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B-200919 1 (1981-03-27)

handle is hein.gao/gaobadjgg0001 and id is 1 raw text is: DECISION FILE: THE COMPT LZERGERAL OF THE UNITED STATES WASHINGTON, . C. 20548 B-200919 DATE: March 27, 1981 MATTER DIGEST: OF: St im Sergeant James S. Gannon, USA, F:Ret Retired member of the Army who waived entitlement to retired pay in order to receive Veterans Administration compensation as required by 38 U.S.C. § 3105, continued to receive retired pay due to an administrative error. Although he allegedly received verbal assurances that the payments were correct, he is not without fault. Where amount was substantial, he should have known he was being overpaid and pursued inquiries. Financial hardship resulting from collection is not in itself a basis to authorize waiver. Staff Sergeant James S. Gannon, USA, Retiredfequest- f'e reconsideration of our Claims Division's denial of his request for waiver of h--s debt to the United States in the amount of $6,795.55. The ,debt arose from erroneous payments of retired pay made to him after he waived his entitlement in order to receive compensation from the Veterans Administration.(VA), as is required by 38 U.S.C. § 3105 (1976). The denial of waiver is sustained. Gn order to receive compensation from the VA for his service incurred disability, Mr. Gannon waived his entitlement to retired pay,ieffective March 1, 1973. 'The waiver was a statutory preTrquisite to receiving the compensation.-yHowever, Mr. Gannon continued to receive retired pay until May 31, 1974. As a resultthe record shows that some $6,795.55 inLretired pay was erroneously paid to him while he was being fully compensated by'the VA. Mr. Gannonmaintains that he called the Army Finance and Accounting Center in Indianapolis, Indiana, on four separate occasions to inquire concerning his continued receipt of retired pay. Each time, he allegedly received verbal assurances that the payments were proper. 2 The record~shows that after some 4 years elapsed, on April 21, 1978, a letter from the Finance Center was sent to Mr. Gafinon advising him of his indebtedness to the United States for the amounts paid him in retired pay while he was receiving veterans benefits.-

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