ual for whom the exception was granted continues to serve in the same position. This section applies only to:

(1) Any retired officer of a regular component of the uniformed services who was receiving retired pay on or before January 11, 1979;

(2) Any individual employed in a position on October 13, 1978, so long as the individual continues to hold any such position (disregarding any break in service of 3 days or less) if the individual, on that date, would have been entitled to retired or retainer pay but for the fact that the individual did not satisfy any applicable age requirement.

(b) Except as otherwise provided in paragraph (a) of this section, the Office may, during the period until January 11, 1984, authorize exceptions to the restrictions in 5 U.S.C. 5532 (a), (b), and (c) only when necessary to meet special or emergency employment needs which result from a severe shortage of well qualified candidates in positions of medical officers which otherwise cannot be readily met. Such exception granted by the Office with respect to any individual shall terminate upon a break in service of 3 days

§ 550.701 Coverage.

(a) Agencies. This subpart applies to (1) an Executive agency as defined by section 105 of title 5, United States Code; (2) the Library of Congress; (3) the Government Printing Office; and (4) the government of the District of Columbia.

(b) Employees. (1) Except as provided by this paragraph and section 5595(a)(2) of title 5, United States Code, this subpart applies to each fulltime and part-time employee of an agency, with a regularly prescheduled tour of duty within each administrative workweek, to each seasonal employee with a regularly prescheduled tour of duty within each administrative workweek during the season for which he is employed, and to each hourly employee in the postal field service, who is serving (i) under a career or career-conditional appointment in the competitive service or under their equivalent in the excepted service; (ii) under an indefinite appointment in the competitive service made under the indefinite-appointment system that preceded the careerconditional appointment system; (iii) under an indefinite appointment without time limitation in the excepted service; (iv) under an overseas limited appointment without time limitation; (v) as a status quo employee including one who becomes an indefinite employee upon promotion, demotion, or reassignment; (vi) under a time-limited appointment in the Foreign Service to which the employee was assigned under a statutory authority that entitled him to reemployment in his former agency, but whose right of reemployment has expired.

(2) This subpart does not apply to an employee who at the time of separation from the service, is offered and declines to accept an equivalent position in his agency in the same commuting area, including an agency to which the employee with his function is transferred in a transfer of functions between agencies. For purposes of this paragraph, an equivalent position is a position of like seniority, tenure, and pay other than a retained rate.

(3) This subpart does not apply to an employee in the government of the

District of Columbia who, at the time of separation from the service, has fulfilled the requirements for an immediate annuity under the Policemen and Firemen's Retirement and Disability Amendments of 1957 (secs. 4-521 through 4-538, D.C. Code, 1967 ed.), the Act for the Retirement of Public School Teachers in the District of Columbia (secs. 31-701 through 31-745, D.C. Code, 1967 ed.) or the District of Columbia Judges Retirement Act of 1964 (sec. 11-1701, D.C. Code, 1967 ed.).

(4) This subpart does not apply to an employee who is offered an opportunity to transfer with his agency or part thereof when it is transferred to or merged with a non-Federal organization, when the statute effecting the transfer or merger includes provisions to assure that (i) the pay level of an employee who transfers will not be reduced, (ii) an employee who transfers will be regarded as continuing in the employ of the United States for the purposes of subchapter III of chapter 83 and chapter 87 of title 5, United States Code, and (iii) the receiving organization will deposit currently in the Civil Service Retirement and Disability Fund provided for in section 8348 of title 5, United States Code, the employee deductions and agency contributions required by subchapter III of chapter 83 of title 5, and in the Employees' Group Life Insurance Fund provided for in section 8714 of title 5, United States Code, the employee deductions and agency contributions required by chapter 87 of title 5, United States Code.

(5) This subpart does not apply to an employee of an agency or a subdivision thereof who, when the agency or a subdivision thereof is replaced by a public non-Federal organization created in whole or in part pursuant to an Act of Congress, is offered employment comparable to his employment in the agency at the time of replacement, or within 90 days of the date of replacement accepts any employment, with the successor public non-Federal organization.

(6) This subpart does not apply to an employee who, as the result of the transfer of the operation and maintenance responsibilities for a Federal

project to a private organization, is offered comparable employment with the private organization or within 90 days of the date of transfer accepts any employment with the private organization.

(7) This subpart does not apply to an employee who, at the time his activity is transferred to a Federal instrumentality the employees of which are subject to section 2105(c) of title 5, United States Code, because the Federal instrumentality is supported by nonappropriated funds, is offered comparable employment with the Federal instrumentality or accepts any employment with the Federal instrumentality within 90 days from the date of separation.

(8) This subpart does not apply to an employee in the excepted service serving under a Presidential appointment, under an appointment to a position filled by noncareer executive assignment under Part 305 of this chapter, or under an appointment to a Schedule C position in Part 213 of this chapter.

[33 FR 12458, Sept. 4, 1968, as amended at 34 FR 123, Jan. 4, 1969; 34 FR 9381, June 14, 1969]

§ 550.702 Entitlement.

This subpart and section 5595 of title 5, United States Code, apply to the computation and payment of severence pay to an employee who is involuntarily separated from the service, not by removal for cause on charges of misconduct, delinquency, or inefficien

cy.

§ 550.703 Definitions.

In this subpart:

(a) "Agency" means an agency to which this subpart applies under § 550.701(a).

(b) "Basic pay" means the rate of pay fixed by law or administrative action for the position held by an employee at the time of separation, including premium pay for standby duty paid to an employee on an annual basis under § 550.141, but excluding other additional pay.

(c) "Employee" means an employee to whom this subpart applies and includes the recipient of severance pay

under section 5595 of title 5, United States Code, and this subpart.

(d) "Severance pay fund" means the total severance pay to which an employee is entitled under section 5595 of title 5, United States Code.

(e) "Total severance pay" means the amount of severance pay payable to the employee as computed under section 5595(c) of title 5, United States Code.

§ 550.704 General provisions.

(a) Payment of severance pay. (1) Except as provided in paragraph (a)(2) or (3) of this section, on an employee's separation, the agency shall compute his severance pay fund, and shall pay him at the same pay period intervals as if still employed the same amount as his basic pay for the pay period immediately before separation until the severance pay fund is exhausted, except that the final payment shall consist only of that portion of the severance pay fund remaining.

(2) For a postal substitute, the basic pay for the pay period immediately before separation as required in paragraph (a)(1) of this section, is the average number of hours in a pay status per pay period for the 26 pay periods immediately before separation, or 80 hours, whichever is less, times the hourly rate of pay in effect at the time of separation.

(3) For an employee who serves in a position in which he regularly alternates between (i) receiving additional annual pay under section 5545(c)(1) of title 5, United States Code, and not receiving such additional annual pay, (ii) receiving a night differential which is considered a part of basic pay and not receiving a night differential which is considered a part of basic pay, or (iii) full-time and part-time tours of duty, the basic pay for the pay period immediately before separation, as required by paragraph (a)(1) of this section, is the average basic pay for the position for the 26 pay periods immediately before separation, computed on the basis of the basic rate of pay in effect at the time of separation.

(b) Computation of severance pay. (1) In computing an employee's civilian service under section 5595(c) of title 5, United States Code, the agency

shall include all service that is creditable for annual leave accrual purposes under section 6303 of title 5, United States Code, except that military service shall not be counted unless it interrupts otherwise creditable civilian service. For the purpose of this subparagraph, military service is considered to interrupt civilian service when an employee with a statutory restoration right leaves civilian service creditable for annual leave accrual rate purposes to enter military service, returns to civilian service creditable for annual leave accrual rate purposes within the time limit prescribed for the exercise of the restoration right, and is regarded as having been on furlough or leave of absence during the period of military service.

(2) In computing an employee's total years of creditable civilian service under paragraph (b)(1) of this section, the agency shall credit him with each full year and with 25 percent of a year for each 3 months of creditable civilian service that exceeds 1 or more full years.

(3) In computing an employee's years of age over 40 for the age adjustment allowance under section 5595(c) of title 5, United States Code, the agency shall credit him with 25 percent of a year for each 3 months that his age exceeds 40.

(4) (i) For entitlement to severance pay under section 5595(a)(2)(ii) of title 5, United States Code, the appointment without time limitation must be one of the appointments specified in § 550.701(b)(1) and the termination from that appointment must have resulted from an involuntary separation not by removal for cause on charges of misconduct, delinquency, or inefficien

cy.

(ii) If an employee retains entitlement to severance pay under section 5595(a)(2)(ii) of that title, "basic pay at the rate received immediately before separation" under section 5595(c) of that title is that basic rate received immediately before the termination of the appointment without time limitation.

(iii) An employee is considered to be serving under an appointment with a definite time limitation for purposes of section 5595(a)(2)(ii) of that title,

when (a) he accepts an appointment without time limitation in an agency which is scheduled by law or Executive order to be terminated within 5 years of the date of his appointment, and (b) the scheduled date of termination for the agency has not been extended beyond 5 years of the date of appointment at the time of the employee's separation.

(5) The basic pay received immediately before separation for an employee who is in a nonpay status at the time of separation is that basic pay he would receive had he been in a pay status at the time of separation.

(c) Recredit of service. When an employee is reemployed and entitled to a recredit of service under section 5595(d) of title 5, United States Code, the agency which reemploys him need only record the number of weeks of severance pay hitherto received. Should the employee become entitled to severance pay upon a subsequent separation, the agency shall compute his severance pay fund at the time of the subsequent separation on the basis of all his creditable service and his current age and shall deduct from the number of weeks it will take to exhaust the severance pay fund, as recomputed at the time of his subsequent separation, the number of weeks for which the employee previously received severance pay.

(d) Determination of 12 months' continuous service. The requirement of section 5595(b) of title 5, United States Code, is met if the employee on the date of separation has been on the rolls of one or more agencies under one or more appointments without time limitation, or temporary appointments that precede or follow on appointment without time limitation, without any break in service of more than 3 calendar days for at least the preceding 12 calendar months. An employee who is separated by his agency as a result of an injury incurred while in the performance of duty, and who is entitled to a continuation of pay or compensation pursuant to subchapter I of chapter 81 of title 5, United States Code, is entitled, upon reemployment with the Federal Government, to have the entire time, during which he was receiving compensation or continu

ation of pay, counted as continuous service for purposes of determining whether the employee has satisfied the 12 months continuous service requirement.

(5 U.S.C. 8151)

[33 FR 12458, Sept. 4, 1968, as amended at 34 FR 19748, Dec. 17, 1969; 36 FR 20649, Oct. 28, 1971; 40 FR 23838, June 3, 1975]

§ 550.705 Failure to accept assignment.

When an employee is separated because he declines to accept assignment to another commuting area, the separation is an involuntary separation not by removal for cause on charges of misconduct, delinquency, or inefficiency for purpose of entitlement to severance pay, unless his position description or other written agreement or understanding provides for these assignments.

[36 FR 12729, July 7, 1971]

§ 550.706 Resignation in lieu of involuntary separation.

(a) Except as provided for in paragraph (b) of this section, an employee who is separated because of resignation is deemed to have been involuntarily separated for purposes of entitlement to severance pay, if he has not declined an offer of an equivalent position under § 550.701(b)(2), when he is separated because of resignation (1) after receiving a specific notice in writing by his agency that he is to be involuntarily separated not by removal for cause on charges of misconduct, delinquency, or inefficiency, (2) after receipt of a general notice of reduction in force by his agency which announces that all positions in his competitive area will be abolished or transferred to another commuting area and his resignation is effective on a date which is not more than 1 year before the abolition or transfer, and (3) after receipt of a notice by his agency proposing to separate him for declining to accompany his activity when it is to be moved to another commuting area because of a transfer of function and when all positions in his competitive area are to be abolished or transferred to another commuting area within a period of not more than 1 year.

60-004 0-80-21

formation Agency, the Agency for International Development and its successor agency or agencies.

(k) "Labor organization" means a labor organization as defined by section 2(e) of Executive Order 11491, as amended.

(1) "Pay" means the net pay due an employee after all deductions authorized by law (such as retirement or social security deductions, Federal withholding tax, and others, when applicable) have been made.

(m) "Professional or other associations" means an organization with which the agency has established official relationships.

[37 FR 3355, Feb. 15, 1977, as amended at 44 FR 3946, Jan. 19, 1979]

GENERAL PROVISIONS

§ 550.311 Authority of agency.

(a) An agency may permit allotments under section 5525 of title 5, United States Code, only in accordance with subchapter III of chapter 55 of title 5, United States Code, and this subpart.

(b) An agency may permit an employee to authorize an allotment to be effective on the issuance of an order of evacuation under section 5522 or 5523 of title 5, United States Code. Payment of such an allotment may not be made until the issuance of the order.

(c) The head of an agency may prescribe such additional regulations governing allotments, not inconsistent with subchapter III of chapter 55 of title 5, United States Code, and this subpart, as he considers necessary.

(d) Except for those employees listed in § 550.371(c) or as otherwise provided in this subpart, only an employee who is serving under an appointment not limited to 6 months or less may make an allotment. Employees listed in § 550.371(c) may make an allotment for the purposes specified in § 550.371(a) regardless of the tenure of their appointment.

[37 FR 3355, Feb. 15, 1972, as amended at 37 FR 26098, Dec. 8, 1972]

§ 550.312 Authorized allottees.

(a) An employee may make an allotment to an individual, a corporation, a financial institution, a Combined Fed