B-258327 January 3, 1995

B-258327 January 3, 1995

When an employee was reemployed at a different Air Force Base than the one before, the Air Force erroneously stopped deducting life insurance premiums from her salary, which resulted in overpayments and indebtedness. Even though the Air Force was at fault in not continuing the deductions and in not following an internal regulation which would have resulted in earlier detection of the error, the employee was partially at fault in not reviewing her leave and earnings statements that showed that the deductions were not being made. Since the employee was partially at fault, her indebtedness may not be waived.

Ms. Carolyn R. Shirley 319 Old Towne Road Louisville, Kentucky 40214-6005

Dear Ms. Shirley:

This is in regard to issues you raised in your letter of June 28, 1994, to Congressman Mazzoli concerning the denial of your request for waiver of your debt to the U.S. Air Force which resulted from the Air Force's failure to deduct life insurance premiums from your salary for over 3 years.

We have reviewed the Claims Group's denial of waiver in your case,[1] and we find no error of law or fact in the Claims Group's action. The overpayments you received initially resulted from the Air Force's administrative error in not beginning deductions from your salary for the life insurance coverage you had elected. Although, as you state, had the pay and personnel records reconciliation required by internal Air Force regulations been performed, the error should have been detected earlier, this factor alone does not provide a basis for us to grant waiver.

As the Claims Group noted, you had elected the life insurance coverage while you were employed at Lowery Force Base and the appropriate deductions were then made from your salary. As you were aware, this same coverage was carried over to your employment at Wright-Patterson, and you should have expected the deductions (approximately $26 per pay period) to continue during your employment there. The Air Force reports that you received leave and earnings statements during this period. If you had carefully reviewed these statements you should have been aware that the deductions for the insurance coverage you had elected, and did in fact receive for the entire period, were not being made.

You had the primary responsibility of examining your leave and earnings statements and promptly bringing errors to the attention of Air Force officials. Since you did not do so for over 3 years (until your inquiry when the deductions unexpectedly began), we cannot find that you are free from at least partial fault in the matter. As the Claims Group noted, the statute which provides authority to waive such a debt precludes waiver if there is an "indication of fault" on the part of the person seeking waiver. 5 U.S.C. Sec. 5584(b). Accordingly, since we find that you are partially at fault in the matter, the denial of your request for waiver is sustained.

1. Claims Group settlement certificate Z-2926877, June 15, 1994.