B-171487, JAN 26, 1971

B-171487: Jan 26, 1971

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SINCE CLAIMANT WAS AWARE OF THE FACT THAT HIS SAVED PAY WAS TO BE TERMINATED ON A SPECIFIC DATE. THOUGH THE ERROR WAS NOT CORRECTED FOR FOUR MONTHS AFTER THE INITIAL INQUIRY. IN THE ABSENCE OF OFFICIAL NOTICE THAT THE PAYMENTS WERE NOT IN FACT ERRONEOUS. REASONABLY HAVE EXPECTED TO RETAIN THE OVERPAYMENTS WITHOUT BEING LIABLE FOR REFUND. THERE IS NO JUSTIFICATION FOR WAIVER UNDER THE PROVISIONS OF 5 U.S.C. 5584. YOUR APPOINTMENT WAS CONVERTED TO REINSTATEMENT CAREER AS STEAMFITTER. IN ACCORDANCE WITH APPLICABLE REGULATIONS YOU WERE GIVEN A SAVED RATE OF PAY. YOU WERE ERRONEOUSLY PAID SAVED RATE FROM NOVEMBER 4. YOUR RATE OF PAY SHOULD HAVE BEEN ADJUSTED FROM $3.19 PER HOUR TO $2.74 PER HOUR.

B-171487, JAN 26, 1971

WAIVER OF DEBT DUE THE UNITED STATES DENIAL OF REQUEST TO WAIVE DEBT OF $333.67 OWED THE U.S., BY ROBERT L. RAYHON FOR ERRONEOUS PAYMENTS OF SAVED PAY WHILE AN EMPLOYEE OF THE DEPARTMENT OF THE ARMY. SINCE CLAIMANT WAS AWARE OF THE FACT THAT HIS SAVED PAY WAS TO BE TERMINATED ON A SPECIFIC DATE, AND MADE AN IMMEDIATE INQUIRY WHEN THE PAYMENTS DID NOT STOP, THOUGH THE ERROR WAS NOT CORRECTED FOR FOUR MONTHS AFTER THE INITIAL INQUIRY, HE COULD NOT, IN THE ABSENCE OF OFFICIAL NOTICE THAT THE PAYMENTS WERE NOT IN FACT ERRONEOUS, REASONABLY HAVE EXPECTED TO RETAIN THE OVERPAYMENTS WITHOUT BEING LIABLE FOR REFUND. THEREFORE; THERE IS NO JUSTIFICATION FOR WAIVER UNDER THE PROVISIONS OF 5 U.S.C. 5584.

TO MR. ROBERT L. RAYHON:

THIS REFERS TO YOUR LETTER POSTMARKED NOVEMBER 10, 1970, REQUESTING THAT WE REVIEW THE ACTION OF THE DEPARTMENT OF THE ARMY IN REFUSING TO GRANT A WAIVER UNDER THE AUTHORITY OF PUBLIC LAW 90-616 (5 U.S.C. 5584) OF ERRONEOUS PAYMENTS OF PAY RECEIVED BY YOU WHILE EMPLOYED WITH THAT DEPARTMENT.

THE INFORMATION OF RECORD SHOWS THAT ON NOVEMBER 4, 1963, YOUR APPOINTMENT WAS CONVERTED TO REINSTATEMENT CAREER AS STEAMFITTER, WB 10, AND IN ACCORDANCE WITH APPLICABLE REGULATIONS YOU WERE GIVEN A SAVED RATE OF PAY, NOT TO EXCEED NOVEMBER 3, 1965, OF $3.19 PER HOUR. DUE TO ADMINISTRATIVE ERROR, YOU WERE ERRONEOUSLY PAID SAVED RATE FROM NOVEMBER 4, 1965, THROUGH MARCH 5, 1966, RESULTING IN AN OVERPAYMENT OF $333.67. ON THE EXPIRATION DATE OF THE SAVED RATE NOVEMBER 3, 1965, YOUR RATE OF PAY SHOULD HAVE BEEN ADJUSTED FROM $3.19 PER HOUR TO $2.74 PER HOUR.

THE RECORD FURTHER SHOWS THAT YOU WERE AWARE OF THE FACT THAT YOUR SAVED PAY WAS TO BE TERMINATED AND DID MAKE AN IMMEDIATE INQUIRY CONCERNING THE ERRONEOUS PAYMENT OF PAY. WHILE THE ERROR WAS NOT CORRECTED UNTIL SOME MONTHS SUBSEQUENT TO THE INITIAL OVERPAYMENT, YOU COULD NOT, IN THE ABSENCE OF OFFICIAL NOTICE THAT THE PAYMENTS WERE NOT IN FACT ERRONEOUS, REASONABLY HAVE EXPECTED TO RETAIN THE OVERPAYMENT WITHOUT BEING LIABLE FOR REFUND THEREOF. IN SUCH CIRCUMSTANCES IT DOES NOT APPEAR THAT COLLECTION WOULD BE AGAINST EQUITY AND GOOD CONSCIENCE AND NOT IN THE BEST INTERESTS OF THE UNITED STATES SO AS TO JUSTIFY WAIVER UNDER THE PROVISIONS OF 5 U.S.C. 5584. WE, THEREFORE, FIND NO BASIS FOR REVERSING THE DETERMINATION OF THE DEPARTMENT OF THE ARMY IN REFUSING TO GRANT THE WAIVER YOU REQUESTED.