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Let’s see, the Army says its pilots owe three more years before they can get out. The Navy has had issues with its retirement for physicians and dentists in its Reserves, causing them to have to do another 3 years as well.\u00a0 You would think that they had figuratively shot their respective wads at this point, no?<\/p>\n
Seems 1283 retirees had their payable service time miscalculated (up to 4 years ago) and have been over paid since then. Doesn’t matter that it was the Navy’s error – the government wants ut back.<\/p>\n
That error created a total debt of about $6.8 million, according to new data obtained by NBC News. The personal debts incurred range from $35 to more than $70,000, the Defense Finance and Accounting Service said Monday.<\/p>\n
The agency \u2014 which oversees payments to Defense Department personnel and retirees \u2014 said it plans to recover the money and that it will issue official debt notifications, containing information on how to pay the debt or request a waiver, to affected retirees this week.<\/p>\n
Some retirees are bracing to be billed tens of thousands of dollars. All have seen reductions in their monthly retirement incomes due to the corrected error.<\/p>\n
\u201cIt\u2019s a double whammy,\u201d said Devin Morrison, 52, who was the executive officer of the Naval Medical Center in San Diego before he retired in 2021.<\/p>\n
His net pay went down by about $762 from March to April. He has not yet received his official debt letter but expects he will have to pay back about $30,000.<\/p>\n
The DFAS said the median amount of overpayment is $2,700. It said the debt notification letter would detail circumstances in which interest would be charged.<\/p>\n
If a retiree does not take any action after receiving the official notification, the agency said it can involuntarily deduct from the person\u2019s monthly benefit at a rate of 15% of net disposable pay. It also said the Defense Department \u201cretains the right to pursue other collection methods, as necessary.\u201d<\/p><\/blockquote>\n