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B-197810 1 (1980-03-20)

handle is hein.gao/gaobadicl0001 and id is 1 raw text is: DECISION THE COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON. D. C. 20548 ILE: B-197810 MATTER DIGEST: DATE: March 20, 1980 OF: Howard G. Rutter - Waiver of Optional Life Insurance Premiums Federal employee elected optional life insurance coverage under Federal Employees Group Life Insurance Program. Due to Government's administrative error, appropriate deductions from his pay were not made. Employee's request for waiver is denied since he had constructive, if not actual, knowledge of the overpayments. Also, it would not be inequitable to require payment because employee was covered by optional life insurance even though premiums were not deducted from his pay. This is an appeal from the action of our Claims Division on October 3, 1979, which denied the request for waiver by Mr. Howard G. Rutter of optional life insurance premiums, in the amount of $629. 50. Mr. Rutter is an employee of the Department of the Interior, Mining Enforcement and Safety Administration. The claim against Mr. Rutter arises out of erroneous overpay- ments of pay caused when deductions of premium payments for optional Federal Employees Group Life Insurance (FEGLI) which he had elected were not taken from his pay. The record shows that Mr. Rutter executed a Standard Form 176 electing both optional and regular FEGLI coverage upon his entry on duty as an employee of the Department of Interior. Due to an administrative error, deductions for Mr. Rutter's optional life insurance were not taken from his pay from the time he reported for duty on January 11, 1971, and ending with the pay period ending October 8, 1977. This caused overpayments to be made to Mr. Rutter in the total amount of $629.50. Mr. Rutter applied to the Department of Interior for a waiver of his indebtedness, and, under the provisions of 5 U. S.C. § 5584 (1976) the request was forwarded to our Office with the D U '7 V 774 e&f&7_ -

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