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| OBSERVATION POST |
| Money
Matters |
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By Tom Philpott
November 2004
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Sgt. Phillip Boyer heard "rumors"
that many Army Reserve and National Guard soldiers activated earlier
for Iraq and Afghanistan had faced pay problems. But even as he
prepared to leave for Iraq in late September, Boyer wasn't
concerned.
As pay administrator for the Army Reserve 209th Broadcast Public
Affairs Detachment in Rome, Ga., Boyer says he recently had received
some valuable training for handling unit pay records during
activation.
"When we mobilize, we fall under an active Army command and active
Army pay and finance people, and, yes, they are not familiar with
the reserve system, codes, and pays. That, in turn, causes problems
for reserve soldiers. But that's where people in my position need to
be proactive and flexible and persistent to make sure things get
taken care of," Boyer says.
Boyer's confidence is echoed by Patrick Shine, director of military
and civilian pay services for the Defense Finance and Accounting
Service (DFAS) in Indianapolis. Yes, there were problems, he says.
But, for now, they're fixed.
"I just want to make sure the troops know that at the home station,
at the mobilization site, and when they're in country, they are
going to find trained finance people all along the way," Shine says.
The assurances are seen as necessary in light of recent Government
Accountability Office (GAO) audits that found more than 90 percent
of soldiers from a sampling of activated Army Guard and Reserve
units had faced significant pay errors. Most of them had received
overpayments, which had to be returned. But there were underpayments
and delays as well.
In reports released in November 2003, and more recently this past
July, the GAO said the errors had hit tens of thousands and "often
had a profound adverse impact" on soldiers and families. Soldiers
spent a lot of time while deployed, even in remote and hostile
environments, trying to correct errors.
Shine says the GAO correctly identified the causes of the pay
problems as falling into three categories: staffing, processes, and
an obsolete pay system. He says the first two have been addressed.
The third, however, replacing what Shine describes as "a
1969-vintage cobol software program," will take longer - even a
temporary fix can't be completed until next March. But for the most
part, he adds, the widespread pay hassles have been corrected and
should not affect future rotations of reserve component forces.
Shine says both the Army and DFAS have worked diligently in recent
months to improve pay administration and processes within units, at
mobilization and demobilization sites, and at DFAS. This, together
with additional pay record data checks and safeguards, should be
able to ensure accuracy while making long-term system deficiencies
invisible to deploying forces.
The GAO found that reserve pay processes and controls for activated
units were "inherently flawed" and criticized a lack of
accountability for the accuracy of soldiers' pay records at almost
each and every step of mobilization. In particular, sloppy
procedures in documenting whether soldiers had returned home
resulted in numerous overpayments of hardship duty pay, according to
the GAO.
The current Defense Joint Military Pay System actually is two
systems, one for active duty and one for reserves. Shine says the
reserve system "was designed just to pay people for weekend drills
once a month and two weeks active-duty-for-training once a year."
Errors blossomed during early troop rotations into Afghanistan and
Iraq, in part because they deployed without personnel trained to
work the cumbersome reserve pay system.
The long-term solution is a single network for all military pay and
personnel systems, active and reserve. Because it is still years
away, DFAS and the services will adopt an interim combined active
and reserve pay system in phases, starting with Army reserve
components next spring.
Pay officials advise servicemembers to review leave and earnings
statements routinely.
Irregularities should be reported up the chain of command. If a pay
problem persists, Army Reserve and National Guard members now can
contact a special ombudsman hot line. The number for Army National
Guard members is (877) 276-4729; Army reservists should call (877)
462-7782 or DSN (312) 280-6466.
Tom Philpott is a freelance writer and syndicated news columnist. His column, "Military Update," appears in 48 daily newspapers throughout the United States and overseas.
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