FSGB: @StateDept Miscalculates Length of Creditable Federal Service in Annuity Case

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USADF is an independent U.S. Government agency established by the U.S. Congress to support and invest in African-owned and African-led enterprises that improve the lives and livelihoods of people in underserved communities in Africa. See the African Development Foundation Act.
Via FSGB 2020-040:

Held – Grievant established by a preponderance of evidence that the Department of State (“Department” or “agency”) committed grievable errors when it miscalculated her length of creditable federal service and erroneously determined that her 2015-2016 employment with the U.S. African Development Foundation (“USADF”) was not federal service.

Case Summary –

Grievant was employed intermittently by the federal government from 1980 to 2016. In July 1984, grievant, previously a Civil Service (“CS”) employee of the U.S. Agency for International Development (“USAID”), converted to the Foreign Service (“FS”). From July 22, 1984 through at least February 24, 1988, USAID’s records show her as a participant in the Foreign Service Retirement and Disability System (“FSRDS”), paying the required seven percent (7%) mandatory employee contribution, receiving no credits under the Old-Age, Survivors, and Disability Insurance (“OASDI”) program, and not contributing to the Thrift Savings Plan (“TSP”). Upon applying for a pension, however, she was informed by the Department that she was four days short of the minimum five years required to qualify for an annuity.

Grievant asserted that she initially planned to resign from USAID on February 24, 1988, but that she decided to remain at post until March 11, 1988, in the FS and a participant in the FSRDS for those 15 days. She submitted two documents to verify her employment end date of March 11, 1988: a USAID-generated Individual Pay and Leave Record that showed employment by USAID for five pay periods in 1988 and a 1988 State Department FSRDS Participant Record from the Department. Both of those documents showed retirement payroll deductions through March 11, 1988. Grievant also complained that the Department did not consider her 2015-2016 employment with the USADF, a U.S. government agency, as federal service.

The Department denied that grievant was employed by USAID from February 25 to March 11, 1988. The Department relied on a USAID SF-50 form stating that grievant’s retirement date was February 24, 1988. The Department argued that its practice was to use an SF-50 as the only primary evidence available to verify creditable service, rejecting grievant’s documents as less persuasive secondary evidence. The Department offered no explanation for omitting grievant’s USADF employment from the calculation of her federal service.

The Board found that the State Department FSRDS Participant Record was a primary source of verification, that it was supported by the USAID-generated Individual Pay and Leave Record and was a more reliable record than the conflicting SF-50 form. The Board noted errors in the SF-50 form and prior SF-50s of grievant. Accordingly, the Board found that grievant proved by a preponderance of evidence that her creditable federal service at USAID ended on March 11, 1988. The Board also found that grievant was in federal service for the 2015-2016 period, as evidenced by SF-50s prepared by USADF.

The Board directed the Department to recommend an appropriate retirement annuity consistent with this decision and present to grievant for her consideration. The parties were ordered to report the Department’s recommendation of an annuity and grievant’s response to the Board within 30 days of this decision. The Board retains jurisdiction of the case.

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