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B-206515 1 (1982-04-23)

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DECIBION


B-20651.5


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James Isaak - Terminal Leave - Accrual
Sick and Annual Leave


An employee en sict leave at the time
his disability retirement was approvod
should be afforded the opportunity to
select a separation date which is most
adv ,ncageous to him tn accordance with
Office of Personnel Management regula-
ticns, He is also entitled to be
credited with sick and annual leave
accrued while on sic% leave prior
to his separation date, Section 402
of Pub. L, No, 96-499 does not affect
an employee's right to holiday pay
before his separation date.


     The issujes c.onsidered are whether an employee
may continue on leave with pay after his disability
retirement application has been approved and whether
he accrues sic% and annual leave during this period9
Also, we are asked to decide whether such an em-
ployee is entitled to receive credit for holidays
falling within the leave with pay period in view of
section 402 of Pub, L. No, 9C-499, 94 Stat, 2605,
December 5, 1980, which eliminates payment for holi-
days that occur after an employee separates but
within the period covered by the employee's lump-sum
leave payment.

     For the reasons stated below, we hold that an
employee, whose disability retirement application has
been approved by the office of Personnel Management,
is entitled to (1) remain on sick leave with pay in
accordance with (JPM regulations; (2) to continue to
accrue annual and sick leave during such period:
and (3) to receive pay for holidays during the name
period.

     These questions were presented in a letter of
February 17, 1982, from the Chief, Payroll Branch,
Bonneville Power Administration, Department of
Energy, Portland, Oregon. The employee in question
is Mr. James Isaak.  Mr. Isaak suffered a heart
attack on July 29, 1981, and has been on sick leave,


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      DATE: April 23, 1982

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