{"id":28633,"date":"2023-05-31T22:45:28","date_gmt":"2023-05-31T22:45:28","guid":{"rendered":"https:\/\/one.sightlinemg.com\/federaltimes\/uncategorized\/2023\/05\/31\/total-garbage-fresh-confusion-for-overpaid-navy-retirees\/"},"modified":"2026-08-08T19:52:59","modified_gmt":"2026-08-08T19:52:59","slug":"total-garbage-fresh-confusion-for-overpaid-navy-retirees","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/federaltimes\/fedlife\/financial-planning\/2023\/05\/31\/total-garbage-fresh-confusion-for-overpaid-navy-retirees\/","title":{"rendered":"\u2018Total garbage\u2019: Fresh confusion for overpaid Navy retirees"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The plight of 1,283 Navy retirees who were overpaid due to a Navy error and now face hefty repayments somehow got worse and even more confusing in the past week.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Although the Navy announced May 19 that the Defense Finance and Accounting Service had agreed to a three-month pause in recouping the overpayments, those retirees\u2019 latest pay statements, issued last week, indicated they would begin seeing the overpayments, plus interest, deducted from their monthly paychecks starting July 1.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On Wednesday, DFAS officials confirmed that is not the case, and the a three-month delay in repayments is still in effect.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In a nutshell, DFAS lagged in updating the pay statements. Agency spokesman Steve Burghardt called the latest complications \u201ca timing issue\u201d in an email to Navy Times.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThose individuals who received statements indicating offsets had been initiated should see a new statement showing no collections have been made,\u201d he said Wednesday.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/navytimes\/news\/your-navy\/2023\/05\/08\/navy-error-upends-pay-for-more-than-1200-retirees\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"225\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP21158461895430.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Navy error upends pay for more than 1,200 retirees<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">A Navy &quot;software issue&#039; has led to issues with the pay of 1,283 retirees.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">The incorrect statements showing that debt collection would begin with retirees\u2019 July 1 paychecks were generated in advance of pay processing and DFAS agreeing to a Navy request to pause debt collection, Burghardt said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cOnce the agreement was reached, DFAS had to update each record of those impacted by the overpayments,\u201d Burghardt said. \u201cThis was a laborious task to make the changes and verify the results.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Navy Times began asking questions about the statements a week ago. Burghardt did not say whether DFAS was tracking these incorrect statements before Navy Times brought them to agency\u2019s attention.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cObviously, it misled people,\u201d he said of the bureaucratic lag. \u201cI can see how that is going to cause some confusion.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Retirees were informed this spring that they had been overpaid, with those impacted owing repayments rannging from $35 to more than $70,000 to the government.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">All told, roughly $7 million in overpayments were made to the Navy retirees, and the median overpayment amount is $2,700, according to Burghardt.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Navy officials said on May 19 that retirees would have three months to appeal the debt or submit a waiver before DFAS began clawing back the overpayment in monthly deductions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Navy\u2019s errors in calculating time in service has largely affected people who had a mix of active duty and reserve time.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Officials said it was due to an issue with the Navy\u2019s Standard Integrated Personnel System, or NSIPS, which botched some retiree pay calculations from 2019 to February.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">DFAS\u2019s delay in ensuring that retiree statements available online via the MyPay portal were accurate has caused further stress and consternation among some impacted retirees in the past week.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Some were particularly bothered by interest charges on the now-obsolete pay statements.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Multiple impacted retirees said they called DFAS for an explanation and were told that the \u201cdebts\u201d line was interest on the money they owed back, or that their account wasn\u2019t showing up in any collections databases.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1261\" height=\"803\" src=\"\/wp-content\/uploads\/2026\/08\/ras-3.png.png\" alt=\"\" class=\"wp-image-81327\" srcset=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/ras-3.png.png 1261w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/ras-3.png.png?resize=300,191 300w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/ras-3.png.png?resize=768,489 768w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/ras-3.png.png?resize=1024,652 1024w\" sizes=\"auto, (max-width: 1261px) 100vw, 1261px\" \/><figcaption class=\"wp-element-caption\">A screenshot shows one of the incorrect retiree account statements issued by the Defense Finance Accounting Service earlier this month. Despite the statement indicating that retiree overpayments would begin being deducted July 1, DFAS officials have confirmed that those who were overpaid due to a Navy system error still have a three-month window to appeal or request a waiver. The retiree&#8217;s private information has been redacted in this image. (Image provided to Navy Times)<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Retired Chief Hospital Corpsman Sheila Hetherington-Smith said last week that she owes nearly $15,000 to the government because of this Navy error and was shocked to see her retiree statement showing that DFAS plans to begin taking back the overpayment on July 1.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cI\u2019m kind of disgusted,\u201d she told Navy Times.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Hetherington-Smith said she has no problem paying back what she owes because \u201ca debt is a debt.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But like other retirees who have reached out to Navy Times, the retired chief said she is \u201creally pissed off\u201d about how DFAS and the Navy have handled the whole thing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThey pretty much just incurred me a $15,000 debt that they\u2019re going to charge 1% (interest) on,\u201d Hetherington-Smith said. \u201cIt\u2019s total garbage.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Despite pay statements indicating the debt would start to be garnished on July 1, Defense Finance Accounting Service officials say that is not the case.<\/p>\n","protected":false},"author":7,"featured_media":74562,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":56,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[11,56,31],"tags":[],"coauthors":[3270],"class_list":["post-28633","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fedlife","category-financial-planning","category-home"],"acf":{"subheadline":"","legacy_arc_id":"R5HCOCUTEBCG5JVFVKI25HSC2M","arc_canonical_url":"\/news\/your-navy\/2023\/05\/31\/total-garbage-fresh-confusion-for-overpaid-navy-retirees\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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