RECORD OF PROCEEDINGS
AIR FORCE BOARD FOR CORRECTION OF MILITARY RECORDS

IN THE MATTER OF:			DOCKET NUMBER:  BC-2015-03856
		
 						COUNSEL:  NONE

						HEARING DESIRED:  NO

APPLICANT REQUESTS THAT:

His debt in the amount of $8,935.25 be canceled and he be refunded.     

APPLICANT CONTENDS THAT:

This is a double charge of the debt recouped for his overpayment of separation pay.  The debt for the separation pay received was already calculated into the travel voucher summary by the Department of Finance and Accounting Service (DFAS).  However, it was then added back on top of the debt already in his military pay account.  

He contacted DFAS about this debt which he is not responsible for.  The debt amount then doubled while he was disputing the debt.  He is shocked it made it past the audit and review.

He should not be held responsible for a debt when DFAS did not do their job.  He was told he would get five percent separation pay.  It went through his chain of command and his paperwork was reviewed in order to ensure he was paid correctly.  He now has a debt because five people failed to do their jobs and someone in the government believes it is fair and right to charge interest on the amount charged.  

In a letter dated 10 December 2013 to DFAS, the applicant disputed the debt amount owed.  He contacted the finance office at Edwards AFB, CA and was informed that they were confused as to the debt and why there may have been an overpayment.  They told him that his separation pay should have been 10 percent instead of five percent.  He requested he be provided the calculations used to determine the overpayment.  Setting aside the error in the calculation, he never received a mid-month pay of $1375.40 which was now calculated into the debt.  If the other portion of the debt is correct, he would only owe $7,559.35.  

In a letter dated 4 August 2014, the applicant advised DFAS he received a travel debt for overpayment of travel entitlements for advance travel pay received on 26 December 2013; however, he separated on 31 May 2013 so could not have taken out a travel advance on 26 December 2013.  He also advised DFAS he had not taken any travel advance pay.  

In support of his request he provides copies of two letters he sent to DFAS on 10 December 2013 and 4 August 2014,  copies of his pay statement, letter from DFAS dated 22 August 2014, letter from the Air Force Financial Services Center dated 26 December 2013, and travel voucher. 

The applicant’s complete submission, with attachments, is at Exhibit A.

STATEMENT OF FACTS:

The applicant entered the Regular Air Force on 3 January 2006 and was released from active duty on 31 May 2013 with a narrative reason for separation of “Non-retention on Active Duty” and Separation Program Designator (SPD) of “LGH” which denotes “Failure to meet minimum standards of service.”  He was credited with 7 years, 4 months and 28 days of active duty service.

The applicant’s DD Form 214, Certificate of Release or Discharge from Active Duty, Item 18, Remarks, states “Member is authorized separation pay.  Final entitlement amount to be determined by DFAS upon resolution.”  

According to a DFAS billing statement dated 1 November 2013, the applicant was billed for a debt in the amount of $8,974.36.  The reason given for the debt was that the applicant’s separation payment of $23,880.38 paid on 4 June 2013 was overstated and the applicant was only entitled to $14,945.63.  

According to a DFAS billing statement dated 4 March 2014, the applicant’s debt was adjusted to $17,641.67.  The reason for the debt was overpayment of travel entitlements or non-settlement of a travel advance received on 26 December 2013, which is after the applicant’s separation date of 31 May 2013.   

The DFAS billing statement dated 1 May 2015 advised the applicant his inquiry regarding his debt was forwarded to the appropriate action office for resolution.  The applicant was advised to continue making payments as interests, administrative costs and penalties to his debt in the amount of $18,621.10 would accrue; however, overpayments would be refunded.   

The guidance for the enlisted force management review program includes authorization for one-half separation pay for airmen with 6 or more years of active service and less than 20 years of active service, not serving in their initial term of enlistment.   

The remaining relevant facts pertaining to this application are described in the memorandum prepared by the Air Force office of primary responsibility (OPR), which is included at Exhibit C.  

DFAS EVALUATION:

DFAS recommends the applicant’s record be corrected to reflect there was no travel advance in the amount of $8,836.85 and he be refunded $8,652.35 for erroneous collection.

The applicant currently has two debts.  The first debt is for overpayment of entitlement to readjustment pay at time of separation.  He was due $8,935.25, however, the amount issued at time of separation exceeded the entitlement.  The second debt is posted as a travel debt.  The travel voucher processed states a collection of $8,836.85 was adjusted for entitlement of $184.50.  This generated a debt amount of $8,652.35.  The problem is that DFAS has no record of an advance issued for this travel.  
 
A complete copy of the DFAS evaluation is at Exhibit C.

APPLICANT'S REVIEW OF AIR FORCE EVALUATION:

He provides a copy of DFAS letter dated 26 August 2015 which states that an audit of his debt in the principal amount of $17,857.10 was conducted and his record was correct.  He was not one of the affected members under the Air Force Date of Separation (DOS) review who may have been coded or listed with an erroneous debt.  The letter further states that although the debt remains valid, their records indicate a zero balance due at the time.  The applicant states this proves the code for his debt is wrong.  How can the principal amount of $17,587.10 be correct for the Date of Separation if the system was coded right, DFAS has verified that the debt in the amount of $8,652.35 was erroneous.  This should verify that all debts were not coded correctly.  The applicant provides AF IMT 100, Request and Authorization for Separation, which reflects his SPD code is “LBK” which denotes “Involuntary discharge at end of active obligated service.”

The applicant’s complete submission, with attachment, is at Exhibit E.  

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 an error or injustice.  While we note the applicant requests cancellation and refund of his debt in the amount of $8,935.25, the correct debt amount as a result of the erroneous travel payment per DFAS is $8,652.35 (excluding interest, penalties and administrative fees) and DFAS recommends the applicant be refunded the erroneous collection of $8,652.35 for the erroneous collection.  However, we are persuaded the applicant should not only be refunded the erroneous collection of $8,652.35 but also any interest, penalties and administrative fees as a result of the erroneous debt collection.  Therefore, we recommend the applicant’s records be corrected as indicated below.  

THE BOARD RECOMMENDS THAT:

The pertinent military records of the Department of the Air Force relating to the APPLICANT be corrected to show that competent authority approved the refund of his debt for travel advance in the amount of $8,652.35 plus any interest, penalties and administrative fees associated with the debt collection.    

The following members of the Board considered AFBCMR Docket Number BC-2015-03856 in Executive Session on 9 August 2016 under the provisions of AFI 36-2603:

	 , Panel Chair
	 , Member
	 , Member

All members voted to correct the records as recommended.  The following documentary evidence pertaining to AFBCMR Docket Number BC-2015-03856 was considered:

	Exhibit A.  DD Form 149, dated 2 September 2015, w/atchs.
	Exhibit B.  Applicant's Master Personnel Records.
	Exhibit C.  Memorandum, DFAS/IN, undated.
	Exhibit D.  Letter, AFBCMR, dated 2 June 2016.
	Exhibit E.  Letter, Applicant, dated 26 August 2015, 
			  w/atchs.

Pursuant to paragraph 1 of AFI 36-2603 (Title 32 Code of Federal Regulations, Part 865.1), it is certified that a quorum was present at the Board's review and deliberations, and that the foregoing is a true and complete record of the Board's proceedings in the above entitled matter.