10.433—Under what circumstances can OWCP waive recovery of an overpayment?
(a)
OWCP may consider waiving an overpayment only if the individual to whom it was made was not at fault in accepting or creating the overpayment. Each recipient of compensation benefits is responsible for taking all reasonable measures to ensure that payments he or she receives from OWCP are proper. The recipient must show good faith and exercise a high degree of care in reporting events which may affect entitlement to or the amount of benefits. A recipient who has done any of the following will be found to be at fault with respect to creating an overpayment:
(1)
Made an incorrect statement as to a material fact which he or she knew or should have known to be incorrect; or
(3)
Accepted a payment which he or she knew or should have known to be incorrect. (This provision applies only to the overpaid individual.)
(b)
Whether or not OWCP determines that an individual was at fault with respect to the creation of an overpayment depends on the circumstances surrounding the overpayment. The degree of care expected may vary with the complexity of those circumstances and the individual's capacity to realize that he or she is being overpaid.