Opinion ID: 2800773
Heading Depth: 2
Heading Rank: 1

Heading: standard of review

Text: This court’s “scope of . . . review of [B]oard decisions is limited to whether they are (1) arbitrary, capricious, an 4 NELSON v. OPM abuse of discretion, or otherwise not in accordance with law; (2) obtained without procedures required by law, rule, or regulation having been followed; or (3) unsupported by substantial evidence.” Forest v. Merit Sys. Prot. Bd., 47 F.3d 409, 410 (Fed. Cir. 1995) (citing 5 U.S.C. § 7703(c) (1988)). The issue of Board jurisdiction is a question of law this court reviews de novo. Johnston v. Merit Sys. Prot. Bd., 518 F.3d 905, 909 (Fed. Cir. 2008). This court is bound by the Board’s jurisdictional factual findings “unless those findings are not supported by substantial evidence.” Bolton v. Merit Sys. Prot. Bd., 154 F.3d 1313, 1316 (Fed. Cir. 1998). II. Disability Benefit Earnings Cap and Overpayment Any person receiving retirement disability annuities under the age of sixty who receives income or wages in any calendar year “equal[ to] or greater than at least 80 percent of the current rate of basic pay of the position occupied immediately before retirement” is considered to have his or her earning capacity restored. 5 C.F.R. § 844.402(a). If earning capacity is considered restored, the retirement disability annuity “will terminate on the June 30 after the end of the calendar year in which earning capacity is restored.” Id. Recipients of retirement disability annuities “must report to OPM their income from wages or self- employment or both for that calendar year. . . . If an annuitant fails to submit the report, OPM may stop annuity payments until it receives the report.” Id. § 844.402(d). Once OPM has demonstrated to the Board by a pre- ponderance of evidence that the overpayment occurred, the burden shifts to Mr. Nelson to “establish by substantial evidence that he . . . is eligible for a waiver or an adjustment.” Id. § 831.1407(b). NELSON v. OPM 5 OPM may recover an overpayment from a recipient who is not eligible for waiver. See id. § 831.1401. A recipient is eligible for waiver if (a) he or she is “without fault” and (b) “recovery would be against equity and good conscience.” Id. § 845.301. One who receives an “overpayment is without fault if he or she performed no act of commission or omission that resulted in the overpayment. The fact that the [] OPM or another agency may have been at fault in initiating an overpayment will not necessarily relieve the individual from liability.” Id. § 845.302. OPM is required to consider certain factors when determining fault: (1) Whether payment resulted from the individu- al’s incorrect but not necessarily fraudulent statement, which he or she should have known to be incorrect; (2) Whether payment resulted from the individu- al’s failure to disclose material facts in his or her possession, which he or she should have known to be material; or (3) Whether he or she accepted a payment that he or she knew or should have known to be errone- ous. Id. § 845.302(a). “The individual’s age, physical and mental condition or the nature of the information supplied to him or her by OPM or a Federal agency may mitigate against finding fault.” Id. § 845.302(b). Even if Mr. Nelson “is ineligible for waiver,” he may still be “entitled to an adjustment in the recovery schedule if he [] shows that it would cause him [] financial hardship to make payment at the rate scheduled.” Id. § 845.301. “Financial hardship may be deemed to exist in— but not limited to—those situations where the annuitant from whom collection is sought needs substantially all of his/her current income and liquid assets to meet current 6 NELSON v. OPM ordinary and necessary living expenses and liabilities.” Id. § 831.1404. OPM may take into account certain factors when de- termining whether recovery would cause financial hardship: “(1) The individual’s financial ability to pay at the time collection is scheduled to be made. (2) Income to other family member(s), if such member’s ordinary and necessary living expenses are included in expenses reported by the annuitant.” Id. § 831.1404(a).