Lori Cline v. Office of Personnel Management

CourtMerit Systems Protection Board
DecidedFebruary 28, 2023
DocketSF-0845-15-0690-I-2
StatusUnpublished

This text of Lori Cline v. Office of Personnel Management (Lori Cline v. Office of Personnel Management) is published on Counsel Stack Legal Research, covering Merit Systems Protection Board primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lori Cline v. Office of Personnel Management, (Miss. 2023).

Opinion

UNITED STATES OF AMERICA MERIT SYSTEMS PROTECTION BOARD

LORI Y. CLINE, DOCKET NUMBER Appellant, SF-0845-15-0690-I-2

v.

OFFICE OF PERSONNEL DATE: February 28, 2023 MANAGEMENT, Agency.

THIS FINAL ORDER IS NONPRECEDENTIAL 1

Lori Y. Cline, Huntington Beach, California, pro se.

Jane Bancroft, Washington, D.C., for the agency.

BEFORE

Cathy A. Harris, Vice Chairman Raymond A. Limon, Member Tristan L. Leavitt, Member

FINAL ORDER

¶1 The appellant has filed a petition for review of the initial decision, which affirmed the June 30, 2015 reconsideration decision of the Office of Personnel Management (OPM) terminating her Civil Service Retirement System (CSRS) disability annuity because she was restored to earning capacity and finding her

1 A nonprecedential order is one that the Board has determined does not add significantly to the body of MSPB case law. Parties may cite nonprecedential orders, but such orders have no precedential value; the Board and administrative judges are not required to follow or distinguish them in any future decisions. In contrast, a precedential decision issued as an Opinion and Order has been identified by the Board as significantly contributing to the Board’s case law. See 5 C.F.R. § 1201.117(c). 2

ineligible for a waiver of a resulting overpayment of her disability benefits or a repayment schedule adjustment. Generally, we grant petitions such as this one only in the following circumstances: the initial decision contains erroneous findings of material fact; the initial decision is based on an erroneous interpretation of statute or regulation or the erroneous application of the law to the facts of the case; the administrative judge’s rulings during either the course of the appeal or the initial decision were not consistent with required procedures or involved an abuse of discretion, and the resulting error affected the outcome of the case; or new and material evidence or legal argument is available that, despite the petitioner’s due diligence, was not available when the record closed. Title 5 of the Code of Federal Regulations, section 1201.115 ( 5 C.F.R. § 1201.115). After fully considering the filings in this appeal, we conclude that the petitioner has not established any basis under section 1201.115 for granting the petition for review. Therefore, we DENY the petition for review. We VACATE in part and AFFIRM in part the initial decision, as MODIFIED, to more fully address the appellant’s claimed entitlement to a waiver.

BACKGROUND ¶2 The appellant retired on disability from her PS-05 Clerk position with the U.S. Postal Service in 2007. Cline v. Office of Personnel Management, SF-0845-15-0690-I-1, Initial Appeal File (IAF), Tab 8 at 87. On June 3, 2013, OPM notified her that it had determined that her private-sector income for 2011 exceeded the amount she could earn and remain eligible for a disability retirement annuity. Id. at 68. On July 17, 2013, OPM advised her that it terminated her annuity effective June 30, 2012, because, based on this income, she had been restored to earning capacity in 2011. Id. at 50; see 5 U.S.C. § 8337(d) (providing, in pertinent part, that a CSRS disability retirement an nuity terminates 180 days after the end of a calendar year in which an annuitant under 60 years old is restored to earning capacity). OPM further notified her that because her 3

payments should have terminated effective June 30, 2012, she received an overpayment, totaling $20,128.16. IAF, Tab 8 at 50. On June 30, 2015, OPM issued a reconsideration decision affirming its earlier findings. 2 Id. at 6-8. OPM denied her request for a waiver because she was not entirely without fault for the overpayment and recovery would not be against equity and good conscience. Id. at 7-8. OPM offered to allow her to repay the overpayment in full or to pay $100 in 201 monthly installments with one final installment of $28.16 through its voluntary repayment program. Id. at 8. ¶3 The appellant filed a Board appeal challenging OPM’s reconsideration decision. IAF, Tab 1. She admitted to exceeding the restoration to earning capacity (REC) threshold for her Postal position and to receiving an overpayment. Cline v. Office of Personnel Management, MSPB Docket No. SF-0845-15-0690-I- 2, Refiled Appeal File (RAF), Tab 9 at 5; see 5 C.F.R. § 831.1209(a) (defining the REC threshold as income that is 80 percent or more of the current rate of basic pay for the position from which an annuitant retired). However, she claimed that in considering her request for a waiver, OPM should have used a different Postal position with a higher pay rate. RAF, Tab 9 at 5. According to the appellant, if the higher pay rate were used, she would have exceeded her REC threshold by approximately $200, rather than by $1,000. Id. She also alleged that she only exceeded the threshold because OPM failed to respond to her questions about her Postal pay rate and her non-Federal employer unexpectedly forced her to work overtime. Id. at 6-9. She further argued that repayment would cause her financial hardship because her claimed expenses significantly exceeded her average monthly income; that she detrimentally relied on her disability annuity in incurring substantial student loan debt; and that it would be unjust to

2 OPM’s reconsideration decision apparently erroneously identified the appellant as a Federal Employee Retirement System (FERS) disability annuitant. However, the appellant’s application for retirement, OPM’s letter granting her retirement, and OPM’s initial decision all indicate that the appellant was receiving CSRS disability annuity benefits. IAF, Tab 8 at 6, 50, 73-89. 4

require her to repay a debt vastly disproportionate to the $200 by which she went over the threshold, given her personal, health, and financial conditions. Id. at 10-17. OPM challenged the appellant’s claimed expenses for her storage unit, transportation, student loans, and adult children. IAF, Tab 8 at 5. ¶4 After the appellant withdrew her request for a hearing, the administrative judge issued an initial decision affirming OPM’s reconsideration decision based on the written record. RAF, Tab 7 at 4, Tab 13, Initial Decision (ID) at 1-2, 15. He found that OPM established by preponderant evidence an overpayment of $20,128.16. ID at 5. He further found that the appellant was not without fault as to the overpayment because she did not disclose her non-Federal earnings when she contacted OPM between January and March 2011 to inquire about her REC threshold or pursue her inquiry after March 2011, despite not receiving an answer from OPM. ID at 6-9. He further found that her age, her physical and mental condition, and the nature of her contacts with OPM did not mitigate her culpability. Id. As such, he did not address the appellant’s arguments that recovery would be against equity and good conscience. Finally, he found that the appellant was not entitled to a schedule adjustment because, after adjusting and disallowing some of her claimed expenses, she had sufficient monthly income to meet the repayment schedule. ID at 9-15. ¶5 The appellant has filed a petition for review, to which the agency has submitted a pro forma response. Cline v. Office of Personnel Management, MSPB Docket No. SF-0845-15-0690-I-2, Petition for Review (PFR) File, Tabs 1, 4. 5

DISCUSSION OF ARGUMENTS ON REVIEW The administrative judge correctly found that OPM met its burden of proving that the appellant received an overpayment.

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Lori Cline v. Office of Personnel Management, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lori-cline-v-office-of-personnel-management-mspb-2023.