Waivers and Remissions of Indebtedness - S-1 Procedural Page

Role and responsibility

S-1 admin specialists own waiver and remission of indebtedness processing at the unit level. The S-1 clerk receives the debt notice and validates against source documents. The S-1 chief counsels the Marine on options and builds the package. The S-1 officer signs by direction on the package and routes through the IPAC pay clerk to DFAS.

Source documents flow from MCTFS debt notices, LES debt entries, audit findings, and command direction. Waiver packages route under 10 USC 277410 USC 2774. Remission packages route under 10 USC 616110 USC 6161. Outputs include the DFAS adjudication letter, the MCTFS debt closeout, the certified case packet, and the OMPF Field Folder entry.

MCAAT inspects the case packet for legal authority correctness, validation against source documents, command endorsement, and DFAS routing. A waiver routed under the wrong authority gets denied without prejudice. Determine the right authority at package build, not after DFAS rejects.

Trigger events

• MCTFS debt notice posts to the Marine's record.
• LES shows debt collection start.
• Audit identifies overpayment caused by clerk fault.
• Marine separates with unresolved pay debt.
• Court-martial action affects pay creating debt.
• Special pay lapse generates overpayment.
• Travel claim rejection generates debt.

Processing workflow

1. Receive the debt notice. Pull from MCTFS, the LES, or audit finding. Cross-check EDIPI, debt amount, and creation date. The S-1 clerk runs receipt.
2. Validate the debt. Trace the debt to the source transaction and supporting KSD. Confirm the debt is valid and the amount is correct per DODFMR Vol 7ADODFMR Vol 7A Chapter 52 Priority of Pay Deductions and Collections.
3. Counsel the Marine. Brief on waiver under 10 USC 277410 USC 2774 for collection of erroneous payment, or remission under 10 USC 616110 USC 6161 for hardship grounds.
4. Determine the legal authority. Waiver applies when collection would be against equity and good conscience. Remission applies when hardship justifies forgiveness for an enlisted Marine still on active duty per 10 USC 616110 USC 6161.
5. Build the package. Stage the source documents, the legal authority memorandum, the Marine's statement, and any hardship support. Index per DODFMR Vol 7ADODFMR Vol 7A Chapter 52 Priority of Pay Deductions and Collections.
6. Route through the chain. Capture command endorsement at company, battalion, and higher per DODFMR Vol 7ADODFMR Vol 7A Chapter 52 Priority of Pay Deductions and Collections.
7. Submit to DFAS. Route the certified package to DFAS through the IPAC pay clerk. Track the DFAS case number.
8. Track the DFAS adjudication. Pull case status from DFAS on a fixed cycle. Notify the Marine and the chain on resolution.
9. Process the approved case. On waiver or remission approval, cut the debt closeout transaction in MCTFS per MCTFSPRIUMMCTFSPRIUM. Stop collection.
10. Process the denied case. On denial, route the case to collection per DODFMR Vol 7ADODFMR Vol 7A Chapter 52 Priority of Pay Deductions and Collections. Counsel the Marine on appeal options.
11. Document the outcome. Cut a Page 11 entry recording the debt, the package, and the DFAS decision per MCO P1070.12KMCO P1070.12K Chapter 6.
12. File the certified case packet. Place in the OMPF Field Folder under the pay tab.

Systems of record and forms

Systems

• MCTFS. Holds the debt state and processes debt closeout transactions.
• DFAS Indianapolis. Adjudicates waiver and remission packages.
• UD-MIPS. Cuts debt closeout transactions on approval.
• OMPF Field Folder. Holds the certified case packet.

Forms

• DD Form 2789 Waiver or Remission of Indebtedness Application. Standard application form.
• Marine Statement of Hardship. Supporting statement for remission packages.
• Command Endorsement Memorandum. Each level of command endorses the package.
• NAVMC 118 (11) Administrative Remarks. Page 11 documenting the debt and outcome.

Common pitfalls

• Wrong legal authority on the package. Waiver routed under 10 USC 6161 or remission under 10 USC 2774. DFAS denies. Determine authority at build per DODFMR Vol 7ADODFMR Vol 7A Chapter 52 Priority of Pay Deductions and Collections.
• Marine separated before the package adjudicates. The Marine loses remission eligibility under 10 USC 616110 USC 6161. Submit before separation.
• Package routed without command endorsement. DFAS rejects on procedure. Capture endorsement at every command level per DODFMR Vol 7ADODFMR Vol 7A.
• Debt closeout transaction not cut on approval. The debt continues to collect. Cut the closeout within 5 working days of DFAS approval.
• Page 11 entry skipped. The OMPF lands without record of the debt or its resolution. Process the Page 11 within 5 working days of DFAS decision.

Decision points

• Waiver versus remission. Waiver applies on government error and equity grounds (10 USC 2774). Remission applies on hardship grounds for enlisted Marines on active duty (10 USC 6161). The S-1 chief routes per the right authority.
• Submission before or after separation. Remission requires active duty enlisted status. Submit before separation per 10 USC 616110 USC 6161.
• Appeal of denial. The Marine appeals a DFAS denial. The S-1 officer routes the appeal through DFAS per DODFMR Vol 7ADODFMR Vol 7A Chapter 52 Priority of Pay Deductions and Collections.

Authority

This category sits under DODFMR Vol 7ADODFMR Vol 7A Chapter 50 Waivers and Remissions and DODFMR Vol 7ADODFMR Vol 7A Marine Corps Pay Instruction. Statutory authority sits at 10 USC 277410 USC 2774 for waivers and 10 USC 616110 USC 6161 for remissions. S-1 responsibilities sit at MCO 5000.14DMCO 5000.14D MCAP enclosure 4. The processing workflow maps to NAVMC 3500.3E T-R event 0111-GENA-2018 Process waivers or remissions of indebtedness. No MCAAT track maps directly. The Military Pay Processing audit baseline covers this category.

Sub-pages

• DoD debt management general provisions. Vol 16 Ch 1 statutory framework and definitions.
• Debt collection instructions and due process. Vol 16 Ch 2 demand letters, salary offset, administrative wage garnishment, Treasury referral.
• Debts owed by individuals collection mechanisms. Vol 16 Ch 3 individual debt collection procedures.
• Hearings, informal disputes, waivers, and remissions. Vol 16 Ch 4 due process hearings and waiver remission applications.
• Interest, penalties, and administrative costs. Vol 16 Ch 7 31 USC 3717 financial rules.
• DFAS routing and Marine Corps specific procedures. Vol 7A Ch 50 and MCO 7300.21B implementation.

Related references

• DoDFMR Vol 16 Department of Defense Debt Management. Parent framework for DoD debt collection, waivers, and remissions.
• DoDFMR Vol 16 Chapter 4 Hearings, Informal Disputes, Waivers, and Remissions. Statutory authority cross-reference for 10 USC 2774, 10 USC 6161, 5 USC 5584.
• DODFMR Vol 7A Chapter 50. DoD military pay waiver and remission policy and procedure.
• DODFMR Vol 7A Chapter 52 Priority of Pay Deductions and Collections. Pay deduction priority.
• 10 USC 2774. Statutory waiver authority for collection of erroneous payments.
• 10 USC 6161. Statutory remission authority for enlisted Marines on active duty.
• 5 USC 5514. Federal salary offset framework.
• 31 USC 3717. Interest, penalties, and administrative costs on federal debt.
• MCO 7300.21B Marine Corps Financial Management SOP Manual. Marine Corps implementation.
• MCO 5000.14D Marine Corps Administrative Procedures. Defines S-1 responsibilities.
• MCO P1070.12K Individual Records Administration Manual. Page 11 documentation rules.
• NAVMC 3500.3E Manpower and Administration T-R Manual. Event code 0111-GENA-2018.