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B-232219 1 (1988-10-28)

handle is hein.gao/gaobadngk0001 and id is 1 raw text is: of the United State. Wmagtom, D.C. 20648 Decision Edward W. Allen - Reemployed Annuitant - Waiver of Matterof: Salary Overpayment File: B-232219 Date: October 28, 1988 DIGEST A reemployed retired federal annuitant was erroneously informed that he could be returned to federal employment at full federal salary, have his civil service annuity halted, and have his former military retired pay reinstated. Properly, however, he was entitled to his full civil service annuity but his federal salary should have been reduced by the amount of the annuity. His military retired pay could not be reinstated because he had waived it to qualify for the civil service annuity. Erroneously the agency failed to reduce his federal salary while the employee continued to receive his full annuity, but his military retired pay correctly was not reinstated. The employee recognized a problem, knew that he was being overpaid and tried to have it corrected, but spent the overpayment of $25,900.40. Because the employee was erroneously advised he would be entitled to military retired pay, waiver of the amount of the debt equal to the expected retired pay, $9,758.55, is appropriate. However, since he clearly knew he was being overpaid, waiver may not be granted for the remainder of the debt, $16,141.85. DECISION Mr. Edward W. Allen, a civilian Supply Systems Analyst with the Department of the Navy, appeals an August 12, 1987, action by our Claims Group which waived repayment of a portion of erroneous payments received by Mr. Allen from the Department of the Navy, but denied waiver of the remainder. We affirm the action of our Claims Group. Mr. Allen retired as an enlisted member of the U.S. Navy on September 20, 1963, and was thereby entitled to receive military retired pay. He subsequently went to work for the -7/q5

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