Code of Federal Regulations Title 5. Administrative Personnel § 5.550.1201 Purpose, applicability, and administration

(1) Separates from Federal service;  or

(2) Enters on active duty in the armed forces and elects to receive a lump-sum payment for accumulated and accrued annual leave.Section 6306 requires that when an employee is reemployed in the Federal service prior to the expiration of the lump-sum period, he or she must refund an amount equal to the pay covering the period between the date of reemployment and the expiration of the period of annual leave (i.e., the lump-sum leave period).

(1) Any employee who separates, dies, or transfers under the conditions prescribed in § 550.1203;  and

(2) Any employee or individual employed by a territory or possession of the United States who enters on active duty in the armed forces and who elects to receive a lump-sum payment for accumulated and accrued annual leave.