5 C.F.R. § 841.505

Correction of error

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(a) When it is determined that an agency has paid less than the correct total amount of the normal cost for any or all of its current or past employees, for any reason whatsoever, including but not limited to, coverage decisions, correction of the percentage applicable or of the amount of basic pay, or additional payment of basic pay, the agency must pay the total additional amount payable under 5 U.S.C. 8423 and subpart D of the this part to the Fund.

(b) The agency withholds the appropriate employee deduction from any payment of additional basic pay which is part of, or the result of, the corrective action.

(c) The payment to the Fund described in paragraph (a) of this section shall be made as soon as possible, but not later than provided by standards established by OPM, regardless of whether or when the portion which should have been deducted from employee basic pay is recovered by the agency.

(d) Any portion of the payment to the Fund described in paragraph (a) of this section which should have been deducted, but was not, from employee basic pay constitutes an overpayment of pay, subject to collection by the agency from the employee, unless waived under applicable authority such as 5 U.S.C. 5584.

(e) Corrections and the related agency payments and employee deductions will be reported to OPM in the manner prescribed by OPM.

Notes of Decisions
Cited in 4 cases (1 in the last 5 years), 1997–2026 · leading case: Ann Pennington v. Dep't of the Treasury (MSPB 2026).
Ann Pennington v. Dep't of the Treasury (MSPB 2026). · cites it 2× “See 5 C.F.R § 841.505. 4 Rather, the appellant is contesting the agency’s collection of the debt caused by the incorrect retirement contributions.”
Kahmann v. Reno, 967 F. Supp. 731 (N.D.N.Y. 1997). · cites it 3× “See 5 C.F.R. § 841.505 (c). Upon notification of the deposit, which will show the total amount of plaintiffs contributions, plaintiff will forward the amount of her contribution, less $1200.”
Whether Postal Employees Are Entitled to Receive Serv. Credit, for Purposes of Their Ret. Annuity Under the Fed. Employees' Ret. Sys., for Periods of Emp. During Which the USPS Has Not Made Its Required Emp. Contributions (OLC 2011). “Alternatively, if the employer failed to make the employee deductions because of an agency error, the error may be corrected, see 5 C.F.R. § 841.505 (2011); and, in any event, an agency error would not necessarily affect the employee’s entitlement to coverage.”
Serv. Credit for Ret. Annuities of USPS Employees When USPS Has Not Made Required Contributions (OLC 2011). “Alternatively, if the employer failed to make the employee deductions because of an agency error, the error may be corrected, see 5 C.F.R. § 841.505 (2011); and, in any event, an agency error would not necessarily affect the employee’s entitlement to coverage.”
— 5 C.F.R. § 841.505(d) — 1 case
Ann Pennington v. Dep't of the Treasury (MSPB 2026). “See 5 C.F.R § 841.505. 4 Rather, the appellant is contesting the agency’s collection of the debt caused by the incorrect retirement contributions.”
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