12/30/2009

Erroneous under-deduction of an employee's health insurance premiums resulted in a debt to the government. Since the employee knew or should have known that there was an error and since he received the benefit of the coverage, waiver of the debt is not appropriate.

12/09/2009

An employee of the Department of Defense Education Activity was entitled to a Post Allowance. The employee completed paperwork to change her entitlement to this allowance from married status to single. This change was reflected on her Civilian Leave and Earnings Statement (LES) along with a change from two tax exemptions to one. At that time, there was no category that specifically reflected the number of eligible family members for Post Allowance. As to the amount of the Post Allowance, the record shows that (1) the value of the foreign currency against which the Post Allowance was measured fluctuated significantly when she made this change, and (2) the Post Allowance was increased from 25% to 30% at the same time. In these circumstances, the employee acted in good faith and without fault in accepting the erroneous payments, and the debt may be waived under 5 U.S.C.  5584.

12/09/2009

An employee of the Department of Defense Education Activity was entitled to a Post Allowance. The employee completed paperwork to change her entitlement to this allowance from married status to single. This change was reflected on her Civilian Leave and Earnings Statement (LES) along with a change from two tax exemptions to one. At that time, there was no category that specifically reflected the number of eligible family members for Post Allowance. As to the amount of the Post Allowance, the record shows that (1) the value of the foreign currency against which the Post Allowance was measured fluctuated significantly when she made this change, and (2) the Post Allowance was increased from 25% to 30% at the same time. In these circumstances, the employee acted in good faith and without fault in accepting the erroneous payments, and the debt may be waived under 5 U.S.C.  5584.

10/28/2009

Waiver is not appropriate under 5 U.S.C.  5584, when an employee is aware or should be aware that he is receiving pay to which he is not entitled.

10/22/2009

An employee's Federal Employee's Health Benefits (FEHB) were paid by the Office of Workers' Compensation Program (OWCP) through April 12, 2002. An overpayment began to accrue after that date, when FEHB premiums should have been deducted from his salary. Due to an administrative error, the Defense Finance and Accounting Service (DFAS) failed to withhold the premiums from his salary. During the period of overpayment, the employee was receiving continuing medical treatments, and his medical bills were being paid by the OWCP. Waiver is appropriate because the employee has provided sufficient documentation that he contacted an appropriate official and was advised that the OWCP would continue to pay his FEHB premiums.

8/27/2009

An employee who was deployed from October 2007 through February 2008 was reassigned from the General Schedule (GS) to the National Security Personnel System (NSPS) in February 2008, effective in October 2007. As a result, he was entitled to receive overtime pay at the rate of one and one-half times his base salary retroactive to October 2007. It was later determined that this reassignment was erroneous and, consequently, he was overpaid for overtime. Waiver was granted to the employee for an overpayment he received during the pay period ending (PPE) February 16, 2008, but denied for the retroactive payment he received in PPE March 1, 2008, in the amount of $4,995.20, which represented overtime pay at the rate of one and one-half times his basic salary for the period September 30, 2007, through February 2, 2008. Denial was based on a December 2007 notification to the employee that the NSPS reassignment and overtime rate were erroneous. On further review, the Board identified evidence which supports the employee's contention that he was not notified about the erroneous reassignment, and it considered new evidence that the employee questioned the retroactive payment of $4,972.16 on his leave and earnings statement, which resulted in written assurance from his pay representative that the payment was correct. Accordingly, collection of $4,972.16 would be against equity and good conscience, and we waive this additional amount of debt.

8/17/2009

An employee who was deployed from January 2007 to July 2007 was reassigned from the General Schedule (GS) to the National Security Personnel System (NSPS) in June 2007. He received a Notification of Personnel Action (Standard Form 50) reflecting the reassignment. As a result, he was entitled to receive overtime pay at the rate of one and one-half times his base salary retroactive to January 2007. It was later determined that this reassignment was erroneous and that he was overpaid for overtime. Waiver was granted for the overpayments he received through the pay period ending July 21, 2007, but denied for the retroactive payment he received in pay period ending August 4, 2007, in the amount of $4,276.92, which represented overtime pay at the rate of one and one-half times his basic salary for the period May 27, 2007, through July 21, 2007. Waiver of the remaining $4,276.92 is granted since the record supports the employee's contention that he had no reason to question the payment.

8/13/2009

In the absence of clear and convincing contrary evidence from the employee, we accept the agency's statement of the facts.

8/13/2009

In the absence of clear and convincing contrary evidence from the employee, we accept the agency's statement of the facts.

8/12/2009

When an employee is aware that he is receiving payments in excess of his entitlements, he does not acquire title to the excess amounts and has a duty to hold them for eventual repayment.

8/12/2009

When an employee is aware that he is receiving payments in excess of his entitlements, he does not acquire title to the excess amounts and has a duty to hold them for eventual repayment.

8/11/2009

Generally, the fact that an employee has salary sent directly to a bank does not relieve the person of the responsibility of verifying his bank statements, questioning any discrepancies, and setting the money aside for repayment.

8/11/2009

When an employee is aware that he is receiving payments in excess of his entitlements, he does not acquire title to the excess amounts and has a duty to hold them for eventual repayment.

8/4/2009

Waiver of the indebtedness that an employee incurs when the government fails to deduct Federal Employee Health Benefit Program premiums from his salary is not appropriate under 5 U.S.C.  5584 if the employee is partially at fault for not verifying the correctness of his leave and earnings statements. Moreover, it is not inequitable to require repayment when the employee had the benefit of the insurance coverage during the period when the government failed to collect the premiums.

7/23/2009

Under 10 U.S.C.  2774, waiver is not appropriate when a member is aware or should be aware that he is being overpaid.

7/16/2009

The interpretation of a statutory provision and implementing regulation by an agency charged with their execution, and the implementation of them by means of a consistent administrative practice, is to be sustained unless shown to be arbitrary, capricious or contrary to law.

7/7/2009

An employee, previously a reemployed annuitant, was converted to an excepted position effective November 28, 2007. As a result of this conversion, the employee became eligible for Federal Employees' Group Life Insurance (FEGLI) coverage. A FEGLI election had to be completed within 31 days of the effective date of the employee's appointment. Since no selection was made regarding FEGLI until May 2008, basic FEGLI coverage was automatically started retroactive to the pay period ending December 8, 2007. Since the employee had the benefit of coverage from December 8, 2007, through May 10, 2008, waiver for the indebtedness of premiums, $204.30, is not appropriate.

6/30/2009

When an employee is aware or should be aware that he is receiving payments in excess of his entitlements, he does not acquire title to the excess amounts and has a duty to hold them for eventual repayment.

6/30/2009

A waiver under 5 U.S.C.  5584 is generally not appropriate when a recipient of a significant increase in pay or allowances does not attempt to obtain a reasonable explanation from an appropriate official. The recipient has duty to ascertain the reason for the payment and to set aside the funds in the event that repayment should be necessary.

6/19/2009

1. The deduction of lump sum leave from the back pay award of a restored employee of the Navy is required under the Back Pay Act. Under the Act, deduction of lump sum leave is required since the employee was reinstated under the Back Pay Act as if the removal never occurred, and thus there is no basis for payment of lump sum leave. 2. When an employee was restored to duty following an erroneous separation, the lump sum leave payment was deducted from his back pay, and his annual leave was restored. Although the erroneous lump sum leave payment is subject to waiver under 5 U.S.C.  5584, waiver is not appropriate since there was no net indebtedness after required statutory deductions.

6/16/2009

1. When an employee elects a more expensive health plan under the Federal Employee Health Benefits (FEHB) program, she has a duty to review and monitor her leave and earnings statements when the election becomes effective to ensure that the proper premium is deducted for that plan, rather than the premium for a noticeably less expensive prior plan. 2. Under 5 U.S.C.  5584, when an employee is aware that she is receiving overpayments, she does not acquire title to the excess amounts and has a duty to hold the money for eventual repayment. In such circumstances, waiver is not appropriate. 3. It is not inequitable to require repayment when the employee had the benefit of insurance coverage during periods when the government failed to collect the proper premiums.

6/9/2009

Waiver under 5 U.S.C.  5584 is not available to relieve an employee of the obligation to repay voluntary separation incentive pay (VSIP) when he accepted a new position in the Federal civilian service within 5 years of the separation upon which his incentive pay was based. Waiver under 5 U.S.C.  5584 requires an erroneous payment, but the payment of VSIP in this case was proper when made.

5/07/2009

Under the provisions of Department of Defense Instruction 1340.23, the Defense Office of Hearings and Appeals generally must receive a claimant's request for reconsideration of an appeal decision within 30 days of the date of the appeal decision. This period may be extended for an additional 30 days for good cause shown.

4/15/2009

Erroneous under-deduction of an employee's Federal Employees' Group Life Insurance (FEGLI) premiums resulted in a debt to the government. Since the employee knew or should have known that there was an error and since he received the benefit of the FEGLI coverage, waiver of the debt is not appropriate.

2/11/2009

In November 2007 an employee's annual salary was increased to $104,167.00. In March 2008 the employee was notified that his salary should have been established as $83,621.00. In May 2008 he was advised that his salary should have been established as $74,811.00. Waiver was granted for the overpayments he received through March 2008, but denied in their entirety for the period after he was put on notice in March that he was being overpaid. Partial waiver of the erroneous payments of salary attributable to the employee's salary further being reduced from $83,621.00 to $74,811.00 is granted for the period between March 2008 and May 2008, since the record supports the employee's contention that he had a reasonable expectation of receiving salary at the annual rate of $83,621.00 during this period.

1/20/2009

A service member did not decline coverage in the Family Servicemember's Group Life Insurance (FSGLI), and is indebted for unpaid premiums for this coverage. It is not against equity and good conscience to deny waiver of the debt for the premiums because the member had the benefit of the coverage under FSGLI.

1/08/2009

A waiver of a debt under 5 U.S.C.  5584 is generally not appropriate when a recipient of a significant increase in pay or allowances does not attempt to obtain a reasonable explanation from an appropriate official. The recipient has a duty to ascertain the reason for the payment and to set aside the funds in the event that repayment should be necessary.