[Appeal of Claims Group's Decision Concerning VA Employee's Backpay Claim]

A Veterans Administration (VA) employee protested a Claims Group decision affirming the settlement of his backpay claim subsequent to his dismissal and later reinstatement, contending that VA improperly: (1) offset unemployment compensation from his backpay award; (2) deducted the lump-sum leave payment he received after his dismissal from VA; and (3) offset refunded retirement contributions from his salary. The employee also requested waiver of these deductions if GAO should find that VA acted properly. GAO held that: (1) VA properly deducted the overpayment of unemployment compensation benefits from the employee's backpay since the state determined that an overpayment had occurred and had notified VA that it was required to refund the overpayment; (2) VA properly deducted the lump-sum annual leave payment from the backpay settlement and offset the employee's refunded retirement contributions from his backpay award; and (3) since VA revised and corrected the backpay computations on several occasions and the employee relied on published authority that stated that unemployment benefits should not be offset from backpay, it would grant waiver of the net overpayment only. Accordingly, the net overpayment the employee received was waived.