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B-207742 1 (1983-01-31)

handle is hein.gao/gaobadkvt0001 and id is 1 raw text is: 0 W HE COMPTROLLER GENERAL DECISION • , . OF THE UNITED STATES WASHINGTON. 0. C. 20548 FILE: B-207742 DATE: January 31, 1983 MATTER OF: Peggy J. Potts - Waiver of Erroneous Overpayment of Pay DIGEST: Employee was promoted from grade GS-6, step 2, to grade GS-7, but promotion was erroneously based on rate of GS-6, step 4. Erroneous overpayment may be waived where there is no indication employee knew or should have known of error. There is no evidence that employee received pay or personnel records which would have revealed error. The issue in this decision is whether an overpayment of pay resulting from an error in a promotion action may be waived. We hold that under the circumstances the over- payment may be waived where it has not been shown that the employee knew or should have known of the error and erroneous overpayment. This decision is in response to an appeal by Peggy J. Potts, an employee of the Department of the Army, of our Claims Group determination dated December 10, 1981, denying her claim for waiver of an erroneous overpayment of pay. Mrs. Potts was employed by the Army as a secretary, grade GS-6, step 2, when she resigned effective March 16, 1978. For reasons which are not clear from the record be- fore us, the Army credited Mrs. Potts with periodic step increases on April 30, 1978, and April 29, 1979, and did not issue a Standard Form (SF) 50 acknowledging the resig- nation until August 8, 1979. This SF-50 listed her grade and step as grade GS-6, step 4. On November 4, 1979, Mrs. Potts was reemployed by the Army on a temporary appointment. Although the initial SF-50 issued November 2, 1979, indicated that Mrs. Potts was hired at grade GS-6, step 4, based on her previous employment at that grade and step, another SF-50 was processed that day correcting that information to grade

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