Vincent B. Anderson v. Office of Personnel Management
Background
- Appellant became a FERS disability retirement annuitant effective September 18, 1992; OPM notified him that future SSA disability benefits would reduce his FERS disability annuity.
- OPM learned appellant began receiving SSA disability benefits effective September 1, 2005, and determined an annuity overpayment of $101,718 for Sept. 1, 2005–Feb. 28, 2015.
- OPM proposed a multi‑year repayment schedule; appellant sought reconsideration and then appealed to the MSPB, requesting a hearing and arguing he received a reduced/partial (not disability) annuity and seeking waiver based on financial hardship.
- The administrative judge found OPM proved the overpayment and that appellant was without fault but had been notified of the set‑aside requirement and thus was not entitled to waiver absent exceptional circumstances; financial hardship alone was insufficient for waiver.
- The judge adjusted the repayment schedule for financial hardship (806 monthly payments of $125 and a final payment) but otherwise affirmed OPM’s reconsideration decision; the Board denied review and affirmed that decision.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Existence & amount of overpayment | Anderson disputed characterization but did not contest amount | OPM proved existence and amount by preponderant evidence | Overpayment of $101,718 proven and affirmed |
| Entitlement to waiver of recovery | Anderson sought waiver based on financial hardship and claimed lack of notice | OPM conceded no fault but argued appellant was notified and must set aside payments; waiver requires exceptional circumstances beyond hardship | Waiver denied: appellant without fault but failed to show exceptional circumstances; financial hardship alone insufficient |
| Repayment schedule adjustment | Anderson argued hardship made original schedule untenable and asked for return of amounts already collected | OPM proposed long installment plan; acknowledged hardship but did not concede waiver | Repayment schedule adjusted for hardship (monthly $125 over extended term); prior collections not ordered returned |
| Classification of annuity (disability vs regular) | Anderson contended he received a reduced/partial or converted regular retirement at age 62 | OPM maintained he was approved for FERS disability retirement subject to SSA offset under governing statute | Held that record shows disability retirement was awarded and subject to SSA offset; conversion claim unsupported |
Key Cases Cited
- Vojas v. Office of Personnel Management, 115 M.S.P.R. 502 (MSPB 2011) (burden rules and waiver standards for FERS overpayments)
- Boone v. Office of Personnel Management, 119 M.S.P.R. 53 (MSPB 2012) (knowledge of overpayment/set‑aside requirement bars waiver absent exceptional circumstances)
- Dorrello v. Office of Personnel Management, 91 M.S.P.R. 535 (MSPB 2002) (financial hardship alone is not an exceptional circumstance for waiver)
- Noland v. Office of Personnel Management, 80 M.S.P.R. 89 (MSPB 1998) (FERS disability annuities are subject to offset for concurrent SSA disability benefits)
- Pinat v. Office of Personnel Management, 931 F.2d 1544 (Fed. Cir. 1991) (timeliness rules for appeals to the Federal Circuit)