Audrey D. Mccadney v. Office of Personnel Management
Background
- Appellant McCadney challenged OPM’s reconsideration finding of an $8,208.74 annuity overpayment for Sept 13, 2009–May 30, 2011.
- SSA awarded disability benefits retroactive to July 2009, with ongoing monthly payments beginning March 2011.
- OPM approved disability retirement under FERS on June 28, 2010 and advised reductions for SSA benefits.
- OPM paid interim annuity payments July 15, 2010–June 1, 2011 and identified the SSA-offset period.
- On June 7, 2011 OPM notified her of the overpayment and proposed a 36‑month repayment plan.
- Administrative judge upheld the overpayment and rejected waiver; MSPB denied petition for review.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether there was an annuity overpayment and its amount. | McCadney argued no overpayment existed; start date/amount were incorrect. | OPM maintained an overpayment occurred due to unreduced interim payments. | Overpayment shown; amount upheld. |
| Whether McCadney is entitled to a waiver of the overpayment. | McCadney alleged lack of fault and equity. | OPM found fault due to accepting errant SSA funds. | Waiver denied; applicant at fault. |
| Whether McCadney was at fault under the fault analysis. | Appellant did not knowingly create the overpayment. | Appellant accepted SSA funds knowing potential misalignment. | Appellant at fault for creating the overpayment. |
| Whether the prompt-notification exception applies. | She promptly sought reconsideration and provided information. | No timely notification under Guidelines; contact was not within 60 days. | Not entitled to prompt-notification waiver. |
Key Cases Cited
- Crosby v. U.S. Postal Service, 74 M.S.P.R. 98 (1997) (standard for reviewing overpayment determinations (MSPR))
- Vojas v. Office of Personnel Management, 115 M.S.P.R. 502 (2011) (without-fault considerations in overpayment waiver)
- Knox v. Office of Personnel Management, 107 M.S.P.R. 353 (2007) (two-part test for waivers: without fault and equity)
- Marques v. Department of Health & Human Services, 22 M.S.P.R. 129 (1984) (consideration of record evidence in overpayment cases)
- Broughton v. Department of Health & Human Services, 33 M.S.P.R. 357 (1987) (reasoned conclusions when considering evidence as a whole)