Officials explain recoupment policy for wounded troops

[Jason]

The policy on non-recoupment applies to all Services. I am posting this here because I came across the Army policy statement article first. I put this here to clarify that the policy is DOD wide.- Jason


Officials explain recoupment policy for wounded troops



by Jim Garamone
American Forces Press Service

11/26/2007 - WASHINGTON (AFPN) -- If you are wounded in combat and discharged as a result, you will not have to pay back your enlistment bonus, Defense Department officials said here Nov. 26.

"Bonuses are not recouped simply for one's inability to complete an enlistment or re-enlistment agreement through no fault of the military member," a policy statement said.

Pentagon officials re-stated their policy after a wounded soldier in Pennsylvania received a bill from the Army. Jordan Fox was a private first class in Baqouba, Iraq, when he was wounded in the explosion of an improvised explosive device in May. Mr. Fox was partially blinded in his right eye and suffered a back injury when the bomb went off.

Mr. Fox was medically discharged and went home to his town near Pittsburgh. The Army sent him a letter asking him to repay $2,800 of his $7,500 enlistment bonus. He received a second letter telling him the Army would charge interest if he didn't make a payment within 30 days.

"Department policy prohibits recoupment when it would be contrary to equity and good conscience, or would be contrary to the nation's interests," according to the Defense Department policy statement. "Those circumstances include, for example, an inability to complete a service agreement because of illness, injury, disability or other impairment that did not clearly result from misconduct."

Department policy on recoupment also establishes that, to the maximum extent permitted by law, the secretaries of the military departments "shall remit or cancel any and all theater debt incurred by military members who were medically evacuated from a combat zone due to injury or illness, except in the event of clear misconduct."

Army officials said Mr. Fox will not be required to pay back any enlistment money he received. "By all accounts, his case seems to be an isolated one," Army officials said. Anyone who does have an issue can call the Wounded Soldier and Family Hotline at 1-800-984-8523.

[RikersIsland1]

"Bonuses are not recouped simply for one's inability to complete an enlistment or re-enlistment agreement through no fault of the military member,"

It depends on the code that is on a person's DD214 that will determine if that person has to pay back a bonus.

[sfxer02]

Originally Posted by RikersIsland1

It depends on the code that is on a person's DD214 that will determine if that person has to pay back a bonus.

Your exactly right, I am going to have to watch that if I am discharged due to my condition. I got a hefty bonus my last reenlistment....it would really hurt to have to pay that back...ouch

[Jason]

It is clear, though, that separation or retirement for medical disability under Title 10 USC, Sec. 1201 et seq., will not require repayment.

I agree that the RE code would be the triggering mechanism for a recoupment action. But if this were an erroneous action, it will resolve in the Servicemember's favor either at the BCMR or in Federal Court of Claims. I think you could petition for a change of code, or go to court under Military Pay Act.

"(e) Repayment of unearned portion of bonuses and other benefits when conditions of payment not met.
(1) A member of the uniformed services who receives a bonus or similar benefit and whose receipt of the bonus or similar benefit is subject to the condition that the member continue to satisfy certain eligibility requirements shall repay to the United States an amount equal to the unearned portion of the bonus or similar benefit if the member fails to satisfy the requirements, except in certain circumstances authorized by the Secretary concerned.
(2) The Secretary concerned may establish, by regulations, procedures for determining the amount of the repayment required under this subsection and the circumstances under which an exception to the required repayment may be granted. The Secretary concerned may specify in the regulations the conditions under which an installment payment of a bonus or similar benefit to be paid to a member of the uniformed services will not be made if the member no longer satisfies the eligibility requirements for the bonus or similar benefit. For the military departments, this subsection shall be administered under regulations prescribed by the Secretary of Defense."

37 USCS Sec. 303a

However, it appears they are being reasonable on this issue and the first step I would take if I got a notice of recoupment, I would call the hotline number.

[builtgypsy]

Thankfully they didn't have the ability to automatically take it out of his account. The military is quick as anything to take money you owe them, but if they owe you anything, it can take up to forever to get it back.

[sfxer02]

Originally Posted by builtgypsy

Thankfully they didn't have the ability to automatically take it out of his account. The military is quick as anything to take money you owe them, but if they owe you anything, it can take up to forever to get it back.

Amen...

[RikersIsland1]

However, it appears they are being reasonable on this issue and the first step I would take if I got a notice of recoupment, I would call the hotline number.

The Hot Line will advise you to call the DFAS Wounded In Action (DIA WIA) Hot Line 317-510-7914 (if that number doesn't work, let me know) make sure you have your DD214 in front of you, just in case.

[bowiesoldier]

Will this cover any inservice debt or is this for bonus issues only? I have observed many soldiers getting discharged with substantial debt that was not really their fault. i.e. Processing time lasted for several months and in the meantime SGLI/FSGLI and other debt such as equipment shortages accrued monthly and the soldier never earned anything so the debt followed them to their tax returns after they were separated/

[builtgypsy]

Originally Posted by bowiesoldier

Processing time lasted for several months and in the meantime SGLI/FSGLI and other debt such as equipment shortages accrued monthly and the soldier never earned anything so the debt followed them to their tax returns after they were separated/

I don't think I'm following that. Does that mean while you're being processed out of the military you're not getting paid?

[Jason]

bowiesoldier,

It drives me mad to hear things like that! There is a law administered by the Services for the Remission or Cancellation of Indebtedness to the United States by enlisted members. It is not automatic, but I imagine no one bothered to counsel the Soldiers on this program. To me this is a Command responsibility. They should be taking care of their Soldiers better, in my opinion.

I have attached the Army references (though all Services have a program). Please pass along to anyone who could take advantage of the program. You can apply up to a year after leaving active duty.

And Happy Birthday!

Guy,

You are paid while outprocessing. You should not get your DD214 until you have cleared all outprocessing tasks.