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B-239660, Oct 17, 1990, Office of General Counsel

B-239660 Oct 17, 1990
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CIVILIAN PERSONNEL - Compensation - Overpayments - Error detection- Debt collection - Waiver CIVILIAN PERSONNEL - Leaves Of Absenced - Lump-sum payment - Reinstatement - Retroactive compensation - Set-off DIGEST: Claims Group settlement denying waiver is sustained on the basis of the net indebtedness rule since deduction of lump-sum payments from an employee's backpay award did not result in a net indebtedness to the government. Which were deducted from her backpay award. Woodland are subject to waiver only to the extent that the deduction of the payments exceeds the amount of the backpay award and results in a net indebtedness to the government. There is no net indebtedness to be waived.

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B-239660, Oct 17, 1990, Office of General Counsel

CIVILIAN PERSONNEL - Compensation - Overpayments - Error detection- Debt collection - Waiver CIVILIAN PERSONNEL - Leaves Of Absenced - Lump-sum payment - Reinstatement - Retroactive compensation - Set-off DIGEST: Claims Group settlement denying waiver is sustained on the basis of the net indebtedness rule since deduction of lump-sum payments from an employee's backpay award did not result in a net indebtedness to the government.

Thelma M. Woodland:

Ms. Woodland, an employee of the Department of Health and Human Services, Office of Community Services, appeals a Claims Group settlement /1/ which denied her request for a waiver under the provisions of 5 U.S.C. Sec. 5584 (1988). The Claims Group denied waiver of severance pay, lump-sum annual leave payments, and retroactive retirement payments totaling $30,194.34, which were deducted from her backpay award, since a deduction of the payments did not result in a net indebtedness to the government.

The Claims Group properly applied our established rule regarding waiver of lump-sum payments. The payments enumerated by Ms. Woodland are subject to waiver only to the extent that the deduction of the payments exceeds the amount of the backpay award and results in a net indebtedness to the government. Victor Crichton, 66 Comp.Gen. 570 (1987); Jeffrey Kassel, 65 Comp.Gen. 865 (1986); Cassandra B. Wyatt, B-231943, July 14, 1989. this case Ms. Woodland received $14,468.30 in backpay after all deductions had been made.

Accordingly, there is no net indebtedness to be waived, and the denial of waiver is sustained.

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