Recently, we have came across a couple of large overpayments that involved the untimely submission of disciplinary actions. It is important to remember that leave accrual ceases while a member is in confinement or HADA status. Also, if a member is sentenced to confinement for more than 6 months, or sentenced to a punitive discharge along with confinement of any duration, the member is subject to automatic forfeiture of pay and allowances. It is extremely important that disciplinary and confinement transactions are entered in a timely and accurate manner. This will help ensure that members' accounts are adjusted correctly and avoid large overpayments on behalf of the government.
In one case, as a result of a Special Courts-Martial, the member was reduced to pay grade E-1 and confinement. Although a disciplinary transaction was completed IAW Part III Chap 5 of the SPO Procedures Manual, no confinement transaction was input per Part III Chap 6. The member was confined for a period of 61 days and due to the confinement not being recorded, the member's EOE was not properly adjusted. Also, the member continued to receive full pay and allowances and accrued leave while confined. The disciplinary transaction was corrected, after PPC notified the SPO, which created a debt of over $14,396.90 for previously paid pay and allowances and excess leave that the member never earned.
In another case, as a result of a General Courts-Martial, the member was sentenced to a fine and dismissal. The SPO contacted PPC 2 months after the General Courts-Martial to inquire why the member was still receiving pay and allowances even though the member was in HADA status. After reviewing the member's record, it was found that PPC was never notified of the member going into HADA status and therefore the transaction was not completed. PPC also found that the disciplinary transaction had not yet been entered by the SPO. Because of the untimely submission, the member received two months pay & allowances that was not earned creating $18,549.60 debt to the government.
In both instances debts to the government were established that could and should have been avoided with a little more diligence and attention to detail. The Coast Guard is also required to report these types of overpayments to DHS as high dollar overpayments. These reports are published on the web for the public as part of "Executive Order 13520: Reducing Improper Payments and Eliminating Waste in Federal Programs" to eliminate payment error and waste in federal programs and increase the transparency and public scrutiny of significant improper payments.
Fortunately for the Coast Guard, these types of disciplinary issues are few. When you do have these situations come up, contact PPC immediately for assistance if you are unsure of what actions you should take.
CWO2 Horace R. Byrd
USCG Pay & Personnel Center
Chief, Separations, Entitlements and Debts & Service Validation Branch (SES)