Hearings, Informal Disputes, and Waivers Remissions

Role and responsibility

S-1 admin specialists route the four debt response options the Marine elects under DoDFMR Vol 16 Chapter 4: oral or written hearing, informal dispute, waiver application, or remission application. The S-1 chief counsels the Marine on the four options at demand letter receipt. The S-1 officer signs by direction on the election routing. The IPAC pay clerk submits the election package to DFAS.

Source documents flow from the demand letter, the Marine election form, the DD Form 2789 application, the hearing request, the informal dispute statement, the supporting documentation, and the DOHA hearing decision. Outputs include the certified election package, the DOHA hearing decision (when applicable), the DFAS adjudication (for waiver remission), the debt closeout transaction (on approval), the collection start (on denial), and the Page 11 entry.

DoDFMR Vol 16 Chapter 4 covers four distinct response paths. The Marine elects one or more. The S-1 chief routes per the elected path.

Trigger events

• Marine receives the demand letter for a pay debt and elects a response option.
• Marine disputes the validity of the debt and requests an informal dispute review.
• Marine elects an oral or written hearing on the debt validity.
• Marine applies for waiver under 10 USC 2774 or 5 USC 5584.
• Marine applies for remission under 10 USC 6161 (enlisted on active duty).
• DOHA renders a hearing decision on the debt.
• DFAS adjudicates the waiver remission application.

The four response paths under Vol 16 Chapter 4

DoDFMR Vol 16 Chapter 4 provides four response paths the Marine elects within the 30-day due process window:

1. Oral or written hearing. The Marine disputes the debt validity or the proposed collection terms. The hearing routes through DOHA per DoDFMR Vol 16DoDFMR Vol 16 Chapter 4 paragraph 040201. DOHA renders an independent decision.
2. Informal dispute. The Marine submits a written dispute statement to DFAS for review without a hearing per DoDFMR Vol 16DoDFMR Vol 16 Chapter 4 paragraph 040101. DFAS reviews and renders a decision.
3. Waiver application. The Marine applies for waiver under 10 USC 2774 for erroneous payment of pay and allowances per DoDFMR Vol 16DoDFMR Vol 16 Chapter 4 paragraph 040301. Civilian employee waivers route under 5 USC 5584.
4. Remission application. The enlisted Marine on active duty applies for remission under 10 USC 6161 on hardship grounds per DoDFMR Vol 16DoDFMR Vol 16 Chapter 4 paragraph 040401.

Processing workflow

1. Counsel the Marine at demand letter receipt. The S-1 chief briefs the Marine on the four response options within the 30-day due process window per DoDFMR Vol 16DoDFMR Vol 16 Chapter 4.
2. Process the hearing request. The Marine elects an oral or written hearing. The S-1 chief routes the request through DFAS to DOHA per DoDFMR Vol 16DoDFMR Vol 16 Chapter 4 paragraph 040201. DOHA schedules the hearing and renders a decision.
3. Process the informal dispute. The Marine submits a written dispute statement. The IPAC pay clerk routes the dispute to DFAS for review per DoDFMR Vol 16DoDFMR Vol 16 Chapter 4 paragraph 040101.
4. Process the waiver application. The Marine applies under 10 USC 2774 for erroneous payment of pay and allowances. The S-1 chief builds the DD Form 2789 application with the legal authority memorandum, the Marine statement, the supporting documentation, and the command endorsement.
5. Process the remission application. The enlisted Marine on active duty applies under 10 USC 6161 on hardship grounds. The S-1 chief builds the DD Form 2789 with the hardship documentation, the financial statement, the dependents data, the debt obligation list, and the command endorsement.
6. Route through the chain of command. Capture command endorsement at company, battalion, and higher headquarters per DoDFMR Vol 16DoDFMR Vol 16 Chapter 4 and DoDFMR Vol 7A Chapter 50.
7. Submit to DFAS. The IPAC pay clerk submits the certified package to DFAS Indianapolis through the assigned pay control point.
8. Track the DFAS adjudication. Pull the DFAS case status on a fixed cycle. DFAS renders a written decision per DoDFMR Vol 16DoDFMR Vol 16 Chapter 4.
9. Process the approval. On approval, the IPAC pay clerk cuts the debt closeout transaction in MCTFS. Stop any active salary offset.
10. Process the denial and appeal. On denial, route the debt to collection per DoDFMR Vol 16DoDFMR Vol 16 Chapter 3. The Marine appeals within the appeal window per DoDFMR Vol 16DoDFMR Vol 16 Chapter 4 paragraph 040502.

Systems of record and forms

Systems

• DFAS Indianapolis. Adjudicates waiver remission applications and informal disputes.
• DOHA. Defense Office of Hearings and Appeals for oral or written hearings.
• MCTFS. Holds the debt entry and the closeout transaction.
• DFAS Case Tracking System. Tracks the DFAS case status.

Forms

• DD Form 2789 Waiver or Remission of Indebtedness Application. Standard application for waivers and remissions.
• Hearing Request Form. Marine election of oral or written hearing under DoDFMR Vol 16 Chapter 4.
• Informal Dispute Statement. Marine written statement contesting debt validity.
• Hardship Documentation Package. Financial statement, dependents data, debt obligation list for remission cases.
• Command Endorsement Memorandum. Per-level command endorsement on the application.

Common pitfalls

• Marine not counseled on the four response options. The 30-day due process window runs and the Marine defaults to salary offset without electing a path. Counsel the Marine at demand letter receipt per DoDFMR Vol 16DoDFMR Vol 16 Chapter 4.
• Hearing election misrouted to DFAS instead of DOHA. The hearing routes to DOHA for independent decision per DoDFMR Vol 16DoDFMR Vol 16 Chapter 4 paragraph 040201. The S-1 chief routes through DFAS as the channel.
• Waiver application routed under the wrong statutory authority. The IPAC pay clerk identifies the authority at package build per DoDFMR Vol 16DoDFMR Vol 16 Chapter 4 paragraph 040301.
• Remission application submitted after separation. 10 USC 6161 requires active duty enlisted status. Submit before separation per DoDFMR Vol 16DoDFMR Vol 16 Chapter 4 paragraph 040401.
• Appeal window missed on denial. The Marine loses the appeal right. Calendar the appeal window at denial receipt per DoDFMR Vol 16DoDFMR Vol 16 Chapter 4 paragraph 040502.

Decision points

• Hearing versus informal dispute. The Marine elects an independent DOHA hearing for a debt validity challenge, or an informal DFAS dispute review without a hearing. The S-1 chief counsels the Marine on the cost and timing of each option.
• Waiver under 10 USC 2774 versus remission under 10 USC 6161. Waiver applies on government error and equity grounds for any military member. Remission applies on hardship grounds for enlisted Marines on active duty.
• Concurrent paths. The Marine elects multiple paths (hearing on debt validity plus waiver application on equity grounds). The S-1 chief routes both within the 30-day window.

Authority

This sub-page maps to NAVMC 3500.3E T-R event 0111-GENA-2018 Process Waivers or Remissions of Indebtedness. The four response paths sit under DoDFMR Vol 16DoDFMR Vol 16 Chapter 4 Hearings Informal Disputes Waivers and Remissions or Cancellations of Debt Owed by Individuals. Statutory authority sits at 10 USC 2774 (military waiver), 10 USC 6161 (Navy and Marine Corps enlisted remission), and 5 USC 5584 (civilian employee waiver). Marine pay-specific procedures sit at DoDFMR Vol 7A Chapter 50.

Related references

• DoDFMR Vol 16 Chapter 4 Hearings, Informal Disputes, Waivers, and Remissions. Primary framework.
• DoDFMR Vol 16 Chapter 2 General Instructions for Collection of Debt. Due process framework cross-reference.
• DODFMR Vol 7A Chapter 50 Waivers and Remissions. Marine pay-specific framework.
• 10 USC 2774. Statutory waiver authority for erroneous payment.
• 10 USC 6161. Statutory remission authority for enlisted Marines on active duty.
• 5 USC 5584. Statutory waiver authority for civilian employee pay.
• DOHA Defense Office of Hearings and Appeals. Independent hearing officer.