U.S. Navy Veterans Enforced to Return Up to $70,000 After Pension System Glitch

The U.S. federal government is enforcing Navy veterans to return up to $70,000 after a system glitch. Reports say the glitch created around a $6.8 billion loss from August 2019 until February 2023.

The U.S. federal government is planning to retrieve around $7 million from 1,283 Navy veterans. This was after a system glitch miscalculated service time and created around a $6.8 billion loss. Reports say the overpayments ranging from $35 to $70,000 were made from August 2019 until February 2023.

According to Lee, on May 15, the Defense Finance and Accounting Service (DFAS) stated that it would distribute notices to the affected Navy veterans. These notices are intended to inform them on how to return the overpayments or apply for a waiver. Nonetheless, some of the retirees’ incomes have already been reduced, while others are expecting to pay large bills.

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Why were the Navy Veterans Overpaid?

According to Toropin, the system glitch occurred when the Navy veterans have sent inaccurate data to DFAS that counted inactive service time as active. This means that the time in service counts exceeded and set off larger retirement checks.

Once the Navy veterans receive the official notification from DFAS, they will be enforced to return the overpayments. If a retiree fails to return the money within a specific time frame, the overpayments will automatically be deducted from their monthly benefits for up to 15%. Furthermore, the notices will include information on when the interest rates will be applied to the debts.

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