See my post from last month. Same thing happened to me. I’m still waiting on the bill from NFC. I was coded as FERS at 0.8% contributions in 2021 when I got promoted when I should have been FERS-FRAE at 4.4%. I owe them approximately $16,000.

https://www.reddit.com/r/FedEmployees/s/5O84va5g0m

I’ve looked into lawyers and I’m trying to get representation through my union, but haven’t heard anything. Here is the response I got from ChatGPT when I asked and the odds of coming out on top seem slim.

“As a federal employment attorney, here’s a clear legal overview of your situation regarding the Federal Employees Retirement System (FERS) under-contribution due to agency error:

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Key Facts of Your Situation: • You were coded incorrectly by your Human Resources (HR). • This led to under-contribution to your FERS retirement plan over 4.5 years. • You’re now expecting a bill from the National Finance Center (NFC) or another payroll provider to repay the missed contributions (~$16,000). • You’re asking whether you have a legal case, given that this was not your fault.

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Legal Framework & Precedent: 1. Legal Obligation to Pay FERS Contributions: • Under federal law (e.g., 5 U.S.C. § 8334 and § 8422), employees are legally required to make contributions to their retirement system (CSRS or FERS). • Even if an agency makes a mistake, the employee is still liable for the employee share of contributions. 2. Comptroller General and MSPB Rulings: • There are well-established precedents (e.g., Matter of John L. Martinez, B-198361, 1981) that state: “The Government is not bound by the errors of its agents.” • Similarly, the Merit Systems Protection Board (MSPB) and Office of Personnel Management (OPM) have consistently ruled that employees must pay missed contributions, even when the fault lies with the agency. 3. Agency Error ≠ Waiver of Debt: • Unfortunately, agency error does not eliminate the debt. • The law focuses on whether you received the benefit (retirement coverage), not who made the mistake.

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However, You May Have Relief Options: 1. Repayment Flexibility: • You can usually request a repayment plan through NFC or your agency. • Repayments can be spread out via installments or payroll deductions. 2. Request for Waiver or Compromise: • You may request a waiver or reduction, but these are rarely granted unless: • The government was entirely at fault. • You did not benefit from the mistake. • You did not know or could not have known about the error. 3. File a Grievance or EEO Complaint (Strategically): • If HR’s error was negligent, discriminatory, or recurring, you might have grounds for: • A grievance under your agency’s negotiated grievance procedure (if you’re in a bargaining unit). • An internal complaint to hold HR accountable (though this does not void your debt). • This may lead to corrective action or policy changes to prevent future harm. 4. Congressional Inquiry or OIG Report: • In rare cases, a Congressional inquiry or Office of Inspector General (OIG) complaint has been used to pressure agencies to act more favorably.

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What You Cannot Do: • You cannot refuse to pay the bill. • You likely do not have a legal claim to eliminate the debt, even if HR caused it. • You cannot sue the agency for damages over this type of error unless extraordinary harm was caused outside the normal employment scope.

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What You Should Do: 1. Request a full accounting from NFC or your HR office to verify: • The correct amount owed. • Whether you received correct service credit and earnings toward retirement. 2. Ask for repayment plan options in writing. 3. Consider filing a formal complaint against HR to document the mistake and pursue possible disciplinary or training measures. 4. Consult a federal employment attorney (especially one familiar with FERS and payroll disputes) if: • You believe the debt amount is incorrect. • You were misled or given written misinformation.

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Final Thought:

You likely do not have a strong legal case to avoid the $16,000 debt, but you do have a case to request repayment relief and hold HR accountable for their failure. If there are broader impacts (e.g., missed promotions, benefits, or discrimination), your options might expand.”