Lump Sum Payment For Annual Leave Of Deceased Employees

Author : United States. General Accounting Office
Publisher :
ISBN 13 :
Total Pages : 14 pages
Book Rating : 4.:/5 (64 download)

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Download or read book Federal Civilian Personnel written by United States. General Accounting Office and published by . This book was released on 1997 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt: The cost of lump-sum payments to employees leaving the federal government totaled $562 million in 1996. Between 1985 and 1996, lump-sum payments averaged about $595 million per year. The costs ranged from a low of $355 million in 1991 to a high of $700 million in 1992, when downsizing led to large numbers of separations. The Office of Personnel Management has not provided formal written guidance on lump-sum payments since 1993, and other guidance that is available to agencies falls short of ensuring consistent agency payment practices. As a result, employees leaving different agencies with the same rates of pay and amounts of unused annual leave may not receive the same payment amount. The Congressional Budget Office estimates that agencies could save $18 million in personnel costs over five years if lump-sum annual leave payments were limited to the rate of pay at the time of separation, instead of the current method of assuming that the employee had remained in service until the entire leave balance had expired. Such a limitation would not, however, ensure consistent treatment of employees and might cause workforce disruptions if employees were forced to use all or a large part of their accumulated leave before separation.