only

a portion of his or her accumulated and

accrued annual leave may be

transferred, shall have the annual leave

that cannot be transferred held in

abeyance for recredit when the

employee is subsequently employed

without a break in service in a position

to which his or her accumulated and

accrued annual leave may be

transferred. If the employee later

becomes eligible for a lump-sum

payment under the conditions specified

in this section, a lump-sum payment

shall be paid at that time for the annual

leave held in abeyance. The lump-sum

payment shall be computed under

§ 550.1205(b) based on the pay the

employee was receiving immediately

before the date the transfer became

effective. The employee’s current

employing agency shall compute and

pay the lump-sum payment.

(h) An employee in a missing status

(as defined in 5 U.S.C. 5561(5)) on or

after January 1, 1965, shall receive a

lump-sum payment for accumulated

and accrued annual leave or may elect

to have such annual leave restored in a

separate leave account under 5 U.S.C.

6304(d)(2) upon his or her return to

Federal service. The lump-sum payment

shall be computed under § 550.1205(b)

based on the rate of pay in effect at the

time the annual leave became subject to

forfeiture under 5 U.S.C. 6304(a), (b), or

(c).

(i) A lump-sum payment for

accumulated or accrued annual leave

shall not be paid to—

(1) An employee who transfers

between positions covered by

subchapter I of chapter 63 of title 5,

United States Code, except to the extent

provided by paragraph (b) of this

section;

(2) An employee who transfers to a

position not covered by subchapter I of

chapter 63 of title 5, United States Code,

but to which his or her accumulated and
40480 Federal Register / Vol. 62, No. 145 / Tuesday, July 29, 1997 / Proposed Rules

accrued annual leave may be

transferred;

(3) An employee who transfers to the

government of the District of Columbia

or the U.S. Postal Service;

(4) An employee who is concurrently

employed in more than one part-time

position and who separates from one of

the part-time positions, in which case (if

the part-time positions are in different

agencies) the annual leave accumulated

and accrued in the agency from which

the employee separates shall be

transferred to the current employing

agency;

(5) A nonappropriated fund employee

of the Department of Defense or the

Coast Guard who moves without a break

in service of more than 3 days to an

appropriated fund position within the

Department of Defense or the Coast

Guard, respectively, under 5 U.S.C.

6308(b); or

(6) An employee who is determined

by an agency to be in a continuing

employment program under which the

employee is required to work a mixed

tour of duty. (The annual leave shall be

held in abeyance during intermittent

duty and recredited when the employee

returns without a break in service to

full-time or part-time employment. In

addition, any fractional hours of

creditable service for annual leave

accrual purposes under § 630.204 of this

chapter shall be held in abeyance and

recredited when the employee returns to

full-time or part-time employment.)

§ 550.1204 Projecting the lump-sum leave

period.

(a) A lump-sum payment shall equal

the pay an employee would have

received if he or she had remained in

the Federal service until the expiration

of the accumulated and accrued annual

leave to the employee’s credit. The

lump-sum period shall be projected

beginning on the first workday

(counting any holiday) occurring after

the date of separation, death, or transfer

under the conditions prescribed in

§ 550.1203 and shall continue counting

all subsequent workdays and holidays

until the expiration of the period of

annual leave. The period of leave used

for calculating the lump-sum payment

shall not be extended by any holidays

under 5 U.S.C. 6103 or applicable

Executive order occurring after the date

of separation, death, or transfer; annual

leave donated to an employee under the

leave transfer or leave bank programs

under subparts I and J of part 630 of this

chapter; compensatory time off earned

under 5 U.S.C. 5543 and §§ 550.114(d)

or 551.531; or credit hours accumulated

under an alternative work schedule

under 5 U.S.C. 6126.

(b) For employees whose annual leave

was held in abeyance immediately prior

to becoming eligible for a lump-sum

payment, the lump-sum payment shall

be projected beginning on the first

workday occurring after the date of

separation, death, or transfer under the

conditions prescribed in § 550.1203.

(c) An agency shall project the lumpsum leave period so that any annual

leave restored under 5 U.S.C. 6304(d) in

a separate leave account expires before

projecting any accumulated annual

leave to the employee’s credit in his or

her regular annual leave account.

§ 550.1205 Calculating a lump-sum

payment.

(a) A lump-sum payment shall be

computed based on the types of pay in

paragraph (b) of this section in effect at

the time an employee becomes eligible

for a lump-sum payment under the

conditions prescribed in § 550.1203 and

any adjustments in pay included in

paragraphs (b) (2), (3), and (4) of this

section. An agency shall calculate a

lump-sum payment by multiplying the

number of hours of accumulated and

accrued annual leave by the applicable

hourly rate of pay, including types of

pay listed in paragraph (b) of this

section, or by using a mathematically

equivalent method, such as multiplying

weeks of annual leave by the applicable

weekly rate of pay. If a lump-sum

payment is calculated using weekly

rates, the number of weeks of annual

leave must be rounded to the fourth

decimal place (e.g., 0.4444). An annual

rate of pay shall be converted to an

hourly rate of pay by dividing the

annual rate of pay by 2,087 and

rounding to the nearest cent, counting

one-half cent and over as the next

higher cent.

(b) A lump-sum payment shall be

computed using the following types of

pay and pay adjustments, as applicable:

(1) The greatest of the following rates

of pay:

(i) An employee’s rate of basic pay,

including any applicable special salary

rate established under 5 U.S.C. 5305 or

similar provision of law or a special rate

for law enforcement officers under

section 403 of the Federal Employees

Pay Comparability Act of 1990 (FEPCA),

Public Law 101–509, 104 Stat. 1465;

(ii) A locality rate of pay under

subpart F of part 531 of this chapter or

similar provision or law, where

applicable;

(iii) A special law enforcement

adjusted rate of pay under subpart C of

part 531 of this chapter, where

applicable, including a rate continued

under § 531.307 of this chapter; or

(iv) A continued rate of pay under

subpart G of part 531 of this chapter.

(2) Any statutory adjustments in pay

or any general system-wide increases in

pay that are authorized by law or the

President’s alternative plan, such as

adjustments under sections 5303, 5304,

5305, 5318, 5363, 5372, 5372a, 5376,

5382, or 5392 of title 5, United States

Code, prior to the date of separation,

death, or transfer, and which become

effective during the lump-sum leave

period. The lump-sum payment shall be

adjusted to reflect the increased rate on

and after the effective date of the pay

adjustment.

(3) In the case of a prevailing rate

employee, a lump-sum payment shall

include the scheduled rate of pay under

5 U.S.C. 5343 and any applicable

adjustments in prevailing rates that are

determined under 5 U.S.C. 5343 when

the employee separates after issuance of

an official order to conduct a wage

survey for his or her applicable wage

area in accordance with 5 CFR

532.231(d)(3) and which become

effective during the lump-sum leave

period. The lump-sum payment shall be

adjusted to reflect the increased

prevailing rate on and after the effective

date of the rate adjustment.

(4) A within-grade increase under 5

U.S.C. 5335 or 5 U.S.C. 5343(e)(2) if the

employee has met the requirements of

§ 531.404 or § 532.417 of this chapter

prior to separation, death, or transfer, as

applicable.

(5) The following types of premium

pay:

(i) Night differential under 5 U.S.C.

5343(f) for nonovertime hours at the

percentage rate received by a prevailing

rate employee for the last full workweek

immediately prior to separation, death,

or transfer;

(ii) Night pay under 5 U.S.C. 5545 for

nonovertime hours based on the average

amount of night pay received by an

employee during the 12 workweeks

immediately prior to the date the

employee became eligible for a lumpsum payment (or a lesser period if the

employee was not employed in the

position for at least 12 workweeks

immediately prior to the date he or she

became eligible for a lump-sum

payment);

(iii) Sunday premium pay under 5

U.S.C. 5546(a) for nonovertime hours on

Sunday based on the average amount of

Sunday premium pay received by the

employee during the 12 workweeks

immediately prior to the date the

employee became eligible for a lumpsum payment (or a lesser period if the

employee was not employed in the

position for at least 12 workweeks

immediately prior to the date the
Federal Register / Vol. 62, No. 145 / Tuesday, July 29, 1997 / Proposed Rules 40481

employee became eligible for a lumpsum payment); and

(iv) Premium pay under 5 U.S.C.

5545(c) or 5545a if the employee was

receiving premium pay immediately

prior to separation, death, or transfer

under the conditions prescribed in

§ 550.1203. The lump-sum payment

shall be based on the percentage rate

received by the employee immediately

prior to separation, death, or transfer.

(6) Overtime pay under the Fair Labor

Standards Act of 1938, as amended

(FLSA), for overtime work that is

regularly scheduled during an

employee’s established uncommon tour

of duty as defined in § 630.201 of this

chapter if such uncommon tour of duty

was applicable to the employee

immediately prior to separation, death,

or transfer under the conditions

prescribed in § 550.1203. The lump-sum

payment shall include the amount of

FLSA overtime pay for regularly

scheduled overtime work ordered or

approved at the time of separation,

death, or transfer.

(7) A cost-of-living allowance and/or

post differential in a nonforeign area

under 5 U.S.C. 5941 if the employee was

receiving the allowance and/or post

differential immediately prior to

separation, death, or transfer in the

nonforeign area.

(8) A post allowance in a foreign area

under 5 U.S.C. 5924(1) and the

Standardized Regulations (Government

Civilians, Foreign Areas) if the

employee was receiving the post

allowance immediately prior to

separation, death, or transfer in the

foreign area.

(c) The head of an agency shall

prescribe regulations or standards for

the inclusion of any other kinds of pay

authorized in statutes other than title 5,

United States Code, in a lump-sum

payment. Such regulations or standards

shall be consistent with 5 U.S.C. 5551,

5552, 6306, and other applicable

provisions of law.

(d) Except as provided in paragraph

(c) of this section, a lump-sum payment

shall exclude any other pay not

specifically listed in paragraph (b) of

this section.

(e) An employee shall not earn leave

for the period covered by a lump-sum

payment.

(f) A lump-sum payment is not subject

to deductions for retirement under the

Civil Service Retirement System or the

Federal Employees Retirement System

established by chapters 83 and 84 of

title 5, United States Code, respectively;

health benefits under the Federal

Employees Health Benefits program

established by chapter 89 of title 5,

United States Code; life insurance under

the Federal Employees Group Life

Insurance program established by

chapter 87 of title 5, United States Code;

and savings under the Thrift Savings

Plan established by subchapter III of

chapter 84 of title 5, United States Code.

(g) When a reemployed annuitant’s

pay is reduced in accordance with 5

CFR 831.702 of this chapter, the

reemployed annuitant’s lump-sum

payment at the time of his or her

separation, death, or transfer under the

conditions prescribed in § 550.1203

shall be computed using his or her pay

before such reduction.

(h) A lump-sum payment is subject to

garnishment under parts 581 and 582 of

this chapter and to administrative offset

(for recovery of debts to the Federal

Government) under 4 CFR part 102.

§ 550.1206 Refund of lump-sum payment

and recredit of annual leave.

(a) Except as provided in paragraphs

(d), (e), and (f) of this section, when an

employee who receives a lump-sum

payment for accumulated and accrued

annual leave under 5 U.S.C. 5551 is

reemployed in the Federal service prior

to the end of the period covered by the

lump-sum payment, the employee shall

refund to the employing agency an

amount equal to the pay included in the

lump-sum payment under § 550.1205(b)

that covers the period between the date

of reemployment and the expiration of

the lump-sum period. The refund shall

be computed based on the pay used to

compute the lump-sum payment under

§ 550.1205(b). An agency may permit an

employee to refund the lump-sum

payment for annual leave in

installments. If an agency permits the

lump-sum refund to be paid in

installments, the employee shall pay the

lump-sum payment refund in full

within 1 year after the date of

reemployment.

(b) An amount of annual leave equal

to the days or hours of work remaining

between the date of reemployment and

the expiration of the lump-sum period

shall be recredited to the employee

when the full refund is paid to the

agency. The recredited annual leave

shall be made available for use by the

employee on and after the date the

annual leave is recredited. Annual leave

shall be recredited as follows:

(1) When an employee is reemployed

in the Federal service in a position

covered by subchapter I of chapter 63 of

title 5, United States Code, an amount

of annual leave equal to the days or

hours of work remaining between the

date of reemployment and the

expiration of the lump-sum period shall

be recredited to the employee by the

employing agency.

(2) When an employee is reemployed

in the Federal service in a position that

is not covered by subchapter I of chapter

63 of title 5, United States Code, but is

covered by a different leave system, an

amount of annual leave representing the

days or hours of work remaining

between the date of reemployment and

the expiration of the lump-sum period,

as determined under § 630.501(b) of this

chapter, shall be recredited to the

employee by the employing agency. If

the unexpired period of leave covers a

larger amount of leave than can be

recredited under a different leave

system, the employee shall refund only

the amount that represents the leave

that can be recredited.

(3) If any part of the lump-sum refund

made under paragraph (a) of this section

reflects annual leave restored under 5

U.S.C. 6304(d), the annual leave shall be

restored in a separate account, and the

time limit for using the restored annual

leave shall be the same as that originally

established under § 630.306 of this

chapter prior to the employee’s

separation or transfer under the

conditions prescribed in § 550.1203.

(c) Except as provided in paragraph

(d) of this section, the annual leave

recredited under paragraph (b) of this

section shall be subject to the maximum

annual leave limitation established

under 5 U.S.C. 6304 (a), (b), (c), or (f),

as appropriate, for the position in which

reemployed.

(d) If the annual leave recredited to an

employee under paragraph (b) of this

section is in excess of the maximum

annual leave limitation established

under 5 U.S.C. 6304 (a), (b), (c), or (f),

as appropriate, for the position in which

reemployed, the employee’s maximum

annual leave limitation shall be

determined as follows:

(1) If at the time of separation or

transfer an employee was subject to a

higher maximum annual leave

limitation than the maximum annual

leave limitation for the position in

which reemployed, a new maximum

annual leave limitation shall be

established at the lesser of the

employee’s former maximum annual

leave limitation at the time of separation

or transfer or the amount of annual

leave to be recredited to the employee

under paragraph (b) of this section. The

new maximum annual leave limitation

shall be subject to reduction in the same

manner as provided in 5 U.S.C. 6304(c)

until the employee’s accumulated

annual leave is equal to or less than the

maximum annual leave limitation for

the position in which reemployed.

(2) A member of the Senior Executive

Service (SES) who had a personal leave

ceiling established under § 630.301(d) of
40482 Federal Register / Vol. 62, No. 145 / Tuesday, July 29, 1997 / Proposed Rules

this chapter and who is reemployed in

a position covered by subchapter I of

chapter 63 of title 5, United States Code,

shall have a new personal leave ceiling

established at the lesser of his or her

personal leave ceiling established under

§ 630.301(d) of this chapter at the time

of separation or transfer or the amount

of annual leave to be recredited to the

SES member under paragraph (b) of this

section. The new personal leave ceiling

shall be subject to reduction in the same

manner as provided in 5 U.S.C. 6304(c)

until the SES member’s accumulated

annual leave is equal to or less than the

maximum annual leave limitation for

the position in which reemployed.

(e) An employee who is reemployed

in a position listed in 5 U.S.C. 6301(2)

(ii), (iii), (vi), or (vii) shall not be

required to refund a lump-sum payment

under paragraph (a) of this section.

(f) An employee who is reemployed in

a position that has no leave system to

which annual leave can be recredited

shall not be required to refund a lumpsum payment under paragraph (a) of

this section.

(g) When an employee is reemployed

in a position listed in 5 U.S.C. 6301(2)

(x)–(xiii), the amount of annual leave to

be recredited to the employee under

paragraph (b) of this section shall

remain to the employee’s credit and

shall become payable when the

employee becomes eligible for a lumpsum payment under the conditions

prescribed in § 550.1203. If the

employee subsequently transfers to a

position covered by subchapter I of

chapter 63 of title 5, United States Code,

or to a position under a different formal

leave system to which his or her annual

leave can be recredited, the annual leave

to the employee’s credit shall be

recredited to the employee by the

employing agency under

§ 550.1206(b)(1).

(h) An agency shall document the

calculation of an employee’s lump-sum

payment as provided in § 550.1205(b) so

as to permit the subsequent calculation

of any refund required under paragraph

(a) of this section and any recredit of

annual leave required under paragraph

(b) of this section.

[FR Doc. 97–19774 Filed 7–28–97; 8:45 am]

BILLING CODE 6325–01–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Docket No. FV97–905–1 PR]

Oranges, Grapefruit, Tangerines, and

Tangelos Grown in Florida; Limiting

the Volume of Small Florida Red

Seedless Grapefruit

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Proposed rule.

SUMMARY: This proposed rule invites

comments on limiting the volume of

small red seedless grapefruit entering

the fresh market under the marketing

order covering oranges, grapefruit,

tangerines, and tangelos grown in

Florida. The marketing order is

administered locally by the Citrus

Administrative Committee (committee).

This rule would limit the volume of size

48 and/or size 56 red seedless grapefruit

handlers could ship during the first 11

weeks of the 1997–1998 season that

begins in September. This proposal

would provide a sufficient supply of

small sized red seedless grapefruit to

meet market demand, without saturating

all markets with these small sizes. The

committee believes this rule is

necessary to help stabilize the market

and improve grower returns.

DATES: Comments must be received by

August 13, 1997.

ADDRESSES: Interested persons are

invited to submit written comments

concerning this proposal. Comments

must be sent in triplicate to the Docket

Clerk, Fruit and Vegetable Division,

AMS, USDA, room 2525-S, P.O. Box

96456, Washington, DC 20090–6456;

Fax: (202) 720–5698. All comments

should reference the docket number and

the date and page number of this issue

of the Federal Register and will be

made available for public inspection in

the Office of the Docket Clerk during

regular business hours.

FOR FURTHER INFORMATION CONTACT:

William G. Pimental, Southeast

Marketing Field Office, AMS, USDA,

P.O. Box 2276, Winter Haven, Florida

33883–2276; telephone: (941) 299–4770,

Fax: (941) 299–5169; or Anne Dec,

Marketing Order Administration

Branch, F&V, AMS, USDA, room 2522–

S, P.O. Box 96456, Washington, DC

20090–6456; telephone: (202) 720–5053,

Fax: (202) 720–5698. Small businesses

may request information on compliance

with this regulation by contacting Jay

Guerber, Marketing Order

Administration Branch, Fruit and

Vegetable Division, AMS, USDA, room

2525–S, P.O. Box 96456, Washington,

DC 20090–6456; telephone (202) 720–

2491, Fax: (202) 720–5698.

SUPPLEMENTARY INFORMATION: This

proposal is issued under Marketing

Agreement No. 84 and Marketing Order

No. 905, both as amended (7 CFR part

905), regulating the handling of oranges,

grapefruit, tangerines, and tangelos

grown in Florida, hereinafter referred to

as the ‘‘order.’’ The marketing

agreement and order are effective under

the Agricultural Marketing Agreement

Act of 1937, as amended (7 U.S.C. 601–

674), hereinafter referred to as the

‘‘Act.’’

The Department of Agriculture

(Department) is issuing this rule in

conformance with Executive Order

12866.

This proposal has been reviewed

under Executive Order 12988, Civil

Justice Reform. This rule is not intended

to have retroactive effect. This proposal

will not preempt any State or local laws,

regulations, or policies, unless they

present an irreconcilable conflict with

this rule.

The Act provides that administrative

proceedings must be exhausted before

parties may file suit in court. Under

section 608c(15)(A) of the Act, any

handler subject to an order may file

with the Secretary a petition stating that

the order, any provision of the order, or

any obligation imposed in connection

with the order is not in accordance with

law and request a modification of the

order or to be exempted therefrom. A

handler is afforded the opportunity for

a hearing on the petition. After the

hearing the Secretary would rule on the

petition. The Act provides that the

district court of the United States in any

district in which the handler is an

inhabitant, or has his or her principal

place of business, has jurisdiction to

review the Secretary’s ruling on the

petition, provided an action is filed not

later than 20 days after date of the entry

of the ruling.

The order provides for the

establishment of grade and size

requirements for Florida citrus, with the

concurrence of the Secretary. These

grade and size requirements are

designed to provide fresh markets with

citrus fruit of acceptable quality and

size. This helps create buyer confidence

and contributes to stable marketing

conditions. This is in the interest of

growers, handlers, and consumers, and

is designed to increase returns to

Florida citrus growers. The current

minimum grade standard for red

seedless grapefruit is U.S. No. 1, and the

minimum size requirement is size 56 (at

least 35⁄16 inches in diameter).