[Decision on Army Employee's Request for Waiver of Salary Overpayment]

A civilian Army employee appealed the Claims Group's denial of a waiver of a salary overpayment he received when the Army failed to decrease his salary after he voluntarily accepted a position at a lower grade. GAO noted that the Army: (1) did not counsel the employee as to the financial consequences of his voluntarily requesting a reduction in grade; and (2) informed the employee that he was entitled to continue to receive his annual salary at the higher grade level for 2 years. GAO held that there was no evidence of fraud, misrepresentation, or lack of good faith by the employee, since he reasonably believed that he was entitled to a salary at his former grade level. Accordingly, the waiver was allowed.