[Federal Register Volume 59, Number 244 (Wednesday, December 21, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31245]


[[Page Unknown]]

[Federal Register: December 21, 1994]


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OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 630

RIN: 3206-AG48

 

Absence and Leave; SES Annual Leave Accumulation

AGENCY: Office of Personnel Management.

ACTION: Interim rule with request for comments.

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SUMMARY: The Office of Personnel Management is issuing interim 
regulations governing annual leave accumulation for members of the 
Senior Executive Service (SES). Under recent legislation, there is now 
a 90-day (720-hour) maximum limitation on the amount of annual leave an 
SES member may carry over from one leave year to the next. Previously, 
SES members could accumulate annual leave on an unlimited basis.

DATES: Effective Date: October 14, 1994. Comment Date: Written comments 
must be received on or before February 21, 1995.

ADDRESSES: Send or deliver written comments to Donald J. Winstead, 
Acting Assistant Director for Compensation Policy, Personnel Systems 
and Oversight Group, Room 6H31, Office of Personnel Management, 1900 E 
Street NW., Washington, DC 20415.

FOR FURTHER INFORMATION CONTACT:
Jo Ann Perrini, (202) 606-2858.

SUPPLEMENTARY INFORMATION: Under Public Law 94-454, the Civil Service 
Reform Act of 1978, members of the Senior Executive Service (SES) were 
able to accumulate annual leave on an unlimited basis. Section 201 of 
the Government Management Reform Act of 1994 (Pub. L. 103-356, enacted 
October 13, 1994) amended 5 U.S.C. 6304(f) to provide a 90-day (720-
hour) limit on the amount of annual leave an SES member may carry over 
from one leave year to the next.
    Section 201 also contains a grandfather clause to allow individuals 
who were SES members on the effective date of the law and who had 
accumulated more than 90 days (720 hours) of annual leave to retain as 
their personal leave ceiling the annual leave they had accrued as of 
the effective date of the law. The personal leave ceiling is the 
maximum amount of accrued annual leave an affected member can carry 
over from one leave year to the next. The personal leave ceiling is 
subject to the existing reduction provisions contained in law and 
regulations.
    We are amending paragraphs (a), (b), and (c) of 5 CFR 630.301 to 
implement the new 90-day (720-hour) limitation. Paragraph (a) specifies 
the maximum limitation on annual leave accumulation for members of the 
SES. Paragraph (b) specifies how leave is prorated when an employee 
serves part of a pay period in an SES position and part in a position 
outside the SES. Paragraph (c) provides that SES members may retain 
their leave balances when they take a non-SES position, but that the 
balance is subject to reduction under 5 U.S.C. 6304(c) until the 
balance reaches 30 days (240 hours) or 45 days (360 hours) depending on 
the leave ceiling for the new position.
    We are adding paragraph (d) to explain how the grandfather clause 
is to be applied to establish a personal leave ceiling for SES members. 
The grandfather clause also applies to former career SES members who 
elected to retain SES leave benefits under 5 U.S.C. 3392(c) following 
appointment to an Executive Schedule or equivalent position. The 
personal leave ceiling does not include advanced annual leave or 
restored annual leave. Annual leave restored to an SES member under 5 
U.S.C. 6304(d) will continue to be placed in a separate leave account 
and must be scheduled and used within the time period specified in 5 
CFR 630.306 or 630.309.
    Public Law 103-356 provides for the reduction of the personal leave 
ceiling under the existing provisions of 5 U.S.C. 6304(c). Thus, if an 
SES member has a personal leave ceiling and uses more annual leave than 
he or she earns in a leave year (or between the start of the first pay 
period beginning after October 13, 1994, and the end of the 1994 leave 
year), the personal leave ceiling is reduced by the difference at the 
start of the next leave year. If the personal leave ceiling falls to or 
below 90 days (720 hours) at the end of a leave year, the member 
becomes subject to the 90-day (720-hour) limit.
    If an SES member with a personal leave ceiling earns more annual 
leave than used in a leave year (or between the start of the first pay 
period beginning after October 13, 1994, and the end of the 1994 leave 
year), the excess hours are forfeited at the start of the next leave 
year. SES members are subject to the same provisions in the law and 
regulations for the restoration of unused annual leave as apply to 
other employees (5 U.S.C. 6304(d) and 5 CFR 630.305 through 630.309).
    If an SES member separates from the Government before the end of a 
leave year, the member is paid a lump-sum payment for all accumulated 
annual leave (including any unused restored leave), even if the amount 
of leave exceeds the member's personal leave ceiling. (See 5 U.S.C. 
5551.)

    Example: An SES member had 1,000 hours of annual leave at the 
beginning of the first pay period after October 13, 1994. The SES 
member's personal leave ceiling would be 1,000 hours. If during the 
remainder of the 1994 leave year the member uses 100 hours more 
leave than earned, the member's personal leave ceiling for the 1995 
leave year will be 900 hours (1,000 minus 100 hours). If during 
leave year 1995 the member earns 100 hours more leave than used, the 
member's personal leave ceiling for the 1996 leave year will remain 
at 900 hours, and the excess 100 hours will be forfeited. Finally, 
if the member separates from the Government on September 30, 1996, 
with 1,040 hours of accumulated annual leave, the member will 
receive a lump-sum payment for 1,040 hours of annual leave at the 
member's then current rate of pay.

    If an SES member who had received a lump-sum payment for annual 
leave upon separation or retirement is reemployed in the Federal 
Government before the expiration of the period covered by the lump-sum 
payment, he or she must refund to the employing agency an amount equal 
to the pay covering the period between the date of reemployment and the 
expiration of the lump-sum payment. The individual's annual leave 
account will be credited with an amount of leave equal to the leave 
represented by the refund. (See 5 U.S.C. 6311.) If the individual is 
reemployed in a non-SES position, he or she will be subject to the 
maximum annual leave ceiling for the new position--i.e., the 30-day or 
45-day maximum annual leave ceiling under 5 U.S.C. 6304 (a) or (b).

    Example: An SES member separated and received a lump-sum annual 
leave payment for 1,040 hours (130 days). Three months (i.e., 60 
workdays) later, the individual is reemployed in a GS-15 position. 
The employee must refund an amount of pay equal to 560 hours (70 
days). The employee's annual leave account is credited with 560 
hours of annual leave. (Note: Since 560 hours is more than maximum 
annual leave ceiling of 240 hours for the GS-15 position, the 
employee acquires a leave ceiling of 560 hours (70 days). The leave 
ceiling will be reduced under the provisions of 5 U.S.C. 6304(c), if 
more annual leave is used than earned in any leave year, until it 
reaches 240 hours. In addition, annual leave earned in a leave year 
must be used or be subject to forfeiture at the end of the leave 
year.)

    Finally, we are adding paragraph (e) to require agencies to 
maintain records of the amount of annual leave credited and reduced 
when an SES member has a personal leave ceiling and to inform affected 
members of their initial ceiling and any subsequent reduction.

Waiver of Notice of Proposed Rule Making and Delay in Effective 
Date

    Section 201 of Public Law 103-356 became effective at the beginning 
of the first applicable pay period after October 13, 1994, the date of 
enactment. In order to give practical effect to this legislation, I 
find that good cause exists to waive the general notice of proposed 
rulemaking pursuant to 5 U.S.C. 553(b)(3)(B). Also, I find that good 
cause exists for making this rule effective on October 14, 1994. The 
delay in the effective date of this rule is being waived to cover 
employees as of the date required by the statute.

E.O. 12866, Regulatory Planning and Review

    This rule has been reviewed by the Office of Management and Budget 
in accordance with E.O. 12866.

Regulatory Flexibility Act

    I certify that this regulation will not have a significant economic 
impact on a substantial number of small entities because it will affect 
only Federal agencies and employees.

List of Subjects in 5 CFR Part 630

    Absence and leave.

U.S. Office of Personnel Management.
James B. King,
Director.

    Accordingly, OPM is amending 5 CFR part 630 as follows:

PART 630--ABSENCE AND LEAVE

    1. The authority citation for part 630 is revised to read as 
follows:

    Authority: 5 U.S.C. 6311; Sec. 630.301 also issued under Public 
Law 103-356 (108 Stat. 3410); Sec. 630.303 also issued under 5 
U.S.C. 6133(a); Sec. 630.501 and subpart F also issued under E.O. 
11228, 30 FR 7739, June 16, 1965, 3 CFR 1974 Comp., p. 163; subpart 
G also issued under 5 U.S.C. 6305; subpart H issued under 5 U.S.C. 
6326; subpart I also issued under 5 U.S.C. 6332 and Public Laws 100-
566 (102 Stat. 2834), and 103-103 (107 Stat. 1022); subpart J also 
issued under 5 U.S.C. 6362 and Public Laws 100-566 and 103-103; 
subpart K also issued under Public Law 102-25 (105 Stat. 92); and 
subpart L also issued under 5 U.S.C. 6387 and Public Law 103-3 (107 
Stat. 23).

Subpart C--Annual Leave

    2. In subpart C, Sec. 630.301 is revised to read as follows:


Sec. 630.301  Annual leave accumulation--Senior Executive Service.

    (a) Unused annual leave accrued by an employee while serving under 
an appointment in the Senior Executive Service under 5 U.S.C. chapter 
33, subchapter VIII, shall accumulate for use in succeeding years until 
it totals not more than 90 days (720 hours) at the beginning of the 
first full biweekly pay period (or corresponding period for an employee 
who is not paid on the basis of biweekly pay periods) occurring in a 
calendar year.
    (b) Annual leave accrued for any pay period during only a portion 
of which the employee served under an appointment to the Senior 
Executive Service shall be prorated. Only that portion of the leave 
that is attributable to service in the Senior Executive Service shall 
be subject to the 90-day (720-hour) limitation on accumulation of 
annual leave provided in paragraph (a) of this section. Other annual 
leave accrued during the pay period shall be subject to the limitations 
imposed by subsections (a), (b), and (c) of 5 U.S.C. 6304, as 
appropriate.
    (c) When an employee in the Senior Executive Service moves to a 
position outside the Senior Executive Service, any annual leave 
accumulated while serving in the Senior Executive Service that is in 
excess of the amount allowed for the position by subsection (a), (b), 
or (c) of 5 U.S.C. 6304 shall remain to the employee's credit and shall 
be subject to reduction under procedures identical to those described 
in 5 U.S.C. 6304(c).
    (1) If the employee has more than 720 hours of annual leave at the 
time of the move and has a personal leave ceiling under paragraph (d) 
of this section, the employee may not carry over to the next leave year 
an amount greater than the employee's personal leave ceiling.
    (2) If the employee has more than 720 hours of annual leave at the 
time of the move and does not have a personal leave ceiling under 
paragraph (d) of this section, the employee may not carry over to the 
next leave year more than 720 hours.
    (d) An employee in the Senior Executive Service who, as of the 
first day of the first pay period beginning after October 13, 1994, has 
accumulated annual leave in excess of 90 days (720 hours) is entitled 
to retain that leave as a personal leave ceiling. The leave shall be 
credited to the employee and shall be subject to reduction in the 
following manner:
    (1) Annual leave credited to an employee shall be based on the 
amount of annual leave accumulated by the employee as of the end of the 
pay period preceding the first pay period beginning after October 13, 
1994. The credited leave shall exclude--
    (i) Any annual leave restored to the employee under 5 U.S.C. 
6304(d); and
    (ii) Any annual leave advanced to the employee under 5 U.S.C. 
6302(d) that had not yet been earned.
    (2) Annual leave credited to an employee that is in excess of 90 
days (720 hours) 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 90 days (720 hours). For the 1994 leave 
year, 5 U.S.C. 6304(c) shall be applied only for leave earned and used 
between the start of the first pay period beginning after October 13, 
1994, and the end of the 1994 leave year.
    (e) Agencies shall notify affected employees and maintain records 
on the accumulated annual leave credited to each employee under 
paragraph (d) of this section and on any reductions in the credited 
annual leave made under 5 U.S.C. 6304(c). If the employee transfers to 
another agency, such records shall be provided to the gaining agency.

[FR Doc. 94-31245 Filed 12-20-94; 8:45 am]
BILLING CODE 6325-01-M