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B-197582(RJH) 1 (1980-02-25)

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COMPTROLLER GENERAL OF THE UNITED STATES
          WASHINGTON. D.C. 20548


B-197582 (RJH)


/1Z1/


February 25, 1980


The Honorable Gladys Noon Spellman
Chair, Subcommittee on Compensation
and Employee Benefits
Committee on Post Office and
Civil Service                ,,
House of Representatives


Dear Madam Chair:

    We refer to your letter of January 15, 1980, enclosing a copy
of a letter and newspaper article you received from one of your
constituents regarding two decisions of this Office. /9

    The two decisions referred to are Donald C. Leavens, B-194793,
August 14, 1979, and Victor M. Valdez, Jr., B-191977, August 17,
1979, 58 Comp. Gen. 734. A copy of each is enclosed for your
information. Although the newspaper article indicates that the
employees had knowledge, or should have had knowledge, that they
were receiving money to which they were not entitled, the record
does not support this contention. As more fully discussed below,
we believe the two cases were correctly decided.


                The Donald C. Leavens Decision

    The Leavens decision was issued because of an appeal of the
denial by our Claims Division of his request for waiver of a claim
against him by the United States for recovery of $25, 666 in erro-
neous salary payments. Mr. Leavens was a reemployed annuitant
at the Department of Transportation (DOT). The overpayments
were due to an administrative error in that DOT failed to deduct
Mr. Leavens' annuity payments from his salary as required by
5 U.S.C. § 8344 (1976).

    Our authority to waive overpayments of pay and certain allow-
ances is contained in 5 U.S.C. § 5584 (1976). The Comptroller
General may waive a claim of the United States if the collection of
the claim would be against equity and good conscience and not in
the best interests of the United States. The standards for waiver
are published in subchanter (7, Pp-ts 91, 92, atnd q3, nC title 4
of the Code of F'ederal Regulations. Generally, the criteria for
waiver will be met by a finding that the erroneous payment of pay
or allowances occurred through administrative error and that


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