[Code of Federal Regulations]
[Title 5, Volume 2]
[Revised as of January 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR841.507]

[Page 269]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
          CHAPTER I--OFFICE OF PERSONNEL MANAGEMENT (Continued)
 
PART 841--FEDERAL EMPLOYEES RETIREMENT SYSTEM--GENERAL ADMINISTRATION--Table of Contents
 
       Subpart E--Employee Deductions and Government Contributions
 
Sec. 841.507  Correction of unjustified or unwarranted personnel action.

    (a) When an ``appropriate authority'' determines that there has been 
an ``unjustified or unwarranted personnel action'' as these terms are 
defined in subpart H of part 550 of this title, the employing agency 
will pay the Fund the amount of the normal cost percentage of the basic 
pay included in back pay. The normal cost percentage owed the Fund is 
computed on the amount of gross basic pay without regard to deductions 
described in Sec. 550.805(e) of this chapter for other amounts earned or 
erroneous payments received.
    (b) The agency will withhold the appropriate employee deductions 
from the amount of basic pay included in gross back pay giving due 
regard to deductions described in Sec. 550.805(e) of this chapter.
    (c) The payment to the Fund described in paragraph (a) of this 
section shall be made within the time period established by OPM 
standards.
    (d)(1) Any FERS benefits--lump-sum payments or annuity benefits--
paid based on a separation that is later cancelled are considered 
erroneous payments that must be repaid to OPM. Agencies must deduct such 
payments from any back pay adjustment to which the employee may be 
entitled as required by 5 CFR 550.805(e).
    (2) Amounts recovered from back pay will not be subject to waiver 
consideration under 5 U.S.C. 8470(b). If there is no back pay, or the 
back pay is insufficient to recover the entire erroneous payment, the 
employee may request that OPM waive recovery of the uncollected portion 
of the overpayment. If waiver is not granted, the employee must repay 
the erroneous payment.

[52 FR 2057, Jan. 16, 1987. Redesignated and amended at 57 FR 3714, Jan. 
31, 1992; 58 FR 43493, Aug. 17, 1993]