Local Employment Policy Handbook - ICASS

CREDITABLE SERVICE
Ordinarily Residents (OR) Compensated under the Local Compensation Plan (LCP)
See 3 FAM 7349.1-2
1. Time served under a Personal Services Agreement (PSA) is creditable under a Mission’s Local
Compensation Plan (LCP) to the extent it is continuous service unless otherwise specified.
2. Time served under a Personal Services Agreement counts as creditable service for A-D below for
employees whose employment mechanism changes from a PSA to a Direct Hire (DH) appointment with
no break in service due to the appropriate State regional or functional bureau or participating headquarters
granting the employee certifying authority, or assigning other “inherently governmental work” as defined
by the headquarters agency.
A) Service computation date; and
B) Leave accrual; and
C) Retirement; and
D) Severance
Creditable service for all benefits is subject to the terms of each Mission’s benefit plan.
3. Time served under a Personal Services Agreement as Ordinarily Resident does not count as creditable
service for either competitive or noncompetitive eligibility for Foreign or Civil Service Direct Hire (DH)
appointment positions in the US Federal Government, for Office of Personnel Management (OPM)
federal retirement purposes, or for any laws or benefits administered by OPM.
4. If an Ordinarily Resident employee hired under a PSA and paid under the LCP moves from a When
Actually Employed (WAE) work schedule to a full-time or part-time work schedule without a break in
service of more than three calendar days, HR adjusts the Service Computation Date (SCD) for severance
and leave based on the number of hours in pay status actually worked while on the WAE schedule.
Overtime hours aren’t counted.