Midshipmen Cruise Credit Flap

August 26, 2016 

In August 2015, the Defense Finance and Accounting Service (DFAS) began notifying over 1700 Marine and Naval Reserve Officer Training Corps (NROTC) retirees that their retirement pay had been incorrectly credited with midshipmen summer cruise service time in violation of the 1964 ROTC Vitalization Act. Each notification letter specified the amount of service time incorrectly credited, the amount the individual's gross retired pay would have to be reduced and the amount of “indebtedness” (past retired pay overpayments) accumulated since the date of retirement. 

Recognizing the overpayment was the Navy's fault and not the individuals', the Secretary of the Navy requested a waiver of indebtedness from the appropriate approval authorities; DFAS for amounts under $10,000 and Defense Office of Hearings and Appeals (DOHA) for amounts $10,000 and above. 

On August 10th MOAA asked DFAS for a status update on the waiver process. DFAS responded on August 12th that 1,562 waivers had been granted for all affected officers whose overpayments totaled less than $10,000. DFAS forwarded the 144 cases with amounts of $10,000 and above to DOHA. DOHA has processed and granted waivers for 76 cases and continues to process the remaining 68 cases, all of which are expected to be approved. 

For additional information, visit the Navy Personnel Command website or contact DFAS at (800) 321-1080 and select option 1.

 

 

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