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Administrative Law Keyed to Schwartz
Office of Personnel Management v. Richmond
Citation:
496 U.S. 414 (1990)Facts
Charles Richmond worked as a welder for the Navy Public Works Center until 1981, when he retired due to impaired eyesight and began receiving disability benefits. The law governing his benefits provided that eligibility would end if his earning capacity was “deemed restored,” which occurred if his income in any calendar year equaled at least 80% of the pay for his former position. This was a change from the pre-1982 rule, which required exceeding the limit in two consecutive years. In 1986, Richmond had an opportunity to work overtime as a school bus driver. Before accepting the extra work, he sought advice from a Navy employee relations specialist, who incorrectly informed him (based on the outdated pre-1982 rule) that he could exceed the earnings limit in one year without losing benefits as long as he stayed under the limit the previous and following years. The specialist also provided Richmond with an outdated OPM form containing the same erroneous information. Relying on this advice, Richmond earned $19,936 in 1986, exceeding the 80% limit. As a result, OPM discontinued his disability annuity from June 30, 1987, until January 1, 1988, causing him to lose $3,993 in benefits.
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