DFAS Routing and Marine Corps Specific Procedures

Role and responsibility

S-1 admin specialists, IPAC pay clerks, and Marine Corps Comptroller staff build and route Marine waiver and remission packages through DFAS Indianapolis. The S-1 chief drafts the DD Form 2789 application, the legal authority memorandum, and the Marine statement. The IPAC pay clerk submits the package to DFAS through the assigned pay control point. The S-1 officer signs by direction on the command endorsement. The Marine Corps Comptroller routes the appeal on a DFAS denial.

Source documents flow from the DD Form 2789 application, the Marine statement, the supporting hardship documentation (for remission cases), the command endorsement memorandum at company, battalion, and higher headquarters, the DFAS receipt acknowledgment, and the DFAS adjudication letter. Outputs include the DFAS case number, the MCTFS debt closeout transaction on approval, the collection start on denial, the Page 11 entry, and the OMPF Field Folder case packet.

DoDFMR Vol 7A Chapter 50 is the Marine pay-specific waiver remission framework. DoDFMR Vol 16 Chapter 4 is the parent DoD-wide waiver remission framework. The two run in parallel for Marine pay debt with Vol 7A taking precedence for pay-specific cases.

Trigger events

• Marine receives the demand letter for a pay debt and elects to apply for waiver or remission.
• DFAS denies an initial waiver remission application and the Marine appeals.
• Audit identifies an overpayment caused by Marine Corps administrative error and the unit applies for a waiver on the Marine behalf.
• Marine separates with an active waiver or remission package and the unit routes the appeal.
• Marine Corps Comptroller identifies a unit-wide pay error and routes a class waiver request.

Processing workflow

1. Build the DD Form 2789 application. Capture the Marine biographics, the debt details (amount, source, date), the legal authority basis (waiver under 10 USC 2774 or remission under 10 USC 6161), and the request per DoDFMR Vol 7A Chapter 50.
2. Build the legal authority memorandum. The S-1 chief drafts the memorandum identifying the statutory authority, the basis for the application, and the supporting facts per DoDFMR Vol 7ADODFMR Vol 7A Chapter 50.
3. Build the Marine statement. The Marine signs a statement of facts, including the debt circumstances and any hardship factors (for remission cases) per DoDFMR Vol 16DoDFMR Vol 16 Chapter 4 paragraph 040401.
4. Capture supporting hardship documentation. For remission cases, include the financial statement, dependents data, debt obligation list, and any other hardship factors per 10 USC 6161 and DoDFMR Vol 16DoDFMR Vol 16 Chapter 4.
5. Route through the chain of command. Capture command endorsement at company, battalion, and higher headquarters per DoDFMR Vol 7ADODFMR Vol 7A Chapter 50.
6. Submit to DFAS Indianapolis. The IPAC pay clerk submits the certified package through the assigned pay control point per MCO 7300.21BMCO 7300.21B Marine Corps Financial Management SOP.
7. Track the DFAS case. The S-1 chief pulls the DFAS case status on a fixed cycle. DFAS adjudicates the application and issues a written decision per DoDFMR Vol 16DoDFMR Vol 16 Chapter 4.
8. Process the approval. On DFAS approval, the IPAC pay clerk cuts the debt closeout transaction in MCTFS per MCTFSPRIUMMCTFSPRIUM. Stop any active salary offset.
9. Process the denial. On DFAS denial, the IPAC pay clerk routes the debt to active collection per DoDFMR Vol 16DoDFMR Vol 16 Chapter 3. The S-1 chief counsels the Marine on the appeal option.
10. Process the appeal. The Marine appeals the DFAS denial within the appeal window per DoDFMR Vol 16DoDFMR Vol 16 Chapter 4. The Marine Corps Comptroller staff routes the appeal through DFAS.

Systems of record and forms

Systems

• DFAS Indianapolis. Adjudicates Marine waiver remission applications.
• MCTFS. Holds the debt entry and the closeout transaction.
• DFAS Case Tracking System. Tracks the DFAS case status.
• Marine Corps Comptroller Office. Routes appeals and class waiver requests.
• IPAC pay control points. The submission channel from the unit to DFAS.

Forms

• DD Form 2789 Waiver or Remission of Indebtedness Application. The standard application.
• Legal Authority Memorandum. Internal staff memorandum identifying the statutory basis.
• Marine Statement of Facts. Marine-signed statement covering the debt circumstances.
• Hardship Documentation Package. Financial statement, dependents data, debt obligation list.
• Command Endorsement Memorandum. Per-level command endorsement.

Common pitfalls

• Wrong legal authority on the package. Waiver routed under 10 USC 6161 or remission under 10 USC 2774. DFAS denies. Determine authority at build per DoDFMR Vol 7ADODFMR Vol 7A Chapter 50.
• Marine separated before the package adjudicates. Remission under 10 USC 6161 requires active duty enlisted status. The Marine loses eligibility on separation. Submit before separation.
• Command endorsement missing at one level. DFAS rejects on procedure. Capture endorsement at every command level per DoDFMR Vol 7ADODFMR Vol 7A Chapter 50.
• Hardship documentation thin. DFAS denies the remission for lack of supporting financial data. Include the financial statement, dependents data, and debt obligation list at submission.
• Debt closeout transaction not cut on approval. The salary offset continues past the approval. Cut the closeout transaction within 5 working days of DFAS approval per MCTFSPRIUMMCTFSPRIUM.

Decision points

• Waiver versus remission. Waiver applies on government error and equity grounds under 10 USC 2774. Remission applies on hardship grounds for enlisted Marines on active duty under 10 USC 6161. The S-1 chief routes per the right authority.
• DFAS denial appeal versus collection. The Marine appeals the denial through DFAS or accepts the denial and routes to collection. The S-1 officer counsels the Marine on the appeal window and the cost of additional interest accrual.
• Class waiver request. The Marine Corps Comptroller identifies a unit-wide pay error and routes a class waiver request through DFAS per DoDFMR Vol 16DoDFMR Vol 16 Chapter 4.

Authority

This sub-page maps to NAVMC 3500.3E T-R event 0111-GENA-2018 Process Waivers or Remissions of Indebtedness. The processing workflow sits under DoDFMR Vol 7ADODFMR Vol 7A Chapter 50 Waivers and Remissions, DoDFMR Vol 16DoDFMR Vol 16 Chapter 4 Hearings Informal Disputes Waivers and Remissions, MCO 7300.21BMCO 7300.21B Marine Corps Financial Management SOP Manual, and MCO 5000.14D MCAP for S-1 responsibilities. Statutory authority sits at 10 USC 2774 (waiver) and 10 USC 6161 (remission).

Related references

• DODFMR Vol 7A Chapter 50 Waivers and Remissions. Marine pay-specific framework.
• DODFMR Vol 7A Chapter 52 Priority of Pay Deductions and Collections.
• DoDFMR Vol 16 Chapter 4 Hearings, Informal Disputes, Waivers, and Remissions.
• MCO 7300.21B Marine Corps Financial Management SOP Manual. Marine Corps implementation.
• 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.
• DD Form 2789 Waiver or Remission of Indebtedness Application.
• MCTFSPRIUM. Debt closeout transaction format.