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B-201118 1 (1981-05-21)

handle is hein.gao/gaobadjkl0001 and id is 1 raw text is: FILE: B-201118 DATE:/ May 21, 1981 MATTER OF: Maury L. Hanson, Jr., M.D. Variable Incentive Paf DIGEST: A medical officer of the Public Health Service signs a 1-year variable incentive pay (VIP) agreement but voluntarily leaves the Service before completing 1 year. Medical officer is required to refund entire amount of VIP paid under the agreement in accordance with regu- lations promulgated under 37 U.S.C. 313(c) (1976). The issue presented in this case is whether a commissioned officer in the Public Health Service (PHS) who executes a 1-year variable incentive pay (VIP) agree- ment authorized by 37 U.S.C. 313 (1976) and voluntarily terminates the agreement before completion of the 1-year agreement may be required to refund the entire VIP payment or should any refund be based on a pro rata basis. When an officer voluntarily fails to complete a 1-year contract, refund of the entire amount of VIP paid is required. Maury L. Hanson, Jr., M.D., was appointed and called to active duty in the Commissioned Corps of the PHS in April 1976. On May 25, 1979, Dr. Hanson executed a VIP agreement, whereby he agreed to remain in the Service for 1 year in exchange for VIP of $11,000 in addition to his regular pay and allowances. The effective date of his VIP agreement was June 25, 1979. On January 5, 1980, Dr. Hanson was released at his own request from active duty with PHS and accepted employment with the Department of Labor. Since Dr. Hanson separated before June 24, 1980, thus failing to complete his contractual obligation to remain on active duty for 1 year after the effective date of his VIP agreement, he was required under PHS regula- tions to refund the entire amount of his VIP agreement, $11,000. In addition, Dr. Hanson was divested of his separation entitlements, specifically his entitlement to transportation for himself and his dependents, shipment of household goods, and lump-sum payment for unused annual leave. Dr. Hanson reauested that his accumulated annual leave (55 days) be transferred to the Department of Labor. This request was initially denied because the transfer of 1C /

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