Appeals Court Affirms Dismissal of COLA Dispute
Case Law Update James G. Heelan Case Law Update James G. Heelan

Appeals Court Affirms Dismissal of COLA Dispute

After a $232,500,000 settlement agreement was executed in 2000 that also mandated that the United States Office of Personnel Management issue new regulations governing the Cost of Living Adjustment (“COLA”) program, plaintiff federal employees filed suit alleging that the government breached the settlement agreement and both the express and implied covenant of good faith and fair dealing.

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Federal Circuit Reverses MSPB Order to Repay OPM Overpayment
Case Law Update Conor D. Dirks Case Law Update Conor D. Dirks

Federal Circuit Reverses MSPB Order to Repay OPM Overpayment

After the Merit Systems Protection Board found that a retired federal employee failed to prove that the recovery of overpaid benefits from the Federal Employee Retirement System (“FERS”) would be against equity and good conscience, the Court of Appeals for the Federal Circuit reversed the MSPB’s decision, finding that the Administrative Judge’s analysis (which the full Board accepted) was not supported by substantial evidence, was erroneous, and that recovery of the overpayment was unconscionable given the “inexplicable” three-year delay by OPM to finalize the retiree’s benefits, and the additional four-year delay between the retiree’s request for reconsideration and OPM’s decision.

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