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B-180137 1 (1973-12-28)

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     bfere*toisads to your leattet if Ottobet' 3O, 1973,ta*
Cenresmg*PClarnce D. Long, e ocernus the actitu otI tb
Transportation end Cl&z Divisiu of this Office-of August 28,
17$, by which a     relver of erroneous oerayment*' of 'ompensation
to you totaling 0517.50 was 'denied, That letter Mich ass
forvarded for our consideration will be trectad as u request for
reconideration of the previouo action.

     The record indicates that as an aployee of the United
States Coast Guard you submttted on February 14# 1968, Standard
Yore L76-T electing optional life insurance covorage and ,
authorizing payroll deductions to be wade from your salary for
the cost of this insurance. On October 6, 1970, you reached
the as of 55, and the bi-mekly payroll deductions for the
cost of the optional tlife insurance should have been increased
from $5.50 to 417, lffectiYe January 10, 1971, However, due
to an adinistratLve error the deduction was not increased and
this error wan not discovered until October 100 1972, which
resulted in the overpayments of compensation totaling 4517.50.
When you were notified of the overpayments, you Imediately
cancelled the optional life insurance coverage,

     The Coast Guard his recocnended that the claim of the United
States resulting from the overpayments be waived under the
provisions of 5 U.S.C. 5584. In this, regard they report that
the overpayments resulted from an adzinistrative error and that
there is no indication of fraud, lfault, misrepresentation, or
lack of good faith on your part or of any other person having an
interest in obtaining waiver of the claim. They atno report that
you state that you rere not aware that you were being overpaid,

     Our settlement of August 20, 1973, noted that Standard
Form 176-T, January 1968, cautions the employee to read the back
of the Duplicate which specifically states that the cost of
the optional life insurance would increase when the employes
reaches age 55. Tht: basis for denying waiver of the Governent'e


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