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B-187596 1 (1976-12-15)

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                         *  THE  COMPTAOLLER EUNBRAL
DECISION .                  O THE UNAITED ETATES
                            W A  : HINGTON. 0.C. e054
                    IhITIP


FILE:  B-187596

MATTER OF:


DIGEST:


                   DATE:    December 15, 1976

Ann R. Rinalli - Change of retirement date and
retoration because of administrative error

While long established rule :s that once
an employee's separation is an accomplished
fact its date may not be changed, some
exceptions are permitted where separation
did not conform to intentions of parties
because of bona fide mistake. Therefore,
employee who retired optionally after er-
roneous advice that she had sufficient
creditable service to continue life
insurance without cost and who would have
otherwise delayed retirement may be
retroactively restored to rolls in leave
without pay t;atus to obtain required
creditable service.


   By letter dated October 5, 1976, reference 556-05, Ms. Marjorie R.
Quandt, Hospital Director, Veterans Admintatration Hosiital, North
Chicego, Illinois, requests approval for the cancellation of the
rAtivement of Mrs. Ann R. Rinelli, a forrer employee of the hospital,
sr..d for hir reatoration %_o the rolls because the hospital erroneously
informed her that she hat sufficient creditable service to continue
Federal employees group life insurance after retirement without
cost, as authorized by 5 U.S.C. 8706(b). This statute rnvides,
in pertinent part, as follows;

              If on the date the insurance would
              otherwise stop the employee retires
              or. an immediate annuity and - * * *
              (2) he has completed 12 years of
              creditable service as determined by
              the Commission; his life insurance
              ouly may be continued, without cost
              to him, under conditio:s determined
              by the Ccani don.  * * *

   From the ftle it appears that Mrs. Rinelli was born February 11,
1914, and retired optionally on June 4, 1976, under the provisions
of 5 U.S.C. 8336%f) which provides that an employee who is separatcd
from the service after becoming 62 tears of age and completing 5


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