About a thousand Navy retirees are being pursued by the federal government in an effort to recover around $7 million after a system error caused them to receive overpayment for over four years.
Over the period of August 2019 to February 2023, 1,283 Navy retirees received greater monthly payouts than they were entitled to due to a system error that underestimated service time, resulting in a loss of roughly $6.8 billion.
According to a story from NBC News, the government is attempting to recover its losses from retirees who owe amounts ranging from $35 to $70,000.
Government Seeks $7 Million Repayment from Navy Retirees
The affected retirees will receive notices this week from the Pentagon Finance and Accounting Service, which is in charge of paying both active Defense Department staff and retirees, informing them of the debt and providing instructions on how to pay it back or request a waiver.
Due to the miscalculation, some of the impacted pensioners have already witnessed a decrease in their monthly retirement income, while others anticipate facing significant expenses.
Morrison lost around $762 between March and April, making him one of those who had already seen a decrease in monthly wages.
Although he has not yet received his notice of debt owed, he told the publication he anticipates the invoice to be close to $30,000.
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Incorrect Data Leads to Inflated Retirement Checks and Debt Dilemma
The Navy sent DFAS inaccurate data that represented time spent serving on inactive reserves as active-duty service, which led to inflated time in service counts that led to bigger retirement benefits.
While some retirees would be hit with enormous bills, according to DFAS, the typical debt for those affected would be around $2,700.
Once they receive the official notification, retirees will be compelled to take action on their obligation.
A retiree’s monthly benefits will be automatically reduced by up to 15% if they don’t take action within a set amount of time.
The letters will also state when interest fees will start to accrue on the debt.
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