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(DATE: August 10, 1998)Tj
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(In Re:)Tj
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([Redacted])Tj
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(Claims Case No. 98060117)Tj
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(CLAIMS APPEALS BOARD DECISION)Tj
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(DIGEST)Tj
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(A former service member received active duty pay for 9 months following \
his retirement. He is considered partially at)Tj
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(fault for not questioning his entitlement to active duty pay)Tj
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(during the 6 months following his retirement. Waiver is)Tj
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(denied for this period as well as the 3 months following his notice of p\
ayments of active duty pay. The member did not)Tj
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(acquire title to the money he received and is obligated to return it to \
the government.)Tj
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(DECISION)Tj
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(This is in response to an appeal of the Defense Office of Hearings and A\
ppeals \(DOHA\) Settlement Certificate, DOHA)Tj
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(Claim No. 97111804, December 11, 1997, which denied waiver under 10 U.S.\
C. \247 2774 of $48,262.54 of a former)Tj
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(member's debt to the United States resulting from payments he erroneousl\
y received after his retirement from the Army.)Tj
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(Background)Tj
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(The member retired from the Army effective July 1, 1995. Due to an admin\
istrative error, he continued to receive direct)Tj
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(deposit mid-month and end-of-month active duty pay during)Tj
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(the period July 1995 through March 1996 and erroneously)Tj
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(received $48,262.54.)Tj
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(The member's paperwork to place him in a retired status was not processe\
d in July 1995 when he retired. The member)Tj
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(received W-2's for active duty pay and retired pay. It was at)Tj
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(this time the error in his record was first identified. The member reque\
sted waiver of the resulting debt contending that)Tj
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(he discovered the error and asked for the appropriate corrections to be \
made. He also explained the hardship that would)Tj
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(be caused by his having to repay the government.)Tj
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(The waiver request was denied on the grounds that the member should have\
known that he was receiving erroneous)Tj
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(therefore was partially at fault. The member challenged the)Tj
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(denial of his waiver request to the Defense Finance and Accounting Servi\
ce \(DFAS\). The member took exception to)Tj
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(what he calls a broad assumption that a service member has to look at th\
is bank statements and verify the accuracy of)Tj
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(payments before expending the funds. The member stated that)Tj
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(he has never looked at a bank statement in twenty years)Tj
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(and that there is no law or regulation requiring any service member or r\
etired former member to review their bank)Tj
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(statements. DFAS and our Settlement Certificate upheld the denial of the\
waiver request.)Tj
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(On appeal, the member reiterates that he made several attempts to correc\
t the error once he was aware of erroneously)Tj
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(receiving active duty pay. He requests that at least waiver be granted f\
rom January 1996 through March 1996, the period)Tj
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(of overpayments following his call to his finance office.)Tj
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(Discussion)Tj
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(Section 2774 of title 10 of the United States Code provides authority fo\
r waiving claims for erroneous payment of pay)Tj
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(and allowances to members or former members if collection)Tj
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(would be against equity and good conscience and not in the)Tj
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(best interest of the United States. Waiver cannot be granted if there ex\
ists any indication of fraud, fault,)Tj
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(misrepresentation, or lack of good faith on the part of the member or an\
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(waiver. The standard employed to determine whether a)Tj
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