RECORD OF PROCEEDINGS
AIR FORCE BOARD FOR CORRECTION OF MILITARY RECORDS

IN THE MATTER OF:	DOCKET NUMBER:  02-04043
		INDEX CODE:  128.10
		COUNSEL:  NONE

		HEARING DESIRED:  NO

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APPLICANT REQUESTS THAT:

His indebtedness to the government in the amount of $926.12, be waived.

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APPLICANT CONTENDS THAT:

After his permanent change of station (PCS) move from Kadena AB Japan, to Offutt AFB NE, in May 2001 an unexplained debt of $750 appeared on his leave and earnings statement (LES).  He was told that it was a PCS related debt and that it would be further explained to him and his debt was suspended.  The debt remained on his LES and his requests for an explanation as to how he incurred the debt went unanswered for months.  In February 2002, he applied for retirement and again inquired about the debt and his question did not get answered.  In March 2002, he entered an extension and entered into a no-pay due status because of problem with MilMod.  He had to complete a voucher each payday until his terminal leave departure date to get paid.  In May 2002, a deduction of $29 a month started coming out of his pay.  He inquired again about the debt and this time he was told it was invalid and that the accounting and finance representative would notify the Defense Accounting and Finance Service (DFAS).  When he received his final pay it was approximately $600 more than he expected.  He reported the overpayment to the finance office but was told that the payment was correct.  In addition to being in a no pay status, he was not charged for any leave he took for the last 10 - 11 months while he was on active duty.  He had to estimate his remaining leave balance and calculate the amount of terminal leave he would be taking.  His balance was verified by the finance office.  On 23 Nov 02, he received notification that he had a debt of over $900.  It was explained that the debt was due to excess leave.  Personnel at the finance office at Offutt AFB told him that the debt was a result of the overpayment on his last paycheck.  He inquired about applying for a waiver of the debt but was told that it would take up to 6 months to process.  He feels that the debts were not his fault and that the debt was accrued without his knowledge.

In support of his request, applicant provided a personal statement, a letter from an accounting and finance technician, his Statement of Military Pay Account, his Statement of Military Leave Account, and his notification of indebtedness.  His complete submission, with attachments, is at Exhibit A.

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STATEMENT OF FACTS:

The applicant retired from the Air Force on 31 Aug 02 in the grade of master sergeant.  On 20 Nov 02, applicant was notified of an indebtedness to the government in the amount of $962.12 for 3.5 days of excess leave and pay and allowances that he received while he was in an excess leave status.  

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AIR FORCE EVALUATION:

DFAS-POCC/DE recommends denial.  DFAS states that the Waivers and Remissions Branch states that the applicant's request for a waiver would be denied based on guidelines set forth by the Office of the Secretary of the Air Force.  The Waivers and Remissions Branch states that when the applicant received his final pay and believed it was more than he was authorized, he should have pursued the matter further and should have retained the erroneous funds for eventual refund to the government.  In addition, the applicant had a responsibility to be aware of his leave balance.  When he started terminal leave on 1 Jul 02, he did not take into consideration July 31 and August 31.  He was charged for those 2 days of leave.  His leave balance was based on his expiration of term of service (ETS) date of 15 Sep 02.  Therefore, when he elected to separate on 31 Aug, he should have deducted 1.5 days of leave from his balance to ETS on his LES.  The DFAS evaluation is at Exhibit B.

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APPLICANT'S REVIEW OF AIR FORCE EVALUATION:

Applicant states that he applied for a waiver on 6 Jan 03 and it was denied on 9 Jan 03.  He does not feel that DFAS has carefully considered his request since it took them 3 days to deny his request when he was told it would take 6 months.  He feels that he meets the requirements set forth by the Office of the Secretary of the Air Force for a waiver.  The debt was an administrative error caused by MilMod and the local finance office as explained by a memo from the finance office.  To say that he intentionally frauded or misrepresented the government is not true and clearly not proven.  The finance office verified his leave days before his terminal leave started.  He took exactly what they said he could, if they cannot figure out how many days of leave he has, applicant wonders how could he be expected to.  When he received his final pay it appeared to be high and he contacted finance and was told that it was correct.  He had never retired before and did not know what to expect.  DFAS never addressed the lengthy time he spent with an erroneous debt on his LES that DFAS would not remove even though the local finance office sent numerous requests for its removal.  His complete submission is at Exhibit D.

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THE BOARD CONCLUDES THAT:

1.  The applicant has exhausted all remedies provided by existing law or regulations.

2.  The application was timely filed.

3.  Sufficient relevant evidence has been presented to demonstrate the existence of error or injustice that would warrant corrective action.  It is our opinion that the errors in the applicant’s pay records, which led to his overpayment of leave and pay and allowances, was not a result of any act or misrepresentation on his part, but was perpetuated by errors in the military pay system.  The applicant promptly reported the discrepancies in his pay records to accounting and finance personnel and we believe that he made every reasonable effort to ensure his pay records were accurate.  The Board does not believe that it would be appropriate to hold the applicant accountable for the disparity in his leave balance when finance and accounting technicians were unable to determine his correct balance.  Accordingly, it is our opinion that relief is warranted and we recommend that his records be corrected to the extent indicated below.

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THE BOARD RECOMMENDS THAT:

The pertinent military records of the Department of the Air Force relating to APPLICANT be corrected to show that on 6 January 2003, he applied for a waiver of his indebtedness incurred as a result of overpayment of his final separation pay and his application was approved by competent authority. 

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The following members of the Board considered Docket Number BC-2002-4043 in Executive Session on 9 Apr 03, under the provisions of AFI 36‑2603:

All members voted to correct the records, as recommended.  The following documentary evidence was considered:

    Exhibit A.  DD Form 149, dated 18 Dec 02, w/atchs.
    Exhibit B.  Letter, DFAS-POCC/DE, dated 9 Jan 03, w/atchs.
    Exhibit C.  Letter, SAF/MRBR, dated 17 Jan 03.
    Exhibit D.  Letter, Applicant, dated 22 Jan 03

	

AFBCMR BC-2002-04043

MEMORANDUM FOR THE CHIEF OF STAFF

	Having received and considered the recommendation of the Air Force Board for Correction of Military Records and under the authority of Section 1552, Title 10, United States Code (70A Stat 116), it is directed that:

	The pertinent military records of the Department of the Air Force relating to APPLICANT, be corrected to show that on 6 January 2003, he applied for a waiver of his indebtedness incurred as a result of overpayment of his final separation pay and his application was approved by competent authority.