The restored leave is taxed when eventually used, whereas the compensation check from OWCP is generally tax-exempt, potentially creating a complex tax scenario.
OWCP pays compensation at 66 2/3% (or 75% with dependents) of the gross salary. Employees must pay the agency the difference between their full salary and the compensation payment, meaning it often requires significant out-of-pocket payment to restore leave.
The employee requests to buy back leave from their agency, changing paid leave to Leave Without Pay (LWOP). leave buy back owcp
This review of the program provides a detailed overview based on current Federal Employees' Compensation Act (FECA) procedures as of early 2026. Executive Summary
Only sick or annual leave can be bought back. Compensatory time, credit hours, or time-off awards are not eligible. The restored leave is taxed when eventually used,
LBB only applies if the CA-7 claim is approved by OWCP.
Is this for a or occupational (CA-2) injury? The employee requests to buy back leave from
Re-credits leave (especially valuable for sick leave accumulation for retirement purposes).