Air Force Decides Not to Collect $2.3 Million in Overpayments from Service Members in South Korea

The pay was not supposed to be issued during that time, but due to an error at the Air Force Personnel Centre Operating Location Indianapolis, it was mistakenly distributed.

The error resulted in some service members receiving more money than they were entitled to, with some reportedly receiving up to $7,000.

U.S. Air Force pilots from the 25th Fighter Squadron greet South Korea air force pilots assigned to the 102nd FS after completing exercise Buddy Squadron 23-2 at Osan Air Base, South Korea, March 8, 2023. (U.S. Air Force photo by Staff Sgt. Dwane R. Young)

According to Air Force spokeswoman Tech. Sargent. Deana Heitzman, the overpayments were made between March 1, 2022, and Nov. 30, 2022, and were in the form of hardship-duty pay.

While it is common for the military to collect erroneous payments from service members, the Air Force has determined that in this case, the members were overpaid solely due to an agency error. Therefore, the Air Force has decided not to pursue collection actions and will allow the service members to keep any overpayment associated with the error.

The Air Force has defended its decision, stating that it has conducted a thorough review of the situation and has concluded that it would not be in the best interest of the service members or the Air Force to demand repayment. The officials have also stated that they have put measures in place to prevent similar errors from occurring in the future.

Heitzman confirmed that the decision not to collect the overpayments was approved by Air Force Secretary Frank Kendall in accordance with Department of the Air Force Instruction 36-3034, which allows for the service to collect large debts in certain circumstances.

The Air Force’s decision not to collect the overpayments is a departure from standard practice. However, it reflects a growing concern about the negative impact that collection actions can have on service members and their families.

Overpayments: An undue burden

A 2019 Government Accountability Office (GAO) report found that collection actions related to overpayments have placed an undue burden on service members and their families, including financial hardship, garnished wages, and damaged credit scores.

The report called for better communication with service members and for policies and procedures to be updated to ensure that overpayments are accurately recorded and promptly addressed.

The Air Force’s decision not to collect the overpayments made to the 7,800 airmen stationed in South Korea may be seen as a step in the right direction toward addressing some of the concerns raised by the GAO report.

However, it is important for the military to continue to work towards improving its systems and policies to minimize errors and provide support to service members who may be impacted by overpayments in the future.

The incident also highlights the complex challenges faced by the military in managing its finances and ensuring that service members receive accurate and timely payments. As the military continues to modernize its systems and processes, it will be important to prioritize the needs of service members and their families to ensure that they are not unduly burdened by financial mistakes and errors.