---
kind: "section"
citation: "5 C.F.R. § 550.1206"
title: "5"
number: "550.1206"
heading: "Refunding a lump-sum payment."
url: "https://uscodex.org/cfr/5/550.1206"
---

# §550.1206. Refunding a lump-sum payment.

- (a) When an employee who received a lump-sum payment for accumulated and accrued annual leave under [5 U.S.C. 5551](/usc/5/5551.md) is reemployed in the Federal service prior to the end of the period covered by the lump-sum payment, the employee must refund to the employing agency an amount equal to the pay included in the lump-sum payment under [§ 550.1205(b)](/cfr/5/550.1205.md?p=b) that covers the period between the date of reemployment and the expiration of the lump-sum leave period, except as provided in paragraphs [(b)](#b) and [(c)](#c) of this section. The agency must compute the refund based on the pay used to compute the lump-sum payment under [§ 550.1205(b)](/cfr/5/550.1205.md?p=b). However, annual leave restored under [5 U.S.C. 6304(d)](/usc/5/6304.md?p=d) that was included in a lump-sum payment is not subject to refund if an agency reemploys the employee prior to the expiration of the lump-sum leave period. The agency must subtract such restored annual leave from the lump-sum leave period before calculating the refund. An agency may permit an employee to refund the lump-sum payment for annual leave in installments, but may not waive collection. If an agency permits the lump-sum refund to be paid in installments, the employee must refund the lump-sum payment in full within 1 year after the date of reemployment.
- (b) An employee who is reemployed in a position listed in 5 U.S.C. [6301(2)(ii)](/usc/5/6301.md?p=2-ii), [(iii)](/usc/5/6301.md?p=2-iii), [(vi)](/usc/5/6301.md?p=2-vi), or [(vii)](/usc/5/6301.md?p=2-vii) is not required to refund a lump-sum payment under [paragraph (a)](#a) of this section.
- (c) An employee who is reemployed in a position that has no leave system to which annual leave can be recredited is not required to refund a lump-sum payment under [paragraph (a)](#a) of this section, except that individuals reemployed as Presidential appointees must refund a lump-sum payment and the annual leave will be held in abeyance, as provided in [§ 550.1207(e)](/cfr/5/550.1207.md?p=e).
- (d) An individual first hired by the District of Columbia government on or after October 1, 1987, who received a lump-sum payment upon separation from the District of Columbia government and who is employed by the Federal Government prior to the expiration of the lump-sum leave period must refund the lump-sum payment, and the agency must recredit the annual leave under [§ 550.1207](/cfr/5/550.1207.md).
- (e) An employee who retired from the Federal Government and received a lump-sum payment under [§ 550.1203](/cfr/5/550.1203.md) of this chapter, and who is reemployed under a temporary appointment of less than 90 days prior to the expiration of the lump-sum leave period, is required to refund the lump-sum payment, and the agency must recredit the annual leave under [§ 550.1207](/cfr/5/550.1207.md). The employee may use the recredited annual leave during the temporary appointment.

## Notes

### Authority

Authority: 5 U.S.C. 5553, 6306, and 6311.

### Source

Source: 64 FR 36771, July 8, 1999, unless otherwise noted.

### Source

Source: 33 FR 12458, Sept. 4, 1968, unless otherwise noted.