
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: 5USC5595]

 
             TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES
 
                           PART III--EMPLOYEES
 
                      Subpart D--Pay and Allowances
 
                     CHAPTER 55--PAY ADMINISTRATION
 
                SUBCHAPTER IX--SEVERANCE PAY AND BACK PAY
 
Sec. 5595. Severance pay

    (a) For the purpose of this section--
        (1) ``agency'' means--
            (A) an Executive agency;
            (B) the Library of Congress;
            (C) the Government Printing Office;
            (D) the government of the District of Columbia;
            (E) the Administrative Office of the United States Courts, 
        the Federal Judicial Center, and the courts named by section 610 
        of title 28; and
            (F) the Office of the Architect of the Capitol; and

        (2) ``employee'' means--
            (A) an individual employed in or under an agency; and
            (B) an individual employed by a county committee established 
        under section 590h(b) of title 16;

    but does not include--
            (i) an employee (other than a member of the Senior Executive 
        Service or the Federal Bureau of Investigation and Drug 
        Enforcement Administration Senior Executive Service, or an 
        employee whose pay is fixed under section 5376) whose rate of 
        basic pay is fixed at a rate provided for one of the levels of 
        the Executive Schedule or is in excess of the minimum rate for 
        the Executive Schedule;
            (ii) an employee serving under an appointment with a 
        definite time limitation, except one so appointed for full-time 
        employment without a break in service of more than 3 days 
        following service under an appointment without time limitation;
            (iii) an alien employee who occupies a position outside the 
        several States, the District of Columbia, and the areas and 
        installations in the Republic of Panama made available to the 
        United States pursuant to the Panama Canal Treaty of 1977 and 
        related agreements (as described in section 3(a) of the Panama 
        Canal Act of 1979);
            (iv) an employee who is subject to subchapter III of chapter 
        83 of this title or any other retirement statute or retirement 
        system applicable to an employee as defined by section 2105 of 
        this title or a member of a uniformed service and, who, at the 
        time of separation from the service, has fulfilled the 
        requirements for immediate annuity under such a statute or 
        system;
            (v) an employee who, at the time of separation from the 
        service, is receiving compensation under subchapter I of chapter 
        81 of this title, other than one receiving this compensation 
        concurrently with pay or on account of the death of another 
        individual;
            (vi) an employee who, at the time of separation from the 
        service, is entitled to receive benefits under section 609(b)(1) 
        of the Foreign Service Act of 1980 or any other severance pay 
        from the Government;
            (vii) an employee of the Tennessee Valley Authority;
            (viii) an employee of the Office of the Architect of the 
        Capitol, who is employed on a temporary when actually employed 
        basis;
            (ix) an employee of the Government Printing Office, who is 
        employed on a temporary when actually employed basis; or
            (x) such other employee as may be excluded by regulations of 
        the President or such other officer or agency as he may 
        designate.

    (b) Under regulations prescribed by the President or such officer or 
agency as he may designate, an employee who--
        (1) has been employed currently for a continuous period of at 
    least 12 months; and
        (2) is involuntarily separated from the service, not by removal 
    for cause on charges of misconduct, delinquency, or inefficiency;

is entitled to be paid severance pay in regular pay periods by the 
agency from which separated. However, the Director of the Administrative 
Office of the United States Courts may prescribe regulations to effect 
the application and operation of this section to the agencies specified 
in subsection (a)(1)(E) of this section. The Architect of the Capitol 
may prescribe regulations to effect the application and operation of 
this section to the agency specified in subsection (a)(1)(F) of this 
section. The Public Printer may prescribe regulations to effect the 
application and operation of this section to the agency specified in 
subsection (a)(1)(C) of this section.
    (c) Severance pay consists of--
        (1) a basic severance allowance computed on the basis of 1 
    week's basic pay at the rate received immediately before separation 
    for each year of civilian service up to and including 10 years for 
    which severance pay has not been received under this or any other 
    authority and 2 weeks' basic pay at that rate for each year of 
    civilian service beyond 10 years for which severance pay has not 
    been received under this or any other authority; and
        (2) an age adjustment allowance computed on the basis of 10 
    percent of the total basic severance allowance for each year by 
    which the age of the recipient exceeds 40 years at the time of 
    separation.

Total severance pay under this section may not exceed 1 year's pay at 
the rate received immediately before separation. For the purpose of this 
subsection, ``basic pay'' includes premium pay under section 5545(c)(1) 
of this title.
    (d) If an employee is reemployed by the Government of the United 
States or the government of the District of Columbia before the end of 
the period covered by payments of severance pay, the payments shall be 
discontinued beginning with the date of reemployment and the service 
represented by the unexpired portion of the period shall be recredited 
to the employee for use in any later computations of severance pay. For 
the purpose of subsection (b) (1) of this section, reemployment that 
causes severance pay to be discontinued is deemed employment continuous 
with that serving as the basis for severance pay.
    (e) If the employee dies before the end of the period covered by 
payments of severance pay, the payments of severance pay with respect to 
the employee shall be continued as if the employee were living and shall 
be paid on a pay period basis to the survivor of the employee in 
accordance with section 5582(b) of this title.
    (f) Severance pay under this section is not a basis for payment, and 
may not be included in the basis for computation, of any other type of 
United States or District of Columbia Government benefits. A period 
covered by severance pay is not a period of United States or District of 
Columbia Government service or employment.
    (g) The Secretary of Agriculture shall prescribe regulations to 
effect the application and operation of this section to an individual 
named by subsection (a)(2)(B) of this section.
    (h)(1) Severance pay under this section may not be paid to--
        (A) a person described in paragraph (4)(A) during any period in 
    which the person is employed in a defense nonappropriated fund 
    instrumentality; or
        (B) a person described in paragraph (4)(B) during any period in 
    which the person is employed in a Coast Guard nonappropriated fund 
    instrumentality.

    (2)(A) Except as provided in subparagraph (B), payment of severance 
pay to a person referred to in paragraph (1) may be resumed upon any 
involuntary separation of the person from the position of employment in 
a nonappropriated fund instrumentality, not by removal for cause on 
charges of misconduct, delinquency, or inefficiency.
    (B) Payment of severance pay may not be resumed under subparagraph 
(A) in the case of a person who, upon separation, is entitled to 
immediate payment of retired or retainer pay as a member or former 
member of the uniformed services or to an immediate annuity under--
        (i) a retirement system for persons retiring from employment by 
    a nonappropriated fund instrumentality;
        (ii) subchapter III of chapter 83 of this title;
        (iii) subchapter II of chapter 84 of this title; or
        (iv) any other retirement system of the Federal Government for 
    persons retiring from employment with the Federal Government.

    (3) Upon resumption of payment of severance pay under paragraph 
(2)(A) in the case of a person separated as described in such paragraph, 
the amount of the severance pay so payable for a period shall be reduced 
(but not below zero) by the portion (if any) of the amount of any 
severance pay payable for such period to the person by the 
nonappropriated fund instrumentality that is attributable to credit for 
service taken into account under subsection (c) in the computation of 
the amount of the severance pay so resumed.
    (4) Paragraph (1) applies to a person who, on or after January 1, 
1987, moves without a break in service--
        (A) from employment in the Department of Defense that is not 
    employment in a defense nonappropriated fund instrumentality to 
    employment in a defense nonappropriated fund instrumentality; or
        (B) from employment in the Coast Guard that is not employment in 
    a Coast Guard nonappropriated fund instrumentality to employment in 
    a Coast Guard nonappropriated fund instrumentality.

    (5) The Secretary of Defense, in consultation with the Secretary of 
Transportation, shall prescribe regulations to carry out this 
subsection.
    (6) In this subsection:
        (A) The term ``defense nonappropriated fund instrumentality'' 
    means a nonappropriated fund instrumentality of the Department of 
    Defense.
        (B) The term ``Coast Guard nonappropriated fund 
    instrumentality'' means a nonappropriated fund instrumentality of 
    the Coast Guard.
        (C) The term ``nonappropriated fund instrumentality'' means a 
    nonappropriated fund instrumentality described in section 2105(c) of 
    this title.

    (i)(1) In the case of an employee of the Department of Defense who 
is entitled to severance pay under this section, the Secretary of 
Defense or the Secretary of the military department concerned may, upon 
application by the employee, pay the total amount of the severance pay 
to the employee in one lump sum.
    (2)(A) If an employee paid severance pay in a lump sum under this 
subsection is reemployed by the Government of the United States or the 
government of the District of Columbia at such time that, had the 
employee been paid severance pay in regular pay periods under subsection 
(b), the payments of such pay would have been discontinued under 
subsection (d) upon such reemployment, the employee shall repay to the 
Department of Defense (for the military department that formerly 
employed the employee, if applicable) an amount equal to the amount of 
severance pay to which the employee was entitled under this section that 
would not have been paid to the employee under subsection (d) by reason 
of such reemployment.
    (B) The period of service represented by an amount of severance pay 
repaid by an employee under subparagraph (A) shall be considered service 
for which severance pay has not been received by the employee under this 
section.
    (C) Amounts repaid to an agency under this paragraph shall be 
credited to the appropriation available for the pay of employees of the 
agency for the fiscal year in which received. Amounts so credited shall 
be merged with, and shall be available for the same purposes and the 
same period as, the other funds in that appropriation.
    (3) If an employee fails to repay to an agency an amount required to 
be repaid under paragraph (2)(A), that amount is recoverable from the 
employee as a debt due the United States.
    (4) This subsection applies with respect to severance pay payable 
under this section for separations taking effect on or after February 
10, 1996, and before October 1, 2003.
    (j)(1) In the case of an employee of the Department of Energy who is 
entitled to severance pay under this section as a result of the 
establishment of the National Nuclear Security Administration, the 
Secretary of Energy may, upon application by the employee, pay the total 
amount of the severance pay to the employee in one lump sum.
    (2)(A) If an employee paid severance pay in a lump sum under this 
subsection is reemployed by the Government of the United States or the 
government of the District of Columbia at such time that, had the 
employee been paid severance pay in regular pay periods under subsection 
(b), the payments of such pay would have been discontinued under 
subsection (d) upon such reemployment, the employee shall repay to the 
Department of Energy an amount equal to the amount of severance pay to 
which the employee was entitled under this section that would not have 
been paid to the employee under subsection (d) by reason of such 
reemployment.
    (B) The period of service represented by an amount of severance pay 
repaid by an employee under subparagraph (A) shall be considered service 
for which severance pay has not been received by the employee under this 
section.
    (C) Amounts repaid to the Department of Energy under this paragraph 
shall be credited to the appropriation available for the pay of 
employees of the agency for the fiscal year in which received. Amounts 
so credited shall be merged with, and shall be available for the same 
purposes and the same period as, the other funds in that appropriation.
    (3) If an employee fails to repay to the Department of Energy an 
amount required to be repaid under paragraph (2)(A), that amount is 
recoverable from the employee as a debt due the United States.

(Added Pub. L. 90-83, Sec. 1(34)(C), Sept. 11, 1967, 81 Stat. 201; 
amended Pub. L. 95-454, title IV, Sec. 408(a)(3), Oct. 13, 1978, 92 
Stat. 1173; Pub. L. 96-70, title I, Sec. 1231(d), Sept. 27, 1979, 93 
Stat. 470; Pub. L. 96-465, title II, Sec. 2305, Oct. 17, 1980, 94 Stat. 
2165; Pub. L. 100-325, Sec. 2(i)(2), May 30, 1988, 102 Stat. 582; Pub. 
L. 101-474, Sec. 5(k), Oct. 30, 1990, 104 Stat. 1100; Pub. L. 101-509, 
title V, Sec. 529 [title I, Sec. 101(b)(9)(J)], Nov. 5, 1990, 104 Stat. 
1427, 1442; Pub. L. 103-337, div. A, title III, Sec. 343(a), Oct. 5, 
1994, 108 Stat. 2721; Pub. L. 104-106, div. A, title X, Sec. 1035, Feb. 
10, 1996, 110 Stat. 430; Pub. L. 105-55, title III, Sec. 310(a), Oct. 7, 
1997, 111 Stat. 1199; Pub. L. 105-275, title III, Secs. 308(a), 309(a), 
Oct. 21, 1998, 112 Stat. 2452, 2454; Pub. L. 106-31, title V, Sec. 5006, 
May 21, 1999, 113 Stat. 112; Pub. L. 106-65, div. A, title XI, 
Sec. 1104(a), div. C, title XXXII, Sec. 3243, Oct. 5, 1999, 113 Stat. 
777, 965.)

                      Historical and Revision Notes
------------------------------------------------------------------------
                                                    Source (Statutes at
 Section of title 5       Source (U.S. Code)               Large)
------------------------------------------------------------------------
5595...............  5 App.: 1117.                 Oct. 29, 1965, Pub.
                                                    L. 89-301, Sec.  9,
                                                    79 Stat. 1118.
                                                   Nov. 2, 1966, Pub. L.
                                                    89-737, Sec.  2, 80
                                                    Stat. 1164.
------------------------------------------------------------------------

    In subsection (a), subsections (a) and (b) of 5 App. U.S.C. 1117 are 
restated as definitions.
    In subsection (a)(1)(A), the term ``Executive agency'' is 
substituted for ``the executive branch of the Government of the United 
States, including each corporation wholly owned or controlled by the 
United States'' and ``the General Accounting Office'' to conform to the 
definition in 5 U.S.C. 105.
    The definition in subsection (a)(2) continues the application of the 
section to only civilian officers and employees, and does not encompass 
members of the uniformed services as they are not ``employed'' in or 
under an agency. Throughout the section, the word ``officer'', in the 
phrase ``officer or employee'', is omitted as included within 
``employee''. The last 40 words of 5 App. U.S.C. 1117(a) are codified in 
subsection (g).
    In subsection (a)(2)(i), the words ``Executive Schedule'' are 
substituted for ``Federal Executive Salary Schedule'' to reflect the 
provisions of 5 U.S.C. 5311. The words ``of the General Schedule of the 
Classification Act of 1949, as amended'' are omitted as unnecessary.
    In subsection (a)(2)(ii), the words ``without a break in service of 
more than 3 days'' are coextensive with and substituted for ``without a 
break in service or after a separation of three days or less''.
    In subsection (a)(2)(iv), the words ``subchapter III of chapter 83 
of this title'' are substituted for ``the Civil Service Retirement Act, 
as amended'' to reflect the codification of the act in title 5 U.S.C. 
The words ``employees as defined by section 2105 of this title'' are 
coextensive with and substituted for ``Federal officers and employees''.
    In subsection (a)(2)(v), the words ``subchapter I of chapter 81 of 
this title'' are substituted for ``the Federal Employees' Compensation 
Act, as amended'' to reflect the codification of the act in title 5, 
U.S.C.
    In subsection (b) the word ``agency'' is substituted for 
``department, independent establishment, corporation, or other 
governmental unit'' to conform to the definition in subsection (a)(1). 
Subsection (b)(1) is substituted for 5 App. U.S.C. 1117(e).
    In subsection (e), the words ``section 5582(b) of this title'' are 
substituted for ``the first section of the Act of August 3, 1950 (5 
U.S.C. 61f)'' to reflect the codification of the section in title 5, 
United States Code.

                       References in Text

    The Executive Schedule, referred to in subsec. (a)(2)(i), is set out 
in section 5311 et seq. of this title.
    Section 3(a) of the Panama Canal Act of 1979, referred to in subsec. 
(a)(2)(iii), is classified to section 3602(a) of Title 22, Foreign 
Relations and Intercourse.
    Section 609(b)(1) of the Foreign Service Act of 1980, referred to in 
subsec. (a)(2)(vi), is classified to section 4009(b)(1) of Title 22.


                               Amendments

    1999--Subsec. (b). Pub. L. 106-31 substituted ``(a)(1)(C)'' for 
``(a)(1)(G)'' in last sentence.
    Subsec. (i)(4). Pub. L. 106-65, Sec. 1104(a), substituted ``February 
10, 1996, and before October 1, 2003'' for ``the date of the enactment 
of the National Defense Authorization Act for Fiscal Year 1996 and 
before October 1, 1999''.
    Subsec. (j). Pub. L. 106-65, Sec. 3243, added subsec. (j).
    1998--Subsec. (a)(1)(F). Pub. L. 105-275, Sec. 308(a)(1), struck out 
``, but only with respect to the United States Senate Restaurants'' 
after ``Capitol''.
    Subsec. (a)(2)(viii). Pub. L. 105-275, Secs. 308(a)(2), 
309(a)(1)(A), struck out ``of the United States Senate Restaurants'' 
after ``an employee'' and ``or'' after the semicolon.
    Subsec. (a)(2)(ix), (x). Pub. L. 105-275, Sec. 309(a)(1)(B), added 
cl. (ix) and redesignated former cl. (ix) as (x).
    Subsec. (b). Pub. L. 105-275, Sec. 309(a)(2), inserted at end ``The 
Public Printer may prescribe regulations to effect the application and 
operation of this section to the agency specified in subsection 
(a)(1)(G) of this section.''
    1997--Subsec. (a)(1)(F). Pub. L. 105-55, Sec. 310(a)(1), added 
subpar. (F).
    Subsec. (a)(2)(viii), (ix). Pub. L. 105-55, Sec. 310(a)(2), added 
cl. (viii) and redesignated former cl. (viii) as (ix).
    Subsec. (b). Pub. L. 105-55, Sec. 310(a)(3), inserted at end ``The 
Architect of the Capitol may prescribe regulations to effect the 
application and operation of this section to the agency specified in 
subsection (a)(1)(F) of this section.''
    1996--Subsec. (i). Pub. L. 104-106 added subsec. (i).
    1994--Subsec. (h). Pub. L. 103-337 added subsec. (h).
    1990--Subsec. (a)(1)(E). Pub. L. 101-474, Sec. 5(k)(1), added 
subpar. (E).
    Subsec. (a)(2)(i). Pub. L. 101-509 substituted ``employee (other'' 
for ``employee, other'', inserted ``or an employee whose pay is fixed 
under section 5376)'' before ``whose rate'', and substituted ``the 
Executive Schedule'' for ``GS-18''.
    Subsec. (b). Pub. L. 101-474, Sec. 5(k)(2), inserted at end 
``However, the Director of the Administrative Office of the United 
States Courts may prescribe regulations to effect the application and 
operation of this section to the agencies specified in subsection 
(a)(1)(E) of this section.''
    1988--Subsec. (a)(2)(i). Pub. L. 100-325 inserted reference to 
Federal Bureau of Investigation and Drug Enforcement Administration 
Senior Executive Service.
    1980--Subsec. (a)(2)(vi). Pub. L. 96-465 inserted ``benefits under 
section 609(b)(1) of the Foreign Service Act of 1980 or any'' after ``to 
receive''.
    1979--Subsec. (a)(2)(iii). Pub. L. 96-70 substituted ``areas and 
installations in the Republic of Panama made available to the United 
States pursuant to the Panama Canal Treaty of 1977 and related 
agreements (as described in section 3(a) of the Panama Canal Act of 
1979)'' for ``Canal Zone''.
    1978--Subsec. (a)(2)(i). Pub. L. 95-454 inserted reference to a 
member of the Senior Executive Service.


                    Effective Date of 1999 Amendment

    Amendment by section 3243 of Pub. L. 106-65 effective Mar. 1, 2000, 
see section 3299 of Pub. L. 106-65, set out as an Effective Date note 
under section 2401 of Title 50, War and National Defense.


                    Effective Date of 1994 Amendment

    Section 343(b) of Pub. L. 103-337 provided that: ``Subsection (h) of 
section 5595 of title 5, United States Code, as added by subsection (a), 
shall apply with respect to pay periods that begin on or after the date 
of the enactment of this Act [Oct. 5, 1994].''


                    Effective Date of 1990 Amendment

    Amendment by Pub. L. 101-509 effective on such date as the President 
shall determine, but not earlier than 90 days, and not later than 180 
days, after Nov. 5, 1990, see section 529 [title III, Sec. 305] of Pub. 
L. 101-509, set out as a note under section 5301 of this title.


                    Effective Date of 1980 Amendment

    Amendment by Pub. L. 96-465 effective Feb. 15, 1981, except as 
otherwise provided, see section 2403 of Pub. L. 96-465, set out as an 
Effective Date note under section 3901 of Title 22, Foreign Relations 
and Intercourse.


                    Effective Date of 1979 Amendment

    Amendment by Pub. L. 96-70 effective Oct. 1, 1979, see section 3304 
of Pub. L. 96-70, set out as an Effective Date note under section 3601 
of Title 22, Foreign Relations and Intercourse.


                    Effective Date of 1978 Amendment

    Amendment by Pub. L. 95-454 effective 9 months after Oct. 13, 1978, 
and congressional review of provisions of sections 401 through 412 of 
Pub. L. 95-454, see section 415 of Pub. L. 95-454, set out as a note 
under section 3131 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 3381, 5545a, 5545b, 5597, 
5948 of this title; title 15 section 2081; title 22 section 3691; title 
38 sections 7453, 7458.
