DoD Financial Management Regulation, Volume 16 - Department of Defense Debt Management

Scope

DoDFMR Volume 16 is the DoD Financial Management Regulation framework for Department of Defense debt management. The volume operationalizes 31 USC 3711, 3716, 3717, and 3719 (Debt Collection Improvement Act of 1996), 5 USC 5514 (Federal Salary Offset), the Federal Claims Collection Standards (31 CFR Parts 900-904), and the OPM/Treasury debt collection rules at the DoD level. Volume 16 sits parallel to DoDFMR Volume 7A Chapter 50 (Military Pay Waivers and Remissions) and covers all DoD debt, not only military pay debt.

Audience

DFAS Indianapolis debt management staff. Marine Corps S-1 officers, S-1 chiefs, IPAC pay clerks, and Marine Corps Comptroller staff processing debt collection, waivers, remissions, and dispute packages. Commanders signing debt collection actions, salary offset notices, and waiver remission endorsements. HQMC Programs and Resources Division (RFB) financial management program managers.

Chapter map

• Chapter 1 General Provisions for DoD Debt Management. Scope, statutory framework, key definitions, responsibilities.
• Chapter 2 General Instructions for Collection of Debt Owed to the DoD. Demand letters, due process notification, salary offset, administrative wage garnishment, federal salary offset, IRS refund offset, credit reporting, and Treasury referral.
• Chapter 3 Collection of Debts Owed by Individuals to the DoD. Individual debt collection procedures.
• Chapter 4 Hearings, Informal Disputes, Waivers, and Remissions or Cancellations of Debt Owed by Individuals. Due process hearing rights, informal dispute, waiver applications under 5 USC 5584 / 10 USC 2774 / 32 USC 716, remission applications under 10 USC 6161 (Navy and Marine Corps) and 10 USC 9837 (Air Force).
• Chapter 5 Collection of Debts Owed by Contractors. Out of S-1 scope.
• Chapter 6 Debt Owed to the DoD by Foreign Entities. Out of S-1 scope.
• Chapter 7 Interest, Penalties, and Administrative Costs. 31 USC 3717 interest, penalty, and administrative cost rules.
• Definitions. Volume-wide definitions.

Connection to Marine Corps policy

• DoDFMR Volume 7A Chapter 50 Waivers and Remissions. Marine Corps military pay-specific waiver/remission framework.
• 10 USC 2774. Statutory waiver authority for erroneous payment of pay and allowances.
• 10 USC 6161. Statutory remission authority for enlisted Marines on active duty.
• 5 USC 5514. Federal salary offset.
• 5 USC 5584. Statutory waiver authority for civilian employee pay.
• 31 USC 3711, 3716, 3717. Federal claims collection, administrative offset, and interest.
• 31 CFR Parts 900-904. Federal Claims Collection Standards.
• DD Form 2789 Waiver or Remission of Indebtedness Application. Standard waiver/remission application.
• MCO 7300.21B Marine Corps Financial Management SOP Manual. Marine Corps implementation.

Status

Active. Office of the Under Secretary of Defense (Comptroller) sponsors. Current chapter dates: Ch 1 November 2025, Ch 2 April 2025, Ch 3 May 2024, Ch 4 May 2024, Ch 5 July 2025, Ch 6 verify date, Ch 7 verify date, Definitions November 2024. Verify chapter currency at the externalUrl Comptroller landing page.