This '89 Paramount will be refinished this fall by Chris Kvale. He did a fantastic job on my Masi and Legnano. I am chomping at the bit to get this project going.
Can anybody tell me anything about this decal on the non drive side chain stay?

I do not have that on my 1989 Paramount. Have you tried calling Waterford to inquire? Richard Schwinn tends to answer the phone and could likely shed some light on it.

It's either been repainted before and those are the initial's of the person who painted it or they're simply initials of a previous owner.

P.S. That one doesn't look too bad, you sure it needs re-painting?

I have decals that I put on bikes I re-do, and even some I build. I expect that's the same situation.
I generally put mine on the inside of that chain stay, so someone lubing the chain or adjusting gears will see it.