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B-197627 1 (1980-06-03)

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


FILE:  B-197627                     DATE:   J ne 3, 1980

MATTER OF: Captair Donald Reid, USN,$Ret


Considering his rank, years of service, and
the amount of the erroneous overpayment, a
service member, who received an unexplained
payment of pay and allowances due to an
administrative error should have known that
the payment was erroneous, and that he would
be required to refund the excess amount. As
a result he may not be considered as being
without fault in the matter so as to permit
waiver of his indebtedness.


     Captain Donald Reid, USN, Retired, requests reconsideration
of our Claims Division's November 13, 1979 denial of his applica-
tion for waiver of bi.s debto the United States in the total
amount of $591.07. The debt arose from erroneous payments of
the member's pay. Denial of the waiver is sustained.

     The record shows that Captain Reid was originally overpaid
due to a lack of recoupment of Medical Continuation Pay in
January 1975.  The disbursing officer began deduction of $124
each month for repayment beginning August 1, 1975. Upon conver-
sion to the Joint Uniform Pay System on January 1, 1976, a
balance of $715.07 remained to be repaid with the last deduction
to be collected June 30, 1976. The debt was paid on schedule.
Thereafter, through administrative error, the disbursing officer
determined that the member's indebtedness had been repaid in
full as of January 1, 1976. In August 1976, the disbursing
officer reconstructed the member's pay and determined that he
had been underpaid. As a result, the disbursing officer made a
payment to Captain Reid on September 1, 1976, in the amount of
$1,019 of which $591.07 was erroneous. The member was informed
of the error in August 1977.

     In his original request for waiver Captain Reid contended
in effect that he did not know or suspect that he was being
overpaid and that the overpayment was due to administrative
error in adjusting his pay account. The waiver denial was
based upon the member's being at fault in failing to question
large unexplained increases in his pay in September 1976 and




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