The Navy Times first reported the error which led to incorrect service time calculations for 1,283 retirees from August 2019 to February this year. According to new data obtained by NBC News, this mistake resulted in a total debt of approximately $6.8 million. According to the Department of Defense Finance and Accounting (DFAS), as of Monday, May 15, personal debts that have arisen range from $35 to over $70,000.
The Pentagon agency, which oversees payments to Defense Department personnel and retirees, said it plans to return the money and will issue an official debt notice this week with information on how to pay the funds or seek debt relief for affected pensioners. Some retirees from the US Navy are about to charge tens of thousands of dollars. Everyone has already seen a reduction in their monthly retirement income due to the corrected error.
The Navy said the error began when its personnel department sent incorrect data to DFAS. The retirees’ inactive reserve service time was incorrectly counted as active service, resulting in an increase in the monthly payment. DFAS said the average overpayment per person is $2,700. The arrears notice letter will detail the circumstances under which additional interest will accrue for retirees.
The system bug affecting Navy retirees is the latest administrative oversight discovered in Pentagon departments in recent weeks. At least 65 Naval Reserve dentists and doctors have been told they have to repay money after an error was discovered in the calculation of their three-year pension funds.
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