Opinion

Karen McLaughlin-Graham v. Office of Personnel Management

Court
Merit Systems Protection Board
Filed
Jul 17, 2024
Status
Unpublished
Cited by
0 cases
Authority
More cited than 30.3%

The opinion

UNITED STATES OF AMERICA

MERIT SYSTEMS PROTECTION BOARD

KAREN D. MCLAUGHLIN- DOCKET NUMBER

GRAHAM, PH-0831-20-0250-I-1

Appellant,

v.

DATE: July 17, 2024

OFFICE OF PERSONNEL

MANAGEMENT,

Agency.

THIS ORDER IS NONPRECEDENTIAL 1

Karen D. McLaughlin-Graham , Randallstown, Maryland, pro se.

Alison Pastor , Washington, D.C., for the agency.

BEFORE

Cathy A. Harris, Chairman

Raymond A. Limon, Vice Chairman

Henry J. Kerner, Member*

*Member Kerner did not participate in the adjudication of this appeal.

REMAND ORDER

The appellant has filed a petition for review of the initial decision, which

affirmed the final decision by the Office of Personnel Management (OPM)

denying her request to change her survivor annuity election. For the reasons

1

A nonprecedential order is one that the Board has determined does not add

significantly to the body of MSPB case law. Parties may cite nonprecedential orders,

but such orders have no precedential value; the Board and administrative judges are not

required to follow or distinguish them in any future decisions. In contrast, a

precedential decision issued as an Opinion and Order has been identified by the Board

as significantly contributing to the Board’s case law. See 5 C.F.R. § 1201.117(c).

2

discussed below, we GRANT the appellant’s petition for review, VACATE the

initial decision, and REMAND the case to the regional office for further

adjudication in accordance with this Remand Order.

DISCUSSION OF ARGUMENTS ON REVIEW

Under 5 U.S.C. § 8339(o), an employee who is married at the time of her

retirement and elects less than the maximum survivor annuity has an 18 -month

window after her retirement during which she may elect to increase her monthly

annuity reduction to provide a greater survivor annuity. Rollins v. Office of

Personnel Management, 112 M.S.P.R. 557, ¶ 8 (2009); 5 C.F.R. § 831.622(b)(1).

The appellant in this case wishes to increase her spouse’s survivor annuity, and

seeks a waiver of the 18-month deadline for making such an election.

The appellant bears the burden of establishing her entitlement to a waiver.

Rollins, 112 M.S.P.R. 557, ¶ 6; see Cheeseman v. Office of Personnel

Management, 791 F.2d 138, 140-41 (Fed. Cir. 1986). There are three potential

grounds for waiving the deadline: (1) the statute or regulation itself specifies

circumstances for a waiver; (2) affirmative misconduct by the agency warrants

equitable estoppel of the statutory or regulatory provision; or (3) the agency fails

to provide notice of election rights and corresponding deadlines, if such notice is

required by statute or regulation. Nunes v. Office of Personnel Management,

111 M.S.P.R. 221, ¶ 16 (2009).

Here, the first circumstance does not apply, as neither 5 U.S.C. § 8339(o)

nor 5 C.F.R. § 831.622(b)(1) include a provision describing conditions in which

the 18-month deadline may be waived. See id., ¶ 17. Furthermore, while the

appellant contends that her retirement counselor was negligent in failing to

explain the calculation of her reduced annuity, the Board has held that the

negligent provision of misinformation does not constitute affirmative misconduct

that would warrant equitable estoppel of the deadline. See Scriffiny v. Office of

Personnel Management, 108 M.S.P.R. 378, ¶¶ 12-14 (2008), overruled on other

3

grounds by Nunes, 111 M.S.P.R. 221, ¶ 15. Hence, the second circumstance also

does not apply.

As to the third possible ground for waiver, 5 U.S.C. § 8339(o) requires

OPM to give eligible employees annual notice of their right to elect an increased

survivor annuity, and the applicable procedures and deadlines. Rollins,

111 M.S.P.R 557, ¶ 8; Nunes, 111 M.S.P.R. 221, ¶ 15. The appellant argues that

the 18-month deadline should be waived because OPM did not provide the

required annual notice.

OPM bears the burden of proving that it provided the annual notice

required under 5 U.S.C. § 8339(o). Nunes, 111 M.S.P.R. 221, ¶ 20. If OPM can

establish through credible evidence that it is more probable than not that it sent

the notice, the burden of going forward falls upon the appellant, who must put

forth credible testimony or other evidence tending to show that she did not

receive the notice. See id. If OPM fails to meet its burden of showing that it

provided the required annual notice, waiver of the deadline is appropriate if the

appellant establishes that the annuitant—herself, in this case—had the intention to

increase her survivor annuity election at some point during the 18-month period.

See Rollins, 112 M.S.P.R. 557, ¶¶ 8-10.

OPM asserts that it provided the appellant the required annual notice in

December 2017 and December 2018. Initial Appeal File, Tab 5 at 4. In support

of its assertion, OPM has provided an affidavit from an employee of the

Retirement Services Branch, who attested that general notices regarding survivor

benefit election deadlines were mailed to all annuitants every December from

1989 to 2017. Id. at 40-41. However, OPM has neglected to produce any

evidence that it issued the appellant the required annual notice in December 2018.

See Hendricks v. Department of the Navy, 69 M.S.P.R. 163, 168 (1995) (holding

that the statements of a party’s representative in a pleading do not constitute

evidence). In the absence of such evidence, OPM has failed to meet its burden of

4

showing that it provided the required annual notice throughout the 18-month

period following the appellant’s retirement.

However, waiver of the deadline is an appropriate remedy only if the

appellant shows that, at some point during the 18-month window after her

retirement, she intended to increase her spouse’s survivor annuity. See Rollins,

111 M.S.P.R. 557, ¶¶ 6-8. The appellant has not previously been informed of her

burden of proof on this issue, and we cannot determine from the existing record

whether she developed that intention before or after the 18-month period expired.

Accordingly, we remand the case for further development of the record, including

an additional hearing if needed, and a new determination on the appellant’s

possible entitlement to a waiver of the 18-month deadline. See id., ¶¶ 12-13.

ORDER

For the reasons discussed above, we remand this case to the regional office

for further adjudication in accordance with this Remand Order. In the remand

initial decision, the administrative judge may reincorporate prior findings as

appropriate, consistent with this Remand Order.

FOR THE BOARD: ______________________________

Gina K. Grippando

Clerk of the Board

Washington, D.C.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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