UNDT/2015/055, Galindez
The Tribunal found that the Administration, which acknowledged its mistake, was entitled and bound to recover the money that had been paid to the Applicant in excess of his entitlements as a result, albeit limited to the period of two years provided for in sec. 3.1 of ST/AI/2009/1. The application was dismissed.
The Applicant, a staff member of the United Nations Global Service center, United Nations Logistics Base, Brindisi, Italy, contests the decision to recover underpayment of insurance premiums for the period covering December 2011 to November 2013. The Administration had, by mistake, placed the Applicant, whose duty station was Italy, in insurance rate group 1 rather than in rate group 3 (Western Europe) under the Van Breda health benefit plan, for a period of more than three years.
Overpayment: Payment of insurance premiums is, in fact, a payment by directions made by the Organization at the staff member’s request. Thus a deduction is authorized from the salary and emoluments paid by the Organization to the staff member. Insofar as the deduction made is less than that which was due under the appropriate rate, and that which was due between the staff member and Van Breda, then the staff member has, in fact, been overpaid each month the difference between the correct amount deductible and the lesser, and incorrect, amount actually deducted. This results in the staff member being paid a net salary higher than that he/she is entitled to, and as such, constitutes an overpayment as per the definition under sec. 1 of ST/AI/2009/1, namely a payment in excess of his/her entitlements. Duty to recover: Once aware of its mistake, it is not only the Administration’s right but its duty to put an end to the illegal situation, and to proceed with the recovery as per the terms of ST/AI/2009/1.