‘‘(2) satisfies the age and service requirements 
for immediate or early retirement under such sys-
tem. 
‘‘(c) AMOUNT PAYABLE.— 
‘‘(1) IN
GENERAL.—A lump-sum payment 
under this section shall be equal to the amount of 
basic pay (including locality pay) the employee would 
have received, for such employee’s period of compen-
sable sick leave, if such employee had remained in 
the service or not transferred until the end of such 
period. 
‘‘(2) PERIOD OF COMPENSABLE SICK LEAVE.— 
For purposes of this section, the term ‘period of 
compensable sick leave’ means a period equal in du-
ration to 15 percent of the amount (rounded to the 
nearest whole number of hours) by which the total 
number of hours of accumulated and current ac-
crued sick leave standing to the employee’s credit 
(as of the time of separation or transfer) under a 
formal leave system, exceeds 500 hours. 
‘‘(3) LIMITATIONS.—In no event shall— 
‘‘(A) any payment under this section ex-
ceed $10,000; or 
‘‘(B) any hours of sick leave be taken into 
account under paragraph (2)(A) which are 
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creditable in the computation of any other com-
pensation or benefit provided for under any 
other statute. 
‘‘(d) CONDITIONS FOR AND EFFECT OF RECEIVING 
A PAYMENT.—A payment under this section— 
‘‘(1) shall be payable by the agency from which 
the employee was separated or transferred, but only 
upon application made in accordance with applicable 
regulations under section 5597c; 
‘‘(2) terminates all rights of the employee with 
respect to the hours of leave described in subsection 
(c)(2)(A) (and not excluded by subsection (c)(3)(B)); 
and 
‘‘(3) terminates any right of the employee to re-
ceive any other payment under this section, includ-
ing with respect to any sick leave subsequently ac-
cruing. 
‘‘(e) APPLICATION BY A SURVIVOR.—An application 
under this section may also be made by any person who, 
by virtue of subchapter VIII, is entitled to receive any pay-
ment which (but for subsection (d)(1)) would otherwise 
be due a deceased employee under this section. 
‘‘(f) ADDITIONAL RULES.—A lump-sum payment 
under this section shall be considered pay for taxation pur-
poses only. The period of compensable sick leave used in 
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calculating any such payment shall not be extended due 
to any holiday occurring after the employee’s separation 
or transfer. 
‘‘§ 5597c. Regulations 
‘‘Any regulations necessary for the administration of 
this subchapter shall be prescribed by the appropriate au-
thority. For purposes of the preceding sentence, the ‘ap-
propriate authority’ is— 
‘‘(1) if the separation or transfer is from a posi-
tion in the executive branch, the Director of the Of-
fice of Personnel Management; 
‘‘(2) if the separation or transfer is from a posi-
tion in the judicial branch, the Director of the Ad-
ministrative Office of the United States Courts; and 
‘‘(3) if the separation or transfer is from a posi-
tion in the legislative branch, the head of the office, 
agency, or other establishment from which such sep-
aration or transfer occurs.’’. 
(b) SETTLEMENT OF ACCOUNTS.—Section 5581(2) 
of title 5, United States Code, is amended— 
(1) by redesignating subparagraph (I) as sub-
paragraph (J); 
(2) in subparagraph (H), by striking ‘‘and’’ 
after the semicolon; and 
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(3) by inserting after subparagraph (H) the fol-
lowing: 
‘‘(I) payment for compensable sick leave 
under section 5597b; and’’. 
(c) CLERICAL AMENDMENT.—The analysis for chap-
ter 55 of title 5, United States Code, is amended by add-
ing at the end the following: 
‘‘SUBCHAPTER X—PAYMENT FOR CERTAIN UNUSED SICK LEAVE 
‘‘5597a. Definitions. 
‘‘5597b. Lump-sum payment for certain unused sick leave. 
‘‘5597c. Regulations.’’. 
Æ 
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