P.S. Docket No. AO 21-77


September 23, 2021

P.S. Docket No. AO 21-77

In the Matter of the Administrative Offset Petition

DEON A. TERRELL v. UNITED STATES POSTAL SERVICE

APPEARANCE FOR PETITIONER: Deon A. Terrell

APPEARANCE FOR RESPONDENT: Anthony D. Mosley, Labor Relations Specialist, United States Postal Service

DECISION

The Postal Service assessed Deon A. Terrell with two debts.  The first debt was for 96 hours of unearned annual leave worth $1,755.18.  The second debt was for Federal Employee Health Benefits (FEHB) premiums worth $166.49.  Only the first debt was forwarded to the Department of Treasury (Treasury) for collection.1   Treasury added a 30% collection fee of $526.55.  When the two debts are combined with the collection fee, the total sought by the government is $2,448.22. 
The Postal Service met its burden of proof.  The Petition is denied.  The government may collect $2,448.22 from Mr. Terrell.

FINDINGS OF FACT

  1. Mr. Terrell worked for the Postal Service as a City Carrier for several years in Detroit, Michigan.  He left the Postal Service on February 19, 2019.  (Tr. 28; Resp. Exh. 2).
  2. At the beginning of the calendar year, the Postal Service advances the entire amount of an employee’s annual leave.  An employee may use the advanced leave before it is earned, with the presumption that the employee will work enough to earn the leave so that there is not a negative balance.  At the time Mr. Terrell left the Postal Service, however, he had used 96 more hours of annual leave than he had earned.  (Tr. 18-22; Resp. Exhs. 1, 3).
  3. The Postal Service paid Mr. Terrell for those 96 hours (Tr. 20, 22, 28, 31; Resp. Exhs. 1, 3).
  4. The leave was worth $1,755.18 (Tr. 27; Resp. Exh. 1).
  5. As of February 19, 2019, when Mr. Terrell departed the Postal Service, he was enrolled in the FEHB program.  The Postal Service did not collect $166.49 in FEHB premiums as of the effective date of his employment termination.  (Tr. 48-50; Resp. Exhs. 1, 3, 7).
  6. For both debts, the Postal Service issued Mr. Terrell Notices of Debt Determination advising him of his rights related to collection of the debts (Tr. 43, 50, 52; Resp. Exhs. 6, 7, 9).
  7. The Postal Service forwarded the first debt to Treasury for collection, which added a $526.55 collection fee (Tr. 5; Resp. Exhs. 8, 11).2
  8. Upon receiving a debt collection notice from Treasury, Mr. Terrell filed a timely petition for a hearing (Resp. Exh. 8).  Mr. Terrell confirmed that he wanted to challenge both debts and have a hearing on both debts (Order and Memorandum of Telephone Conference dated June 30, 2021; Tr. 7).

DECISION

The Postal Service has the initial burden of proving the existence and amount of the debt to a preponderance level of the evidence.  31 C.F.R. § 285.11(f)(8)(i).  In order to meet this burden for the first debt, the Postal Service must prove that:  (1) the overpayments were made; (2) the amount of the overpayments; and, (3) that Mr. Terrell is not entitled to the overpayments.  See, e.g., Reid v. United States Postal Service, DCA 19-392, 2021 WL 1390580 (March 16, 2021).  If the Postal Service meets this burden, the burden shifts to Mr. Terrell who must show to a preponderance level of the evidence that no debt exists or that the amount of the debt is incorrect.  31 C.F.R. § 285.11(f)(8)(ii).
The Postal Service has shown that it made a salary payment in the amount of $1,755.18 for 96 hours of annual leave.  The Postal Service has also shown that at the time of his departure from the Postal Service, Mr. Terrell had not earned these hours.  The Postal Service has therefore met its initial burden of proof.  At trial, Mr. Terrell offered neither argument nor evidence to challenge the Postal Service’s case.  Because the Postal Service has met its initial burden of proof on the first debt, the Petition is denied.  The government may collect the assessed debt and related collection fees.
For the FEHB debt, the Postal Service must prove that the employee was enrolled in the FEHB program during the period in which it seeks the overdue premiums and that it failed to collect those premiums from the employee for the same coverage period.  See, e.g., Pace-Walls v. United States Postal Service, DCA 21-47, 2021 WL 3032775 (June 10, 2021).  The Postal Service proved that Mr. Terrell was enrolled in the FEHB program and that it did not collect $166.48 in premiums for the same period.  Here again, Mr. Terrell offered neither argument nor evidence challenging the second debt.  Because the Postal Service met its initial burden of proof on the second debt, the Petition is denied.  The government may collect the assessed debt.

ORDER

The Petition is denied.  The government may collect $2,448.22 from Mr. Terrell.

Peter F. Pontzer, Administrative Judge

1 The Postal Service seeks to collect the $166.49 using administrative offset.  31 U.S.C. § 3716; 39 C.F.R. Part 966.  Procedurally, this part of the decision relating to the second debt is reviewable under 39 C.F.R. § 966.11.

2 The Postal Service is required to transfer delinquent debts to Treasury for collection.  31 U.S.C. §§ 3711(g); 3716(c)(6).  Treasury is authorized to add a collection fee.  31 U.S.C. § 3711(g)(6); 31 C.F.R. § 285.5(j).