[Code of Federal Regulations]
[Title 5, Volume 2]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR837.803]

[Page 193]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
          CHAPTER I--OFFICE OF PERSONNEL MANAGEMENT (CONTINUED)
 
PART 837_REEMPLOYMENT OF ANNUITANTS--Table of Contents
 
       Subpart H_Alternative Entitlements and Canceled Retirements
 
Sec.  837.803  Cancellation of retirement by judicial or administrative 

authority.

    (a) Cancellation of retirement action. A separation from employment 
on which an application for retirement is based may only be canceled by 
the former employing agency in response to a direct and final order of a 
judicial or administrative body charged with the responsibility of 
reviewing the legality of the separation, and authorized to make such 
order, or by agreement between the annuitant and the former employing 
agency in resolution of a grievance, complaint, dispute, appeal or other 
action, involving an allegedly erroneous separation, before such 
authority.
    (b) Agency notification to OPM. Upon receiving a final order 
requiring cancellation of the annuitant's separation or after the 
annuitant and the agency agree to cancel the separation, the employing 
agency must notify OPM and request the amount of the erroneous payment 
to be recovered under Sec.  550.805(e) of this chapter from any back pay 
adjustment to which the employee may be entitled.
    (c) Collection of erroneously paid retirement benefits. (1) If OPM 
determines that an overpayment of annuity or lump-sum credit has 
occurred and the employee is entitled to receive back pay because of the 
canceled separation, the overpaid retirement benefits must be deducted 
to the extent they can be recovered from the back pay adjustment as 
required by Sec.  550,805(e) of this chapter.
    (2) Amounts recovered from back pay will not be subject to waiver 
consideration under the provisions of 5 U.S.C. 8346(b) or 8470(b). If 
there is no back pay or the back pay is insufficient to recover the 
entire payment, the employee may request that OPM waive the uncollected 
portion of the overpayment. If waiver is not granted, the employee must 
repay the erroneous payment.