OPM vs. Former Federal Employee That Requested Contribution Refunds and Returned to Work
In disagreement with a retired federal worker, OPM has been ruled in favor. It is a warning to ensure that you must be cautious with any withdrawal of retirement contributions.
The retired employee took an offer of a buyout after serving two decades. She also put in a refund claim of her retirement fund contributions. The employee went back to government employment after a freeze period of not being able to work for the government.
The credit for the original years worked can be put toward the new position, but the reimbursement that was paid out previously must be returned plus interest. The ex-employee then continued to work for an additional decade but did not pay the refund back.
When the retiree began to receive their interim benefits, the benefits were calculated by OPM to three decades instead of the last period of them working, which was ten years. However, when the official benefits were decided, the benefits were based on the last decade they worked. After, OPM contacted the retiree to request that over $10K needed to be repaid for interim payments that the OPM had overpaid.
The retiree in question appealed the decision, as they never received the contribution refund from the first time they left their government position. She claimed that she deserved her benefits be calculated based on her total of 30 years.
In the proceeding, it was shown that the retiree, along with her spouse and an attorney, signed for the request of receiving a refund for contributions. The court believes that there was enough proof to agree with the Merit Systems Protection Board that the retiree requested the refund intending to do so. They had also signed documents that let the retiree know that the employee would lose any previous years if they returned to government service and did not pay back the refund. They also believe that if the former employee had not received that refund, they would have made it known to the OPM. They also had proof of the check as it had identical signatures to what was on the refund claim.
