Request for Waiver of Debt Resulting From Nondeduction of Insurance Premiums

B-193831: Jul 20, 1979

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An employee requested reconsideration of the action taken on granting only partial waiver of a government claim against him arising out of erroneous overpayment of wages he received incident to his employment as a National Guard Technician. The employee became eligible for Federal Employees Group Life Insurance (FEGLI) as the result of his conversion to Federal status and documentation showed he had elected FEGLI coverage. The employee decided to cancel his coverage; however, his desire was not communicated to the responsible technician personnel office and FEGLI coverage was continued for him in accordance with his initial written request. The local civilian payroll clerk was apparantly aware of the claimant's attempt to cancel the insurance coverage and did not deduct the FEGLI premiums from his wages. Thus, the claimant received the life insurance coverage without paying the required premiums. The claim of the Government against an employee, arising out of overpayments he received when FEGLI premiums were not deducted from his pay, may not be waived on the basis of the employee's contentions that he did not want FEGLI coverage and received no benefits from it. His beneficiary would have been paid life insurance had he died during the period of FEGLI coverage, and therefore it is not inequitable to require him to pay for insurance protection provided.