[Reconsideration of Request for Waiver of Overpayments]

A reemployed annuitant appealed a Claims Group denial of his request for waiver of a claim against him by the Department of Agriculture (USDA) for the recovery of erroneous salary overpayments. The question presented was whether the employee knew, or should have known, that his salary as a reemployed annuitant would be less than he had earned previously, and whether his failure to question his receipt of the same salary during the period of reemployment precludes waiver of his debt. As a result of an administrative error, the agency failed to deduct the employee's annuity payments from his regular base pay, as required by statutory law, for a period of 6 months before the error was discovered. When USDA began making the proper deductions, the employee resigned and requested waiver of the overpayment, claiming that it was the result of an administrative error, and that it had occurred through no fault of his own. The employee further stated he had not been told what his hourly rate of pay would be upon reemployment, although he had asked for at least an estimate of that amount, and he therefore had no reason to know that he was being overpaid. The Claims Group denied waiver in the belief that an employee of his experience should have known that a rehired annuitant's salary must be reduced by the amount of his annuity. GAO held that the record in this case contained no evidence to support the agency's allegation that the employee had actual knowledge of this requirement and that, contrary to Governmental practice, the employee in this particular case was not so informed. GAO concluded that collection of overpayments to the employee would be against equity and good conscience and would not be in the best interests of the Government. Accordingly, the Claims Group decision was overruled and the overpayments were waived under the authority of statutory law.