Absence and Leave; Voluntary Leave Transfer and Voluntary Leave Bank Programs

OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 630

RIN 3206-AF 75

Absence and Leave; Voluntary Leave Transfer and Voluntary Leave

Bank Programs

AGENCY: Office of Personnel Management.

ACTION: Interim rule with request for comments.

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SUMMARY: The Office of Personnel Management (OPM) is issuing interim

regulations to enable agencies to implement permanent voluntary leave

transfer and leave bank programs and to make certain other changes as

provided by the Federal Employees Leave Sharing Amendments Act of 1993

(October 8, 1993).

The interim regulations require each agency to have procedures

whereby employees can donate annual leave to other employees with

medical emergencies who are in need of leave. In addition, agencies

will now be permitted to establish or terminate leave banks without

prior OPM approval. Employees will be permitted to participate in both

the leave bank and leave transfer programs (if the agency has both) for

the same medical emergency. The interim regulations also implement

changes that make it easier for employees to qualify as leave

recipients by excluding advanced leave from an employee's ``available

paid leave'' and by reducing from 80 to 24 the number of hours unpaid

absence that constitutes a ``substantial loss of income.'' Finally, the

interim regulations allow employees to use their accrued annual or sick

leave if they run out of donated leave during their medical emergency.

Each agency may determine its own implementation date for these interim

regulations, provided that implementation occurs no later than February

5, 1994.

DATES: Effective Date: The interim rules are effective January 31,

1994. Comment Date: Comments must be submitted on or before April 1,

1994. Implementation Date: Agencies must implement these rules by

February 5, 1994.

ADDRESSES: Comments may be sent or delivered to Barbara L. Fiss,

Assistant Director for Compensation Policy, Personnel Systems and

Oversight Group, U.S. Office of Personnel Management, room 6H31, 1900 E

Street NW., Washington, DC 20415.

FOR FURTHER INFORMATION CONTACT:

Bruce W. Valoris, (202) 606-2858.

SUPPLEMENTARY INFORMATION: Public Law 103-103, the ``Federal Employees

Leave Sharing Amendments Act of 1993,'' October 8, 1993, establishes a

permanent leave sharing program for Federal employees. Previously, this

program was experimental under the Federal Employees Leave Sharing Act

of 1988 (Pub. L. 100-566). A description of the changes resulting from

the Federal Employees Leave Sharing Amendments Act of 1993 follows.

Requirement to Permit Leave Transfer

Each agency, including a leave bank agency, must have procedures

whereby employees can donate annual leave directly to employees

experiencing medical emergencies. Previously, the law allowed an agency

to have either one or more leave banks or a leave transfer program. All

agencies that now have leave transfer programs must continue them.

Agencies that now have only a leave bank must permit employees to

donate annual leave to other employees with medical emergencies through

leave transfer.

Agency Flexibility to Operate Leave Banks

An agency is permitted to establish a leave bank program at any

time after the effective date of these regulations. Leave banks will

operate in addition to the leave transfer program. The establishment of

a leave bank program will no longer require OPM approval because leave

sharing is now permanent, and there is no longer any need to conduct

varying experiments.

An agency may discontinue a leave bank. The interim regulations

require that agencies terminating a leave bank must make provisions for

the timely and equitable distribution of any of the bank's remaining

leave balance to the agency's current leave bank recipients, leave bank

members, or both.

An Employee May Participate in Both Programs

The law and the interim regulations permit an employee to

participate in both leave transfer and leave bank programs in the same

agency for the same medical emergency if his or her agency has

established both programs. In the interim regulations, OPM has provided

each agency with the authority to determine procedures for its

employees to receive and use donated leave under both programs for the

same medical emergency. Also, the interim regulations eliminate the

requirement that a leave recipient's medical emergency must be

terminated upon transfer from an organization operating a leave

transfer program to one operating a leave bank.

Qualifying To Become a Leave Recipient

In order to make it easier to qualify to become a leave recipient,

the law provides that an agency may not consider any advanced leave

that an employee may have when determining whether a medical emergency

is likely to result in a substantial loss of income. Previously, all

available paid leave, including advanced leave, was considered when

determining whether a medical emergency would likely result in a

substantial loss of income. In keeping with this approach, OPM is

reducing from 80 to 24 the number of hours of unpaid absence that

constitutes a ``substantial loss of income.'' For example, before

approving an application for a full-time employee to become a leave

recipient, the agency must determine that the absence from duty without

available paid leave--excluding advanced leave--is, or is expected to

be, at least 24 hours. Previously, before an agency could approve an

application for a full-time employee to become a leave recipient, the

agency had to determine that the potential leave recipient's absence

from duty without available paid leave was, or was expected to be, at

least 80 hours.

Definition--Shared Leave Status

Since employees may participate in both leave transfer and leave

banks, the term ``shared leave status'' replaces ``transferred leave

status'' in subpart I and is now included in subpart J. ``Shared leave

status'' is defined as the administrative status of an employee while

the employee is using transferred leave under a leave sharing program

or leave transferred from a leave bank.

Use of Annual and Sick Leave

If the medical emergency continues after the leave recipient

exhausts all transferred leave and leave withdrawn from a leave bank,

the law now permits an employee to use any annual or sick leave, as

appropriate, that was earned while the employee was in a shared leave

status. Previously, leave earned while an employee was using

transferred leave or leave withdrawn from a leave bank could be used

only after the medical emergency terminated. The maximum amount of

leave that may be accrued by full-time employees while using leave from

either leave sharing program (i.e., while in a shared leave status) is

limited to a total of 40 hours of sick leave and 40 hours of annual

leave. For part-time employees and employees with uncommon tours of

duty, the maximum amount of sick and annual leave that may be accrued

while in a shared leave status is prorated. Leave earned while in a

shared leave status must continue to be credited to separate accounts

until the leave recipient exhausts all donated leave or the medical

emergency terminates.

Technical and Conforming Changes

All regulatory provisions relating to the experimental and

temporary nature of the voluntary leave transfer and leave bank

programs have been removed because they are now permanent. In addition,

certain other editorial changes have been made to clarify the intent of

the regulations.

Effective Dates

Under section 2 of Public Law 103-103, the Federal Employees Leave

Sharing Amendments Act of 1993, the repeal of section 2(d) of the

Federal Employees Leave Sharing Act of 1988 (5 U.S.C. 6331 note) became

effective on October 30, 1993. This repeal eliminated the expiration

date of the experimental leave sharing program. Section 6 of Public Law

103-103 provides that all other sections of the Act, and the amendments

made by the Act, are effective on the 120th day after enactment--

February 5, 1994--or such earlier date as OPM may by regulation

prescribe.

OPM has determined that, except for section 2 of the Act, the

effective date for these changes shall be January 31, 1994. Each agency

is encouraged to implement these rules as soon as possible, but no

later than February 5, 1994.

Waiver of Delay in Effective Date

Pursuant to 5 U.S.C. 553(d)(3), I find that good cause exists for

making these rules effective in less than 30 days. These rules are

being made effective on January 31, 1994, in order to allow agencies to

make the benefit of these changes available to employees on the

earliest practicable date.

E.O. 12291, Federal Regulation

I have determined that this is not a major rule as defined under

section 1(b) of E.O. 12291, Federal Regulation.

Regulatory Flexibility Act

I certify that these regulations will not have a significant

economic impact on a substantial number of small entities because they

will affect only Federal employees and agencies.

List of Subjects in 5 CFR Part 630

Government employees.

U.S. Office of Personnel Management.

Lorraine A. Green,

Deputy Director.

Accordingly, OPM is amending part 630 of title 5 of the Code of

Federal Regulations as follows:

PART 630--ABSENCE AND LEAVE

1. The authority citation for part 630 is revised to read as set

forth below:

Authority: 5 U.S.C. 6311; Sec. 630.303 also issued under 5

U.S.C. 6133(a); Sec. 630.501 and subpart F also issued under E.O.

11228; subpart G also issued under 5 U.S.C. 6305; subpart H issued

under 5 U.S.C. 6326; subpart I also issued under 5 U.S.C. 6332 and

Public Laws 100-566, 102 stat. 2834, and 103-103, 107 stat. 1022;

subpart J also issued under 5 U.S.C. 6362 and Public Laws 100-566

and 103-103; and subpart K also issued under Public Law 102-25, 105

stat. 92.

Subpart I--Voluntary Leave Transfer Program

Subpart I--[Amended]

2. In subpart I of part 630, all references to ``transferred leave

status'' are revised to read ``shared leave status''.

3. In Sec. 630.901, paragraph (b) is revised to read as follows:

Sec. 630.901 Purpose and applicability.

* * * * *

(b) Applicability. This subpart applies to officers and employees

to whom subchapter I of chapter 63 of title 5, United States Code,

applies.

4. In Sec. 630.902, the definition of ``shared leave status'' is

added to read as follows:

Sec. 630.902 Definitions.

* * * * *

Shared leave status means the administrative status of an employee

while the employee is using transferred leave under this subpart or

leave transferred from a leave bank under subpart J of this part.

5. Section 630.903 is revised to read as follows:

Sec. 630.903 Administrative procedures.

No later than February 5, 1994, each Federal agency shall establish

procedures to permit the voluntary transfer of annual leave consistent

with this subpart.

Sec. 630.905 [Amended]

6. In Sec. 630.905, paragraphs (b) and (c) are amended by removing

the number ``80'' and adding in its place the number ``24'', and the

phrase ``(disregarding any advanced leave)'' is added after the words

``available paid leave''.

7. In Sec. 630.907, paragraphs (c) and (d)(1) are revised to read

as follows:

Sec. 630.907 Accrual of annual and sick leave.

* * * * *

(c) Any annual or sick leave accrued by an employee under this

section shall be transferred to the appropriate leave account of the

employee under subchapter I of chapter 63 of title 5, United States

Code, and shall become available for use--

(1) As of the beginning of the first applicable pay period

beginning on or after the date on which the employee's medical

emergency terminates as described in Sec. 630.910(a) (2) and (3) of

this subpart; or

(2) If the employee's medical emergency has not yet terminated,

once the employee has exhausted all transferred leave made available to

such employee under this part.

(d) * * *

(1) The leave recipient's employing agency shall establish

procedures to ensure to the extent practicable that 40 hours (or, in

the case of a part-time employee or an employee with an uncommon tour

of duty, the average number of hours of work in the employee's weekly

scheduled tour of duty) of annual leave are placed in a separate annual

leave account and made available for use by the employee as described

in paragraph (c) of this section.

* * * * *

Sec. 630.908 [Amended]

8. In Sec. 630.908, paragraph (c), the phrase ``is unusual

circumstances'' is removed.

Sec. 630.910 [Amended]

9. In Sec. 630.910, paragraph (a)(2) is removed, and paragraphs

(a)(3), (a)(4), and (a)(5) are redesignated as paragraphs (a)(2),

(a)(3), and (a)(4), respectively.

10. In Sec. 630.913, paragraph (a) is revised to read as follows:

Sec. 630.913 Records and reports.

(a) Each agency shall maintain records concerning the

administration of the voluntary leave transfer program and may be

required by the Office of Personnel Management (OPM) to report

pertinent information for the purpose of evaluating the effectiveness

of the program.

* * * * *

11. Section 630.914 is revised to read as follows:

Sec. 630.914 Continuation of experimental leave transfer program.

Until each agency establishes procedures to permit the voluntary

transfer of annual leave consistent with this subpart, the experimental

leave transfer program authorized by Public Law 100-566 shall remain in

effect.

Sec. 630.915 [Removed]

12. Section 630.915 is removed.

Subpart J--Voluntary Leave Bank Program

13. In Sec. 630.1001, paragraph (a), the phrase ``in approved

agencies'' is removed, and paragraph (b)(2) is revised to read as

follows:

Sec. 630.1001 Purpose and applicability.

* * * * *

(b) * * *

(2) Who are employed in agencies and their organizational subunits

operating a voluntary leave bank program under this subpart.

14. In Sec. 630.1002, the phrase ``that has been approved by OPM to

operate a voluntary leave bank program under this subpart'' is removed

in the definitions of agency and employee, and a new definition of

shared leave status is added to read as follows:

Sec. 630.1002 Definitions.

* * * * *

Shared leave status has the meaning given that term in subpart I of

this part.

15. In Sec. 630.1003, the introductory text in paragraph (a) is

revised to read as set forth below, and in paragraph (a)(2), the

initial phrase ``In consultation with OPM,'' is removed.

Sec. 630.1003 Establishing leave banks and leave bank boards.

(a) Each agency that participates in the voluntary leave bank

program shall, in accordance with this subpart--

* * * * *

16. In Sec. 630.1004, paragraph (d), the introductory text in

paragraph (h), and the second sentence of paragraph (j) are revised to

read as follows:

Sec. 630.1004 Application to become a leave contributor and leave bank

member.

* * * * *

(d) The leave bank board shall establish at least one open

enrollment period for each leave year in which the leave bank operates.

* * * * *

(h) The leave bank board may--

* * * * *

(j) * * * Except as provided in Sec. 630.1016(c), the leave bank

board may not return a contribution of annual leave to a leave

contributor after deposit in the leave bank.

* * * * *

Sec. 630.1005 [Amended]

17. In Sec. 630.1005, paragraph (c), the phrase ``in unusual

circumstances'' is removed.

Sec. 630.1007 [Amended]

18. In Sec. 630.1007, paragraphs (b) and (c) are amended by

removing the number ``80'' and adding in its place the number ``24'',

and the phrase ``(disregarding any advanced leave)'' is added after the

words ``available paid leave''.

19. In Sec. 630.1008, the introductory text of paragraph (a) is

revised; in paragraphs (a)(1) and (a)(2), the words ``using annual

leave withdrawn from a leave bank'' are removed and, in their place,

the words ``in a shared leave status'' are added; and paragraphs (c)

and (d)(1) are revised to read as follows:

Sec. 630.1008 Accrual of annual and sick leave.

(a) Except as otherwise provided in this section, while an employee

is in a shared leave status, annual and sick leave shall accrue to the

credit of the employee at the same rate as if the employee were then in

a paid leave status under subchapter I of chapter 63 of title 5, United

States Code, except that--

* * * * *

(c) Any annual or sick leave accrued by an employee under this

section shall be transferred to the appropriate leave account of the

employee under subchapter I of chapter 63 of title 5, United States

Code, and shall become available for use--

(1) As of the beginning of the first applicable pay period

beginning on or after the date on which the employee's medical

emergency terminates as described in Sec. 630.1010(a) (3) and (4); or

(2) If the employee's medical emergency has not yet terminated,

once the employee has exhausted all leave made available to such

employee under this subpart.

(d) * * *

(1) The leave recipient's employing agency shall establish

procedures to ensure to the extent practicable that 40 hours (or, in

the case of a part-time employee or an employee with an uncommon tour

of duty, the average number of hours of work in the employee's weekly

scheduled tour of duty) of annual leave are placed in a separate annual

leave account and made available for use by the employee as described

in paragraph (c) of this section.

* * * * *

20. In Sec. 630.1010, paragraph (a)(2) is revised to read as

follows:

Sec. 630.1010 Termination of medical emergency.

(a) * * *

(2) When the leave recipient leaves the agency or participating

organizational subunit, if the bank board so determines;

* * * * *

21. In Sec. 630.1012, paragraph (a) is revised to read as follows:

Sec. 630.1012 Records and reports.

(a) Each agency shall maintain records concerning the

administration of the voluntary leave bank program and may be required

by the Office of Personnel Management (OPM) to report pertinent

information for the purpose of evaluating the effectiveness of the

program.

* * * * *

22. In Sec. 630.1013, the heading and paragraph (a) are revised to

read as follows:

Sec. 630.1013 Participation in voluntary leave transfer and leave bank

programs.

(a) If an agency or organizational subunit establishes a voluntary

leave bank program under this subpart--

(1) An employee may also participate in a voluntary leave transfer

program under subpart I of this part;

(2) Except as provided in paragraphs (b) and (c) of this section,

any annual leave previously transferred under the voluntary leave

transfer program shall remain to the credit of an employee who becomes

a leave recipient in a leave bank and shall become subject to the

agency's policies and procedures for administering this subpart; and

(3) The agency or organizational subunit shall establish policies

or procedures governing the use of donated or transferred leave for any

leave recipient who receives leave under both a voluntary leave

transfer program and a voluntary leave bank program for the same

medical emergency.

* * * * *

23. In Sec. 630.1015, the heading and paragraph (a) are revised to

read as follows:

Sec. 630.1015 Movement between voluntary leave transfer and leave bank

programs.

* * * * *

(a) On the date of the employee's move, he or she shall become

subject to the policies and procedures of the voluntary leave transfer

and voluntary leave bank program (if applicable) of the new agency or

organizational subunit;

* * * * *

24. Section 630.1016 is revised to read as follows:

Sec. 630.1016 Termination of voluntary leave bank programs.

(a) An agency may terminate a voluntary leave bank program only

after it gives at least 30 calendar days advance written notice to

current leave bank members.

(b) If an agency terminates a voluntary leave bank program before

the termination of the medical emergency affecting a leave bank

recipient, annual leave transferred to a leave bank recipient shall

remain available for use under the rules set forth in subpart I.

(c) An agency that terminates a voluntary leave bank program shall

make provisions for the timely and equitable distribution of any leave

remaining in the leave bank. The agency may allocate the leave to

current leave recipients, recredit the leave to the accounts of the

voluntary leave bank members, or a combination of both. The agency may

distribute the leave immediately or may delay the distribution, in

whole or in part, until the beginning of the following leave year.

[FR Doc. 94-2198 Filed 1-28-94; 8:45 am]

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