BNUMBER:  B-261958
DATE:  November 8, 1995
TITLE:  Timothy Piekarski-Waiver Request

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Matter of:Timothy Piekarski-Waiver Request

File:     B-261958

Date:     November 8, 1995

DIGEST

A former Navy member received a Selective Reenlistment Bonus (SRB), 
but lost the job classification for which he was receiving the SRB 
before the end of his term of enlistment.  The unearned portion of his 
SRB may not be considered for waiver because the SRB payment was 
proper when made.

DECISION

This is in response to an appeal of a Claims Group settlement which 
denied the waiver request of Mr. Timothy Piekarski, a former member of 
the United States Navy.  His request is denied, and the Claims Group's 
settlement is affirmed.

On June 29, 1984, Mr. Piekarski reenlisted in a nuclear job 
classification for which a Selective Reenlistment Bonus (SRB) was 
payable.  He received SRB payments until he lost the job 
classification on September 20, 1988.  Mr. Piekarski received 
conflicting information regarding his obligation to repay the unearned 
portion of the SRB for the unserved portion of his enlistment.  The 
Navy calculated that Mr. Piekarski owed $5,209.04 for the unserved 
portion, and he repaid $123.17 before he left the Navy.  When he 
separated from the Navy in June 1990, Mr. Piekarski received $2,166.42 
in final pay.  When notified later of the balance of the debt, Mr. 
Piekarski began to repay it.  Because he was a student working 
part-time, he offered to repay the debt at $25 per month, and the 
Defense Finance and Accounting Service, Cleveland Center (DFAS), 
accepted that arrangement.  In accordance with its policy on reduced 
payments, DFAS reexamined Mr. Piekarski's circumstances and 
recalculated the amount it expected him to pay.  The new monthly 
payment amount was $73.62.

In 1991 the Claims Group denied waiver of the government's claim 
against Mr. Piekarski for recoupment of the unearned portion of his 
SRB because the SRB payments were correct when made.  However, they 
waived collection of $2,166.42, the amount of his final pay, because 
that amount should have been offset against his debt.  Charles E. 
Raiford, Jr., B-254196, Dec. 23, 1993.  As a result, his debt was 
reduced to $2,919.45, plus accrued interest and fees.  In 1994 Mr. 
Piekarski appealed the Claims Group's settlement through DFAS on the 
grounds of hardship, and in June 1995 DFAS forwarded the appeal to 
this Office.

Under 10 U.S.C.  2774, the Comptroller General may waive a claim of 
the United States arising from an erroneous payment of pay and 
allowances if collection would be against equity and good conscience 
and not in the best interest of the United States.  A debt cannot be 
considered for waiver unless the payment was erroneous when made, and 
we have held that a debt arising from the unearned portion of an SRB 
does not arise from an erroneous payment, since the payment was proper 
when made.  See B-254196, supra.

In the present situation, the Navy was required to recoup the unearned 
portion of  Mr. Piekarski's SRB under the Department of Defense 
Military Pay and Allowances Manual, paragraph 10934b(2).  Because the 
SRB payments made to Mr. Piekarski were correct when made, we cannot 
consider them for waiver.  Moreover, hardship is not a factor in the 
consideration of waiver requests.  See B-254196, supra.

With regard to the monthly amount DFAS is seeking to collect from Mr. 
Piekarski, we have been informally advised that if his circumstances 
have changed since the payment amount of $73.62 was calculated, he may 
request recalculation.  Furthermore, we have been advised that it is 
sometimes possible with proper documentation to suspend collection of 
a debt for the duration of full-time studies.  Mr. Piekarski may wish 
to discuss that possibility with DFAS.

The government's claim against Mr. Piekarski for $2,919.45 plus 
accrued interest and fees cannot be considered for waiver.  His waiver 
request is denied, and the Claim's Group's settlement is affirmed.

/s/Seymour Efros
for Robert P. Murphy
General Counsel