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Administrative Law Keyed to Breyer
Office of Personnel Management v. Richmond
Citation:
496 U.S. 414 (1990)Facts
Charles Richmond worked as a welder at the Navy Public Works Center until 1981, when he retired due to impaired eyesight and began receiving a disability annuity under 5 U.S.C. § 8337(a). The statute provided that disability payments would end if the retired employee’s earning capacity was “restored,” which was deemed to occur if the annuitant’s annual income exceeded 80% of the current pay rate for his former position. In 1982, Congress amended the law to change the measuring period for restoration of earning capacity from two consecutive years to a single calendar year. After retirement, Richmond worked part-time as a school bus driver, keeping his earnings below the 80% limit. In 1986, he had an opportunity for overtime work and sought advice from a Navy employee relations specialist about income limits. The specialist, relying on the outdated pre-1982 rule, incorrectly advised Richmond that he would lose benefits only if he exceeded the 80% limit in two consecutive years. Richmond was also given an outdated OPM form containing the same erroneous information. Based on this advice, Richmond earned $19,936 in 1986, exceeding the statutory limit, which resulted in OPM discontinuing his disability payments for six months, causing a loss of $3,993.
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