
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 5USC5551]

 
             TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES
 
                           PART III--EMPLOYEES
 
                      Subpart D--Pay and Allowances
 
                     CHAPTER 55--PAY ADMINISTRATION
 
        SUBCHAPTER VI--PAYMENT FOR ACCUMULATED AND ACCRUED LEAVE
 
Sec. 5551. Lump-sum payment for accumulated and accrued leave on 
        separation
        
    (a) An employee as defined by section 2105 of this title or an 
individual employed by the government of the District of Columbia, who 
is separated from the service, is transferred to a position described 
under section 6301(2)(B)(xiii) of this title, or elects to receive a 
lump-sum payment for leave under section 5552 of this title, is entitled 
to receive a lump-sum payment for accumulated and current accrued annual 
or vacation leave to which he is entitled by statute. 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 lump-sum payment is 
considered pay for taxation purposes only. The period of leave used for 
calculating the lump-sum payment shall not be extended due to any 
holiday occurring after separation. For the purposes of this subsection, 
movement to employment described in section 2105(c) shall not be deemed 
separation from the service in the case of an employee whose annual 
leave is transferred under section 6308(b).
    (b) The accumulated and current accrued annual leave to which an 
officer excepted from subchapter I of chapter 63 of this title by 
section 6301(2)(x)-(xiii) of this title, is entitled immediately before 
the date he is excepted under that section shall be liquidated by a 
lump-sum payment in accordance with subsection (a) of this section or 
subchapter VIII of this chapter, except that the payment is based on the 
rate of pay which he was receiving, immediately before the date on which 
section 6301(2)(x)-(xiii) of this title became applicable to him.
    (c)(1) Annual leave that is restored to an employee of the 
Department of Defense under section 6304(d) of this title by reason of 
the operation of paragraph (3) of such section and remains unused upon 
the transfer of the employee to a position described in paragraph (2) 
shall be liquidated by payment of a lump-sum for such leave to the 
employee upon the transfer.
    (2) A position referred to in paragraph (1) is a position in a 
department or agency of the Federal Government outside the Department of 
Defense or a Department of Defense position that is not located at a 
Department of Defense installation being closed or realigned as 
described in section 6304(d)(3) of this title.

(Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 488; Pub. L. 93-181, Sec. 1, 
Dec. 14, 1973, 87 Stat. 705; Pub. L. 95-519, Sec. 2, Oct. 25, 1978, 92 
Stat. 1819; Pub. L. 96-499, title IV, Sec. 402(a), Dec. 5, 1980, 94 
Stat. 2605; Pub. L. 101-508, title VII, Sec. 7202(g), Nov. 5, 1990, 104 
Stat. 1388-336; Pub. L. 102-138, title I, Sec. 147(b)(1), Oct. 28, 1991, 
105 Stat. 669; Pub. L. 104-201, div. A, title XVI, Sec. 1611(a), Sept. 
23, 1996, 110 Stat. 2738; Pub. L. 106-518, title III, Sec. 310, Nov. 13, 
2000, 114 Stat. 2420.)

                      Historical and Revision Notes
------------------------------------------------------------------------
                                                    Revised Statutes and
     Derivation                U.S. Code             Statutes at Large
------------------------------------------------------------------------
(a)................  5 U.S.C. 61b (1st, 2d, and    Dec. 21, 1944, ch.
                      6th sentences).               632, Sec.  1 (less
                                                    1st proviso, and
                                                    less so much of last
                                                    sentence as precedes
                                                    2d proviso), 58
                                                    Stat. 845.
                     ............................  July 2, 1953, ch.
                                                    178, Sec.  4(a) (1st
                                                    and 5th sentences),
                                                    67 Stat. 137.
(b)................  5 U.S.C. 2061a(a).            July 2, 1953, ch.
                                                    178, Sec.  2(a), 67
                                                    Stat. 136.
------------------------------------------------------------------------

    In subsection (a), the words ``An employee as defined by section 
2105 of this title'' are coextensive with and substituted for ``civilian 
officer or employee of the Federal Government''. Reference to ``section 
1474 of Appendix to Title 50, is omitted in view of the repeal of that 
section by the Act of July 24, 1956, ch. 671, Sec. 5(a)(3), 70 Stat. 
606. The words ``and shall not be subject to retirement deductions'' are 
omitted and carried into section 8331(3).
    In subsection (b)(2), reference to the limitation imposed by section 
5 of the Act of July 2, 1953, ch. 178, 67 Stat. 138, is omitted as 
obsolete since the limitation was eliminated by the Act of Sept. 2, 
1958, Pub. L. 85-914, Sec. 1, 72 Stat. 1761.
    Standard changes are made to conform with the definitions applicable 
and the style of this title as outlined in the preface to the report.


                               Amendments

    2000--Subsec. (a). Pub. L. 106-518 substituted ``, is transferred to 
a position described under section 6301(2)(B)(xiii) of this title, or 
elects'' for ``or elects'' in first sentence.
    1996--Subsec. (c). Pub. L. 104-201 added subsec. (c).
    1991--Subsec. (a). Pub. L. 102-138 inserted ``(excluding any 
differential under section 5925 and any allowance under section 5928)'' 
after ``pay'' in second sentence.
    1990--Subsec. (a). Pub. L. 101-508 inserted at end ``For the 
purposes of this subsection, movement to employment described in section 
2105(c) shall not be deemed separation from the service in the case of 
an employee whose annual leave is transferred under section 6308(b).''
    1980--Subsec. (a). Pub. L. 96-499 provided that the period of leave 
used for calculating the lump-sum payment was not to be extended due to 
any holiday occurring after separation.
    1978--Subsec. (b). Pub. L. 95-519 substituted ``6301(2)(x)-(xiii)'' 
for ``6301(2)(x)-(xii)'' in two places.
    1973--Subsec. (a). Pub. L. 93-181 struck out exception clause that 
the lump-sum payment may not exceed pay for a period of annual or 
vacation leave in excess of 30 days or the number of days carried over 
to his credit at the beginning of the leave year in which entitlement to 
payment occurs, whichever is greater.
    Subsec. (b). Pub. L. 93-181 struck out second exception clause that 
the payment is made without regard to the limitation in subsec. (a) of 
this section on the amount of leave compensable.


                    Effective Date of 1996 Amendment

    Section 1611(b) of Pub. L. 104-201 provided that: ``Subsection (c) 
of section 5551 of title 5, United States Code (as added by subsection 
(a)), shall apply with respect to transfers described in such subsection 
(c) that take effect on or after the date of the enactment of this Act 
[Sept. 23, 1996].''


                    Effective Date of 1991 Amendment

    Section 147(b)(2) of Pub. L. 102-138 provided that: ``The amendment 
made by paragraph (1) [amending this section] shall apply with respect 
to service as part of a tour of duty or extension thereof commencing on 
or after the date of enactment of this Act [Oct. 28, 1991].''


                    Effective Date of 1990 Amendment

    Amendment by Pub. L. 101-508 applicable with respect to any 
individual who, on or after Jan. 1, 1987, moves from employment in 
nonappropriated fund instrumentality of Department of Defense or Coast 
Guard, that is described in section 2105(c) of this title, to employment 
in Department or Coast Guard, that is not described in section 2105(c), 
or who moves from employment in Department or Coast Guard, that is not 
described in section 2105(c), to employment in nonappropriated fund 
instrumentality of Department or Coast Guard, that is described in 
section 2105(c), see section 7202(m)(1) of Pub. L. 101-508, set out as a 
note under section 2105 of this title.


                    Effective Date of 1980 Amendment

    Section 402(b) of Pub. L. 96-499 provided that: ``The amendment made 
by subsection (a) [amending this section] shall take effect on the date 
of the enactment of this Act [Dec. 5, 1980] and shall apply to employees 
separating from the service on or after such date.''


                    Effective Date of 1978 Amendment

    Section 4 of Pub. L. 95-519 provided that:
    ``(a) The amendments made by the first section and section 2 of this 
Act [amending this section and sections 6301, 6302, and 6306 of this 
title] shall take effect beginning on the first day of the first 
applicable pay period beginning on or after the date of the enactment of 
this Act [Oct. 25, 1978].
    ``(b) The amendment made by section 3 of this Act [amending section 
8339 of this title] shall apply only with respect to employees who 
retire or die on or after the date of the enactment of this Act [Oct. 
25, 1978].''

                  Section Referred to in Other Sections

    This section is referred to in sections 5552, 5596, 6304, 6306, 
6335, 6368, 8344, 8468 of this title; title 15 section 2081; title 20 
sections 904, 4416; title 25 section 2012; title 38 section 7458; title 
45 section 1206.
