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B-198207 1 (1980-08-22)

handle is hein.gao/gaobadimz0001 and id is 1 raw text is: 'I-


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DECISION


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MATTER


DIGEST:


  /THE   COMPTROLLER GENERAL
UOF THE UNITED STATES
4~WASH INGTON, 0. C. 20548


198207                     DATE:  August 22, 1980

OF:   Bernard J. Killeen, Jr. - Waiver of
      optional life insurance premiums       2

 Where employee elected optional life insurance
 coverage but appropriate deductions were not made
 from his pay from 1968 to 1977, the resulting
 overpayment may not be waived. Since premium
 deductions should have been reflected on leave
 and earnings statements, which they were not,
 employee was on constructive notice of error
 beginning in 1968 and Standard Forms 50 issued
 him in 1972 and 1976 indicating optional coverage
 gave him written notice of the discrepancy. Under
 these circumstances, it is not inequitable to
 require payment since employee had benefit of
 optional life insurance coverage throughout period
 of overpayment.


     We have been asked by Mr. Bernard J. Killeen, Jr. to
reconsider the December 14, 1979 determination by our Claims
Division denying his request for waiver of an overpayment that
resulted from the Social Security Administration's (SSA) failure 4
to make proper deductions from nis pay for optional life insur-
ance coverage under the Federal Employees Group Life insurance
Program (FEGLI).  Upon review the Claims Division's determination
is sustained.

     The circumstances that gave rise to the overpayment are not in
dispute.  On February 13, 1968, Mr. Killeen signed a Form SF-176-T
(Election, Declination or Waiver of Life Insurance Coverage) by
which he elected optional, in addition to regular, life insurance
coverage and authorized payroll deductions to be made for the
optional insurance.  As a result of administrative error, no
payroll deductions were made for optional insurance from 1968
through 1977.  Because the optional life insurance nevertheless
remained in effect, the failure to deduct premiums resulted in an
overpayment to Mr. Killeen of $1,573.

     In requesting that his indebtedness be waived, Mr. Killeen
stated that he does not recall his decision to choose optional
FEGLI coverage.  For this reason and because his leave and earn-
ings statements did not reflect deductions for optional life


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