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B-203459 1 (1981-12-08)

handle is hein.gao/gaobadjxk0001 and id is 1 raw text is: 4


DECISION K





FILE: B-203459


THE COMPTROLLER GENERAL
OF THE UNITED STATES
WASHINGTON. D. C. 20548




      DATE:   December 8, 1981


MATTER OF: Santo M. Lacagnina - Waiver of indebtedness


DIGEST:


Employee with both regular and optional
life insurance coverage transferred
between agencies. New agency erroneously
deducted for only regular life insurance
which resulted in overpayment. Waiver of
overpayment under 5 U.S.C. § 5584 is denied
since employee is not free from fault by
failing to examine personnel and payroll
documents which would have revealed the
error.


     The issue in this decision is whether an overpayment
resulting from the erroneous under deduction for life in-
surance premiums may be waived under 5 U.S.C. § 5584 (1976).
We hold that where the employee, by examination of pertinent
documents should have known of the error, he is not free
from fault, and waiver must be denied.

     This decision is in response to an appeal by Mr. Santo M.
Lacagnina from our Claims Group determination (Z-2826004)
denying his request for waiver of an overpayment resulting
from the failure to deduct premiums for optional life in-
surance.

     The failure to deduct premiums for optional insurance
occurred when Mr. Lacagnina transferred from his position
with the Department of the Navy in Gifu, Japan, to a posi-
tion with the Defense Supply Agency (now Defense Logistics
Agency) in Pasadena, California, effective July 2, 1972.
Although Mr. Lacagnina had elected regular and optional
life insurance in 1968, the D.>fense Supply Agency acknowl-
edged only regular life insytance coverage on the Standard
Form 50 issued upon his transfer, and the agency began
deductions from his pay only for regular life insurance.
The error was discovered in 1980, and the resulting over-
payment was $1,595.50.

     Our Claims Group denied Mr. Lacagnina's request for
waiver on the grounds that he received leave and earnings
statements and copies of Standard Form 50's through which

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