Stacey Nelson v. Office of Personnel Management

CourtMerit Systems Protection Board
DecidedSeptember 6, 2022
DocketDE-0845-14-0626-I-1
StatusUnpublished

This text of Stacey Nelson v. Office of Personnel Management (Stacey Nelson 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
Stacey Nelson v. Office of Personnel Management, (Miss. 2022).

Opinion

UNITED STATES OF AMERICA MERIT SYSTEMS PROTECTION BOARD

STACEY VICTOR NELSON, DOCKET NUMBER Appellant, DE-0845-14-0626-I-1

v.

OFFICE OF PERSONNEL DATE: September 6, 2022 MANAGEMENT, Agency.

THIS FINAL ORDER IS NONPRECEDENTIAL 1

Stacey Victor Nelson, Fulton, South Dakota, pro se.

Tanisha Elliott Evans, 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 a reconsideration decision by the Office of Personnel Management (OPM) finding that he had been overpaid annuity benefits under the Federal Employees’ Retirement System (FERS) and that he did not qualify for a waiver of

1 A nonprecedential order is one that the Board has determined does not add significantly to the body of MSPB case law. Parties may cite nonprecedential orders, but such orders have no precedential value; the Board and administrative judges are not required to follow or distinguish them in any future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

the overpayment. Generally, we grant petitions such as this one only when: 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 and AFFIRM the initial decision, which is now the Board’s final decision. 5 C.F.R. § 1201.113(b). ¶2 In January 2009, OPM approved the appellant’s application for FERS disability retirement annuity benefits effective November 2008. Initial Appeal File (IAF), Tab 8 at 8, 17. In January 2012, OPM notified the appellant that he received an overpayment of $18,546.65, and the appellant requested reconsideration and a waiver of the overpayment. Id. at 18, 20-23. OPM issued a final decision in August 2014, confirming the existence and amount of the overpayment and denying the appellant’s waiver request. Id. at 6-7. OPM noted that the appellant provided no financial data in support of his waiver request although OPM gave him a Financial Resources Questionnaire (FRQ), which he did not submit even after requesting additional time to do so. Id. at 7. To prevent possible financial hardship, however, OPM reduced the original repayment schedule from 36 monthly installments of $515.18, to 73 monthly installments of $257.59 to be collected by withholding from the appellant’s future monthly annuity payments. Id. at 7, 18. The appellant appealed OPM’s final decision to 3

the Board, and he provided an FRQ in support of his waiver request. IAF, Tabs 1, 14. ¶3 The administrative judge issued an initial decision based on the written record, affirming OPM’s final decision concerning the overpayment and waiver denial but modifying OPM’s repayment schedule because of the appellant’s financial circumstances. IAF, Tab 64, Initial Decision (ID) at 22-23. The administrative judge found that OPM proved the existence and amount of the $18,546.65 overpayment, which consisted of the following: (1) $14,825.48 for health insurance premiums; (2) $2,409.14 for life insurance premiums; and (3) $1,312.03 for an annuity overpayment, including taxes withheld. 2 ID at 4-7. The administrative judge found that the appellant was without fault in creating the overpayment but he failed to prove that he was entitled to a waiver. ID at 16-18. Although no waiver applied, the administrative judge modified OPM’s proposed repayment schedule. ID at 22-23. Specifically, the administrative judge found it reasonable to extend the appellant’s payment plan to 92 months, with a monthly withholding of $200.00, and a final payment of $146.00 in the 93rd month. ID at 23. In adjusting the collection schedule, the administrative judge considered the appellant’s FRQ, evidence that his debts and anticipated expenses exceed his available assets, and that he is disabled and unable to work. ID at 20, 22-23. ¶4 The appellant has filed a petition for review of the initial decision, reasserting the arguments he made on appeal that his due process rights were violated and that he is entitled to a waiver. Petition for Review (PFR) File, Tab 1. The appellant does not dispute the administrative judge’s findings

2 The administrative judge found that OPM could have claimed a higher annuity overpayment if it had relied on the appellant’s official statements. ID at 6-7, 18 n.17. He further found that the appellant benefitted from OPM’s failure to take advantage of repeated notices and opportunities to explain why, based on the official Statements of Annuities provided by the appellant, the overpayment could have been greater than OPM claimed. ID at 6. 4

concerning the existence and amount of the overpayment. OPM responded in opposition to his petition, and the appellant replied. PFR File, Tabs 4-5. ¶5 As the administrative judge correctly stated in the initial decision, ID at 7, recovery of an overpayment may be waived if the appellant is without fault and recovery would be against equity and good conscience, 5 C.F.R. § 845.301. Recovery would be against equity and good conscience in the following circumstances: (1) recovery would cause financial hardship to the person from whom it is sought; (2) the recipient of the overpayment can show, regardless of his financial circumstances, that due to the notice that the payment would be made, or because of the incorrect payments, he relinquished a valuable right or changed positions for the worse; or (3) recovery would be unconscionable under the circumstances. 5 C.F.R. § 845.303. ¶6 Financial hardship may exist when an appellant needs substantially all of his current income and liquid assets to meet current “ordinary and necessary” living expenses and liabilities. See 5 C.F.R. § 845.304. After completing his analysis of the appellant’s FRQ, the administrative judge reduced some of the appellant’s claimed expenses as not “ordinary and necessary,” added $50 per month for emergencies, and determined that the appellant’s disposable monthly income exceeded his ordinary and necessary monthly expenses by $1,011.51. ID at 8-12. Thus, the administrative judge found that the appellant did not prove that he was entitled to a waiver based on financial hardship. ID at 8.

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Stacey Nelson v. Office of Personnel Management, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stacey-nelson-v-office-of-personnel-management-mspb-2022.