RECOVERY OF LUMP SUM PAYMENTS - 8596

Upon separation from state service, with no fault on the part of the employee, a person may be entitled to a lump sum payment for annual vacation and compensating time off.  See Government Code section 19839. If a person receives a lump sum separation payment and subsequently returns to state service, the person may repurchase the vacation and/or compensating time off for which payment has been received covering the period that exceeds the person's break in service. The employee will then have the balance of vacation and/or leave credit restored to what they would have been if the employee had remained in state service and taken time off.

Repayments will be recovered directly from the employee. See SAM section 8593.1. The amount of such repayments received by agencies/departments will be remitted to the State Controller's Office to the credit of the fund and the appropriation from which the lump sum payment was made and will be accounted as abatement.