dod financial management regulation volume 8, chapter 07 ...dod financial management regulation...

DoD Financial Management Regulation Volume 8, Chapter 07

CHAPTER 07

SPECIAL CATEGORY EMPLOYEES

0701 OVERSEAS EMPLOYEES

070101. The general pay provisions for GSemployees stateside also apply to GS employeesoverseas. The DoD Civilian Personnel Manual,(DoD 1400.25-M), Chapter 592, “Overseas Allow-ances and Differentials” (reference (u)) authorizesand governs the payment of allowances anddifferentials to civilian employees of the DoDwho are citizens of the United States and whoare located in foreign areas. The Department ofState Standardized Regulations (GovernmentCivilians, Foreign Areas) (reference (t)) prescribethe eligibility requirements to be met by employ-ees, the applicable rates to be paid, and theprovisions to be observed in paying overseasallowances and differentials.

070102. Foreign Nationals

A. Authority. The legal basis forsetting pay for foreign national employees issection 408 of the “Foreign Service Act of 1980”(P.L. 96-465) (reference (e)) (22 U.S.C. 3968)reference (as)). DoD Instruction 1400.10, Em-ployment of Foreign Nationals in Foreign Areas(reference (at)), delegates this authority to theSecretaries of the Military Departments, theChairman of the Joint Chiefs of Staff, and theDirectors of the Defense Agencies for redelega-tion to Service commands to establish salaries,fringe benefits and related compensation mattersfor non-U.S. citizen employees. The DoD Manu-al for Foreign National Compensation (DoD1416.8-M) reference (au)) prescribes the proce-dures and instructions for the development ofcompensation programs for foreign nationalsemployed by the U.S. Forces in foreign areas.

B. Entitlements. Wage schedules forforeign national employees are established by theDoD Wage Fixing Authority based on localitywage surveys or other available data as providedby the activity labor agreement between the U.S.Government and the government of the foreigncountry. The basis for salary determination anddeductions are contained in the employing activ-

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ity’s applicable inter-country agreements andpersonnel regulations.

070103 Panama Employees

A. General. The wages for the Pana-ma Canal Employment System are approved bythe Panama Area Personnel Board under 35C.F.R. 251 (reference (av)).

1. T r a n s f e r o f F u n c t i o nPre-Treaty Employees. These are employees thattransferred from the former Canal Zone Govern-ment to DoD activities in the Republic of Pana-ma. They differ from the other types of employ-ees by their leave entitlements.

a. These employees accrueleave at the rate of 11 hours a pay period for 25pay periods and 9 hours for the 26th pay peri-od. If there are 27 leave periods in the leaveyear, no leave is accrued for the 27th pay period,Panama employees’ Ieave is used for alI purpos-es. The maximum accrual for the leave year is284 hours. The maximum annual leave ceiling(carryover) is 760 hours. When these employeesare voluntarily reassigned to a DoD non-transferof function office, they revert to the regularFederal employees’ leave system.

b. Leave Ba lance uponMovement of Transfer of Function Pre-TreatyEmployees. When an employee described insubparagraph 070103 .A.1.a. departs for an as-signment outside the Republic of Panama, theemployee is entitled to carry forward the balanceof leave credited at the end of the pay periodincluding the date the employee departs for suchassignment. The annual leave carry forwardbalance may not exceed a maximum of 760 hoursunless the employee has been authorized agreater balance (5 U.S.C. 6304(c)) (reference (b))and (5 C.F.R. 630.302) (reference (1)). If any suchbalance is in excess of 240 hours and is reducedas of the end of the leave year, the reducedamount becomes the new carry forward balance.

Volume 8, Chapter 07 DoD Financial Management Regulation

2. Pre-Treaty Employees. Theseare employees hired before the October 1, 1979,Treaty.

a. Pre-Treaty non-U.S.citizens are subject to CSRS (no Medicare), FEHBand FEGLI. The FEHB plan is under the Pana-ma Canal Area Benefits plan as officially listedby OPM (see paragraph 040808.). However, notall of these employees are under the FEHB. In1982, these employees were allowed to choose toreceive their health benefits from the PanamaSocial Security System or the FEHB.

b. When a Pre-Treaty non-U.S. citizen retires or separates, the retirementrecord goes to OPM. No identifying number isshown on the SF 2806, however, it is annotatedwith the statement “This is a non-U.S. citizen.”

3. Post-Treaty E m p l o y e e s .These are employees hired on or after October 1,1979. They are not covered by the Departmentof Labor Workers Compensation Act. They arecovered by Panama Social Security for on the jobinjury.

a. Post-Treaty Panamaniansare subject to Panama Social Security tax whichincludes their health benefit coverage. They alsohave Panamanian life insurance.

b. Post-Treaty third countryemployees are covered under the Panama SocialSecurity System.

4. Non-U.S. Citizen DoDDSTeachers. These employees are included insection 0702,

B. Identification Numbers. All non-U.S. citizens are identified by the Cedula num-ber. The Panamanian Government uses thisnumber for similar purposes as the United Statesuses the SSN. The Cedula number is assigned atbirth or when a foreigner becomes an officialresident of Panama.

1. The Cedula number may haveone or two alpha characters in several configura-tions. This number is used to report Panamani-an income tax.

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2. Each Panamanian is assignedtwo other numbers which are called Seguro, orPanamanian social security, and individualpersonal, that are used for various reportingpurposes.

a. The Seguro is currentlya 7-digit number assigned by the Panama SocialSecurity Hospital System. It is assigned to alllocal Panamanian and third country persons. Itis used only for hospital, health care and retire-ment.

b. The individual personalnumber is a 5-or 6-digit number used by em-ployers to pay into an employee’s retirementaccount and health care within the PanamanianSocial Security System. This number is used inplace of the SSN to identify Panamanian foreignnationals in the civilian payroll systems.

C. Deductions. Panamanians areauthorized to contribute to the CFC, have uniondues deductions, and participate in TSP. AllPanamanians are subject to the Panama incometax and educational taxes.

D. Dual Appointments. Dual ap-pointments for Panama are governed by thesame roles as other Federal employees, with theexception of the pseudo SSN. For Panamaniansa pseudo individual personal number is used inplace of the pseudo SSN.

E. FLSA. The FLSA does not applyto civilian employees working in Panama regard-less of citizenship.

070104. Canadian Employees

A. General. Canadian national direct-hire employees receive compensation comparableto that paid to Canadian Government employeesin the same locality and performing essentiallythe same work with relatively the same degreeof responsibility.

B. Authority. DoD Directive 1400.6,DoD Civilian Employees in Overseas Areas(reference (aw)), and DoD Instruction 1400.10,Employment of Foreign Nationals in ForeignAreas (reference (at)), contain the authority for


the administration of foreign nationals, includingCanadians.

C. Entitlements

1. Hours of Duty. The workdayis 7 1/2 hours and the workweek is 37 1/2hours.

2. Holidays. Canadian legalholidays are observed with no charge to leave.If an emergency requires work on a Canadianholiday, an additional day’s pay is provided orthe employee is given compensatory time off.The following are the legal Canadian holidays:

a. New Year's Day (Jan 1);

b. Good Friday (Mar-Apr);

c. Easter Monday (Mar-Apr);

d. Victoria Day (May 24);

e. Canada Day (July 1);

f. Civic Holiday (1st Monin Aug);

g. Labor Day (1st Mon inSep);

h. Thanksgiving Day (Oct-Nov);

i. Remembrance Day (Nov11);

j. Christmas Day (Dec 25);and

k. Boxing Day (Dec 26).

3. Absence and Leave. Sickleave is accrued at the rate of 4 1/4 hours eachpay period except for the last pay period of theleave year. During the last pay period, 6 1/4hours accrue. The total annual accumulation is112 1/2 hours or 15 days of sick leave.

4. Work-Related Injury orIllness. Compensation for work-related injuriesor illness is covered by the FECA (reference (e)).

D. Pay. Salaries are based on rates inapproved agreements between the TreasuryBoard of Canada and the Public Service Allianceof Canada for Canadian Civil Service Employees.The effective dates are the same as in the basicCanadian agreements. Pay is in Canadiandollars on a biweekly basis.

E. Step Increases. Step increases aremade annually, until the top step is reached,upon written certification by the supervisor thatan employee has demonstrated an acceptablelevel of competence during the waiting period.Certification is completed and forwarded to thecivilian personnel office for processing prior tothe effective date of the step increase. Stepincreases are effective at the beginning of thefirst pay period following the effective date ofthe anniversary.

F. Retroactive Pay. Retroactive payadjustments are made on the basis of agreementscovering Canadian Civil Service employees.These adjustments are payable to employeesseparated during the retroactive period.

G. Leave Without Pay ( L W O P ) .Aggregate periods of LWOP of more than 80hours during the waiting period for a stepincrease delays the increase. Extended periodsof LWOP also affect leave accruals.

H. Canada Pension Plan. Employees’contributions to the Canada Pension Plan arededucted from their salaries. The employer’scontribution is paid by the U. S. Government.

I. Registered / Retirement PensionPlan. The U.S. Government pays an amountequivalent to the employees’ contributions up toa legal maximum of annual salaries.

J. Severance Pay. Employees arepaid a lump-sum amount according to thefollowing:

1. Lay-Off. Two weeks of Payfor the first complete year of continuous employ-

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ment and one week of pay for each additionalcomplete year of continuous employment with amaximum benefit of 28 weeks of pay.

2. Resignation. On resignationwith 10 or more years of continuous employ-ment, one-half week of pay for each completeyear of continuous employment up to a maxi-mum of 26 years with a maximum benefit of 13weeks of pay.

3. Retirement. On retirement,when an employee would be entitled to animmediate annuity or to an immediate annualallowance had the employee been under theCanadian Government Public Service Superannu-ation Act (reference (ax)), one week of pay ispaid for each complete year of continuous em-ployment with a maximum benefit of 28 weeksof pay.

4. Death. If an employee dies,one week of pay is paid to the employee’s estatefor each complete year of continuous employ-ment with a maximum benefit of 28 weeks ofpay, regardless of any other benefits payable.

K. Ontario Health Insurance Plan.Employees enrolled in the Ontario health insur-ance plan are reimbursed an amount equivalentto the Canadian Government contributions underthe plan. Claims for reimbursement, supportedby receipts, are submitted annually by the end ofthe calendar year.

L. Unemployment Insurance. TheU.S. Government contributes the amount equalto that which would be paid by a CanadianGovernment employer to the Canadian fund.Employee contributions are deducted from theirsalary. More information on unemploymentinsurance for Canadian employees is in section0602.

M. Canadian Income Tax. Employees’contributions are deducted from their salaries.

N. Occidental Life Insurance. Contri-butions are deducted from the salary at theemployee’s request.

O. Awards . Canadian Nationalemployees are eligible for all awards generally,except quality increases.

0702 DEPARTMENT OF DEFENSE DEPEN-DENTS SCHOOLS (DoDDS) EMPLOYEES

070201. Teaching Position (TP) Pay Plan - Educators

A. General. Title 20, U.S.C. 901-907(reference (ay)), as implemented by DoD Direc-tive 1400.13 (reference (az)), governs the salariesand personnel practices applicable to educatorsemployed by DoDDS on a school-year basisoverseas. The pay and personnel practices areimplemented by policies and regulations issuedby the Office of Dependents Education and theDoD Education Activity. These policies andregulations differ considerably from those appli-cable to other Federal civilian employees paidunder 5 U.S.C. (reference (b)) or other statutes.The DoDDS educator salaries are authorizedunder the TP pay plan and are earned during aschool-year (seasonal) work schedule and arepaid on a school-year or calendar-year basis,depending upon the work schedule (i.e., 190- or222-duty days). A TP educator does not earnannual, sick or home leave under 5 U.S.C.(reference (b)). Normally, a TP educator is notscheduled to work on recess days (includingholidays) during the school year, nor does a TPeducator earn pay for recess days. Biweekly payfor a TP educator is computed differently. A TPeducator employed by DoDDS to instruct in theJunior Reserve Officer Training Corps (JROTC)program is compensated under the provisions of10 U.S.C. 2031(d) (reference (ba)). Pay practicesand procedures unique to the TP employmentsystem and how it affects computation arediscussed in the following paragraphs.

B. School Year Calendars

1. The "school-year" for most TPeducators consists of 190 scheduled working(duty) days, including normally 183 days duringwhich classroom instruction occurs. Included inthe 190 duty days is the time required beforeand after the dates school is in session when theservices of all or a majority of the educators arerequired to prepare for the opening and closing

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of school. As long as 190 duty days are requiredand not less than 175 days of work occur onclassroom instructional days, the work schedulemay be adjusted after the school year beginswith no resultant change in school-year salary.Additional compensation is not authorized formake-up days required to meet the 175 class-room instructional day minimum. Should workbeyond the 190 duty days during a given schoolyear (August 1 through July 31) be required, aneducator shall be compensated at the appropriatedaily rate as of the 191st working day. Shouldan emergency preclude completion of a fullschool year at one or mom schools, an educatormust be furloughed, separated, or the salarycontinued until the full school-year salary hasbeen paid.

2. The "school year" for a schoolprincipal and assistant principal consists of 222working (duty) days, including any time whenthe services of a majority of educators at theschool are required. As long as the 222 dutydays are required and not less than 175 days ofwork occur on classroom instruction days, theprincipal’s and assistant principal’s work sched-ule may be adjusted with no resultant loss ofschool year salary. Additional compensation isnot authorized for make-up days required tomeet the 175 classroom instructional day mini-mum. Should work beyond 222 duty daysduring a given school year (August 1 throughJuly 31) be required, the principal and assistantprincipal shall be paid the appropriate daily rateas of the 223rd working day. Should an emer-gency preclude completion of the full schoolyear, the principal or assistant principal must befurloughed, separated, or salary continued untilthe full school-year salary has been paid.

3. Each year before the schoolyear begins, each overseas DoDDS regionalheadquarter prepares a school-year calendar forthe schools within the region. The calendarsmay vary among and within the regions due tolocal customs and holidays. The calendars iden-tify the first and last duty days of the schoolyear (i.e., duty days for educators and instruc-tional days for students) and the recess days foreducators and students. Recess days are daysthat educators are in a nonduty and nonpaystatus. Recess days include Federal holidays and

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other nonduty days occurring during the schoolyear such as Thanksgiving Day and the follow-ing Friday when educators are not required towork and are not charged leave. Each overseasDoDDS regional headquarters shall submit acopy of all applicable school calendars to theservicing DFAS civilian payroll offices not laterthan 4 weeks prior to the first duty day of thenew school year. Any changes to the calendarsshall be submitted as soon as possible.

C. Work Schedules. All TP pay planeducators are scheduled to work and take leavein full or half-day increments. This includesschool-level administrators as well as substituteteachers. Substitutes performing certain itinerantservices, however, such as extra-duty type workand tutoring in the home of sick students, mayaccumulate time in half-day increments and bepaid accordingly.

D. Salary Schedules. TP pay sche-dules are issued following completion of theannual survey by the DoD Wage Fixing Authori-ty. Such schedules are typically issued in Aprilor May of the current school year. The TPschedules are retroactive to August 1 of thecurrent school year (i.e., the prior calendar year).Until the salary schedules for the current schoolyear are issued, TP educator salaries are basedupon the prior school-year salary schedules.Separate salary schedules are prepared foreducator, management, specialist, and adminis-trator positions assigned to overseas school-levelpositions with school-year (seasonal) workschedules. Salary schedules are further differen-tiated by academic salary lane (i.e., Bachelor's,Bachelor’s + 15, Bachelor’s + 30, Master’s,Master’s + 15, Master’s + 30, and Doctorate’sdegree), and step. Most TP salary schedules alsocontain 14 annual steps and 4 longevity steps.The following TP salary schedules exist:

DutySchedule Category Days

A Substitutes 190B Junior Reserve Officers’ 190

Training Corps InstructorC Comprehensive Schedule for 190

Educators and SpecialistsD Schedule for Guidance 190

Counselors


E Schedule for Social Workers 190F Schedule for School 190

PsychologistsM Schedule for Management and 190

Education Specialist PositionsK School Principals 222L Assistant Principals 222

Additional TP salary schedules are published forother categories of educators assigned to schoolsin Panama. The gross amount of the retroactiveadjustment computed due to the new salaryschedules is subject to applicable withholdings(i.e., retirement (CSRS & FERS); Federal incometax; Social Security / Medical, state income tax;etc.). Biweekly deduction amounts for basic andadditional optional FEGLI shall increase in manycases for TP educators who have elected thosebenefits. TSP contributions shall also be adjustedfor participating educators who have elected tohave a percentage deducted from their pay. ForFERS educators who are eligible, the TSP basicone percent and matching employer contributionmust also be adjusted. When applicable, foreignpost allowance also may be adjusted. Thecivilian personnel office shall send the SF 1190data to the civilian payroll office for each affect-ed educator when allowance amounts change asa result of new TP salary schedules. Whenapplicable, foreign post differential shall beadjusted because it is computed as a percentageof base pay.

E. Daily/Biweekly Pay. See para-graph 070203. regarding compensation for TPeducators, principals and assistant principals.

F. Step Increases

1. Eligibility

a. Each full-time TP educa-tor assigned to a 190-day school-year workschedule may receive a regular (annual) stepincrease (steps 1 through 14) provided he or shehas been in a pay status at least 150 workingdays during his or her last previous school yearas a TP educator. Substitutes are not eligible forstep increases.

b. Each full-time TP educa-tor assigned to a 190-day school-year work

schedule may receive a longevity step increase(steps 15 through 18) provided he or she hasbeen in a pay status at least 150 working daysduring each of the previous four school yearn asa TP educator.

c. Each half-time TP educa-tor assigned to a 190-day school-year workschedule may receive a regular (annual) stepincrease provided he or she has been in a paystatus at least one-half of 150 working daysduring each of the previous 2 school yearn. Ahalf-time TP educator may receive a longevitystep increase (steps 15 through 18) after he orshe has been in a pay status at least one-half ofthe 150 working day minimum during each ofthe previous 8 school years.

d. Each full-time TP educa-tor assigned to a 222-day school-year workschedule may receive an annual step increase(steps 1 through 10) provided he or she has beenin a pay status at least 175 working days duringhis or her last previous school year as a TPprincipal or assistant principal.

e. Each full-time TP educa-tor assigned to a 190-day school-year workschedule is entitled to receive an annual stepincrease (or service credit towards a longevitystep) for the last satisfactory year of service, plusan additional annual step (or service credit) forthe first year of absence only, upon return toduty after successfully completing a program ofstudy or employment of 1 or more years underthe Administrative Reemployment Rights pro-gram.

2. Effective Date. Step increasesare effective as of August 1 of each school year.The effective date of a step increase is notchanged by a promotion or demotion. Stepincreases shall be effective prior to when apromotion, demotion, or other movement be-comes effective.

G. Late Arrival at Post

1. A TP educator newly recruit-ed from the CONUS is appointed with theunderstanding that the educator shall serve foran entire school year (i.e., the 190 or 222 duty-

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day school-year work schedule) or a specifiedpart thereof and who, through no fault of theeducator and as a result of transportation orprocessing delays after selection for appoint-ment, arrives late at the post of assignment shallbe administratively excused. This educator shallbe paid as if the educator had arrived on timeand actually served during the lost time.

2. A TP educator, other than asdescribed in subparagraph 070201 .G.1., whoarrives late at the post of assignment after thestart of the school year shall not be paid for theworking days occurring prior to the day ofarrival at the assigned post unless granted paidleave by the supervisor.

H. Early Arrival at Post

1. A TP educator who arrives atthe post of assignment prior to the start of theschool year is not compensated for nonduty daysprior to the start of the school year.

2. A TP educator who is ap-pointed to a temporary TP educator position toperform work prior to the start of the schoolyear shall be compensated at the educator’s dailysalary rate for the prior school year (this salaryis not subject to retroactive adjustment) for eachday of such work performed. In such an in-stance, the SF 50 data from the civilian personneloffice notifies the civilian payroll office.

L Late Departure from Post

1. A TP educator who is unableto depart promptly after the end of the schoolyear for personal reasons or because of circum-stances beyond his or her control, (e.g., lack ofavailable transportation) is not entitled to basiccompensation for the period between the end ofthe school year and the date of departure.

2. A TP educator who is ap-pointed to a temporary TP educator position toperform work after the end of the school yearshall be compensated at the educator's daily sal-ary rate for the prior school year (this salary isnot subject to retroactive adjustment) for eachday of such work performed. In such an in-

stance, the SF 50 data from the civilian personneloffice notifies the civilian payroll office.

J. During Travel. While enrouteduring a PCS between school years, a TP educa-tor is in a nonpay status; therefore, basic com-pensation is not received.

K. Work at More than One Post ofAssignment. When a PCS is effected during aschool year, action shall be taken to ensure that,after working the scheduled duty days duringthe remaining pay periods at the new post ofassignment, the TP educator will have receivedthe full school year salary to which entitled. Ifthe total of days actually worked during theschool year (to include paid leave) at both postsof assignment exceeds 190, the TP educator shallbe paid at the daily rate for any days worked inexcess of 190 days.

L. Substitutes. A substitute shallreceive the flat daily rate prescribed in TP SalarySchedule A. The minimum increment earnedand paid for substitute work is one-half day.The daily rate for a summer school substituteteacher is provided in the TP salary Schedule for“Other Compensation,” and is two-thirds of theregular substitute teacher rate established for theprior school year (this salary is not subject toretroactive adjustment). For example, the priorschool-year rate for a 1993 summer school substi-tute teacher is published in the 1992-93 salaryschedules. The minimum increment earned andpaid is one-half day (one-third of the regularsubstitute teacher rate).

M. Leave

1. Accrual. Under 20 U.S.C. 904(reference (ay)), a TP educator (other than anindividual employed as a substitute) is entitledto cumulative leave with pay. This leave isidentified as educator leave. When theeducator’s school year includes more than 8months of work the educator shall be entitled toearn 10 days of cumulative educator’s leave withpay. For 8 months or less during the schoolyear, educator’s leave accrues at the rate of 1 dayfor each calendar month worked or part thereof.The full school year accumulation of educator’sleave is credited to the educator's leave record

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when the school year begins (normally in Au-gust) or whenever the educator enters on duty(e.g., after the start of the school year). Shouldan educator be separated for any reason beforethe school year ends, any leave credited but notearned by the educator must be subtracted fromthe individual’s leave balance or if already used,a debt must be established and appropriatecollection action taken.

a. Part-Time Educators. ATP educator who is regularly employed on apart-time basis earns leave in an amount propor-tionate to the amount of time the part-timeeducator is regularly employed compared to full-time employment.

Example 1: A part-time TP educatorwas appointed to a part-time position for the fullschool year. The educator is scheduled to workone-half day on each duty day during the regu-lar school year. The educator is entitled toaccrue 10 half days (5 full days) of educator'sleave.

Example 2: A part-time TP educatorwas appointed to a part-time position for the fullschool year. The educator is scheduled to workeach Tuesday and Thursday during the regularschool year. The educator is entitled to accruetwo-fifths (4 days) of the 10 days of educator’sleave that would be earned during full-timeemployment.

Example 3: A part-time TP educatorwas appointed to a part-time position for the lastsemester (one-half) of the school year. Theeducator is scheduled to work one-half day oneach scheduled duty day during the semester.The educator is entitled to accrue one-fourth (2.5days) of educator's leave.

b. Substitutes. Substitutesare employed in TP positions only on a tempo-rary intermittent basis and are not entitled toearn leave.

c. Summer Recess Appoint-ments. Leave is not earned during summerrecess period appointments to TP positions, to

include summer school educator positions andother temporary appointments.

2. Use

a. Minimum Charge. Theminimum charge for educator's leave is one-halfday, and additional charges are in multiplesthereof. An occasional absence from duty of lessthan one-half day may be excused for adequatereasons without charge to educator’s leave, at thediscretion of administrative authority. Leavecharges are reported to the civilian payroll officeon the educator's time and attendance report.

b. Authorized Absences. ATP educator may use accrued educator’s leaveduring the school year for

(1) Maternity purposes;

(2) Illness of the educa-tor

(3) Illness, contagiousdisease, or death in the immediate family of theeducator that requires his or her absence;

(4) Any personal emer-gency; and

(5) Any purpose. Withthe appropriate advance notice and prior ap-proval of the supervisor, not to exceed 3 days ofeducator’s leave, in a given school year, leavemay be used for any purpose. Educator's leaveused for any purpose may not normally be usedduring orientation week or the first or last weekof the school year. An exception may be madewhen an educator has been accepted for aneducational program and must report prior tothe end of the school year.

c. Summer Recess. Ac-crued educator's leave may not be used duringany summer recess educator appointment. Anabsence during a summer recess appointment iswithout pay.

d. Nonwork Days. Satur-days, Sundays, regularly scheduled holidays

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(including U.S. holidays and host-nation holi-days) and other administratively authorizednonwork days are not days of leave. See 20U.S.C. 904(b) (reference (ay)). Therefore, a TPeducator who is in a nonpay status immediatelypreceding and following a scheduled holiday isnot charged LWOP for the scheduled holiday.

3. Advance. Under unusual cir-cumstances, 30 days of educator's leave (abovethe amount already credited for the currentschool year) may be advanced to an educator foruse on any scheduled duty day within the schoolyear. Such advance is subject to subsequentearning of educator leave, or repayment uponseparation for leave advanced but not earned.Requests for up to 10 days of advance educatorleave may be approved by the immediate su-pervisor. Requests in excess of 10 days of ad-vance educator leave must be submitted to thedistrict superintendent or regional director, asappropriate. Approved requests are then sub-mitted to the civilian payroll office by the ap-proval official.

4. Leave Without Pay (LWOP).Up to 3 days of LWOP may be requested by aTP educator and approved by the immediatesupervisor. LWOP requests in excess of 3 daysfor TP educators but less than 30 days may beapproved by the district superintendent ordirector. LWOP requests of 30 days or moremay be approved by the regional director.

5. Conversion

a. A TP educator is creditedwith sick leave to his or her credit immediatelyprior to the effective date of his or her conver-sion, transfer, promotion, or reappointment to aTP educator position. However, he or she mustbe an employee of the Federal Government orthe municipal government of the District ofColumbia, and be transferred without a break inservice, from a position under a different leavesystem to a TP educator position. Sick leave socredited is included in the educator’s balance ofeducator's leave.

b. Annual leave is notcredited, except for educators who were initiallyconverted from GS / GM positions to TP salary

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schedule K and L educator positions on October11, 1987.

6. Transfer and Recredit

a. When a TP educator isseparated from a DoDDS TP educator positionand is reappointed in another DoDDS positionwith a break in service of no more than 3 schoolyearn, his or her educator’s leave account iscertified to the employing agency for credit assick leave on the SF 1150.

b. When a TP educator isseparated from an educator position and isreappointed to a position subject to another leaveact without a break in service, his or her leaveaccount is certified to the employing agency forcredit in accordance with 5 C.F.R. 630.501 (refer-ence (l)).

c. If a TP educator acceptstemporary employment with the Federal Govern-ment in a non-TP educator position during asummer recess, the TP educator's leave accountshall not be transferred to the leave account ofthe summer position. Any sick leave earnedduring the temporary summer employment shallbe credited and any unused sick leave balanceshall be transferred to the educator’s leaveaccount when the educator returns to duty in hisregular TP educator position.

7. Liquidation Upon Separation

a. Any annual leave earnedunder a different leave system and remaining tothe credit of a TP educator upon separation shallbe liquidated by a lump-sum payment in accor-dance with 5 U.S.C. 5551 (reference (b)) and 20U.S.C. 904(f) (reference (ay)).

b. Educator’s leave earnedby a TP educator or included in the educator'sleave balance per subparagraph 070201 .M.5.a.,may not be liquidated upon separation throughlump-sum payment.

8. Sabbatical Leave. Year-longeducation leave at half pay (sabbatical leave)may be authorized for a DoDDS educator ap-pointed to a TP position for educational purpos-


es, when the course of study is determined to beappropriate by the regional director. An SF 50 isnot required. However, the approved requestfor training should reflect that the educator willbe in an LWOP status one-half of each dayduring the year-long period.

a. Benefits and Entitle-ments. Educators granted sabbatical leave at halfpay shall continue to receive life insurance andhealth benefits coverage in the same manner asif they were in full pay status. Retirementcontributions shall be deducted for only one-halfyears; however, the educator is entitled to a fullyear’s credit for retirement. Educator leave isnot earned, nor should it be deducted (i.e. used)from the educator’s leave account during thetraining period. Any pay step increase whichwould have been authorized should be grantedas if the educator had worked a full school year.

b. Pay-status Reporting.The educator’s work schedule should notchange. Therefore, the time and attendancereport for each pay period should reflect that theeducator is in a LWOP status one-half of eachday.

N. Allowances and Differentials.Entitlement of a TP educator to Governmentquarters, cost-of-living allowance, and postdifferential is determined in accordance with theDSSR (reference (t)), and DoD 1400.25-M (refer-ence (u)). A TP educator employed as a substi-tute is not entitled to Government quarters,quarters allowance, cost-of-living allowance, postdifferential, or storage of household goods.

070202. Pay Status during School Year andSummer Recess

A. School Year. A TP educator’sschool year consists of 190 duty days. In mostoverseas locations, these duty days fall on daysduring the normal work week (i.e., Mondaythrough Friday). However, a TP educator doesnot work every Monday through Friday duringthe school year because of nonduty days duringrecess periods (i.e., Thanksgiving, winter andspring recess; Federal holidays; and certain host-nation holidays). As a result, the school year(i.e., from the educator’s first through last duty

day) may span to 22 pay periods, with approxi-mately 213 days, Monday through Friday, be-tween the educator’s first and last duty day ofthe school year. Thus, there are typically 21 fullpay periods, plus 3 additional days in the 22ndpay period in a given school year.

B. Summer Recess. During the sum-mer recess period while school is not in session,nonadministrative TP educators are ordinarily ina nonpay status. No SF 50 is required to placeeducators in a nonpay status or to return them toduty status at the beginning of the followingschool year. Educators who are returning toduty for the following full school year are enti-tled to have living quarters allowance paymentscontinued during the summer recess period, inaccordance with the DSSR (reference (t)), al-though in a nonpay status. Civilian payrollOffices, however, retain such educators in a paystatus during the summer recess solely to facili-tate payment of living quarters allowance. TheDepartment of Defense Education Agency(DoDEA) Personnel Center will notify the servic-ing civilian payroll office of any change (e.g.,transfer, resignation, retirement, etc.) in thestatus of DoDDS educators.

070203. Compensation

A. The 190-Day School Year Educa-tors

1. Daily / Biweekly Rate. A pay-ment method that provides for a uniform bi-weekly payment during the school year has beenadopted for TP educators assigned to a 190 dutyday schedule. This method provides for consis-tent biweekly pay amounts throughout the year.Otherwise, the seasonal work schedule of a TPeducator, in conjunction with the recess periods,would cause varying amounts of pay to bereceived during each pay period of the schoolyear. It must be recognized that a TP educatorearns pay at a rate which differs from the rateused to pay out the salary. The following mustbe understood to compute a TP educator’s pay:

a. Duty Days = 190. This isthe actual number of duty days and is the stan-dard divisor used to determine a TP educator’sdaily salary rate, or “190-Rate.”

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b. School-Year Days = DutyDays + Monday through Friday recess days.This is the total number of days (Mondaythrough Friday) falling within an educator’s firstto last duty day during the regular school year.Thus, in addition to the 190 actual duty days, theschool-year days also includes all nonworkrecess days (Monday through Friday) during theregular school year. Recess days are those dayssuch as Federal holidays (e.g., Labor Day) andschool recess days (e.g., spring recess) wheneducators are not scheduled to work. For mostschool years, the school-year days will equal 213.The school-year days is used to determine aneducator's school-year rate, or “213-Rate.” Theschool-year rate is obtained simply by dividingthe school-year salary by the number of school-year days published on the regional school-yearcalendar for the school to which the educator isassigned. The school-year rate is the daily rateused to provide a uniform payment for each bi-weekly pay period. This rate is multiplied by 10days to arrive at an educator's biweekly basepay amount.

c. Foreign Post Allowance/COLA Days = School-Year Days + weekenddays. This is the total number of calendar dayselapsed during the school-year calendar period.The number of foreign post allowance/COLAdays is used to determine the “COLA daily rate”used to compute the biweekly amount paid forCOLA in those areas where applicable.

2. Reducing Pay for AbsencesWithout Pay. Computing a TP educator’s payusing the school-year rate (see subparagraph070203.A.1.) provides for uniform pay amountseach pay period but is not truly accurate whenperiods of non-paid absence are involved. Forperiods of non-paid absence such as LWOP orAWOL, an educator’s biweekly pay must bereduced by 1/190th of the annual salary for eachscheduled duty day that the educator is in anonduty / nonpay status (i.e., for each scheduledduty day not worked and not in a paid leavestatus). Because an educator does not typicallywork on Federal holidays or recess periods (e.g.,spring break), the educator’s pay is not reducedwhen he or she is in a nonpay status before orafter a Federal holiday or recess day.

3. TP Educators Beginning WorkAfter Start of School Year. When a TP educatoris appointed after the school year has begun, theeducator's school year salary must be adjustedbased upon the number of actual duty days re-maining in the school year that the educator isscheduled to work. This means that the numberof remaining actual duty days must be counted.The educator’s daily salary rate (190-Rate) is thenmultiplied by the number of scheduled dutydays remaining in the school year to obtain theeducator's adjusted school-year salary entitle-ment. To determine how the adjusted school-year salary shall be paid out in uniform install-ments during the remaining pay periods, theadjusted school-year salary is then divided bythe number of school-year days remaining in theschool year to arrive at the adjusted daily school-year rate. Use the following formula:

a. 190-Rate x duty days =adjusted school-year salary

b. Adjusted school-yearsalary ÷ school-year days = adjusted school-yearrate

c. Biweekly base pay =adjusted school-year rate x 10 days

Example of an educator who reports for workafter the beginning of the school year: Aneducator would receive a salary of $38,000 forworking a full school year (i.e., 190 duty days).The educator would have a 190-Rate (dailysalary rate) of $200.00 ($38,000/190). This salarynormally would be paid out over 213 school-yeardays. The educator in this exampIe begins workon October 1. Because of the educator’s latestart, 23 actual duty days (August through Sep-tember) will not be worked. The school-yearcalendar indicates that 167 actual duty daysremain to be worked during the school year.Thus, the adjusted salary entitlement would be$33,400 ($200.00 X 167). To determine how theadjusted $33,400 school-year salary will be paidout, the remaining school-year are identified. Inthis example, 188 school-year days remain. Theadjusted school-year salary ÷ school-year daysprovides: $33,400 ÷ 188 = $177.66. The biweekly

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base pay equals the adjusted school-year ratemultiplied by 10: $177.66 X 10 = $1,776.60.

4. TP Educators SeparatingBefore The End of The School Year. When a TPeducator separates (i.e., resigns, retires, or dies)before the school year ends, the educator’sschool year salary must be adjusted based uponthe number of actual duty days that the educatorworked. This means that the number of actualduty days worked must be counted. The dailysalary rate (190-Rate) is then multiplied by thenumber of actual duty days (including any daysin a paid leave status) to obtain the educator’sadjusted salary entitlement. Use the followingformula:

190-Rate X duty days= adjusted school-yearsalary

Example of an educator who separates before theend of the school year: An educator receiving aschool-year salary of $38,000 would have a 190-Rate (daily salary rate) of $200.00 ($38,000/190).This salary normally would be paid out over 21full and 1 partial pay periods. Should the educa-tor resign after working only 120 of the sched-uled 190 duty days in the school year, the adjust-ed salary entitlement would be $24,000 ($200.00X 120). Any difference between the adjustedsalary entitlement and the salary actually re-ceived to date must be reconciled.

B. 222-Day School Year Administra-tors

1. Daily/Biweekly Rate. Be-cause of the longer 222 duty-day work year forTP educators in principal and assistant principalpositions, the method used for payment isdifferent from that used for other TP educators.Simply stated, the school-year salary is paid over26 pay periods. This, in turn, provides foruniform biweekly payments throughout the year.Otherwise, the seasonal work schedule of aprincipal and assistant principal, in conjunctionwith the recess periods, would cause varyingamounts of pay to be received during each payperiod over the 222 duty day period, As TPeducators, principals and assistant principalsearn pay at a rate which differs from the rateused to pay out the salary. The following must

be understood to compute a principal’s andassistant principal’s pay:

a. Duty Days = 222. This isthe actual number of duty days and is the stan-dard divisor used to determine a TP educator’sdaily salary rate, or “222-Rate.”

b. School-Year Days. Thisis 260 days per year and is the total number ofdays (Monday through Friday) in a calendaryear, inclusive of the 222-duty days. Thus, theschool-year days figure includes days that fallwithin, as well as outside of the school year.The school-year days also includes all nonworkrecess days (Monday through Friday) during theregular school year. Recess days are those dayssuch as Federal holidays (e.g., Labor Day) andschool recess days (e.g., spring recess) whenprincipals and assistant principals are not nor-mally scheduled to work. The school-year daysis used to determine a principal’s and assistantprincipal’s school-year rate. The school-year rateis obtained simply by dividing the school-yearsalary by 260. The school-year rate is the dailyrate used to provide a uniform payment for eachbiweekly pay period. This rate is multiplied by10 days to arrive at a principal’s or assistantprincipal’s biweekly base pay amount.

c. Foreign Post Allow-ance / COLA Days = 365 (366 during leap year).

2. Reducing Pay for AbsencesWithout Pay. Computing a principal’s or assis-tant principal’s pay using the school-year rateprovides for uniform pay amounts each payperiod but is not truly accurate when periods ofnonpaid absence are involved. For periods ofnonpaid absence such as LWOP or AWOL, aprincipal’s or assistant principal’s biweekly paymust be reduced by 1/222nd of the annualsalary for each scheduled duty day that theprincipal or assis tant pr incipal is in anonduty / nonpay status (i.e., for each scheduledduty day not worked and not in a paid leavestatus). It must be noted, however, that as longas 222 full duty days are worked (to includedays in a paid leave status) during the August 1through July 31 period, including not less than175 days during which classroom instruction isin session, a principal’s and assistant principal’s

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work schedule may be adjusted after the schoolyear begins with no resultant change in salary.Because a principal and assistant principal doesnot typically work on Federal holidays or recessperiods (e.g., spring break), a principal’s andassistant principal’s pay is not reduced when heor she is in a nonpay status before or after aFederal holiday or recess day.

3. School Principals and Assis-tant Principals Beginning Work After Start of theSchool Year. When a principal or assistantprincipal is appointed after the work year hascommenced, and the principal or assistant princi-pal will not work 222 full duty days before July31, the principal’s or assistant principal’s salarymust be adjusted based upon the number ofactual duty days scheduled for the year endingon July 31. This means that the number ofremaining actual duty days must be counted.The principal’s or assistant principal’s dailysalary rate (222-Rate) is then multiplied by thenumber of actual duty days remaining in theyear ending July 31 to obtain the adjustedschool-year salary entitlement. To determinehow the adjusted school-year salary shall be paidout in uniform installments, the adjusted school-year salary is then divided by the number ofcalendar year days, Monday through Friday,remaining in the year ending July 31 to arrive atthe adjusted daily calendar - year salary rate. Usethe following formula:

a. 222-Rate X duty days =adjusted school-year salary

b. Adjusted school-yearsalary ÷ school-year days = adjusted school-yearrate

c. Biweekly base pay =adjusted school-year rate X 10

Example of a school principal who reports forwork after the beginning of the school year Aprincipal would receive a salary of $55,500 forworking a full school year (i.e., 222 duty days).The principal has a 222-Rate (daily salary rate) of$250.00 ($55,500 ÷ 222), This salary normallywould be paid out in even payments over 26 payperiods. The principal in this example beginswork on September 15. Because of the

principal’s late start, it will be possible to workonly 189 actual duty days by July 31. Thus, theadjusted salary entitlement would be $47,250($250.00 X 189). To determine how the adjusted$47,250 school-year salary shall be paid out, theremaining calendar year days, Monday throughFriday, are identified. In this example, 228school-year days remain. The adjustment is:$47,250 ÷ 228 = $20724. The biweekly base payequals the adjusted school-year rate multipliedby 10 ($207.24X 10 = $2,072.40).

4. School Principals and Assis-tant Principals Separating Before End of SchoolYear. When a principal or assistant principalseparates (i.e., resigns, retires, or dies) before theyear ends, the school-year salary must be adjust-ed based upon the number of actual duty daysthat the principal or assistant principal worked.This means that the number of actual duty daysworked must be counted. The daily salary rate(222-Rate) is then multiplied by the number ofactual duty days (including any days in a paidleave status) to obtain the principal’s or assistantprincipal’s adjusted salary entitlement. Use thefollowing formula:

222-Rate X duty days = adjusted school-yearsalary

Example of a principal or assistant principal whoseparates before the end of the school year Aprincipal receiving a school-year salary of$55,500 has a 222-Rate (daily salary rate) of$250.00 ($55,500 ÷ 222). This salary normallywould be paid out over 26 pay periods. Shouldthe educator resign after working only 120 of thescheduled 222 duty days in the school year, theadjusted salary entitlement would be $30,000($250.00 X 120). Any difference between theadjusted salary entitlement and the salary actual-ly received to date must be reconciled.

C. Premium Pay, Sunday Work andHoliday Work

1. A TP educator is not eligiblefor overtime pay or compensatory time off.

2. A TP educator appointed toa 190-day school-year position whose regularwork schedule requires work on a Sunday is

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entitled to basic pay, plus a premium of 25 per-cent of the 190-Rate (daily rate). Premium pay isnot authorized for TP educators appointed toprincipal and assistant principal positions.

3. A TP educator whose regularwork schedule requires work on any of thefollowing holidays is entitled to basic pay, pluspremium pay at a rate equal to the 190-Rate(daily rate):

a. New Year’ Day, January1 or observed day

b. Dr. Martin Luther King’sDay, third Monday in January;

c. Washington’s Birthday,third Monday in February

d. Memorial Day, last Mon-day in May

e. Independence Day, July4 or observed day;

f. Labor Day, first Mondayin September

g. Columbus Day, secondMonday in October;

h. Veteran’s Day, Novem-ber 11, or observed;

i. Thanksg iv ing Day ,fourth Thursday in November; and

j. Christmas Day, Decem-ber 25, or observed day.

D. Appointments Between SchoolYears. A TP educator employed between schoolyears shall be given a temporary limited ap-pointment for the period of actual need, not toexceed the beginning of the school year. A TPeducator given a temporary limited appointmentis compensated at a daily rate of 1/190th (or, ifa school principal or assistant principal, at1/222nd) of the school-year salary. When aneducator has served on a nontemporary appoint-ment during the preceding school year and is

expected to continue during the following schoolyear, a temporary appointment between the 2school years is similar to a return to duty andthe appointment is exempt from the dual payprevisions of 5 U.S.C. 5533(d)(7)(b) (reference(b)). The appointment is not subject to CSRS,FERS, or FEGLI.

E. Foreign Post Allowance

1. Daily Rate. The amount offoreign post allowance due an eligible TP educa-tor is based upon the educator’s school-yearsalary. The full annual amount is payable overthe period of the school year. A TP educatoremployed on a 222-duty day work schedule (i.e.,school principals and assistant principals) re-ceives a foreign post allowance on the same basisas GS employees (i.e., on a calendar-year basis).However, to pay foreign post allowance to a TPeducator on a 190-day y work schedule, a differentdaily rate is used because of the shorter schoolyear. To determine the foreign post allowancedaily rate for TP educators assigned to 190-dutyday work schedule, divide the annual foreignpost allowance amount shown on the SF 1190 bythe total number of foreign post allowance daysoccurring between the educator’s first and lastduty day during the school year. The foreignpost allowance daily rate is multiplied by 14 tocompute the biweekly amount paid each full payperiod of the school year.

2. Adjustment of a Foreign PostAllowance. Any adjustment in an educator’sannual salary shall cause the authorized foreignpost allowance to be adjusted correspondingly.For example, the current post differential autho-rized an educator in Okinawa is 10 percent ofthe educator's basic compensation. If theeducator’s basic compensation during the currentschool year is $45,000, but for reason is adjusteddownward to $37,000, the adjusted post differen-tial amount authorized for payment to theeducator would be $3,700. The authorizedforeign post allowance percentage would notchange. It would remain consistent with thedollar amount paid the educator during thatschool year.

F. Extra-Duty Program. This pro-gram applies to certain personnel employed by

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DoDDS who are assigned extra-duty assign-ments. Extra-duty compensation is providedwhen particular extra-duty assignments arecompleted that are in addition to regular schoolduties. Such extra-duty assignments as coachingand activity sponsorship, as well as dormitorywork, are included in this program.

1. Compensation for Extra-DutyAssignments

a. When a TP educator isselected to perform an extra-duty assignment, amemorandum of understanding is signed by theemployee and the school principal. The memo-randum indicates the activity to be performed,the estimated number of hours to complete theactivity, the hourly range the duty is to beperformed within, and the amount of compensa-tion established for that range, according to the“Other Compensation” salary schedule ratesestablished annually by the DoD Wage FixingAuthority. The authorized hourly ranges forextra-duty activities are:

(1) 1-19 Hours(2) 20-39 Hours(3) 40-79 Hours(4) 80-119 Hours(5) 120-159 Hours(6) 160-199 Hours(7) 200 Hours and Over

b. When an extra-dutyassignment is satisfactorily completed in fewerhours than the hourly range established, com-pensation must be reduced. If the school princi-pal determines the extra-duty assignment hasbeen completed satisfactorily in less time thanidentified in the approved memorandum ofunderstanding, the educator shall be compensat-ed at the rate established for the appropriatelower hourly range. Should the hours workedfall short of the original range, or an educator isunable to complete the extra-duty assignment fora reason acceptable to management, a lesserpayment than the amount indicated in the ap-proved memorandum of understanding may bepaid on a pro rata basis. The formula for com-puting a lesser payment is the mid-point hour ofthe appropriate hourly range divided into thehours actually worked. The resulting quotient is

then multiplied by the dollar value assigned tothe regular hourly category. For the 200 Hoursand Over range, the mid-point = 220.

c. Upon completion of theextra-duty assignment, the school principal shallcertify that the assignment has been satisfactorilycompleted and that compensation is authorized.This certification must be submitted to thecivilian payroll office as soon as possible, but notlater than May 31, to facilitate payment by theend of the school year.

d. Substitute teachers whosubstitute as a dormitory counselor shall becompensated in accordance with Schedule Arates published by the DoD Wage Fixing Author-ity.

e. School principals andassistant principals are eligible to receive extra-duty compensation only for additional workperformed while on temporary assignment(detail) as a staff development specialist.

2. Additional Compensation forDormitory Counselors. A TP educator assignedto a dormitory counselor or supervisory dormito-y counselor position and who is assigned anirregular tour of duty which includes work onall nights, Sundays, and holidays, as well assleep-in time, may receive additional compensa-tion identified as “Condition of EmploymentCompensation.” Such an educator also may beeligible to receive "Additional Hours Compensa-tion," for hours worked beyond the scheduledhours of work. A dormitory counselor and asupervisory dormitory counselor is scheduled towork 80 hours per pay period during the schoolyear and is additionally required to sleep-inaccording to an established work schedule.

a. The Remarks section ofthe counselor's SF 50 will indicate any eligibilityto receive condition of employment compensa-tion. Eligibility for condition of employmentcompensation also established eligibility toreceive additional hours compensation.

b. Condition of employ-ment compensation is established as an annualrate by the DoD Wage Fixing Authority. The

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rate to be used depends upon the type of workschedule established for dormitory operationsand whether the individual dormitory counseloror supervisory dormitory counselor is requiredto work on a 5-day dormitory operations sched-ule or a 7-day schedule. The annual compensa-tion payable is established by the DoD WageFixing Authority in the “Other Compensation”salary schedule. The payable rate of additionalcompensation per school year is identified aseither the 5-day, 40-hour rate or the 7-day 40-hour rate.

c. Additional hours com-pensation is paid on an “as worked” basis and isfor work performed by a dormitory counselor ora supervisory dormitory counselor who is re-quired to work in excess of 80 hours per payperiod. Additional hours compensation may bepaid for each full hour worked (scheduled orunscheduled) in the performance of his or herprofessional duties, not to exceed the annualmaximum value established for a particularschool year. Additional hours compensation ispaid biweekly upon completion and certificationof any full hours worked. The hourly rate iscomputed by dividing the annual maximumamount of additional hours compensation by190. The annual maximum amount in a 5-daydormitory schedule is determined by subtractingthe 5-day, 40-hour amount of additional compen-sation per school year, from the 5-day, 45-houramount of additional compensation per schoolyear, as identified on the “Other Compensation”salary schedule. The annual maximum amountpayable in a 7-day dormitory schedule is deter-mined by subtracting the 7-day, 40-hour amountof additional compensation per school year, fromthe 7-day, 45-hour amount of additional com-pensation per school year, as identified on the“Other Compensation" salary schedule. Regard-less of the number of hours required to workthe maximum amount of additional hours com-pensation paid during a given school year maynot exceed the annual rate established for addi-tional hours compensation.

G. Acceleration of FEGLI and FEHBDeductions for an Educator Assigned to a 190-Day Position. A TP educator assigned to aposition with a 190-duty day work schedule whohas elected coverage under FEGLI and / or FEHB

must pay the total annual premium amount thatis applicable to the school year salary the educa-tor is eligible to receive. This is to providecoverage during the summer recess, duringwhich time a 190-day educator neither earns norreceives pay, The normal period of extendedcoverage is from the first duty day of a schoolyear until the day prior to the first duty day ofthe next school year. Therefore, deductions mustbe accelerated to withhold more than the normalbiweekly amounts paid by other Federal employ-ees. Accelerated deductions are not required foran educator assigned to a 222-duty day workschedule.

1. Calculation of AcceleratedDeductions. To determine the biweekly amountto be deducted from a 190-day educator’s payfor FEGLI, first find the normal (i.e., 26 payperiod) biweekly amount deducted for otherFederal employees in the same salary bracket.For FEHB, find the biweekly withholdingamount for the plan in which the employee isenrolled. After finding the normal biweeklywithholding amount, multiply by 26 (to arrive atthe amount to be paid for an entire calendaryear) then divide by 22 (the number of full payperiods over which 190-day educators normallyare paid their school year salary) to determinethe amount to be deducted each pay period foran educator.

2. Coverage Upon Separation orMovement. For a 190-day educator who resignsat the close of the school year and who haselected coverage under FEGLI and / or FEHB, theactual date of separation shall be delayed suffi-ciently to ensure extended coverage for theperiod of time for which the educator has paidthrough the accelerated withholdings. Theperiod of extended coverage for an educatoremployed for a full school year shall be throughthe day prior to the first scheduled duty day ofthe following school year. When an educatordesires earlier separation, the educator's resigna-tion must specify the earlier date for terminationof coverage and acknowledge that health benefitsand life insurance coverage shall continue only31 days after the date of separation. When aneducator assigned to a position with a 190-dutyday work schedule is converted or appointed toa 222 or calendar year work schedule, all or an

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appropriate portion of any accelerated paymentsmust be refunded should the effective date ofsuch conversion or appointment occur duringthe prepayment period and withholdings relativeto the new position begin. When an educator isseparated before the end of the school year, theeducator will be reimbursed proportionately ifthe separation date is earlier than the end of theextended period of prepaid FEHB coverage.

3. Calculation of Coverage Afterthe Beginning of the School Year. Should a 190-day educator begin work after the first sched-uled duty day of the school year, reduce thetotal annual premium amount for FEGLI andFEHB by the proportionate amount for thecoverage period remaining through the day priorto the first scheduled duty day of the next schoolyear. Then proceed to calculate the biweeklyamount using an appropriate reduction in thenumber of pay periods remaining.

H. Other Deductions

1. Allotments

a. Organization Dues

(1) Allotments for with-holding employee organization dues shall beeffective on the second pay period in October ofeach school year for a 190-day TP educator. Theamount of such allotments shall be the designat-ed dues identified on each SF 1187 initiated by aunit employee or on a list provided by each localor regional unit divided by 12 full pay periodsunless mutually agreed otherwise between theparties.

(2) Unit members whoenter the dues-withholding agreement at a timewhen less than 12 full pay periods remain in theschool year shall have their dues prorated overthe remaining full pay periods within the dues-Withholding period.

(3) Authorization fordues withholding with an SF 1187 shall continuein full force and effect if a “not-to-exceed” em-ployee is given another excepted appointment inthe bargaining unit prior to the expiration of thenot-to-exceed appointment.

(4) Remittance shall beprepared by the civilian payroll office at theclose of each pay period for which deductionsare made. Remittances shall be prepared andforwarded on the same pay schedule as for unitemployees after the close of each pay period.Remittance shall be sent to the appropriate ad-dress in each region. Each remittance shall beaccompanied by a listing of names and amountswithheld. See subparagraph 090203.H. forguidance on preparing this report.

(5) Dues withholdingauthority is automatically carried forward to thenext school year unless notification to stop thededuction is requested. Educators can requestthat organization dues deductions be stoppedonly once a year either on September 1 or theanniversary date on which the employee autho-rized dues withholding, whichever is later. Arevocation must be received in the civilianpayroll office prior to the appropriate date asindicated above.

(6) Local or regionalunits must provide a list of employees who areto have dues withheld no later than 2 weeksprior to the beginning date of the pay period inwhich withholding is to begin for that unit. Thelisting must identify the bargaining unit name ornumber, location, address, point(s) of contact andphone number(s). Employee information re-quired includes employee name, SSN, locationassigned and amount of dues to be withheld forthat school year.

b. Savings Allotments andAllotment Allowed for 190-Day TP EducatorsAssigned in Overseas Areas. Savings and otherallotments, as authorized in Chapter 4, may bededucted over the number of full pay periods inthe school year.

c. Savings Bonds. Savingsbonds are authorized separately without regardto the number of savings allotments. Savingsbonds are automatically continued into the nextschool year unless canceled.

2. T S P . A TP educator mayelect to have either a percentage or dollar deduc-tion for TSP in accordance with guidelines set

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forth in section 0415. TSP deductions shall betaken from the annual retroactive salary adjust-ment given to educators each year only if theeducator has specified that a percentage bewithheld.

I. Compensation of TP EducatorsAppointed as Junior Reserve Officer TrainingCorps (JROTC) Instructors

1. DoDDS employs retiredmilitary officers and non-commissioned officersas TP educators in its JROTC overseas program.The school-year salary of JROTC instructors is anamount equivalent to the active duty pay andallowances which the instructor would receive ifordered to active duty at the location of theDoDDS school to which assigned. This salary isreduced by the amount of retired pay received.

2. An additional annual amountof supplemental pay is established by the DoDWage Fixing Authority. The supplementalamount is not part of a JROTC instructor’s basiccompensation.

3. A JROTC instructors salary ispaid out on the same basis as other 190-day TPeducator pay during the school year. The addi-tional annual amount of supplemental payauthorized is prorated over the normal 22 payperiods.

Because the base salary of aJROTC instructor employed by DoDDS includesan amount equivalent to the instructor’s activeduty allowance for quarters (including a variablehousing allowance), an instructor’s pay must bereduced in an equivalent amount should theinstructor reside in rent-free government quar-ters .

J. Waiver of Erroneous Payment ofPay and Allowances. The procedures outlined inparagraph 080306. will generally be followedwhen processing applications for waiver oferroneous payments of pay and allowancessubmitted by DoDEA employees. Applicationsof DoDEA employees received by the civilianpayroll office shalI be forwarded to the DoDEAPersonnel Center for adjudication rather than the

Defense Debt and Claims Management office ofthe appropriate DFAS Center.

0703 OTHER THAN FULL-TIME CAREEREMPLOYEES

070301. Part-Time Fmployment. Part-timeemployment is generally no less than 16 and nomore than 32 hours a week under a scheduleconsisting of an equal or varied numbers ofhems per day. Employment may be between 32and 64 hours in a biweekly pay period in thecase of a flexible or compressed work schedule(5 U.S.C. 3401 (2)) (reference (b)). It does notinclude employment on a temporary or intermit-tent basis. To be considered part-time, an em-ployee must have a regular schedule, set in ad-vance, of at least one hour in each administrativeworkweek in each biweekly pay period. See P.L.95-437 (reference (e)), 5 U.S.C. 3401-3408 (refer-ence (b)), and 5 C.F.R. Part 340 (reference (1)).

A. Pay. Gross basic pay is computedby multiplying the employee’s hourly rate of payby the total of the hours worked and the hoursof paid leave during the pay period.

1. Overtime Pay. Overtime payfor eligible part-time employees is provided onlyfor work over 8 hours a day or 40 hours in aweek under 5 U.S.C. 5542 (reference (b)).

2. Compensatory Time Off.Part-time employees may elect to take compensa-tory time off in lieu of overtime pay to whichentitled under 5 U.S.C. 5542 (reference (b)). Part-time employees may elect to perform compensa-tory overtime work to replace time taken off forreligious observances.

3. Sunday Pay. Part-time em-ployees are not entitled to Sunday premium payfor working on Sundays.

4. Night Differential Pay. Part-time employees are entitled to night pay forwork performed between 6:00 p.m. and 6:00 a.m.as part of their regularly scheduled administra-tive workweek.

5. Shift Differential Pay. FWSpart-time employees who work a regular sched-

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uled shift of 8 hours or less are entitled to nightshift differential. However, more than half ofthe hours they work must be on the second orthird shift. The hours for the second and thirdshifts are outlined in subparagraph 030303.B.

B. L e a v e

1. Annual Leave. To earnannual leave, part-time employees must have aregularly assigned tour of duty on at least oneday of each week in the biweekly pay period.Maximum carryover at the end of the leave yearis the same as for a full-time employee. Hoursin a pay status include straight-time and over-time hours up to a total of the basic workinghours in a pay period (normally 80 hours).Leave is charged for absence during the hoursthe employees are scheduled to work

a. Part-time employees withless than 3 years of service earn 1 hour of annualleave for each 20 hours in a pay status.

b. Part-time employees withat least 3 years but less than 15 years of serviceearn 1 hour of annual leave for each 13 hours ina pay status.

c. Part-time employees with15 or more years of service earn 1 hour of annu-al leave for each 10 hours in a pay status.

2. Sick Leave. Part-time em-ployees, for whom a regularly scheduled tour ofduty has been established, earn and shall becredited with 1 hour for each 20 hours in a paystatus.

3. Part- t ime employees areeligible for other leave categories, e.g., AWOL,LWOP, court leave, funeral leave, or excusedabsences on the same basis as full-time employ-ees.

4. Each reservist of the ArmedForces or member of the National Guard who isan officer or employee of the United States,permanent, temporary indefinite, or part-time, isentitled to leave of absence from their duties(military leave) without loss of pay, time, orefficiency rating for each day, but no more than

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15 days in any fiscal year in which he or she ison active duty or training. Eligible part-timeemployees accrue military leave prorated on thebasis of the tour of duty (5 U.S.C. 6323(a)(2))(reference (b)). See section 0514 for guidance onrecording and charging military leave.

5. Holidays. Part-time employ-ees are not entitled to a holiday which fallsoutside the tour of duty. If a holiday falls on aday part-time employees are scheduled to workand the employees do not work, the employeesare paid for the number of hours scheduled forthat day. If part-time employees work duringtheir scheduled hours on a holiday, the employ-ees are entitled to holiday premium pay only forthose hours scheduled. When an installation isclosed for an “in lieu of” holiday that falls on aregularly scheduled workday and the employeesare prevented from working on that day, theinstallation may excuse part-time employeesfrom duty by administrative order or grantannual leave or LWOP for the hours scheduledto be worked on that day. A part-time employeewho works on an “in lieu of” holiday shall bepaid straight time for hours worked. A part-time employee is not otherwise entitled to an “inlieu of” holiday.

C. Deductions

1. Retirement. Part-time em-ployees are subject to deductions on the samebasis as full-time employees.

2. Health Insurance. Part-timeemployees are eligible to participate in the FEHBprogram. The cost to the employee is the totalcost of health benefits (both the employee’s andthe employer's share) less the Government’sprorated share. See subparagraph 040802.D. formore information on FEHB for part-time em-ployees.

a. Payroll deductions andemployer's contributions shall be based on theparticular plan for which employees enroll andthe employee’s established pay periods. Careerpart-time employees who pay a prorated Gov-ernment’s share of health benefits are responsiblefor payment of premiums for periods of nonpaystatus at the same rate that would be withheld if


they were in a pay status. Enrollment maycontinue during nonpay status for up to 365days.

b. When part-time employ-ees become full-time employees in the middle ofa pay period, the amount to be withheld isprorated based on part-time rules.

3. Life Insurance

a. Part-time employees areeligible for the FEGLI program. The actualamount of insurance (which cannot be less than$10,000) for which the employees are eligible isbased on the annual salary derived from theemployees’ scheduled hours. If employees are ina nonpay status for an entire pay period, nowithholding to cover that pay period shall bemade from future pay nor shall the employeesdeposit the amount which would have beenwithheld if they had been in a pay status duringthat period. There are no Government contribu-tions for that pay period. When part-time em-ployees become full-time employees in themiddle of a pay period, the Federal EmployeesGroup Life Insurance Handbook for Personneland Payroll Offices (reference (x)) requires theamount to be withheld for basic life insurance tobe based on the amount of insurance last in forcefor the employee during the pay period (that is,the full-time rate).

b. Part-time Rates. For lifeinsurance purposes, the annual pay for a part-time employee is the basic pay applicable to hisor her tour of duty in a 52-week work year. Forexample, an employee whose pay is $22,692 perannum but is employed half-time would have anannual pay for insurance purposes of $1 1,346 Ifan individual is employed on a part-time basis inmore than one Federal agency and is eligible forFEGLI coverage in one of the positions under theFederal Employees Group Life Insurance Hand-book for Personnel and Payroll Offices, Subchap-ter S3 (reference (x)), the agency which pays thehigher of the salaries must contact the otheremploying office, confirm the salaries paid, andassume responsibility for withholding all of therequired premiums from the salary which theypay. The agency which pays the highest salaryto the individual must also provide the Govern-

ment contribution for basic insurance based onthe aggregate amount of basic coverage theemployee has from all covered positions. Thiswill eliminate the need for the other employingoffice to make partial withholdings and Govern-ment contributions.

070302. Intermittent Employment. See FPMChapter 340, Subchapter 4 (reference (am)). This. .is nonfull-time employment in which employeesserve under an excepted or competitive serviceappointment without a regularly scheduled tourof duty. An intermittent work schedule isappropriate for a position in which the nature ofwork is sporadic and unpredictable so that atour of duty cannot be regularly scheduled inadvance. Intermittent employees are paid onlyfor hours worked. Intermittent employees areentitled to overtime.

A. Pay Gross basic pay is computedby multiplying the employee’s hourly rate of payby the total of the hours worked during the payperiod. Intermittent employees are not eligiblefor holiday pay. Wage board intermittent em-ployees are eligible for night shift differential;however, General Schedule intermittent employ-ees are not eligible for night differential unlesstemporarily assigned to a regular tour of dutywith night work.

B. Leave. Intermittent employees donot accrue annual or sick leave. When part-timeor full-time employees are changed to intermit-tent, unused sick leave is held in abeyance untilemployees return to a scheduled tour or separateand forfeit the leave after a 3-year break inservice. Any unused annual leave is paid as alump sum, except in a situation involving acontinuing program under which employees arerequired to return to full-time or part-timeemployment after a period of intermittent em-ployment (i.e. student trainee).

C. Deductions

1. Retirement. Intermittent em-ployees are not eligible for retirement coverageexcept when the intermittent employment fol-lows employment in a covered position andthere has not been a break in service of more


than 3 days. Intermittent employees are subjectto Social Security and Medicare deductions.

2. Health Insurance. Intermittent employees are not eligible for health insur-ance coverage except when the intermittentemployment follows employment in a coveredposition and there has not been a break inservice of more than 3 days.

3. Life Insurance. Intermittentemployees are not eligible for life insurancecoverage except when the intermittent employ-ment follows employment in a covered positionand there has not been a break in service ofmore than 3 days and the employee is expectedto return to a covered position (FPM Chapter340, paragraph 4-3b) (reference (am)). Theannual pay for intermittent employees is theannual rate which they were receiving at the endof the pay period or in the event of death ordismemberment, the annual rate they werereceiving at the time of death or accident. Forexample, if an intermittent employee is paid$7.65 per hour, the employee’s annual rate ofpay fried by law is $15,966 (7.65 X 2,087 =$15,966). If such an employee works only 2 daysor 16 hours during a particular pay period, theannual rate of pay for insurance purposes isbased on actual time worked during that payperiod. In this example, $3,193 is the annual rateof pay for insurance purposes (.20 X $15,966 =$3,193 /yr). However, insured employees whoseannual pay is $8,000 or less are covered for theminimum $10,000 of basic insurance.

070303. Seasonal Employment. Seasonal em-ployment is defined as recurring periods of worklasting less than 12 months each year (FPMChapter 340, Subchapter 2) (reference (am)).Seasonal employees are placed in nonduty/ non-pay status and recalled to duty in accordancewith preestablished conditions of employment.

A. Pay. Gross basic pay is computedby multiplying the employee’s hourly rate of payby the total of the hours worked and the hoursof paid leave during the pay period,

B. Leave. Seasonal employees earnleave during the time in pay status and duringthe first 80 hours in nonpay status each year.

C. Deductions. Regularly scheduledseasonal employees under career or career-conditional appointments expected to work atleast six months per year, are subject to deduc-tions (such as, retirement, health insurance, andlife insurance) on the same basis as full-timeemployees while in a pay status.

070304. On-Call Employment. See FPM Chap-ter 340, Subchapter 3 (reference (am)). On-callemployment is employment on an as-neededbasis during periods of heavy workload, with anexpected cumulative service period of at least 6months in pay status each year. On-call employ-ees work on regularly scheduled tours of dutywhile in a pay status, and subject to workload,are placed in a nonpay status, and are recalled toduty in accordance with preestablished condi-tions of employment.

A. Pay. Gross basic pay is computedby multiplying the employee’s hourly rate of payby the total of the hours worked and the hoursof paid leave during the pay period.

B. Leave. On-call employees earnleave during the time in a pay status and duringthe first 80 hours in nonpay status each year.

C. Deductions. On-call employeesunder career or career-conditional appointmentsare subject to deductions (such as retirement,health insurance, and life insurance) on the samebasis as full-time employees.

070305. Piecework Employees. General author-ity for scheduling work and excusing absences ofpiecework employees are granted under 5 U.S.C.6101 and 6104 (reference (b)), and 56 Comp. Gen.393 (1977) (reference (p)). Piecework employeesexcluded from health insurance coverage areemployees paid on a piecework basis exceptthose whose work schedule provides for regularor full-time service or for part-time service witha regular tour of duty. Refer to FPM Supple-ment 532-1 (reference (r)) for information onpiece rate schedules. For life insurance purpos-es, the annual pay for a pieceworker is the totalbasic earnings exclusive of premium earnings forovertime or holidays, for the previous calendar(52-week) year. Whenever the piecework ratechanges, annual pay is adjusted by applying the

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percentage increase or decrease in rate. If thepieceworkers had LWOP during the year, theyear’s earnings or adjusted earnings are dividedby the number of days for which they were paid(work and leave with pay) and the average dailyrate so obtained multiplied by 260 to determineannual pay. For new employees, use the firstyear's annual pay during the previous calendaryear for pieceworkers doing similar work intheir group, subject to any further adjustment ofthe average during the first year. Unless cov-ered by an exception, employees paid on apiecework basis, except those whose workschedule provides for regular or full-time ser-vice, are excluded from retirement coverage byOPM regulation. See 5 C.F.R. 831.201(a) (refer-ence (1)) and the CSRS and FERS Handbook forPersonnel and Payroll Offices (reference (ac)).

0704 REEMPLOYED ANNUITANTS

070401. General

A. Employees Retired from Competi-tive Service

1. Regulations Governing Reem-ployment. Instructions governing the reemploy-ment of employees retired from the regularcompetitive service under CSRS and FERS arecontained in the CSRS and FERS Handbook forPersonnel and Payroll Offices (reference (ac)).At the time of appointment, an SF 2806/3100 isprepared for each new employee subject to theCSRS or FERS, except for a reemployed annu-itant who may qualify for a supplemental annu-ity as defined in the CSRS and FERS Handbookfor Personnel and Payroll Offices (reference (ac)),when Chapters 100-102 are published. In thatcase the SF 2806/3100, showing service historyonly, is prepared at the time of separation.

2. Disabled Annuitants WhoRecover Before Reaching Age 60. Annuitypayments shall be discontinued during theirreemployment and retirement deductions shallbe taken from their salary.

3. Annuitants InvoluntarilySeparated (for Reasons Other than Age. Whentheir reemployment is subject to a retirementsystem, the annuity payments shall be discontin-

ued and deductions shall be taken from theirsalary. When their reemployment is not subjectto the retirement system, annuity payments shallbe continued, the agency shall reduce theemployee’s pay by the amount of the annuity,and no retirement deductions shall be taken. Seethe CSRS and FERS Handbook for Personnel andPayroll Offices (reference (ac)).

4. All Other Reemployed Annu-itants. Annuity payments shall be continuedduring their reemployment. The agency shallreduce the employee’s pay by the amount of theannuity, and no retirement deductions shall betaken from their salary. See the CSRS and FERSHandbook for Personnel and Payroll Offices(reference (ac)).

B. Former Members of Congress

1. Continued Annuity. UnderP.L. 86-604 (reference (e)), the retirement annuityof former members of Congress shall continuewith no resulting increase, when reemployed bya Government Agency subsequent to December31, 1958. Such reemployment shall be in anappointive position on an intermittent servicebasis with compensation, or on a full-time orsubstantially full-time basis without compensa-tion (5 U.S.C. 8344(d)) (reference (b)).

2. Notice to OPM. OPM Retire-ment and Insurance Programs, Annuitant Servic-es Division, Washington, DC 20415, shall benotified immediately of the name of any formermember of Congress when employed in anappointive position on an intermittent servicebasis with compensation or on a full-time orsubstantially full-time basis without compensa-tion.

070402. Reimbursement to the Office of Person-nel Management For Annuity Paid to RetiredCivil Service Employees While Reemployed

A. General. Activities employingretired Civil Service employees, whose annuitycontinues d uring reemployment, are required toreimburse the Civil Service Retirement andDisability Fund for the gross amount of theannuity paid by OPM allocable to the period ofactual employment. The payment to OPM is

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shown on DD Form 592 as “Annuitants Cost toOPM.”

B. Reimbursement. The grossamount of annuity paid by OPM to reemployedannuitants, applicable to each pay period, shallbe entered on the SF 2812. This will serve as aschedule of voucher deductions. The completedSF 2812 is forwarded to OPM. In addition toother items, this form must show the agency’s 8-digit payroll office number, the pay period fromand to dates and the amount being remitted.

C. Separation of Reemployed Annu-itant. Upon separation of a reemployed annu-itant, OPM shall be notified. Each notice shallcontain the annuitant’s name, date of birth, SSN,retirement claim number (if available), and dateof separation. In the event an annuitant iseligible for a supplemental annuity the civilianpayroll office shall prepare an SF 2806/3100,listing all service subsequent to retirement. TheSF 2806/3100 should be forwarded to OPM asprovided in the CSRS and FERS Handbook forPersonnel and Payroll Offices, Chapter 41 (refer-ence (ac)), together with the annuitant’s new SF2801, “Application for Immediate Retirement-CSRS,” or SF 3107, “Application for ImmediateRetirement-FERS.”

070403. Prorating Annuities for AppropriateReductions of Wage and General ScheduleSalaries

A. General. Upon reemployment, thecivilian personnel office provides the SF 50 datato the civilian payroll office as to the amount ofannuity being received by a reemployed annu-itant.

B. Employees Retired from theCompetitive Service. Reemployed annuitantswho retain their annuities shall have their sala-ries reduced by a sum equal to the retirementannuity allocable to the period of actual employ-ment. The appropriate reduction and adjustedsalary shall be determined as follows:

1. Annuitants reemployed on anannual pay basis shall have their per annumsalary reduced by the amount of the annualannuity. The remainder of their salary is com-

puted in amounts payable on a biweekly payperiod basis. Payment for overtime worked isbased on an annuitant’s full rate of basic paybefore any reduction by the amount of theirannuity.

2. Annuitants reemployed on anhourly pay basis shall have their daily or hourlyrate of pay converted to the per annum equiva-lent. The per annum rate reduced by the totalamount of the annuity being received by theemployee. The remainder shall be reconvertedto a per diem or per hour rate, as appropriate.

3. The civilian payroll officeadjusts the reimbursement to OPM followingincreases in an annuity as provided in the CSRSand FERS Handbook for Personnel and PayrollOffices (reference (ac)), and OPM instructionsissued with periodic cost-of-living adjustments.

C. Former Members of Congress.Former members of Congress who are employedin an appointive position on an intermittentservice basis and who retain their annuities shallhave their salaries reduced by a sum equal to theretirement annuity allocable to the period ofactual employment. The amount of annuityallocable to each pay period shall be processedas a payroll deduction rather than as a reductionin pay period earnings as is the case with reem-ployed competitive service annuitants There-fore, annuities withheld shall not reduce earn-ings for tax and other purposes. Annuitieswithheld in the case of former members ofCongress shall be remitted to OPM as prescribedin paragraph 070402.

070404. Processing. Retirement deductions areoptional for CSRS reemployed annuitants, andthere is no requirement for a matching Govern-ment contribution. However, retirement deduc-tions are required for FERS reemployed annu-itants, and Government contributions are alsorequired. These deductions are computed on thereemployed annuitant’s basic pay before anyoffset due to receipt of an annuity Deductionsfor Medicare (CSRS employees) or Social Securi-ty/Medicare (FERS employees) are computed onthe amount remaining after subtraction of theannuity offset, in accordance with SSA guidance.Federal, State, and local taxes are computed on

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the amount remaining after subtraction of theannuity offset. TSP contributions are computedfor a reemployed annuitant using the base salaryprior to the salary offset for the annuity (TSPBulletin 87-31) (reference (ak)). Sick leave re-ported to OPM cannot be recredited upon reem-ployment (5 C.F.R. 630.407) (reference (1)).

070405. Comaputaton of Lump-Sum Leave Pay.Under the provisions of 5 U.S.C. 8344 (reference(b)), the lump-sum payment for unused annualleave due a reemployed annuitant upon separa-tion, including those retired from the competitiveservice and former members of Congress, shallbe computed on the basis of the employee’swage or salary rate fixed for his or her positionor occupation without reduction for the amountof annuity received by the employee.

0705 DECEASED EMPLOYEES

070501. General. See 5 U.S.C. 5581-5583 (refer-ence (b)). An SF 1152, “Designation of Beneficia-ry Unpaid Compensation of Deceased CivilianEmployee,” and an SF 1153, “Claim for UnpaidCompensation of Deceased Civilian Employee,”are forwarded by the civilian personnel office tothe civilian payroll office. Deceased civilianemployees include former employees who dieafter separation from the employing installationand before receipt of final pay and allowances.Unpaid compensation includes all pay, allowanc-es, or other amounts due at the time of death,such as:

A. Current salary (including anyretroactive salary).

B. Savings bonds (if no co-owner orbeneficiary was designated) and savings bondbalance.

C. Unclaimed or uncashed checks. Acollection voucher is required to be prepared fornon-negotiated returned checks.

D. Cash awards.

E. Foreign and nonforeign areadifferentials and allowances.

F. Lump-sum annual leave payment.

G. Travel reimbursement.

H. Severance pay.

070502. Payment. Upon notice of the death ofa civilian employee, the civilian payroll officetakes action to prepare an SF 1154, “PublicVoucher for Unpaid Compensation Due a De-ceased Civilian Employee,” to permit promptpayment of the amounts due. In accordancewith GAO regulations issued pursuant to 5U.S.C. 5581-5583 (reference (b)), in certain in-stances the amounts due may be paid directly asindicated on the SF 1153 from the civilian per-sonnel office. However, in certain other instanc-es outlined in paragraph 070502.B., the amountsdue may only be made after being authorized bythe GAO on the basis of claims forwarded to theGAO.

A. Direct Paymemt. Direct paymentis permitted to claimants legally entitled to suchpayments. When paying more than one benefi-ciary, the civilian payroll office shall apply per-centages due each beneficiary as specified by thedeceased. If the deceased did not specify anypercentages, the civilian payroll office shalldivide the total amount equally among theeligible claimants. The legal claimants are deter-mined based on the following order of prece-dence:

1. The beneficiary or beneficia-ries designated by the employee in writing toreceive such compensation. The designationmust have been filed with the employee’s em-ploying activity prior to the employee’s death

2. The widow or widower of theemployee;

3. The child or children of theemployee, and descendants of deceased childrenby representation

4. The parents or survivingparent of the employee;

5. The duly appointed legalrepresentative of the estate of the employee, or ifnone, the person or persons entitled under thelaws of the domicile of the employee.

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B. Payment After GAO Certification.Certain claims are sent to the Claims Division of

GAO for certification before payment is made.After GAO certifies the SF 1154, it is returned tothe civilian payroll office for payment. Theseinclude claims when:

1. Doubt exists as to the amountor validity of the claim;

2. Doubt exists as to the personor persons properly entitled to payment;

C. Submission for GAO Certification.For those claims required to be settled by GAObefore payment, the civilian payroll office shall:

1. Write a letter of transmittal tothe office identified in paragraph 060401. Thefollowing shall be included:

a. Statement regardingdesignation of beneficiary.

b. Reason why referral toGAO is recommended. As appropriate, citeunusual circumstances surrounding the death ofthe employee, or eligibility of the claimant(s) toreceive the unpaid compensation.

c. Amount and nature ofindebtedness, if any.

d. Statement that the claimhas not been and will not be paid until certifiedin the name of the Comptroller General.

2. Attach the following to theletter of transmittal:

a. Original, with the requirednumber of copies, of the SF 1154 and sub-vouchers. On the SF 1154 in the block for thename of the payee, place the phrase “ PaymentAfter GAO Certification”.

b. Certified copy of the leaverecord.

c. Copy of time and atten-dance report for the period covered by the voucher.

070503. Computation of Amount Due. Payearned through the date of death and lump-sumpayment for unused annual leave shall be com-puted and shown on a regular biweekly payrolldisbursement voucher or a special payroll vouch-er with a charge to the applicable appropriationand other applicable accounting information.The following instructions govern deductionsfrom unpaid salary:

A. Retirement. If the employee wascovered by a retirement system deduct theretirement contribution from unpaid salaryearned through the date of death.

B. Social Security and MedicarePortions of the FICA Tax. If the employee wassubject to Social Security/Medicare, deduct forS o c i a l S e c u r i t y / M e d i c a r e t s a l a r yearned before the date of death and from lump-sum payment for unused annual leave earnedafter December 31, 1950 (IRS Circular E) (refer-ence (i)). Gross wages earned in the calendaryear through the date of death, subject to thestatutory limitation, are subject to Social Securi-ty/Medicare. Social Security/Medicare taxeswill be withheld on wages paid to a beneficiaryor to the estate of the deceased employee in thecalendar year of death. If payment is made afterthe calendar year of death, such wages areexempt from social Security /Medicare taxes.

C. Federal Income Tax. Do notdeduct FITW from unpaid salary earned by anemployee through the date of death (IRS Circu-lar E) (reference (i)).

D. State Tax. Do not deduct with-holding for State (Territory, District of Columbia)income tax from the unpaid salary and lump-sum leave earned by an employee through thedate of death.

E. Local Tax. Do not deduct with-holding for local taxes from the unpaid salaryand lump-sum leave earned by an employeethrough the date of death.

F. FEHB. If the employee had premi-um withholdings for FEHB, and there is a survi-vor eligible to continue the enrollment, makewithholdings and contributions for the periods

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for which pay is due. This includes the payperiod during which death occurred, subject tothe applicable 4-day rule provisions in subpara-graphs 040802.B.8. and 040802.B.10.

G, FEGLI. If the employee wassubject to FEGLI, deduct for premiums for theperiods for which pay is due, including the payperiod during which death occurred.

H. Savings Bonds. Do not deduct forsavings bonds from unpaid wages nor issuebonds after date of death.

L TSP Deductions for TSP and forany TSP loans outstanding will be made.

J. Allotments. Make no deductionfor the pay period in which death occurred.

K. Other Deductions. Make anyadditional deductions required under specificcases, such as indebtedness.

070504. Lump-Sum Payment for AccruedLeave. Do not deduct retirement, Federal, State,or local income tax, health benefits, life insur-ance, or savings bonds from lump-sum payment.

070505. Preparation of the Withholding TaxStatement

A. Decedent Form W-2. Includegross amounts for final pay for the pay period ofdeath and lump-sum annual leave payments as“Social Security Wages” or “Medicare Wages andTips” only if these amounts are paid to the estateor beneficiary in the same year as the death ofthe employee occurs. Do not include grossamounts for final pay for the pay period ofdeath or lump-sum annual leave payments as“Wages, Tips, Other Compensation on thedecedent’s Form W-2.

B. Form 1099-MISC. Prepare anForm 1099-MISC for amounts payable to thedecedent’s estate or beneficiary(s). Include in‘Prizes, Awards, Etc.” the gross amounts for finalpay for the pay period of death, lump-sumannual leave, and other monies such as travelreimbursements received,

C. Federal Income Tax. Deceasedemployee’s unpaid wages are not subject toFederal income tax withholding in either thecalendar year in which the employee died orafterwards.

070506. Transfer of Funds. The unpaid com-pensation is placed in deposit fund account --X6875 (Suspense) pending receipt of a claim forthe compensation. If a claim has not beenreceived within 1 year from the date the amountwas placed in the deposit fund account, transferthe funds as follows:

A. Transfer to deposit fund account20X6133 (Payment of Unclaimed Monies) unpaidcompensation that meets the following criteria:is $25 or more; a refund, upon claim, would beabsolutely justified; there is no doubt as to legalownership of the funds; and a named individualcan be identified with the item. Subsequentpayment of claims from this account shall bemade by preparing an SF 1154 citing account20X6133 and the account of the disbursing officerthat supports the consolidated civilian payrolloffice.

B. Transfer to miscellaneous receiptaccount -1060 (Forfeitures of Unclaimed Moneyand Property) if the claim for unpaid compensa-tion is less than $25 or amounts greater than $25which do not meet all the provisions for account20X6133. Subsequent payment of claims fromthis account shall be made by preparing an SF1154 citing account 20X1807 (Refund of MoneyErroneously Received and Recovered) and theaccount of the disbursing officer that supportsthe consolidated civilian payroll office.

070507. Processing of Agency Certification ofLife Insurance Status for Employee Death CasesWithin DoD. When an employee dies, the SF2821, “Agency Certification of Insurance Status,”is processed under the guidance in the FederalEmployees Group Life Insurance Handbook forPersonnel and Payroll Offices (reference (x)).The two certifications of personnel and payrollrecord data on the SF 2821 cannot be made bythe same official. To help reduce the time survi-vors or beneficiaries must wait on insurancebenefits from the Office of Federal Employees’Group Life Insurance, the following expedited

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processing of SF 2821 shall be accomplishedwithin DoD.

A. For collocated civilian personneloffices and civilian payroll offices. The civilianpersonnel office completes and forwards the SF2$21 upon notification of death of the employee,to the servicing civilian payroll office for certifi-cation. The civilian payroll offices’s certificationshall be completed and all copies of the SF 2821returned to the civilian personnel office within24 hours after receipt by the civilian payrolloffice.

B. For civilian personnel offices geo-graphically separated from civilian payrolloffices. The civilian personnel office completesand mails the SF 2821, upon notification of deathof the employee, to the civilian payroll office forcertification. The civilian payroll office’s certifi-cation shall be completed within 24 hours afterreceipt by the civilian payroll office The civilianpayrol office shall express-mail all copies of theSF 2821 back to the civilian personnel office.

0706 EXPERTS AND CONSULTANTS

070601. General. FPM Chapter 304 (reference(am)) prescribes the conditions governing em-ployment of experts and consultants. The civil-ian payroll office pays experts and consultantsbased on the SF 50 data received from the civil-ian personnel office.

070602. Compensation to be Paid. Determina-tion of the specific rate to be paid experts andconsultants, including the decision to pay nocompensation, is made on an individual casebasis. The rate for experts and consultants is notto exceed the amount authorized by the statuteunder which the individual’s services are ob-tained. Normally compensation is equivalent tosalaries in the GS-13 through GS-15 range. Theyare excluded from entitlement to interim geo-graphic adjustment and locality pay.

070603. Overtime and Limitation on Pay.Because experts and consultants generally arepaid on a daily rate basis, they are not entitled tomore than the daily rate prescribed in the ap-pointment documents for each day of serviceregardless of the number of hours worked. The

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designation of a regular tour of duty in theappointment documents does not necessarilypreclude receipt of compensation at the agreeddaily rate for work performed outside of thattour of duty -- for example, if such an employeeworks 6 days a week the 6th day is paid at thestraight time rate rather than the overtime rate.Experts and consultants employed on a dailybasis may be paid the rate of basic compensationfor work on days outside the prescribed tour ofduty, provided the compensation within anybiweekly pay period does not exceed the rate ofbasic pay for Level V of the Executive Schedule(58 Comp- Gen. 90 (1978)) (reference (p)).

070604. Salary Increases. Unless the appoint-ment documents prescribe that General Scheduleincreases under 5 U.S.C. 5305 (reference (b))automatically apply to these individuals, andwithout administrative action authorizing aconsequent increase under 5 U.S.C. 5307 (refer-ence (b)), an expert or consultant is not entitledto a pay increase on the basis of an increase inthe General Schedule. The SF 50 data from thecivilian personnel office notifies the civilianpayroll office of the proper salary increase.

070605. Holiday Pay. Unless the appointmentdocuments expressly provide for holiday pay, anexpert or consultant employed on a daily basis isnot entitled to compensation for holidays onwhich no work was performed (Comp. Gen.Decision B-131259, January 23, 1976) (reference(P)). The SF 50 data from the civilian personneloffice notifies the civilian payroll office of theproper holiday pay, by an express statement thatthe employee is entitled to holiday pay.

070606. Offset of Uniformed Services RetiredPay As required by 5 U.S.C. 5532 (reference(b)), certain former members of the uniformedservices are subject to reduction in retired pay ifemployed in the Federal service (includingexperts and consultants). The employing activityis responsible for notifying the appropriate DFASCenter which determines the amount of retiredpay, if any, to be withheld (5 C.F.R. 550.601-603)(reference (1)) (FPM Chapter 304, paragraph l-6i)(reference (am)).

070607. Exception from Dual Pay Restriction.Generally, an individual is prohibited by statute


from receipt of basic pay from more than oneposition for more than an aggregate of 40 hoursof work in one calendar week. Under oneexception to this restriction, an individual isentitled to pay for service on an intermittentbasis from more than one consultant or expertposition, provided the pay is not received for thesame hours of the same day per 5 U.S.C.5533(d)(1) (reference (b)).

070608. Annual and Sick Leave

A. An expert, consultant, or otheremployee who serves on an intermittent or otherbasis without a prearranged regular tour of dutydoes not earn annual and sick leave (5 U.S.C.6301(2)(ii)) (reference (b)).

B. An expert, consultant, or otheremployee who serves on a regularly prescribedtour of duty, full-time or part-time, does earnannual and sick leave. The civilian personneloffice should determine the regular tour of dutyin advance and should annotate the appointmentdocument specifically to show whether theemployee earns leave (58 Comp. Gen. 167 (1978))(reference (p)) and (5 C.F.R. 630) (reference (1)).The accrual rate is the same as for other full-timeand part-time Federal employees as discussed in5 C.F.R. 630 (reference (1)).

070609, Retirement, Life Insurance, and HealthBenefits. An expert, consultant, or other employ-ee whose service is intermittent or temporary for1 year or less is not covered under the retirementsystems and is ineligible for life insurance andhealth benefits. However, if an employee cur-rently covered by retirement, life insurance, orhealth benefits is appointed as an intermittent ortemporary (full-time or part-time) expert orconsultant without a break in service or after aseparation from the service of 3 days or less,coverage is continued. To continue life insur-ance coverage for an intermittent employee,there must be an expectation that the employeewill return to the previous position on a full-timebasis.

0707 LEGALLY INCOMPETENT EMPLOY-EES

070701. General. The civilian personnel officenotifies the civilian payroll office in writingwhen an employee is found to be legally incom-petent. The civilian personnel office also sendsthe civilian payroll office the SF 50 data thatshows the employee’s separation because ofmental incompetence. The employee may alsobe on an extended leave of absence of which thecivilian personnel office must inform the civilianpayroll office. The civilian payroll office makesno payments to the employee once it has beeninformed that the employee is declared legallyincompetent. A claim must be filed on theemployee’s behalf before the pay account can besettled. No specific form is required to file aclaim for amounts due mentally incompetentemployees or former employees. The claim mustbe filed in writing over the signature of theperson claiming on behalf of the incompetent. Ifthe claim is from other than a guardian orcommittee, the Office of General Counsel shouldbe consulted prior to making payment.

A. Guardian or Committee. Theinitial claim filed by the guardian or committeeof the estate of a legally incompetent employeemust be accompanied by a certificate of the courtshowing the appointment and qualification ofthe claimant as guardian or committee. After thefirst payment has been made, subsequent recur-ring payments may be made to the same payeewithout further claim as long as the appointmentas guardian or committee remains in effect andthe matter is otherwise free from doubt. Subse-quent payment vouchers will include a citationto the voucher upon which the initial claim waspaid.

B. Other than Guardian or Commit-tee. If a guardian or committee has not been orwill not be appointed, the initial claim must besupported by a sworn statement showing:

1. The claimant’s relationship tothe legally incompetent employee, if any

2. The name and address of theperson having care and custody of the legallyincompetent employee;

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3. That any amount paid to theclaimant shall be applied only to the use andbenefit of the legally incompetent employee;

4. That the appointment of aguardian or committee is not contemplated.

070702. Claim Action. Upon receipt of a claim,consider the proposed date of separation todetermine whether compensation is due current-ly or a payroll voucher for final settlementshould be processed. To avoid invalid paymentswhen the employee is carried on extended paidleave, the civilian personnel office will monitorthe case for any changes in the employees condi-tion, and advises the civilian payroll officeimmediately. File the claim in the employee’sfile of documents.

070703. Processing Claims. The civilian payrolloffice may pay claims for unpaid amounts duelegally incompetent employees unless it doubtsthe amount or validity of the claim or it doubtsthe claimant’s proper entitlement to the payment.

A. Any unclaimed, undelivered, oruncashed salary checks drawn in favor of theemployee are to be returned to the disbursingofficer for cancellation and credit to the appro-priation or fund originally charged.

B. The net amount of any returnedcheck is to be posted to the pay record. Adjust-ment of the items originally deducted from thegross pay is not required if the proceeds of thecheck are due the employee. If the proceeds ofthe check are not due, prepare an SF 1098,“Schedule of Canceled or Undelivered Checks,"to cancel the check and make proper adjustingentries for the deductions from gross pay.

C. Compute the amount to be paid tothe claimant. Process any further payments duethe employee each pay period in the regularpayroll cycle; for example, payments due whenthe employee is carried on sick leave.

1. Prepare a statement for allarrears of pay due. Include the net amount ofany uncashed checks if the proceeds are due.

2. Enter the following on thepayroll voucher (such as the DD Form 592,under “OTHER”):

a. ‘Mentally IncompetentEmployee.” In addition, enter the name of theproper claimant and capacity in which serving,followed by the name and SSN of the mentallyincompetent employee.

b. Citation of the designat-ed deposit fund account.

c. Amount due the claim-ant.

3. On receipt of a properlyexecuted claim and/or court certificate, preparean SF 1049 to effect the disbursement of thefunds from the deposit fund account designatedon the payroll voucher to the claimant. Theclaimant’s name and address appear on thevoucher along with the employee’s name andSSN, and the pay period. The voucher is for-warded to the disbursing officer for payment.

4. Forward a copy of the pro-cessed voucher to the claimant. A copy shouldalso be filed in the employee’s file.

5. Include in the final paymentany lump-sum payment for annual leave, refundof bond balances, and any other salary amountto which the employee is entitled.

6. Record in the payroll recordsthe official date that the employee is declaredlegally incompetent. Also, the name and addressof the claimant shall be recorded in the payrollrecords.

070704. Processing Doubtful Claims for GAOCertification. Doubtful claims shall be submittedto GAO following the procedures outlined insection 0604.

A. Prepare the voucher for the netamount due a mentally incompetent employeeper paragraph 070703. This voucher (along withthe required number of copies) is sent to GAO.After GAO certifies the voucher, it will be re-

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turned to the submitting DFAS Center for pay-ment.

B. Enter “Local Payment After GAOCertification” on the face of the voucher. GAOadds the name and legal capacity of the claimanton the voucher.

C. Certify the voucher and attach thefollowing:

1. Claimant’s legal authoriza-tion, including any certificate of the court show-ing appointment and qualifications of the claim-ant.

2. Claim from the claimant (suchas letter from the guardian, administrator, etc.)

3. Statement of the doubtfulaspects and the reason the civilian payroll officerecommends referral of the claim to GAO.

4. Certificate stating that theclaim has not been and will not be paid untilcertified in the name of the Comptroller General.

D. Retain a copy of the voucher andsupporting documents in the employee’s file.

0708 MISSING PERSONS, CAPTURED ORINTERNED

070801. General. Civilian personnel who areofficially determined to be missing are entitled tocontinued pay and allotments from their payunder the Missing Persons Act (5 U.S.C. 5561-5568) (reference (b)) and the Terrorism Compen-sation Act (5 U.S.C. 5569) (reference (b)). Miss-ing status includes persons:

A.

B.

c.

D.

Missing;

Missing-in-action;

Interned in a foreign country;

Captured, beleaguered, or be-sieged by a hostile force;

E. Detained in a foreign countryagainst the employee’s will.

070802. Actions by the Civilian Payroll Office.

A. Upon receipt of an official deter-mination that a civilian employee is in a missingstatus, return any unclaimed or uncashed checksto the disbursing area.

B. The civilian payroll office retainsresponsibility for the employee’s pay, leave andretirement records.

C. The initiation, continuance, discon-tinuance, increase, decrease, suspension, orresumption of an allotment from the pay andallowances of an employee in a missing status, isauthorized when that action is in the interests ofthe employee, the dependents, or the UnitedStates (5 U.S.C. 5563) (reference (b)). Such allot-ments shaIl comply with section 0414.

1. Allotments authorized by anemployee before the missing status began arenormally continued for the period of absence.

2. The missing employee’sdependents may receive an allotment of theemployee’s pay. Dependent payments cannotexceed the employee’s net pay. However, theneeds of the dependents, the number of depen-dents and their relationship to the employeeshould be considered when determining thepayment amount. If possible, reserve a reason-able amount each pay period to ensure that theemployee will have funds available upon return.

D. The pay and allowances of amissing employee in a captive status may beallotted to an interest bearing savings fundestablished by the Secretary of the Treasury (5U.S.C. 5569) (reference (b)). Captive statusmeans a missing status which, as determined bythe President, arises because of a hostile actionand is a result of the individual’s relationshipwith the Government. All or any portion of theemployee’s pay and allowances may be allottedto the extent that such pay and allowances arenot subject to an allotment under 5 U.S.C. 5563(reference (b)) as outlined in paragraph 070802,C.

E. Maintain the pay account on apay-period basis. Include normal deductions forretirement, FICA, Federal and State income tax

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withholding, FEHB, FEGLI, and savings bonddeductions in the totals for the regular payrollvoucher. Schedule savings bonds for issuancewhen the full purchase price has been deductedon the individual pay record. Savings bonds aremailed to the person(s) in whose name(s) thebonds are registered. If not mailable, they arekept in safekeeping at the DFAS Center.

F. Establish a special leave account torestore any annual leave forfeited by an employ-ee while in a missing status after January 1, 1965.

070803. Termination of Absence. Do not sepa-rate employees while they are entitled to payand allowances under the Missing Persons Act (5U.S.C. 5561-5568) (reference (b)).

A. When an employee returns from amissing status, the civilian payroll office prompt-ly vouchers the balance withheld from theemployee and furnishes a resume of allotmentsstarted and paid in the employee’s absence.Charge the accounting classification that wascurrent when the pay accrued. The employeeinitiates any allotment discontinuances or changedocuments for any allotments which may havebeen started or changed during the absence. Thecivilian payroll office pays future salaries usingnormal payroll procedures.

B. When the employee returns frommissing status, furnish a statement of the specialleave account balance to the employee’s civilianpersonnel office. The employee elects in writingwhether payment or credit for the leave is de-sired. If payment is requested, make the pay-ment at the employee’s rate of pay in effectwhen the leave was forfeited.

C. Upon receipt of official notice ofthe employee’s death or presumed death, takeactions outlined in section 0705.

D. Charge the pay adjustment or finalsettlement, including local allotment payments todependents, to the appropriated fund accountwhich bore the employee’s salary.

0709 EMPLOYEES TRANSFERRED TOINTERNATIONAL ORGANIZATIONS

070901. General. Under 5 C.F.R. 352.301-352.314 (reference (l)), an employee who trans-fers to an international organization (IO) mayelect to keep coverage for CSRS, FEGLI, andFEHB. Refer to subparagraphs 070901.A. and070901.B. for TSP contributions. The employeeis required to deposit the amount of the employ-ee payments for these programs with the civilianpayroll office. Employer contributions for retire-ment, insurance, and health benefits coverage arepaid by the employee’s employing activity. Thecivilian personnel office notifies the civilianpayroll office in writing when a transferredemployee wishes to keep any one or all of thesebenefits.

A. CSRS and CSRS-Offset employeeswho transfer to an IO can continue their CSRSretirement coverage. (Note: the CSRS-Offset em-ployee reverts to full CSRS coverage during thetransfer to the IO.) If an employee transferredprior to October 1, 1988, he or she can contributeto the TSP. If an employee transferred on orafter October 1, 1988, he or she cannot contributeto the TSP (5 U.S.C. 8347(o)) (reference (b)).

B. FERS employees who transfer toan IQ are eligible to continue their retirementcoverage under special procedures if they contin-ue Social security coverage (the CSRS and FERSHandbook for Personnel and Payroll Offices,Chapter 12) (reference (ac)). Since such employ-ees are covered by FERS, they can contribute tothe TSP.

070902. Computation of Payments

A. Compute amounts for retirementand FEGLI on the rate of basic compensation theemployee was receiving at the time of transfer.If these amounts are changed by law or regula-tions while an employee is serving with an IO,recompute the amounts based on notificationfrom the civilian personnel office and notify theemployee and the IO (if applicable) of the effec-tive date and new amount.

B. Compute FEHB on the cost of theplan of the employee’s choice, If the enrollmentcost changes while the employee is serving withan IO, recompute the amount based on notifica-tion from the civilian personnel office and notify

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the employee and the IO (if applicable) of theeffective date and new amount.

C. When the SF 50 data is receivedshowing a step increase, or general pay increase,recompute the amounts due under subparagraph070902.A.

070903. Time of Payments. The civilian person-nel office advises transferred employees to makepayments promptly for each pay period. How-ever, payments are considered current if receivedwithin 3 months after the end of the pay periodcovered by the payment (5 C.F.R. 352.309(c))(reference (1)). The civilian payroll office advisesthe civilian personnel office (and carrier forFEHB) of any delayed payments. Failure todeposit payments on time ends the employee’scoverage.

070904. Accounting for Payments. A DD Form1131, “Cash Collection Voucher,” is used todeposit, into a deposit fund established for suchpurposes, amounts received either from theindividual or the employing organization An SF1081, “Voucher and Schedule of Withdrawalsand Credits,” is used to transfer the employer’scontribution, if required, from the appropriationwhich would have been charged for the employ-ee’s pay to the proper deposit fund account.Total amounts (employee payments and contri-butions) are included on the current SF 2812, orprepare supplemental, to make the total pay-ment to OPM. The employee’s SF 2806/3100 isposted with the total annual retirement costspaid by the employee. The employee’s status isshown in the Remarks section. An SF 2806 /3100is kept for the entire term of employment by theIO, unless OPM asks for it.

070905. Leave Account. Employees who aretransferred to an IO may elect to receive pay-ment for accumulated annual leave or have itremain to their credit until they return to Federalemployment. Employees may also requestpayment at any time before reemployment. Thecivilian personnel office sets the date of separa-tion to allow employees to use all accumulatedannual leave that might otherwise be forfeited.The civilian payroll office prepares and deliversan extra copy of the SF 1150 to the employee.Upon reemployment, the civilian payroll office

uses a copy of the SF 1150 to recredit sick leaveand annual leave, if applicable. If the employeeaccepts a lump-sum payment and is reemployedwithin 6 months after transfer to the IO, theemployee must refund the amount of the lump-sum (FPM Chapter 353, paragraph 3-4b) (refer-ence (am)).

070906. Equalization Allowances. Section3582(b) of 5 U.S.C. (reference (b)) authorizesemployees transferred to an IQ the payment,upon reemployment, of an equalization allow-ance if the IQ pay and other monetary allowanc-es are less than the employees would havereceived had they been detailed from theirFederal jobs (5 U.S.C. 3343) (reference (b)). Forconditions of entitlement, see 5 C.F.R. 352.310(reference (l)).

A. The equalization allowance appliesto employment with an IQ which occurs afterDecember 29, 1969.

B. Employees transferred to an IQ areentitled to be paid an amount equal to thedifference between the pay, allowances, postdifferential, and other monetary benefits paid bythe IO and the pay, allowances, post differential,and other monetary benefits that wouId havebeen paid by the Federal employer had theemployees been detaiIed to the IO under 5U.S.C. 3343 (reference (b)):

1. On reemployment, or

2. On death, if it occurs whiletransferred to, or during the period after separa-tion from, an IO when the employees are exercis-ing, or could exercise, their reemployment rights,or

3. If the employees cannotexercise their reemployment rights because of adisability incurred while transferred to an IO.

C. To determine the difference, theSecretary of State defines pay for the FederalGovernment as the amount paid an employeeafter deductions of Federal, State, and local taxes(5 C.F.R. 352.310(a)(l)) (reference (1)). Pay forIQs following the Common System of Salariesand Allowances of the United Nations and

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Specialized Agencies is the amount paid anemployee after deduction of the staff assessment.Pay for other IQs is the tax-free pay plus a prorata amount equal to the corresponding UnitedNations staff assessment. In cases when pay issubject to Federal, State, and local taxes, this isthe pay before deduction of the taxes.

D. Allowances, post differential, andother monetary benefits are defined by theSecretary of State as follows:

1. Federal Government. Theamount that would have been paid under 5U.S.C. 5921-5925 (reference(b)), applicable provi-sions of Chapters 100, 200, and 500 of the DSSR(reference (t)), and implementing agency regula-tions had the employees been detailed to an IOunder 5 U.S.C. 3343 (reference (b)).

2. IQs Following the CommonSystem of Salaries and Allowances of the UnitedNations and Specialized Agencies. The amountpaid under pertinent provisions of the StaffRegulations and Rules of the United Nations andSpecialized Agencies.

3. Other IQs Not Under theCommon System of Salaries and Allowances ofthe United Nations and Specialized Agencies.The amount paid under pertinent conditions ofservice applied by the organizations as deter-mined to be appropriate by the releasing agencywith the concurrence of the Secretary of State.

E. Travel and subsistence expenses,transportation of effects, and leave are not con-sidered monetary benefits for equalization allow-ance.

F. In exceptional circumstances whena hardship or an inequity would otherwiseoccur, the Secretary of State, on the recommen-dation of the head of the agency, may specifyallowances or other monetary benefits instead of,or in addition to, those specified above.

G. The payment of equalizationallowance is chargeable to the appropriationcurrent at the time of disbursement and is sub-ject to Federal and State income tax deductions.

0710 EMPLOYEES TRANSFERRED TOSTATE, LOCAL, OR INDIAN TRIBAL GOV-ERNMENTS OR TO INSTITUTIONS OF HIGH-ER EDUCATION AND OTHER ELIGIBLEORGANIZATIONS

071001. General. Part 340 of 5 C.F.R. (reference(1)) contain information regarding temporaryassignment of employees between executiveagencies and States, local governments, IndianTribal Governments, institutions of higher educa-tion, and other eligible organizations. Anemployee’s pay and leave provisions are in theemployee’s assignment agreements. If procedure-al problems arise in complying with the assign-ment agreements, contact the civilian personneloffice.

071 1 EMPLOYEES WHOSE WHERE-ABOUTS ARE UNKNOWN

071101. General. In the event an employee’swhereabouts is unknown and payment cannot bemade to the employee, the amount should betransferred to a suspense account. If the moneyis still unclaimed after 1 year, transfer theamount to the deposit fund account 20X6133(Payment of Unclaimed Monies).

0712 AIR TRAFFIC CONTROLLERS

071201. Retirement. Air traffic controllers havea unique retirement deduction percentage forCSRS and FERS employees. These rates arepublished by OPM (the CSRS and FERS Hand-book for Personnel and Payroll Offices, Chapters30 and 46) (reference (ac)).

071202. Leave. Leave accruals are based onguidelines published in 5 C.F.R. Part 630 (refer-ence (1)).

071203. Overtime Computation. For an em-ployee who occupies a non-managerial position,the overtime rate of pay is an amount equal toone and one-half times the hourly rate of basicpay of the employee. The entire amount isconsidered premium pay. To be eligible for suchpay, the duties of a non-manager’s position mustbe critical to the immediate daily operation ofthe air traffic control system, directly affect

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aviation safety, and involve physical or mentalstrain or hardship

0713 PERSONNEL ON LONG TERM FULL-TIME TRAINING

071301. General. Long term full-time trainingis defined as a training period of 120 consecutiveworkdays or more (5 U.S.C. Chapter 41) (refer-ence (b)) (5 C.F.R Part 410) (reference (l)). Em-ployees on long term full-time training areauthorized payment of salary.

071302. Leave. Leave is reported via the timeand attendance reporting mechanism and isadministered as follows:

A. Annual Leave. Personnel on longterm full-time training shall continue to accrueannual leave. Ordinarily, an employee will becharged with annual leave during school vaca-tion periods which fall on Government work-days, unless he or she returns to the work site orhas made documented arrangements with his orher DoD point of contact to be actively involvedin academic work. These documented arrange-ments should be accomplished well in advanceof the vacation periods. Annual leave chargesare reported to the civilian payroll office on theemployee’s time and attendance report.

B. Sick Leave. Personnel on longterm full-time training shall continue to accruesick leave. Sick leave should be charged whenthe person is unable to attend classes due toillness. Such sick leave charges are reported tothe civilian payroll office on the employee’s timeand attendance report.

0714 EMERGENCY MEDICAL TECHNI-CIANS (EMT)

071401. Tour of Duty. EMTs work a specialtour of duty of 24 hours on and 48 hours off.Schedules and changes to tours of duty for EMTsworking irregular tours must be on file in theemploying activity/timekeeper site. Eating andsleeping time must also be documented. Thehourly rate is multiplied by 40 hours, and thebase pay and premium pay is based on thisweekly rate regardless of the hours in the sched-uled tour of duty for that week.

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071402. Eating and Sleeping. Adequate sleep-ing facilities must be provided for employees inorder to exclude sleep time in calculating payentitlements. If an employee cannot get anaggregate of 5 hours of sleep because of employ-ing activity-initiated interruption the entire sleepperiod is considered actual work time. For all 24hour shifts, the two-thirds rule shall apply. Thismeans that unless actual eating and sleepingtime of less than 8 hours is documented on theemployee’s time and attendance report, 8 hoursshall be deducted from scheduled hours todetermine actual hours worked. When anemployee takes 24 hours of leave, 8 hours ofeating and sleeping time for that employee arededucted from actual hours of work underFLSA. Eating and sleeping time for days ofpartial leave must be documented on the timeand attendance report so that actual hours ofwork are shown. Eating and sleeping timescheduled during leave periods shall be added tototal eating and sleeping time so that total hoursof actual work and total hours of eating andsleeping time will be shown. If an employeeworks an additional 24-hour overtime shift, 8hours of eating and sleeping time are deductedunless otherwise documented as worked. If theovertime shift is less than 24 hours, no eatingand sleeping time is deducted.

071403. Leave and Overtime. If leave is takenduring a workweek, leave hours are included asactual hours worked under FLSA. However,actual hours shall not include scheduled eatingand sleeping time for a 24-hour shift or docu-mented eating and sleeping time for partial daysof leave. Overtime computations are based on40 hours per week instead of 80 hours perbiweekly pay period.

071404. Premium Pay. The amount of thepremium pay for the irregular tour of duty shallbe determined by the civilian personnel officeand reported on the SF 50. EMTs who areemployed as intermittents are not entitled topremium pay on an annual basis, nor are theyentitled to paid leave. They are paid underregular overtime rules.

071405. Refer to FPM Letters 551-1, 551-14,551-22, and 551-24 (reference (q)) for furtherguidance.


0715 LAW JUDGES

071501. Administrative Law Judges

A. Authority. Under 5 U.S.C. 3105(reference (b)), the DoD appoints as many ad-ministrative law judges as are necessary forproceedings required to be conducted in accor-dance with 5 U.S.C. 556 and 557 (reference (b)).Administrative law judges are assigned to casesin rotation so far as practicable. These employ-ees may not perform duties inconsistent withtheir duties and responsibilities as administrativelaw judges.

B. Pay for Administrative Law Jdug-es. Section 5372 of 5 U.S.C. (reference (b)) estab-lished the administrative law judge pay system.The minimum rate for administrative law judgepositions is set at 65 percent of Level IV of theExecutive Schedule and the maximum rate is setat 100 percent of Level IV of the ExecutiveSchedule. The administrative law judge posi-tions are (lowest to highest) AL-3, Rate A; AL-3,Rate B; AL-3, Rate C; AL-3, Rate D; AL-3, Rate E;AL-3, Rate F; AL-2; and AL-1.

071502. U.S. Court of Military Appeals Judges.The U.S. Court of Military Appeals is establishedunder Article I of the United States Constitution,and 10 U.S.C. 941 through 946 (reference (ba)).The judges of the court are appointed by thePresident of the United States with the adviceand consent of the United States Senate for aterm of 15 years. The court consists of fivejudges. The court is located for administrativepurposes in the DoD. The judges are employeesas defined under 5 C.F.R. Part 213 (reference (1)).They are not considered senior officials or ad-ministrative law judges. The salaries of thejudges are equal to that of the judges of theUnited States Courts of Appeals (that is, GeneralSchedule Salary Table, Schedule 7, JudicialSalaries). The maximum annual salary is that ofLevel I of the Executive Schedule.

A. Entitlements. The judges areentitled to regular base pay only. They areexcluded from the leave provisions by 5 U.S.C.6301(2) (reference (b)). As Federal judges under5 U.S.C. 5541(2)(i) (reference (b)), they are alsoexcluded from the provisions of premium pay

under 5 U.S.C. Chapter 55, Subchapter V (refer-ence (b)).

B. Deductions

1. Judges under CSRS are re-quired to contribute 8 percent for retirement.Judges under FERS have the same deduction rateas other FERS employees. See the CSRS andFERS Handbook for Personnel and PayrollOffices, Chapter 30 (reference (at)).

2. The FEGLI for the judges isbased on Level II of the Executive Schedule.

3. The judges are subject to theSocial Security/Medicare maximum salarylimitations.

4. Judges, upon becomingeligible for retirement, may, under the provisionsof 10 U.S.C. 945(i) (reference (ba)), elect to retireeither under CSRS or FERS (if they otherwisemeet the conditions of those systems) or toreceive a retirement annuity under 10 U.S.C.Article 145 (reference (ba)).

0716 AUXILIARY CHAPLAINS

071601. General. Civilian clergy may be as-signed to perform essential religious services ofthe chapel program that are beyond the staffingCapabilities of the Armed Forces chaplains.These auxiliary chaplains normally perform theirservices on military installations, except foremergency ministrations. To serve as auxiliarychaplains, civilian clergy must be ordained oraccredited by a faith group the Armed ForcesChaplain Board recognizes. They must meetthose additional qualifications required by theArmed Forces.

071602. Appointing and Paying AuxiliaryChaplains

A. Auxiliary chaplains may be ap-pointed by the civilian personnel office on a“when actually employed” basis. They are paidon a fee basis from the employing activity'sappropriated funds for civilian personnel (suchas Operation and Maintenance funds). Thecivilian personnel office may appoint such

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chaplains under the authority of 5 C.F.R. Part213 (reference (1)).

B. Additionally, the installationcontracting office may obtain auxiliary chaplainservices under non-personal services contracts.Auxiliary chaplains placed on a non-personalservices contract are not paid through the civil-ian payroll system. They are paid throughcommercial accounts.

C. Work Schedules. Auxiliary chap-lains employed on a “when actually employed”basis have no work schedule. They are paid forreligious services performed.

D. Absence and Leave. There is noentitlement for leave.

E. Entitlements. The pay scale forauxiliary chaplains is determined by the employ-ing activity’s civilian personnel office. Becausechaplains are excluded from the definition of aGS employee in 5 U.S.C. 5102 (reference (b)),they are also excluded from the entitlement tointerim geographic adjustments. Social Securi-ty/Medicare taxes and Federal income tax with-holding are made in accordance with the taxdocuments filed by the chaplain. Social Securi-ty/Medicare taxes and Federal income tax with-holding do not apply to chaplains under non-personal service contracts.

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