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Payroll Services Letter 05-27.2: Voluntary Leave Transfer Program (VLTP)


Payroll Services Letter 05-27.2: Voluntary Leave Transfer Program (VLTP)

Number: PS05-27.2

Date: June 16, 2008 (Revised May, 2009)

Subject: Voluntary Leave Transfer Program (VLTP)

Category: Leave

Reference: PS05-27.1, Subject: Voluntary Leave Transfer Program (VLTP), dated June 16, 2008. PS 05-27.2 supersedes PS05-27.1. Please replace that letter with this one.


This letter provides new procedures for forwarding information on Voluntary Leave Transfer Program (VLTP) recipients and donors to the Payroll Services Division (PSD) for entry into the Defense Civilian Payroll System (DCPS).

_ _ _

Since April 17, 2005, HHS Timekeepers and Human Resource Center (HRC) Payroll Liaisons have been following the current procedure to notify the payroll office of employees approved to participate in VLTP and employees who donate leave to VLTP recipients. The current procedure was part of the payroll system conversion to DFAS.

Employee requests that have been approved, either to receive or to donate leave hours through the VLTP, should be sent from HHS Timekeepers to Payroll Liaisons (if applicable). Payroll Liaisons will forward the information electronically to PSD using the Peregrine system. Use the Peregrine classification – Category: LEAVE Subcategory: DONATED LEAVE.

The Peregrine screen contains specific sections to input the following VLTP information:

For the Recipient:

  • Last Name; First
  • SSN
  • PPE (Pay period end date)
  • PP (Pay period number)
  • Donated Leave Type1
  • Date Emergency Began
  • Status Indicator (Self or Family)

For Donors (tabs for up to five donors):

  • Name
  • SSN
  • Date Signed
  • Hours (decimal)
  • Restoration2
  • Same Payroll Office
  • Payroll Office Address, City, State, ZIP

As of June, 2006, HHS Payroll Services has been responsible for the management of VLTP recipients, donors and donated hours in DCPS.

The donated leave account balance must be established in DCPS before hours will be accepted when processing the T&A. Notifications of VLTP approvals for the current pay period must be entered into Peregrine no later than close of business Wednesday, the second week of the pay period.

If notification is not processed timely, DCPS will perform a leave conversion. Leave hours in excess of the employee’s own sick leave balance will follow the standard leave conversion, i.e., sick leave will convert to annual leave, compensatory, credit hours or leave without pay.

  • The employee’s Leave and Earnings Statement will show the leave charged accordingly. Also, Payroll Liaisons will receive a “Conversion of Hours” report that lists leave that was converted for employees. For further information on leave conversion, see the Payroll Services Letter entitled “Biweekly Payroll Process.”
  • Payroll Liaisons should review the leave conversions and report any discrepancies to their Payroll Customer Service Team.

Retroactive Donated Leave – DFAS will retroactively apply donated leave. Donated leave does not have a “not to exceed” (NTE) date or expiration date. It will remain in the employee’s donated leave balance until the employee is removed from the program. When the Payroll Services Division (PSD) sends the information to DFAS to establish the donated leave account, it will give an effective date. When the emergency situation is over and the employee is removed from the program, the HR Center/Payroll Liaison must notify Payroll Services via a Peregrine ticket. DFAS will not return leave to donors until notified by Payroll Services to remove the employee from the program.

Leave Accrual – Employees are eligible to accrue leave (annual and sick) while they are using donated leave. If they use a partial number of donated hours during the pay period, the full leave accrual is given. However the accrual is prorated and a portion is credited to a Donated Leave Account for Accruals and the remainder goes to the regular leave account.

Waivers – Waivers are sometimes granted when an employee wants to donate more leave than the regulations permit. Traditionally, DCPS assumes that the waiver has been granted for the employee to donate more than the allowable maximum.

Use of Advanced Sick Leave and Donated Leave in the same Pay Period – If an employee’s time and attendance (T&A) record has both advanced sick leave and donated leave in the same pay period, the following occurs:

  • DCPS checks to see if the employee has the Donated Leave in his account. If Donated Leave is in his account the system charges the leave that was recorded on the T&A record.
  • DCPS converts the advanced sick leave to LWOP if the advanced sick leave on the T&A is not posted correctly.

To avoid this conversion to LWOP, the CSR must check to see if the employee has donated leave when establishing an advanced sick leave account. If so, the CSR will ensure that the Advance Sick Leave is posted at the end of the Pay Period so the leave is charged appropriately.

  • If the combination is detected before Final Pass, the CSR will adjust the record so the leave is appropriately charged to the donated and advanced sick leave accounts.
  • After Final Pass or for a retroactive T&A record, the CSR should access the DCPS to obtain a Leave History/Detail Report, and change the appropriate timecard(s) to ensure that the leave is charged properly.
  • The CSR must check to see if the employee received less than 90% of the basic pay due for that pay period, because advanced leave was not credited.
  • If the employee received less than 90%, the CSR must consult with the HRC contact the see if the employee desires a Special Pay. If 90% or more was received, no action is necessary.

For further assistance or for questions regarding the information in this letter, please contact your Customer Service Team in the Payroll Services Division.

1Indicate the VLTP program type; new, continuing, liquidated indebtedness or remove from program.

2Leave blank if not restoring leave to donor. If restoring, indicate if hours are to go to donor’s current or next year annual leave account, or to another recipient.