Washington, DC

U.S. Office of Personnel Management
Compensation Claim Decision
Under section 3702 of title 31, United States Code

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Damon B. Ford
Compensation and Leave Claims
Program Manager
Agency Compliance and Evaluation
Merit System Accountability and Compliance


01/30/2018

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Date

On November 7, 2017, the U.S. Office of Personnel Management (OPM) received a claim from [claimant’s attorney] appealing the decision of the Defense Finance and Accounting Service (DFAS) denying claimant’s request to invalidate or waive a debt incurred by the claimant in connection with his employment with the Department of the Navy (Navy).  For the reasons discussed herein, the claim is denied for lack of jurisdiction.  

On an unspecified date, the claimant was informed by various representatives of his agency that they had reason to believe that the claimant had not been on duty for 900 hours of work claimed on his timecard.  In response, the claimant resigned from his position.  In September 2016, the claimant was informed that he incurred a debt with the Defense Finance and Accounting Service (DFAS) totaling $43,794.23.  On October 18, 2016, DFAS informed the claimant that his debt had been reduced to $33,475.51 as the result of a garnishment.  The claimant requests that OPM invalidate the debt as he feels DFAS did not provide sufficient proof that he did not work the hours claimed.  Alternatively, the claimant requests that if the debt cannot be invalidated, that it be waived “due in the interest of equity and justice so that [the claimant] may provide for his family’s health and welfare and continued production of income.”  

Part 178, subpart A of title 5, Code of Federal Regulations (CFR), concerns the adjudication and settlement of Federal civilian employee claims for compensation and leave.  Section 178.103 states that a claim filed by a claimant’s representative must be supported by a duly executed power of attorney or other documentary evidence of the representative’s right to act for the claimant.  The claim request did not contain such documentary evidence.  Because the requirements of 5 CFR 178.103 have not been met, the attorney that submitted the claim does not have standing to represent the claimant on this matter before OPM.  However, based on the information submitted into the record, we may render a decision on this matter on jurisdictional grounds.

As a result of legislative and executive action, the authority to waive overpayments of pay and allowances now resides with the heads of agencies, regardless of the amount.  See the General Accounting Office Act of 1996, Pub. L. No. 104-316, 110 Stat. 3826, approved October 19, 1996; and the Office of Management and Budget (OMB) Determination Order dated December 17, 1996.  Neither Pub. L. No. 104-316 nor OMB’s Determination Order of December 17, 1996, authorizes OPM to make or to review waiver determinations involving erroneous payments of pay or allowances other than for its own employees as provided for in 5 U.S.C. § 5584.  Therefore, OPM does not have jurisdiction to consider, or issue a decision on, the request for a waiver of a claimant’s indebtedness to the United States, because the authority to waive the claimant’s indebtedness is vested in his former agency, the Navy.  

This settlement is final.  No further administrative review is available within OPM.  Nothing in this settlement limits the claimant’s right to bring an action in an appropriate United States court.

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