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Waiver for Nondeduction of Insurance Premiums

B-198931 Jul 24, 1980
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Highlights

A Federal employee requested reconsideration of a denial of his application for waiver of a Government claim against him arising out of erroneous overpayments of compensation. The overpayments resulted from non-deduction of Federal Employees Group Life Insurance premiums. Due to an administrative error, life insurance premiums were not withheld from the employee's pay until the error was discovered resulting in an overpayment of compensation. The employee applied to his agency for a waiver of indebtedness, and the agency forwarded the request to GAO. The employee had been provided with Leave and Earnings Statements, an examination of which should have apprised him of the agency's failure to deduct the life insurance premiums. Thus the Claims Division found the employee to be at least partially at fault for the undetected overpayment. The employee stated that as soon as he discovered the error he brought it to the attention of the proper officials and contended that he was not covered by life insurance during the period that premiums were not withheld from his pay. GAO determined that where an employee was aware or should have been aware of an error in pay resulting in an overpayment, he could not reasonably expect to retain such a payment, but should expect the Government to seek recovery. His contention that he was not covered by life insurance during the period of the erroneous overpayments was both factually and legally incorrect. The employee received the full benefits of the regular life insurance coverage despite the fact that no insurance premiums were withheld. GAO sustained the determination of the Claims Division to deny the requested waiver.

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