Request for Waiver of Overpayments Resulting From Failure To Deduct Health Benefits Premiums

An employee of the Social Security Administration appealed the denial of his request for waiver for overpayments of pay. The employee was hired as a part-time contact representative, and at that time enrolled himself, his wife, and his four children in a Federal health insurance plan. The enrollment form was received in the regional personnel office of the Department of Health, Education, and Welfare, and was processed. Upon receipt of this enrollment form by the regional personnel office, the employee was in fact covered under the Federal plan. However, due to an administrative error, the personnel office failed to process the information into its computerized system under a new procedure that was begun at about the same time. Therefore, the employee's coverage under the plan was not reflected on his leave and earnings statements, nor were any premiums withheld from his pay. Additionally, the record showed that the employee applied for health insurance a second time. As a result of this application, the error was subsequently discovered by the regional personnel office. GAO held that the employee was without fault for failing to take corrective action since comparison of his pay data would not have informed him that erroneous overpayment had been made or that he was enrolled in the Federal health plan. Also, the fact that the employee maintained private coverage and sought to file a new application showed that he acted in good faith in this matter. Accordingly, the claim for overpayment was waived.