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Stop
Death-Debt Recoupments |
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By Col. Steve Strobridge, USAF-Ret.
June 2007 Online
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Government auditors review
travel vouchers, paychecks, and every other financial transaction.
When they turn up an apparent overpayment, you can expect a
recoupment notice.
You know that spending a career in the military entails monitoring
by the accountants until the day you die. But you probably never
realized how literally that statement applies.
Retired servicemembers should understand that one job of the
auditors at the Defense Finance and Accounting Service (DFAS) is to
make sure your retired pay check terminates precisely when you do.
And that can mean some unpleasant news for your survivor —
especially if you’re inconsiderate enough to kick the bucket toward
the end of the month.
If you die April 20, current law says you’re due only retired pay
for the first 20 days of the month. But notifying DFAS probably
won’t be the first thing on your family’s mind. In many cases, a
retiree’s death is reported too late to adjust the final month’s
retired paycheck to reflect only the portion of
the month during which the retiree still was alive. So chances are
that DFAS will deposit the full April retired pay check into your
account May 1.
Your grieving spouse will use that money to pay the mortgage, buy
food, and meet other expenses. Then DFAS auditors will make an
electronic visit to your bank to recoup the final month’s retired
pay check from your account and refund only 20 days’ worth of pay.
More than likely, it will be at least a couple of months before your
survivor sees Survivor Benefit Plan payments start, retroactive to
your date of death. Meanwhile, the survivor has to deal with the
DFAS accountants and see funds unexpectedly depleted that he or she
already had spent to pay the monthly bills that don’t stop when you
do.
MOAA thinks it’s just plain wrong to subject survivors to such
financial nit-picking at this traumatic time in their lives. If
there’s ever a time for government accountants to give a military
beneficiary a tiny break, surely this is it.
That’s why MOAA strongly endorses Rep. Walter Jones’ (R-N.C.)
Military Retiree Survivor Comfort Act (H.R.
657). Jones’ common-sense bill would authorize payment of full
retired pay for the month of death and begin SBP eligibility as of
the first day of the following month.
Surely, this has to be more sensitive and appropriate than sending
electronic buzzards to extract money from survivors’ bank accounts
even while families are still grieving. It would make the
accountants’ jobs easier, too.
Col. Steve Strobridge, USAF-Ret., director of MOAA government relations
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