5 C.F.R. § 845.304
Financial hardship
Financial hardship may be deemed to exist in, but not limited to, those situations when the annuitant from whom collection is sought needs substantially all of his or her current income and liquid assets to meet current ordinary and necessary living expenses and liabilities.
(a) Considerations. Some pertinent considerations in determining whether recovery would cause financial hardship are as follows:
(1) The individual's financial ability to pay at the time collection is scheduled to be made.
(2) Income to other family member(s), if such member's ordinary and necessary living expenses are included in expenses reported by the annuitant.
(b) Exemptions. Assets exempt from execution under State law should not be considered in determining an individual's ability to repay the indebtedness. Rather primary emphasis will be placed upon the annuitant's liquid assets and current income in making such determinations.
Notes of Decisions
Cited in 18
cases (12 in the last 5 years), 2011–2026 · leading case: Elena Finch v. Off. of Pers. Mgmt. (MSPB 2022).
Elena Finch v. Off. of Pers. Mgmt. (MSPB 2022). “” 5 C.F.R. § 845.304 ; Policy Guidelines § I.”
Rodriguez v. Off. of Pers. Mgmt., 427 F. App'x 878 (Fed. Cir. 2011). “” 5 C.F.R. § 845.304 . The AJ found that collection of the overpayment was not unconscionable because Rodriguez “failed to provide substantial evidence she was without fault or that recovery would be against equity and good conscience.”
Nancy Harnois v. Off. of Pers. Mgmt. (MSPB 2024). “Under 5 C.F.R. § 845.304 , financial hardship may be deemed to exist when the appellant needs substantially all of her current income and liquid assets to meet current ordinary and necessary living expenses and liabilities.”
Jeff P Paulson v. Off. of Pers. Mgmt. (MSPB 2024). “4 5 C.F.R. § 845.304 . For purposes of determining whether an annuitant is entitled to a waiver of recovery of the overpayment on grounds of financial hardship, the annuitant’s 2 Substantial evidence is the degree of relevant evidence that a reasonable person, considering the…”
Keith Curd v. Off. of Pers. Mgmt. (MSPB 2026). “185 , ¶ 11; 5 C.F.R. § 845.304 . A waiver based on unconscionability will be granted only under exceptional circumstances, such as when there has been an exceptionally lengthy delay by OPM in adjusting an annuity, OPM failed to respond within a reasonable length of time to an…”
Rodney Canete v. Off. of Pers. Mgmt. (MSPB 2026). “185 , ¶ 11; 5 C.F.R. § 845.304 . Monthly income is the appellant’s monthly income from all sources as stated on his Financial Resources Questionnaire (FRQ), including income received by any other family member for whom the appellant claims ordinary and necessary living expenses.”
Shirley L. Reyes v. Off. of Pers. Mgmt. (MSPB 2015). “5 C.F.R. § 845.304 . Pertinent considerations include her financial ability to pay when the collection is scheduled to be made.”
Ronald Wylan Gross v. Off. of Pers. Mgmt. (MSPB 2016). “” 5 C.F.R. § 845.304 . Ordinary and necessary living expenses include rent, mortgage payments, utilities, maintenance, transportation, food, clothing, insurance (life, health, and accident), taxes, installment payments, medical expenses, support expenses for which the annuitant…”
Nancy C. Warrender v. Off. of Pers. Mgmt. (MSPB 2016). “at 217-19; 5 C.F.R. § 845.304 . The administrative judge thoroughly reviewed the appellant’s income and expenses, including the information the appellant provided on the FRQ, and found that she provided evidence with her appeal showing that she now bears fairly significant…”
Nancy C. Warrender v. Off. of Pers. Mgmt. (MSPB 2016). “at 217-19; 5 C.F.R. § 845.304 . The administrative judge thoroughly reviewed the appellant’s income and expenses, including the information the appellant provided on the FRQ, and found that she provided evidence with her appeal showing that she now bears fairly significant…”
Chara Cordova v. Off. of Pers. Mgmt. (MSPB 2023). “” 5 C.F.R. § 845.304 . However, when information submitted by the appellant is incomplete, the adm inistrative judge should request additional information so that he can make a reasoned determination on the question of financial hardship.”
Stacey Nelson v. Off. of Pers. Mgmt. (MSPB 2022). “See 5 C.F.R. § 845.304 . After completing his analysis of the appellant’s FRQ, the administrative judge reduced some of the appellant’s claimed expenses as not “ordinary and necessary,” added $50 per month for emergencies, and determined that the appellant’s disposable monthly…”
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