The Foreign Service Journal, November 2003

NOVEMBER 2003 • AFSA NEWS 7 Retiree Issues BY BONNIE BROWN, RETIREE ACTIVITIES COORDINATOR Q: What will happen if State determines that my annuity benefits were not cal- culated accuratelywhen I retired and that I have been paid too much? A: The department is obligated to pay out benefits in accordance with applicable law and regulations and assure that annuity payments are correct. Upon discovering an overpayment, the department will send you a letter explain- ing that an error has been discovered and that a corrective reductionwill bemade in your grossmonthly annuitypayment. You will be told what your adjusted monthly payment will be andwhen the adjustment will go into effect. After further review of your file, the department will send a notice, document- ing the total amount of your overpayment and the reasonoverpayment occurred. The departmentwill informyouof its intention to seek repayment, your right tocontest the overpayment or request awaiver of recov- ery, and the procedures to follow in pur- suing an appeal or waiver. Q: How is an overpayment collected? A: The department offers two options. The first option is full payment within 30 days of receipt of the notice to the annuitant. The second is an installment plan that extends over a peri- od of time, not to exceed three years. Installment payments include aprocessing fee and interest. Q: How can I contest the overpayment determination? A: Youhave 30days inwhich to file a response to the notice. Your response shouldprovide an explanationof why you believe you have not been over- paidorwhy the overpayment has beencal- culated incorrectly. Q: How can I request a waiver of collec- tion of the overpayment? A: Youcanrequest awaiver inwrit- ing. In support of this request youmust submit a completed “Statement of Financial Status for Consideration ConcerningYourDebt to theUnitedStates Government.” Taking into consideration your ordinary andnecessary expenses, the department will determine whether you have sufficient assets and income to ensure that repayment will not result in financial hardship. Q: What are the standards for granting a waiver? A: Section 807(d) of the Foreign ServiceAct of 1980provides that recovery of an overpayment may not be madewhen the individual is without fault and recovery would be against equity and good conscience or administratively infea- sible. The departmentmay base a finding of fault on a number of factors, including annuitant knowledge that thepaymentwas erroneous, failure to disclose material facts, submission of incorrect statements, or ability tohave determined that the pay- ment was erroneous. Q: How does repayment affect my tax obligations? A: Upon receiving repayment, the Retirement Accounts Division provides an annuitant with a letter of cred- it for prior years of overpayment. This let- ter can be submitted in an amended tax return. Q: How can an employee or annuitant assure that his/her annuity calculations are accurate? A: Overpayments can occur for a variety of reasons, including failures on the part of the department and/or the annuitant. It is essential for annuitants to learn about the regulations governing annuities and other benefits, to maintain and periodically review their employment records and deposits, and to assure that annuity calculations are correct. In the event there is some uncertainty, one can request a recalculation by the RetirementOffice by submitting FormDS 5000. ▫ Q & A significantly, the ability to sue for blocked assets canhinder the administration’s flex- ibility to use the funds as leverage indiplo- maticnegotiations. Yet there is recognition thatthesevictimsdeservesomelevelofcom- pensation. Stuart Eizenstat, a legal expert on com- pensation issues and a Clinton adminis- tration Treasury deputy secretary, testified that the$262,000amount is too low, “when we compare that, for example, to the $1.85 millionaverage awardunder the9/11com- pensation fund …” Dr. Allan Gerson, another expert, argued that the whole bill should be scrapped, because, in his opin- ion, the price should be paid by the perpe- trators andnotU.S. taxpayers. Inaddition, he disagreed with limiting victims’ rights: “In exchange for that paltry sum, they (the victims)wouldbe forfeiting their precious, hard-fought right to sue.” The debate on the bill is ongoing, and AFSAis engaged in theprocess andworking withCongresstoensurethatthelawwillade- quatelycoverallU.S.citizens,includingmem- bers of the Foreign Service community. ▫ Terror • Continued from page 5 How You Can Help AFSA encourages members to donate to the fund for the children of American victims of ter- rorism. Checks payable to the Federal Employee Education and Assistance Fund or FEEA should be sent to Federal Employee Education and Assistance Fund, 8441 West Bowles Ave., Suite 200, Littleton, CO 80123. On the memo line, write Federal Diplomatic Family Assistance Fund. To tag the donation for family members of the victims of the 1998 East Africa bombings, put “FDFAF-AF” on the memo line. Direct questions to Kendall Montgomery in the Office of Casualty Assistance: (202) 736-4302. AFSA also strongly encourages support for the FSN Emergency Relief Fund, which responds to general crises or humanitarian requests on behalf of FSN employees. Contributions should be made payable to the U.S. Department of State and sent to: Donna Bordley, Gift Funds Coordinator, FMP, Room7427, U.S. Department of State,Washington, DC 20520. DonnaBordley canbe reached at (202) 647-5031.