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B-221605 1 (1986-05-19)

handle is hein.gao/gaobadmid0001 and id is 1 raw text is: THE COMPTROLLER GENERAL [ECISION 1 OF THE UNITED STATES o WASHINGTON,.0..C. 2054B FILE: B-221605 DATE: May 19, 1986 MATTER OF: Alton L. Hawkins - Erroneous Overpayment of Merit Pay - Waiver DIGEST: A GM-13 merit pay employee was granted a pay increase in 1981, shortly after merit pay was initiated in his agency. Due to administrative error, his annual pay rate was incorrectly established at a rate in excess of his individual entitlement, and also in excess of the maximum rate of GS-13. Waiver was disallowed for entire overpayment on basis he should have been aware of error and was, thus, at fault since his leave and earnings statement specifically noted his annual pay rate to be in excess of his entitlement. Waiver is granted and the employee is not held at fault where the record indicates that he did not know, at the time of the over- payment, that the rate for a GM-13 cannot exceed the maximum rate of a GS-13, and where he contacted his payroll office and was assured his pay was correct. This decision is in response to correspondence from Mr. Alton L. Hawkins, appealing settlement Z-2858741-026, dated August 6, 1985, which disallowed waiver of an over- payment of compensation in his case. We conclude that waiver is to be allowed for the following reasons. The record shows that effective October 11, 1981, Mr. Hawkins, an employee with the Defense Logistics Agency in grade GM-13, was granted a merit pay increase. Due to administrative error, instead of his pay rate being established at $42,793, it was incorrectly established at $43,793, which rate exceeded the maximum rate authorized for grade GM-13 ($43,666). In August 1982, the error was discovered and it was determined that he had been overpaid $806.40 for the period October 11, 1981, through July 31, 1982. Following a notice of debt, Mr. Hawkins sought waiver. His asserted basis for waiver was lack of familiarity with

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