Request for Waiver of Debt

A retired member of the Navy requested reconsideration of the denial of his request for waiver of his debt to the United States. The debt was the result of 6 months of erroneous payments for a basic allowance for quarters. At the time of the erroneous payments, the member was entitled to a basic allowance for subsistence, but not to the basic allowance for quarters since he and his family were occupying Government quarters. However, the record for that period showed the reverse, and his pay was increased by about $85. Upon questioning the disbursing officer, he was told that the increase was probably due to a decrease in tax withholdings and not to worry. Some months later, the error was partially corrected to show that he was entitled to receive a basic allowance for subsistence, but the erroneous entry showing the entitlement for basic allowance for quarters remained uncorrected. In his request for reconsideration, the member questioned the fairness of being held responsible for the administrative errors made by those who were supposed to be the pay experts. The waiver statute does not apply automatically to relieve the debts of all members who have received erroneous payments from the Government. Waiver action is a matter of grace or dispensation, and not a matter of right that arises solely by virtue of an erroneous payment being made by the Government. Therefore, persons receiving money erroneously paid by a Government official or agency acquire no right to the money. Waiver is not allowed if the member knew or should have known that he was being overpaid at the time. In this case, GAO found that requiring the member to pay his debt was neither against equity and good conscience nor contrary to the best interest of the United States. Accordingly, the Claims Division decision was sustained.