[Request for Reconsideration of Claims Group's Settlement Concerning Retired Army Member's Request for Waiver of Pay Deductions]

B-224946: Sep 25, 1987

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A retired Army member requested reconsideration of his disallowed request for a complete waiver of the deductions the Army took from his retroactive pay and allowances when it restored him to active duty. GAO had held that the Army owed the claimant readjustment pay and allowances for the period he was involuntarily separated, less the earnings he made as a civilian during this period and certain required deductions. In his request for reconsideration, the claimant contended that the Army: (1) improperly deducted his interim civilian earnings, Federal Insurance Contribution Act (FICA) taxes, life insurance payments, and the interest on his readjustment pay; (2) credited an inaccurate amount of leave time; and (3) owed him compensation for its failure to timely process his claim and for his loss of part-time civilian earnings. GAO held that: (1) since the claimant had accepted the settlement as correct and signed a release, he was barred from further pursuit of the claim; (2) the claimant was not entitled to any additional basic allowances for quarters; (3) regulations did not allow payment of his claim for compensatory damage; and (4) the Army properly deducted the claimant's interim earnings, FICA taxes, life insurance payments, and interest earnings from his readjustment pay. Accordingly, the claim was denied.