National Guard soldiers maneuver in a "wedge formation" in Bradley Fighting Vehicles at Fort Irwin National Training Center, Calif., on Nov. 5, 2011. (U.S. Army)
National Guard soldiers maneuver in a "wedge formation" in Bradley Fighting Vehicles at Fort Irwin National Training Center, Calif., on Nov. 5, 2011. (U.S. Army)
Secretary of Defense Ash Carter attends a Tuesday, Oct. 25, 2016, defense meeting in Paris, France. On Wednesday, Carter ordered a freeze on efforts to reclaim re-enlistment bonuses from National Guard members. (Brigitte N. Brantley/U.S. Air Force)
BRUSSELS — Defense Secretary Ash Carter has ordered efforts to reclaim re-enlistment bonuses from National Guardsmen who served in Iraq and Afghanistan to stop.
The Defense Finance and Accounting Service has pursued about 10,000 California National Guard soldiers who served in the wars in Iraq and Afghanistan seeking to take back sign-up bonuses of $15,000 or more. The Defense Department has said the soldiers were not qualified to receive the money.
The story, first reported by The Los Angeles Times, has generated national outrage and a Congressional investigation.
On Wednesday in Brussels, Carter said the freeze would allow the Defense Department to review its process for reclaiming the payments. It does not mean that every servicemember’s debt will be forgiven.
“While some soldiers knew or should have known they were ineligible for benefits they were claiming, many others did not. About 2,000 have been asked, in keeping with the law, to repay erroneous payments,” Carter said.
Some servicemembers who have been targeted by the Defense Department to repay the bonuses have been able to appeal successfully. But the process “has simply moved too slowly and in some cases imposed unreasonable burdens on servicemembers. That is unacceptable,” Carter said.
The freeze will give the Defense Department time to review the appeal process to make certain it is fair to all servicemembers, he said.
Carter has tasked senior Pentagon personnel official, Peter Levine, to complete a review of the appeals process by Jan. 1.
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Statement from Secretary of Defense Ash Carter on California National Guard Bonus Payments
There is no more important responsibility for the Department of Defense than keeping faith with our people. That means treating them fairly and equitably, honoring their service and sacrifice, and keeping our word. Today, in keeping with that obligation, I am ordering a series of steps to ensure fair treatment for thousands of California National Guard soldiers who may have received incentive bonuses and tuition assistance improperly as a result of errors and in some cases criminal behavior by members of the California National Guard.
While some soldiers knew or should have known they were ineligible for benefits they were claiming, many others did not. About 2,000 have been asked, in keeping with the law, to repay erroneous payments. There is an established process in place by which service members can seek relief from such obligations. Hundreds of affected guard members in California have sought and been granted relief. But that process has simply moved too slowly and in some cases imposed unreasonable burdens on service members. That is unacceptable. So today, on the recommendation of Deputy Secretary Work, I am ordering measures to make sure we provide affected service members the support they need and deserve.
First, I have ordered the Defense Finance and Accounting Service to suspend all efforts to collect reimbursement from affected California National Guard members, effective as soon as is practical. This suspension will continue until I am satisfied that our process is working effectively. Second, I have ordered a team of senior department officials, led by the senior personnel official in the Office of the Secretary of Defense, Peter Levine, to assess the situation and establish no later than Jan. 1, 2017 a streamlined, centralized process that ensures the fair and equitable treatment of our service members and the rapid resolution of these cases. The objective will be to complete the decision-making process on all cases as soon as possible - and no later than July 1, 2017.
Ultimately, we will provide for a process that puts as little burden as possible on any soldier who received an improper payment through no fault of his or her own. At the same time, it will respect our important obligation to the taxpayer.
I want to be clear: this process has dragged on too long, for too many service members. Too many cases have languished without action. That's unfair to service members and to taxpayers. The steps I've outlined are designed to meet our obligations to both, and to do so quickly.
