DD2481 s, VRA s, Out of Service Debts, Hearings and Waivers

Transcription

1 DD2481 s, VRA s, Out of Service Debts, Hearings and Waivers Defense Finance and Accounting Service INDIANAPOLIS PAYROLL OFFICE November 14, 2014 Integrity - Service - Innovation Integrity - Service - Innovation

2 Topics DD2481 Debt Requests Filling out forms Required information Voluntary Repayment Agreements New form with debt letter Requirements for approving a repayment Out of Service Debts DFAS Policies and Procedures Remedy Ticket Titles When to use each Debt Title 2

3 Topics Debt Reconsiderations What is a reconsideration Example of the letter Debt Hearings Are corrections required? Example of the post demand letter Debt Waivers Process Required Documents 3

4 DD Defined DD2481 s are used to collect non-payroll debts from ACTIVE employees. Payroll Office (PRO) is not able to process DD2481 s for INACTIVE employees Examples of Collection Types RITA Debt Report of Survey (Lost/Damaged Property) Delinquent Medical Service Accounts Travel Advance Payroll debts must be created with online corrections or through the Debt team. 4

5 DD2481 Required Information Box 1 Name and address of DFAS Paying Office responsible for processing salary offset. Box 2 Information about employee for whom salary offset is being requested Name Address Date of Birth Social Security Number Box 3 Specific information and justification of debt. 5

6 DD2481 Required Information Box 4 Annotate appropriate Due Process given to individual for whom salary offset is requested Due process is not given by the payroll office on these debts. Box 5 Information about Organization initiating collection Name Address Information about organization Point of Contact (POC) Name Address Telephone Number Accounting classification Line of Accounting for salary offset Form must be signed by a Certifying Official from Agency requesting collection. 6

7 DD2481 Required Information Box 6 Information completed by DFAS Accounting Office Office with symbol Address Telephone Number Form must be submitted to your DFAS Accounting Office prior to collection by Civilian PRO. Civilian PRO does not have information as to specific Agency Accounting Offices. Accountant that your Agency works with to close out year end is normally your contact. 7

8 DD2481- APRIL 2006 (Current Edition) *Specific Reasons Reduce Inquiries* *If Installments are not Noted, Collections will be set at 15%* 8

9 DD2481- APRIL 2006 (Current Edition) Due Process is Required Agency information Complete Line of Accounting Must be filled out by Agency Accounting Office to Create Receivable 9

10 DD2481 Corrections/Cancellations PRO must receive the original DD2481 form indicating requested corrections from the original requesting Agency. Write Amended at top of original form to indicate a correction has been made. Write STOP or CANCEL across the form to cancel any further collections on the debt. Refunds need to be made by the original requesting Agency The Payroll Office (PRO) no longer has access to these funds once collection has been processed. 10

11 DD2481 Issues Duplicate DD2481 s received after collection is made in full. Not to be used for debts that have been paid through DCPS. Recruitment Retention Relocation Agency is required to use current edition of form. DD FORM 2481, APRIL

12 DD2481 Issues DD2481 s faxed to Imaging that are illegible. Duplicate DD2481 s sent both to Imaging and Remedy. Incorrect or incomplete Line of Accounting information. DD2481s for Inactive employees should be sent to Out of Service debts. DD2481 s sent to Civilian Pay for agencies not serviced by DFAS. 12

13 DD2481 Non- Salary Debt Hearing/Waiver Requests Civilian Pay only processes packages for Active civilian payroll debts Debt and Claims is the only office that has been delegated with Waiver and Hearing decision rights for DoD Agencies Exception DIA and DoDEA 4/15/2015 Integrity - Service - Innovation 13

14 DD2481 Non-Salary Debt Hearing/Waiver Requests How do I send a Hearing/Waiver request for a non-salary debt being collected through payroll deductions? Collect documentation in a packet including: POC with contact information Report of Investigation explaining the debt Due Process letter(s) previously sent to employee Must be submitted by the indebting Agency If collections have already started and a valid hearing request is received a request to stop deductions must be sent to PRO 4/15/2015 Integrity - Service - Innovation 14

15 DD2481 Non-Salary Debt Hearing/Waiver Requests Submit Package to: Mailing Address: DFAS-IN Dept.3300 (Waivers/Remissions) 8899 East 56th Street Indianapolis, IN Fax: Phone: DSN: This is also the number that employees can call to check on the status of a waiver request after civilian pay submits for a decision 4/15/2015 Integrity - Service - Innovation 15

16 Voluntary Repayment Agreements Employees that cannot afford to repay debts at the Involuntary 15% deduction can request to repay a different amount Must provide documentation to validate hardship to Agency for official signature Requirements for Agreement Debt balance must be repaid within 3 years of notification Remaining debt balance divided by 78 pay periods will give you minimum biweekly deduction amount Minimum deduction cannot be less than $25.00 per pay period Must have Agency Official signature Agency Official is validating hardship of the employee Should check financial documents to ensure compliance

17 Voluntary Repayment Agreements An employee who agrees to a repayment plan no longer has the option to file for a hearing regarding the debt Use Remedy title - Voluntary Repayment Agreement Advance Pay, DTS and DD2481 debts are not eligible for voluntary repayment agreements DD2481 debt requestor can change the deduction amount with the process described earlier

18 Voluntary Repayment Agreement 4/15/2015 Integrity - Service - Innovation 18

19 Voluntary Repayment Agreement 4/15/2015 Integrity - Service - Innovation 19

20 Voluntary Repayment Agreement 4/15/2015 Integrity - Service - Innovation 20

21 Voluntary Repayment Agreement If the employee chooses to repay a debt by check Check payments should be addressed to address on debt letter Ensure that a copy of the VRA is included with the cash payment Allows for quicker payment processing Funds will be applied directly to line of accounting rather than being placed in suspense and requiring manual research If the employee chooses to return a US Treasury check that was issued erroneously and resulted in a debt There is a different address to send US Treasury checks to Please create a Remedy ticket (Check/Not Received) to start the process Address is different than check payments and requires specific information on the memo 4/15/2015 Integrity - Service - Innovation 21

22 Out of Service Indebtedness An Out of Service debt occurs when an individual separates from a DFAS serviced agency with an outstanding indebtedness balance. When HRO flows a separation action for an employee with outstanding indebtedness Stop IDC S populates in DCPS Debt Module indicating separation Employee s SSN is included in DCPS biweekly report worked by PRO PRO verifies NOAC, determines where the outstanding balance should be forwarded for collection and changes Stop IDC accordingly 22

23 DFAS Out of Service Indebtedness Process 1. Check DCPS Debt Module for debt status and STOP IDC field code. 2. Check Pay Rates and Appointment Screen for last MER record for NOAC code. 3. Check Employee Locator to determine if employee is Active in another database serviced by DFAS. 4. Check if a Corp of Engineer employee. 5. Debt and Claims minimum threshold for Army indebtedness is $ OPM minimum threshold is $ Separated employees are given 60 days before the indebtedness is transferred out of PRO for collection. 23

24 Debt Case NOAC Code 0385 Termination During Prob/Trial Period Verify separation NOAC to determine who the forwarding agency should be for collection 24

25 Notification of Action Code Notification of Action Code (NOAC) identifies which agency the outstanding indebtedness will be forwarded to for collection. NOAC indicates retirement Debt would be sent to OPM if dollar amount is more than $ NOAC and indicates separation Debt would be sent to Debt & Claims Management Office if over $225. (Exception is Corp of Engineers) NOAC 350 indicates Death Debt would be sent to Debt and Claims to apply to deceased employee s estate. 25

26 Debt Case Stop Indicator D indicates Debt is Out of Service and sent to Debt & Claims Management Office 26

27 Debt Case Notes indicate Debt is being sent to Out of Service - Debt & Claims Management Office 27

28 STOP Indicator Codes - OPM & Out of Service Debts D Out of Service - Sent to Debt & Claims Mgmt. Office O OPM - Sent to be withdrawn from retirement check S Separated - System generated code displays when employee has separation action processed. T Transfer Manually entered by PRO to identify Debt being transferred to another DFAS serviced agency. Collection will be credited with original LOA established. U Uncollectible - Under dollar threshold, no further action taken. 28

29 STOP IDC - Employee Active in Another DCPS Database Stop IDC T indicates that the debt is in the process of being transferred to a different database. If database is serviced by DFAS Indianapolis then PRO can pull the debt into the active database for collections to resume. If employee is active in a database that DFAS Cleveland services, Indianapolis PRO will send an requesting their office pull in the debt into their database. Debt is monitored until PRO verifies that debt successfully transferred. 29

30 Debts Sent to Debt & Claims Management Office (DCMO) Determination is made that debt is valid, uncollected, and over the dollar threshold amount. Each debt has a suspense date to begin collection. If no reply from employee, DFAS waits 60 days prior to forwarding to the Debt and Claims Management Office. Packet is compiled and debts are listed on transmittal and sent to the Debt Claims Office in Indianapolis. STOP IDC in Debt Module is changed to D and notes added to Debt Case screen. If Hearing or Waiver is in process debt is not forwarded until a decision is reached. 30

31 Debts Sent to Office of Personnel Management (OPM) Two forms are used to forward debts to OPM. OPM 1522 for FEHB indebtedness only SF2805 for all other payroll indebtedness Form is signed and dated by PRO technician. Copy of indebtedness letter is attached and mailed to OPM. STOP IDC in Debt Module is changed to O and notes added to Debt Case screen. If Hearing or Waiver is in process debt is not forwarded until a decision is reached. If Waiver submission is after debt was forwarded to Debt & Claims Management Office, then request should not be submitted to PRO. 31

32 Exceptions Debts not sent to Debt and Claims Office Leave Buy Back Treasury Debts (XY) Defense Travel System (DTS) Debts 32

33 Debt Reconsiderations Q: What is a debt reconsideration? A: A reconsideration is the process where a debt is examined to determine validity based on the actions processed by the Human Resource Office. DFAS utilizes the pay records from DCPS and completes an audit based on the transactions interfaced successfully. Debt Hearing requests will be treated as reconsideration requests to verify debt validity Information regarding the reason for the debt will be provided to the employee within 15 days Employee will be directed to contact Personnel office or CSR for corrections to records should they be necessary 4/15/2015 Integrity - Service - Innovation 33

34 Reconsideration letter 4/15/2015 Integrity - Service - Innovation 34

35 Reconsideration letter The reconsideration letter sent from the Civilian Payroll Office identifies: The original notification received and the dates of the indebtedness The date the Hearing request was received by DFAS The date the employee must notify DFAS of a Formal Hearing petition Why the debt has been determined to be valid The date payment is expected in full Where to make payment and the amount A written statement by the employee notifying DFAS of the employees intent If no action is taken when involuntary payroll deductions will begin as notified in the original notification 4/15/2015 Integrity - Service - Innovation 35

36 Debt Hearings Debt Hearings can be requested after the reconsideration is processed. Employees have 30 days from the receipt of the debt letter to request a hearing Reconsideration time in not included in the 30 day timeline for Formal hearing. Hearings are administrative in nature and do not require attendance Debt will be placed on hold until the hearing is decided Employee cannot enter into voluntary repayment agreement pending determination 4/15/2015 Integrity - Service - Innovation 36

37 Debt Hearings Employees must not agree to the validity of the debt in order to file for a hearing A Hearing is to determine the validity of a debt or to contest the repayment arrangements FEHB and FEGLI debts accrued within 4 pay periods are not eligible for a Hearing Where do I file a hearing petition? Fax your signed hearing petition and documentary evidence to If your hearing petition is missing information, you will receive a request to submit additional information. Failure to submit the additional information within 30 business days of notification will result in your hearing petition being dismissed. Alternatively, you may mail your hearing request and documentary evidence to DFAS Civilian Pay-IN, Dept. 6200, 8899 East 56th St., Indianapolis, IN /15/2015 Integrity - Service - Innovation 37

38 Debt Hearings What must be included in a hearing petition? Your written hearing petition must contain the following information: Your name, daytime phone number, address, mailing address and social security number The reason for your hearing request, presented as follows: To Contest the Validity of Your Debt or the Amount of Your Debt: Provide a statement concerning why you believe the debt (or the amount of the debt) is erroneous. To support your argument, include a written summary of the facts of your case for the hearing official, include the date and manner in which you became aware of any overpayment. Include all documentary evidence you want the hearing official to review (such as Leave and Earning Statements (LES)). Include the written testimony of any witness you wish the hearing official to consider To Contest the Proposed Schedule for Collection of Your Debt by Involuntary Salary Offset: Provide an alternate payment schedule and a statement explaining your financial status. Provide copies of records to be considered by the hearing official 4/15/2015 Integrity - Service - Innovation 38

39 Debt Hearing Once the Hearing Official has made a determination on the case a letter will be sent to notify the payroll office and the employee The payroll office will send a Post Demand Hearing letter to notify the employee when collections will begin on the indebtedness. The guidance pertaining to debt waiver will accompany the hearing letter. The guidance provides the employee with the basic information needed for a waiver request. 4/15/2015 Integrity - Service - Innovation 39

40 Hearing Decision Letter 4/15/2015 Integrity - Service - Innovation 40

41 Guidance Pertaining to Debt Waivers Detailed regulations regarding waiver of claims for erroneous payments under the authority of 5 USC 5584 are contained in the DoD Financial Management Regulation, Volume 8, para (DoD R). A copy is available at or from the DFAS Civilian Payroll Office. In order to receive favorable consideration, the determination must be made that collection action would be against equity and good conscience and not in the best interest of the United States. Generally, these criteria will be met by finding that the erroneous payment occurred through administrative error and that there is no indication of fraud, misrepresentation, fault or lack of good faith on the part of the employee. Any significant, unexplained increase in an employee s pay and/or allowances which would require a person to make inquiry concerning the correctness of his/her pay ordinarily would preclude a waiver regardless if the employee fails to bring the matter to the attention of appropriate officials. Waiver of overpayments under this standard depends on the facts existing in each particular case. Economical or financial hardship plays NO ROLE in the determination of a waiver request. Filing for waiver does not relieve you of the responsibility of paying the debt. Although collection of your debt will continue after receipt of your waiver request, any amount collected that may later be waived will be refunded to you at that time. 4/15/2015 Integrity - Service - Innovation 41

42 Debt Wavier Required information DD2789 (Page 1 only for civilians) signed and dated You must include supporting documents with your waiver application. Supporting documents include, but are not limited to: Copies of all supporting documentation referred to in DD Form Copies of Leave and Earnings Statements (LESs) covering 3 pay periods prior to the overpayment(s) through 3 pay periods after the overpayment ended. If you do not have access to your LESs, you must include a statement explaining why the LESs are not available. Copies of SF 50s Notification of Personnel Action for the debt period (including corrections). If unavailable, include a statement from the personnel office indicating why the SF 50s are not available. 4/15/2015 Integrity - Service - Innovation 42

43 Debt Wavier Required information Any statement from you or any other person in support of your application. Statements must be attested to be true and correct to the best of the individual s knowledge and belief. Additional required documents by type of debt: Personnel Debts: any job offer letter/ (if applicable) FEHB Debts: SF-2089/SF-2810 (copy of your original enrollment form and any amendments) FEGLI Debts: SF-2817 (copy of your original enrollment form and any amendments) Awards and Bonus Debts: Signed agreements or contracts for bonuses and/or VSIP payments Foreign Entitlement Debts: SF-1190 (signed by an official) and Military Orders (if applicable) Time and Attendance Debts: Time and Attendance cards for debt period. 4/15/2015 Integrity - Service - Innovation 43

44 Debt Waivers May I apply for a waiver and simultaneously request a hearing? No. By submitting an application for a waiver, you acknowledge that you do not intend to dispute the validity or amount of the debt. Waiver is not the proper forum to contest the validity or amount of your debt. If your waiver application includes arguments concerning the validity or amount of your debt, your application may be denied. In order to contest the validity or amount of your debt, you must file a petition for a hearing on your debt Debt waiver requests must be received within 3 years after the erroneous payment was discovered Debts are not placed on hold pending waiver determination; employees do have the option to enter into a voluntary repayment agreement 4/15/2015 Integrity - Service - Innovation 44

45 Debt Waivers Civilian Pay processes the waiver package for submission to Debt and Claims- Remission and Wavier Department for waiver determination Employee will receive letter requesting additional documents to complete packet for submission Employees will receive a letter indicating that waiver request was submitted including contact information for updates If you would like to check the status of a waiver after submission, you may contact Debt and Claims at: (317) or DSN or RemissionWaiverIndy@dfas.mil 4/15/2015 Integrity - Service - Innovation 45

46 Waiver Decisions Debt and Claims is the only office delegated with Waiver and Hearing decision rights for DoD Agencies Approval Exception DIA and DoDEA Amounts deducted from employees check will be refunded These deductions are noted in the deductions field on the employees LES Corrected W2/YTD Correction will be completed to add taxable income and any tax deductions used as debt offset back to employees account Any TSP and Retirement monies that were recovered for the portion debt waived will be returned to the employee. Negative retroactive payment amounts on the debt creation LES date are not debt deductions 4/15/2015 Integrity - Service - Innovation 46

47 Waiver Decisions Denial Collections will continue Current Year debt Employee will be taxed on all income if not repaid in current year Prior Year Employee will receive a tax certificate for all payments made in each year 4/15/2015 Integrity - Service - Innovation 47

48 DD2481 Non- Salary Debt Hearing/Waiver Requests Civilian Pay only processes packages for Active civilian payroll debts How do I send a Hearing/Waiver request for a non-salary debt being collected through payroll deductions? Collect documentation in a packet including: POC with contact information Report of Investigation explaining the debt Due Process letters previously sent to employee Must be submitted by the indebting Agency If collections have already started and a valid hearing request is received a request to stop deductions must be sent to civilian pay 4/15/2015 Integrity - Service - Innovation 48

49 DD2481 Non- Salary Debt Hearing/Waiver Requests Submit package to: Mailing Address: DFAS-IN Dept.3300 (Waivers/Remissions) 8899 East 56th Street Indianapolis, IN Fax: Phone: DSN: This is also the number that employees can call to check on the status of a waiver request after civilian pay submits for a decision 4/15/2015 Integrity - Service - Innovation 49