B-219212 O/M, JUN 26, 1986

B-219212 O/M, JUN 26, 1986

DEBT COLLECTIONS - WAIVER - CIVILIAN EMPLOYEES - COMPENSATION OVERPAYMENTS - FAILURE TO DEDUCT INSURANCE PREMIUMS DIGEST: CLAIMS GROUP SETTLEMENT, DENYING WAIVER CAUSED BY IMPROPER DEDUCTIONS OF INSURANCE PREMIUMS, IS REVERSED BASED ON THE TOTALITY OF THE CIRCUMSTANCES. ALTHOUGH EMPLOYEE WAS AWARE OF THE OVERPAYMENTS, HE SUBMITTED CORRECTED FORMS TO HIS PAYROLL OFFICE ON FOUR OCCASIONS. ALSO, WAIVER REQUEST HAS BEEN PENDING SINCE 1982, WAS HELD BY CLAIMS FOR 29 MONTHS, AND SETTLEMENT INDICATED INCORRECTLY THAT CLAIMANT FAILED TO TAKE CORRECTIVE ACTION.

CLAIM FOR WAIVER - RECONSIDERATION - RICHARD J. HAKES, B-219212 O/M:

RETURNED HEREWITH IS CLAIMS FILE NO. Z-2848540, FORWARDED FOR OUR CONSIDERATION ON JUNE 21, 1985. BASED ON THE FACTS OF THE CASE, WE REVERSE YOUR SETTLEMENT OF APRIL 10, 1985, DENYING THE CLAIM FOR WAIVER.

THE CLAIMANT IN THIS CASE IS RICHARD J. HAKES, AN EMPLOYEE OF THE NAVAL SUPPLY SYSTEMS COMMAND (NAVSUP). INCIDENT TO HIS TRANSFER TO NAVSUP, THE LOSING AGENCY ERRONEOUSLY INFORMED NAVSUP THAT MR. HAKES WAS ENROLLED IN THE BLUE CROSS/BLUE SHIELD HIGH OPTION SELF ONLY PLAN WHEN HE ACTUALLY WAS ENROLLED UNDER THE FAMILY PLAN. AS A RESULT OF THIS MISINFORMATION, NAVSUP DEDUCTED MONEY FROM MR. HAKES' SALARY TO COVER THE PREMIUMS FOR THE SELF ONLY PLAN. THIS AMOUNT WAS INSUFFICIENT TO PAY THE PREMIUMS FOR THE FAMILY PLAN.

MR. HAKES DISCOVERED THE ERROR IN JULY 1980, PREPARED A CORRECTED SF 2810, NOTICE OF CHANGE IN HEALTH BENEFITS ENROLLMENT, AND SUBMITTED IT TO HIS PAYROLL OFFICE. THE PAYROLL OFFICE TOOK NO ACTION AND THE DEDUCTIONS FROM MR. HAKES' PAY CONTINUED TO BE DEFICIENT. ON AT LEAST THREE MORE OCCASIONS, NOVEMBER 1981 AND FEBRUARY AND MARCH 1982, MR. HAKES RESUBMITTED CORRECTED SF-2810'S TO HIS PAYROLL OFFICE BECAUSE THE PROPER DEDUCTIONS WERE NOT DRAWN FROM HIS SALARY. NOT UNTIL JUNE 1982 DID THE PAYROLL OFFICE ACT AND BEGIN DEDUCTING THE APPROPRIATE AMOUNT FROM MR. HAKES' SALARY. THE UNDERDEDUCTIONS CONTINUED FROM JUNE 9, 1980, THROUGH JUNE 7, 1982, AND RESULTED IN AN OVERPAYMENT TO MR. HAKES OF $875.50.

THE RECORD DOES INDICATE THAT THE EMPLOYEE WAS AWARE OF THE ERRONEOUS OVERPAYMENTS, AND WE HAVE DENIED WAIVER ON THIS BASIS EVEN THOUGH THE EMPLOYEE MADE NUMEROUS INQUIRIES AS TO THE CORRECTNESS OF HIS PAY, TO NO AVAIL. SEE ROBERT L. FONDREN, B-186802, NOVEMBER 30, 1976. HOWEVER, IT IS OUR VIEW THAT WHILE MR. HAKES WAS AWARE THAT DEFICIENT DEDUCTIONS WERE DRAWN FROM HIS SALARY, HE SHOULD BE GRANTED A WAIVER BASED ON THE TOTALITY OF THE CIRCUMSTANCES. HE PREPARED A CORRECTED SF-2810 AND SUBMITTED COPIES TO HIS PAYROLL OFFICE ON FOUR DIFFERENT OCCASIONS. WE NOTE THAT YOUR OFFICE HELD THIS CLAIM FOR 29 MONTHS BEFORE REACHING A SETTLEMENT AND WHEN A DECISION WAS MADE THE FINAL SETTLEMENT LETTER INCORPORATED A STANDARD FORMAT THAT BORE NO RELATION TO THE FACTS OF THIS CASE. INDICATED THAT THE CLAIMANT FAILED TO TAKE ANY CORRECTIVE ACTION, WHICH IS A BASIS FOR DENIAL OF WAIVER. THIS WAS NOT THE SITUATION IN THIS CASE, AND THE WAIVER REQUEST HAS BEEN PENDING SINCE 1982.

THUS, WE BELIEVE THAT UNDER THE CIRCUMSTANCES OF THIS CASE, COLLECTION ACTION WOULD BE AGAINST EQUITY AND GOOD CONSCIENCE AND NOT IN THE BEST INTEREST OF THE UNITED STATES.

IN ACCORDANCE WITH THE ABOVE, MR. HAKES' CLAIM FOR WAIVER IS GRANTED.