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(November 16, 1998)Tj
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(In Re:)Tj
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([Redacted])Tj
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(Claimant)Tj
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(\))Tj
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(Claims Case No. 98101314)Tj
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(CLAIMS APPEALS BOARD DECISION)Tj
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(DIGEST)Tj
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(A discharged service member's debt arising from advance pay may not be c\
onsidered for waiver under 10 U.S.C. \247 2774)Tj
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(Because his entire final separation payment should have been)Tj
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red for waiver. However, waiver of that)Tj
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45.094 0 Td
(amount)Tj
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(is denied because he should have questioned his entitlement to a final s\
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(advance pay.)Tj
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(DECISION)Tj
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(This is in response to an appeal of DOHA Settlement Certificate, DOHA Cl\
aim No. 98021905, March 27, 1998, which)Tj
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(denied waiver of a portion of a former military member's debt)Tj
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( )Tj
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(and determined that the balance of the debt could not be)Tj
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(considered for waiver. The debt arose due to advance payments which the \
member had not repaid when he was)Tj
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(discharged)Tj
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( )Tj
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(from the United States Army.)Tj
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(Background)Tj
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(The former member received advances of pay totaling $2,598 in July and A\
ugust 1993. By the time he was discharged)Tj
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(on November 19, 1993, his monthly installment payments had reduced the b\
alance of the advances to $2,335.75. At)Tj
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(discharge he was due a final separation payment of $801.18. That entire \
amount should have been applied to his debt of)Tj
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($2,335.75, but only $30.73 was applied to the debt. The Settlement denie\
d waiver of $770.45 \($801.18 minus $30.73\))Tj
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(and indicated that the remaining $1,534.57 could not be)Tj
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( )Tj
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(considered for waiver. The former member argues that the debt)Tj
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(should be waived because he did not receive a $5,000 Reenlistment Bonus \
and other benefits which he expected to)Tj
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(receive when he re-entered active duty.)Tj
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(Discussion)Tj
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(Under 10 U.S.C. \247 2774, we have the authority to waive collection of \
erroneous payments of pay and allowances if)Tj
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(collection would be against equity and good conscience and not)Tj
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(in the best interest of the United States and if there is no)Tj
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(indication of fraud, fault, misrepresentation, or lack of good faith on \
the part of the member or former member. To be)Tj
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(considered for waiver, payments must be erroneous when made; advance pay\
therefore cannot generally be considered)Tj
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(for waiver because it is not an erroneous payment. )Tj
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(See Steven)Tj
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( )Tj
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(G. Dodge, )Tj
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(B-244977, Mar. 23, 1992. When a member)Tj
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(owes a debt to the government at separation, however, finance personnel \
should deduct the member's debt from his final)Tj
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(separation payment. If finance personnel do not deduct the debt at that \
time, the amount which should have been)Tj
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(deducted becomes an erroneous payment which can be considered)Tj
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(for waiver, although waiver cannot be granted unless)Tj
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(the statutory requirements listed above are met. )Tj
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(See )Tj
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(B-259530, Feb. 16, 1995.)Tj
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(In the present situation, the former member was indebted to the governme\
nt for two payments of advance pay which he)Tj
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(had received in July and August 1993 and had just begun to repay when he\
was discharged. As payments of advance)Tj
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(pay, those amounts cannot be considered for waiver because they were not\
erroneous when paid. The $770.45 which)Tj
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