ARMY REGULATION

NO. 600-4

PERSONNEL—GENERAL

REMISSION OR CANCELLATION OF INDEBTEDNESSENLISTED MEMBERS

Effective 1 April 1976

This regulation prescribes procedures for submitting and processing applications of enlistedpersonnel for remission or cancellation of indebtedness to the United States., including thatresulting from erroneous payments on which relief from liability has been denied underappeal provisions\Local supplementation of this regulation is permitted, but is not required.If supplements are\issued, Army Staff agencies and major Army commands will furnish onecopy of each to HQDA (DAPC-EPA-P) Alexandria., VA 22331; other commands will furnishone copy of each to tn$ next higher headquarters.

CHAPTER i. GENERALPurpose - _ _ApplicabilityScope and authorUyExplanation of terVsConceptsResponsibilities and motions

OCESSING ACTIONS

AR 600-4

HEADQUARTERSDEPARTMENT OF THE ARMY

WASHINGTON, DC, 9 February 1976

APPLICATION ANDGeneral -————_Enlisted member —_.Immediate commanderCommanders exercising special courts-martial jurisdictionFinance and accounting officeiCollection pending final action Nn an applicationNotification of final actionMessage application for remission\r cancellation of indebtedness

Paragraph

1-11-21-31-41-51-6

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2-52-62-72-8

ROOM! A 518PEI?

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9 February 1976 AR 600-4

CHAPTER 1GENERAL

1-1. Purpose. This regulation provides in-structions and prescribes procedures for sub-mitting and processing applications for remis-sion or cancellation of indebtedness of enlistedmembers to the United States, including thatresulting from erroneous payments made to oron behalf of a member when a request forremission or cancellation is made under theprovisions of section C, chapter 7, part seven,Department of Defense Military Pay and Allow-ance Entitlements Manual (DODPM). This reg-ulation will be used in conjunction with chapter7, part seven, AR 37-104-3.1-2. Applicability. The provisions of this regu-lation are applicable to all enlisted personnelserving on active duty, including Army Na-tional Guard (ARNG) and Army Reserve(USAR) personnel serving on full-time duty inthe active Federal military service or on initialactive duty for training (IADT) or active dutyfor training (ADT).

1-3. Scope and authority, a. Title 10, UnitedStates Code, subsection 4837(d), authorizes theSecretary of the Army to remit or cancel anenlisted member's indebtedness to the UnitedStates or any of its instrumentalities remainingunpaid before or at the time of the member'shonorable discharge, when the Secretary con-siders it in the best interest of the UnitedStates. Except as .stated in 6 below, the Secre-tary of the Army may remit or cancel any partof the enlisted member's indebtedness to theUnited States Government, including thosedebts resulting from erroneous payments madeto or on behalf of the member as well as anyindebtedness incurred while the member mayhave been serving as an officer of the US Army(35 Comp. Gen. 421; 38 Comp. Gen. 788). Gener-ally, any indebtedness, except as stated in bbelow, may be considered for remission includ-ing indebtedness resulting from pecuniary lia-

bility for the loss or destruction of, or damageto, Government property, assessed against amember on a report of survey (para l-8a6, AR735-11) if the member's request for relief fromthe finding of this liability is based primarily orsolely on hardship which would result frompayment of the indebtedness. Debts for erro-neous payments may bs processed for remis-sion if relief action has been denied under theappeal provisions of section D, chapter 7, partseven, DODPM.

b. It is not within the jurisdiction of theSecretary of the Army to consider for remissionor cancellation any indebtedness in, arisingfrom, or as the result of the following situationsor circumstances:

(1) When a member's pay is not reducedpromptly in connection with forfeiture of payimposed by a court-martial sentence or forfei-ture of pay under Article 15, Uniform Code ofMilitary Justice (UCMJ), (10 USC 4837(d) and 41Comp. Gen. 269).

(2) After an enlisted member has been dis-charged, unless he has reenlisted (10 USC4837(d) and 38 Comp. Gen. 788). The term "dis-charge," as used in this regulation, does notmean a formal document received by a memberupon separation from active service; but thedischarge must have reference to the actualtermination of status on the active list. There-fore, members who are discharged or releasedfrom active duty or transferred to the retiredReserves are not entitled to remission or can-cellation of indebtedness (39 Comp. Gen. 415);nor are enlisted members of the Reserve com-ponents who are not on full-time active duty.

(3) When a member is retired, regardless ofwhether the indebtedness accrued while themember was on active duty or after retirement.

(4) When any portion of a debt has beenrepaid or collected, it will be excluded fromconsideration for remission or cancellation

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(10 USC 4837(d)). Collection of the indebtednesswill be suspended as of the date the commandingofficer indorses the application, unless protec-tion of the interests of the Government war-rants otherwise. In that case, monies otherwisedue to be collected will be merely withheld pend-ing final action on the application (see para70706, AR 37-104-3).

(a) Amounts withheld after the com-manding officer's indorsement (for the'protec-tion of the Government) are not "collected"amounts and will be paid to the member if theindebtedness is remitted. The amount remittedis that amount of the debt not previously col-lected as of the date of the commander's in-dorsement or any lesser amount determined byThe Secretary of the Army or his designee.

(6) If the member's application is disap-proved, collection action will be reinstated andthe amounts withheld after the commandingofficer's indorsement will be processed as acollection. For refund of amounts repaid to theGovernment prior to remission or cancellationof indebtedness or for debts not remitted orcancelled before a member's release from activeduty, discharge, or retirement, relief may beavailable under the "waiver" procedures in AR37-56.

c. If the application for remission or cancella-tion is approved and the criteria for filing aclaim for refund (AR 37-56) are not met or if aclaim for refund under waiver provisions hasbeen denied, the member may apply (under theprovisions of AR 15-185) to the Army Board forCorrection of Military Records (ABCMR),Washington, DC 20310, for refund of theamounts collected by the Government prior tothe date of the commander's indorsement. How-ever, the application should not be submitted tothe ABCMR prior to final action on the applica-tion for remission or cancellation of indebted-ness. If the application is approved by theBoard, the settlement of any payment(s) duethe member will be processed in accordancewith the provisions of chapter 9, part four,AR 37-104-3.

(5) When indebtedness arises from situa-tions where Army members are held liable fordamage to or loss of property of another service(43 Comp. Gen. 162).

(6) When indebtedness is that of commis-

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9 February 1976

sioned officers or civilian employees of the mili-tary service.

1-4. Explanation of terms. For purposes ofthis regulation the following apply:

a. Allowances. All elements of military allow-ances, including but not limited to subsistence,quarters, clothing, family separation, and over-sea station allowances.

b. JUMPS-Army Allotment Authorization(DA Form 1341). The document used to start,stop, and change allotments.

c. Erroneous payment. The term "erroneouspayment" means a payment that was not legalor proper when it was made. Examples of casesthat are not considered "erroneous payments"are—

(1) Advance leave which becomes excessleave when a member is separated early.

(2) Reenlistment bonuses not fully earnedat the time of separation.

(3) An overpayment which results from de-lays in processing pay. (For example, a memberwho is paid $100 on or after the cut-off date forprocessing pay for the next regular payday willnot be considered to have received an erro-neous payment merely because the regularpayment was not reduced by the advance pay-ment of $100. When overpayment is known, thepayment will be returned to the finance andaccounting officer (FAO), with a completed DDForm 634 (Receipt for Miscellaneous Collection)or DD Form 1131 (Cash Collection Voucher).

d. Hardship. Hardship exists when repay-ment, either because of the amount or thetiming, will materially affect the care and sup-port of the member and/or the member's familyor will cause them to suffer unduly.

e. Injustice. Obvious wrongs or misrepresen-tations on the part of the Government that arecaused by individuals acting in an official ca-pacity. (This term applies when the memberhas received an erroneous payment in goodfaith without fault or knowledge on his partand when it is subsequently determined thatthe individual's entitlement to it never actuallyexisted.)/ JUMPS-Army Leave and Earnings State-

ment (DA Form 3686). A computer-producedmonthly statement of the military pay account

9 February 1976 AR 600-4

for the service member that shows all entitle-ments earned, amounts collected, payments,made, and any transactions that affected the'member's leave account.

g. Pay. All elements of military pay, includ-ing but not limited to basic, special, incentive,readjustment, severance, and lump-sum forleave.

h. Pay Adjustment Authorization (DD Form139). The document issued to show the amountand cause of indebtedness.

i. Remission or cancellation. These terms em-brace the authority of the Secretary of theArmy to remit or cancel any part of an enlistedmember's'indebtedness to the United StatesGovernment or to any of its instrumentalities(including debts for erroneous payment of payand allowances) that remain unpaid before orat the time of a member's honorable discharge.1-5. Concepts, a. The objective of the statu-tory provisions governing debt remission orcancellation is to alleviate a serious moraleproblem of indebted enlisted members on activeduty by providing a means of correcting aninjustice, as well as a method to eliminatehardship or undue suffering by the servicemember or the member's family. The com-mander has primary interest in and responsi-bility for resolving the soldier's personal prob-lems, including those brought about (wholly orin part) by erroneous payments. To resolveindebtedness arising from administrative or fi-nancial transactions, the commander is assistedlocally by the military personnel officer(MILPO) and the finance and accounting officer(FAO).

b. The service member shares a responsibilitywith the Government to insure that his finan-cial account is correct. This is done by review-ing the monthly leave and earnings statementto determine if the leave balance shown andthe monies paid and deducted are correct. If anerror is found, it must be reported to the com-mander so the official financial records can becorrected.

1-6, Responsibilities and functions, a. TheCommanding General, US Army Military Per-sonnel Center (CG MILPERCEN) is designatedby the Secretary of the Army to act for him in

-/exercising the authority under Title 10, Unitedj'.States Code, Section 4837(d), to remit and can-

cel the indebtedness of enlisted personnel to theUnited States Government that remains un-paid before or at the time of discharge. The CGMILPERCEN will—

(1) Formulate policy and procedures gov-erning the processing of applications for remis-sion and cancellation of indebtedness of enlistedmembers to the United States Government, fortaking final action on these applications, andfor maintaining statistical reports on the appli-cations that are processed.

(2) When considering cases of erroneouspayments, insure that fair and just decisionsare made on all applications processed, that therights of the individual members of the Armyare protected, and that the interests of theArmy are also protected.

(3) Advise and assist the heads of agenciesof Headquarters, Department of the Army, andmajor Army commanders on matters pertain-ing to the remission or cancellation of indebted-ness.

b. The Inspector General and Auditor Gen-eral, United States Army, is designated by theSecretary of the Army to conduct an annualreview of the use of authority by the CG MIL-PERCEN «»d to remit or cancel enlisted mem-bers' indebtedness to the United States Govern-ment.

c. The finance and accounting officer (FAO)will —

(1) Analyze applications for remission orcancellation, using the technical backgroundavailable to him, and will, in coordination withthe commander, support the objectives of thestatutes governing remission or cancellation ofindebtedness.

(2) Assist the commander by furnishingdocuments to support the application (e.g., astatement of the member's pay account, copiesof Leave and Earnings Statements (LES), orother pertinent documents) and will provide atechnical explanation of finance and accountingprocedures as they apply to the case underconsideration.

(3) Pending the decision of the CG, MIL-PERCEN on the member's application for re-mission or cancellation of indebtedness, theFAO will, when appropriate, withhold from the

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AR 600-4 9 February 1976

member's payments the sums which would will be made over a period that is not longerhave been collected if the member had not than the member's anticipated period of activeapplied for remission or cancellation of indebt- duty.edness. This action will insure that, should the d The commanders specified in paragraphsmember's application be disapproved, collection 2-3 and 2-4 will be responsible for the actionsof the indebtedness (as required by 5 USC 5514) prescribed in those paragraphs.

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9 February 1976 AR 600-4

CHAPTER 2APPLICATION AND PROCESSING ACTIONS

2-1. General. An enlisted member who desiresremission or cancellation of indebtedness maybase the claim on extreme hardship or injus-tice. DA Form 3508-R (Application for Remis-sion or Cancellation of Indebtedness (fig. 2-1))will be used by the member or his commanderfor making an application for the remission orcancellation of an indebtedness. DA Form 3508-Rwill be reproduced locally on 8 by lOVs-inchpaper. Three complete copies of the applicationwith all indorsements and inclosures will beforwarded to HQDA (DAPC-EPA-P). An appli-cation for remission or cancellation of an in-debtedness established under "report of sur-vey" procedures will be forwarded as prescribedin paragraph 10-7, AR 735-11. This applicationwill be processed only after a decision on themember's appeal of pecuniary liability has beenreached by the approving authority.2-2. Enlisted member. DA Form 3508-R willbe completed by the member, indicatingwhether the application for remission or cancel-lation of indebtedness is based on injustice, orhardship, or both. All items of information onDA Form 3508-R should be completed as fol-lows:

a. Item 1. Complete mailing address of unitcommander.

b. Item 2. Name: last, first and middle initial;and rank, pay grade, and social security num-ber (SSN).

c. Item 3. Service Data:a. Expiration of term of service(ETS) date.b. Basic active duty date (BASD).c. Primary military occupationalspecialty (PMOS)—3-diffit.d. Duty military occupational spe-cialty (DMOS)—3-Digit.

d. Item 4. Present organization (completemailing address) and automatic voice network

(AUTOVON) number of the unit to which theservice member is assigned.

e. Items 5 through 10. Self-explanatory./. Item 11. Self-explanatory. If dependents

reside apart from their sponsors, explain in astatement (see item 13A).

g. Item 12. Self-explanatory.h. Item 13. Required inclosures are—

A. A detailed, sworn statement by theapplicant, signed and dated, explaining—

(1) The circumstances under which the in-debtedness was incurred; the cause of the in-debtedness; the period involved; the date it wasdiscovered; how, when, and by whom the mem-ber was officially notifed of the indebtedness;whether the member had previously suspectedor had knowledge of an error and to whom heor she voiced that suspicion or knowledge oferror and any efforts the member may havemade to have the error corrected. The membershould also explain the reason for delay, if any,in taking such action. Any available evidence tosupport the member's efforts to correct thecause of the indebtedness should be submittedwith the statement. All inclosures to the state-ment must be listed on the statement.

(2) If the application is based on extremehardship which the member feels will result ifrepayment of the debt is required, the state-ment must include, (in addition to the informa-tion required in (1) above), the member'smonthly expenses to substantiate the degree ofhardship that repayment of the debt will cause.The statement must also include a list of credi-tors; the amount of monthly payments made toeach, and the anticipated dates of liquidation;the number and relationship of dependents,with the ages of any children; income otherthan military pay, if any; the purpose andexpiration dates of all allotment deductionscurrently in effect; and any unusual factors orobligations which could substantiate that re-

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AR 600-4 9 February 1976

payment would create undue financial hard-ship.

(3) If the application is based on injusticeand the indebtedness occurred through admin-istrative error(s) by Government officials, sub-stantiating evidence (in addition to the informa-tion in (1) above) must be submitted, such ascopies of evidence or other documents relatingto the indebtedness (promotions, reductions,travel allowances, excess leave, or AWOL). Thestatement must support why the member feelsthat the indebtedness would be an injustice tohim or her and must substantiate that theindebtedness was not the applicant's fault.

B. Notice of Exception, Pay AdjustmentAuthorization, or other documents that disclosethe cause, amount, and inclusive period of in-debtedness must be furnished.

C. Copies of all authorizations to start,stop, or change allotments that were initiatedduring the period of indebtedness, if the indebt-edness was caused by allotment overpayment.

D. Self-explanatory.E. Legible copies of Leave and Earnings

Statements (LES) for the entire period of theindebtedness in addition to a copy of the latestLES (submit true copies when reproduced cop-ies are illegible).

i. Other documents. The member should in-clude any other documents which would help inmaking a final decision regarding the applica-tion (e.g., statements from officers or enlistedmembers having knowledge of circumstances re-lating to the indebtedness or information indi-cating approval would be in the best interest ofthe applicant or the Army). Submission of theapplication will not be delayed solely for thepurpose of obtaining documents, because ap-proval will not be granted for any indebtednesscollected prior to the date the immediate com-mander indorses the application. Forwardingindorsements may request attachment of docu-ments that are not immediately available to theapplicant or to his commander. These docu-ments may be forwarded later.

2-3. Immediate commander. The member'simmediate commanding officer will—

a. Insure that the facts in the case are fullyand accurately stated, elaborating when neces-sary to clarify them.

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b. Inquire into and verify statements madeby the enlisted member, particularly those re-lating to hardship, to the extent feasible.

c. Request the technical assistance fromFAO or MILPO that is necessary for clarifica-tion of the circumstances surrounding the in-debtedness.

d. Evaluate all the evidence involved andforward the original and three copies of theapplication by indorsement through the com-mander exercising special courts-martial juris-diction to the FAO currently maintaining themember's pay account.

e. Recommend approval or disapproval of theapplication and give the reasons, stating—

(1) How remission or cancellation would orwould not serve the best interests of the Gov-ernment.

(2) How the member's ability to dischargemoral and legal obligations to creditors andprovide for the welfare of dependents, if any,would be affected.

(3) What the Army's investment in theservice member is in terms of training; whatthe member's major contributions to the serv-ice have been; and whether the member's re-tention in the service is desirable. (If retentionis not desirable, give specific reasons.)

(4) Whether, in the commander's judg-ment, the indebtedness occurred through anyfault of the member; whether the membercould have prevented the indebtedness;whether the member's actions were proper inattempting to correct the error; if and when theservice member was made aware of a possibleerror; and whether the commander believes themember acted in good faith.

(5) What assistance the commander, per-sonnel officers, and the FAO gave the member,including any significant matters of recordwhich could affect the decision.

(6) A brief description of the member's effi-ciency and conduct with the organization, in-cluding any significant matter of record, favora-ble or unfavorable, pertaining to that member.

(7) An explanation of any item that ap-pears to be questionable but that cannot beverified.

/. If, after submission of an application, themember's separation is anticipated earlier than

9 February 1976 AR 600-4

the date shown in the application, the immedi-ate commander will promptly notifyrthe FAO,furnishing the reason for and date of antici-pated separation.

g. When appropriate (under the provisions ofpara 2-66), direct the FAO to continue monthlywithholding of monies from the member's pay.Monies collected by the Government prior tothe date the immediate commander indorsedthe application may not be considered for can-cellation (see para 1-36(4) regarding "collected"amounts and amounts withheld).

h. Request the MILPO or FAO to attachdocuments not available at unit level whichmay have a bearing on the case.

2—4. Commanders exercising special courts-martial jurisdiction. These commanders will—

a. Review applications to insure that thecases have been fully developed and supportedby material evidence.

b. When warranted by circumstances or un-supported allegations, procure additional factsor evidence necessary to insure a completedevelopment of a case before submitting it tothe FAO. For example, when the service mem-ber alleges that the debt was incurred as theresult of an error on the part of a specificofficial or agency and the allegation is notsupported by the evidence, obtain a statementconcerning the exact cause of the overpaymentor erroneous payment from that official oragency.

c. Evaluate the application and all materialevidence; recommend approval of remission orcancellation of the unsatisfied indebtedness, inwhole or in part; or recommend disapproval ofthe application and provide reason(s) for thisrecommend ation.

d. Forward the application in triplicate to theFAO servicing the member. In forwarding in-dorsement to the FAO, request the attachmentof any required documents not available to orfurnished by the immediate commander or theMILPO.

2-5. Finance and accounting officer (FAO).The FAO will—

a. Furnish the immediate commander, uponrequest, a statement of the member's pay ac-

count or copies of Leave and Earnings State-ments (DA Form 3686) or other pay or pay-related documents material to the member'sapplication for remission or cancellation of in-debtedness and will provide technical assist-ance that applies to finance and accountingprocedures.

b. Upon receipt of the application from thecommander exercising special courts-martialauthority, review the application to determineif the commander has recommended continuedwithholding of the member's pay. Also, verifythat the amount of uncollected indebtednessshown as of the date of the immediate com-mander's indorsement is correct.

c. Verify that any finance and accountingdocuments necessary to reach a decision on theapplication are included. If there is any perti-nent pay-related information that has not beenmade available to the immediate commander,forward the information by indorsement to thatcommander for consideration prior to takingfurther action on the application.

d. Forward the application by indorsement tothe commander exercising general courts-mar-tial jurisdiction for resolution when—

(1) The immediate commander has not re-quested continued withholding of sums to liqui-date the indebtedness pending the decision ofthe Secretary of the Army or his designee, and

(2) The FAO feels that because of themember's remaining service obligation the inter-ests of the Government would not be ade-quately protected under 5 USC 5514 by continu-ance of payments to the member without with-holding these sums, and

(3) The matter cannot be resolved betweenthe FAO, the immediate commander, and thecommander exercising special courts-martialjurisdiction.

e. If suspension of collection on the indebted-ness has been directed by the immediate com-mander and is appropriate, suspend collectionaction as of the date of the commander's in-dorsement and recredit to the member's ac-count any amounts collected after that dateand advise the member of the status of hisfinancial affairs pending a final decision on theapplication for remission or cancellation of in-debtedness.

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/ Forward the application in triplicate byindorsement to HQDA (DAPC-EPA-P) Alexan-dria, VA 22331, for adjudication. In this indorse-ment to MILPERCEN—

(1) Comment on any allegation concerningadministrative error or erroneous paymentthat pertains to finance and accounting proce-dures.

(2) Indicate the date the indebtedness wasentered for collection, monthly rate of collec-tion, total amount collected, the amount ofindebtedness unsatisfied as of the date of theimmediate commander's indorsement, whetherdebt liquidation sums are being withheld on aregular basis and, if so, the amount being with-held.

(3) Attach the following when appropriate:(a) A copy of the Notice of Exception,

Pay Adjustment Authorization, or other docu-ment stating the amount and cause of theindebtedness.

(6) A statement of the member's pay ac-count or a copy of the latest LES.

(4) Include the disbursing station symbolnumber (DSSN) and the AUTOVON number ofthe servicing finance office.

g. If, subsequent to the date the applicationis forwarded to MILPERCEN, the member be-comes subject to separation earlier than thedate indicated in the application, immediatelynotify MILPERCEN of the anticipated separa-tion, the date separation is expected, and thereason for the separation.

h. Upon receipt of notification of final actionfrom MILPERCEN, make any required adjust-ments in the member's pay account in accord-ance with paragraph 70706, AR 37-104-3.

(1) If the application is approved for remis-sion or cancellation of the unliquidated indebt-edness in whole, the total of the sums withheld(para 2-6) or any lesser amount specified in theapproval order will be paid to the member.

(2) If the application is disapproved, or ap-proved for partial remission or cancellation ofthe unliquidated indebtedness, either initiate orreinstate the collection. Reinstated collectionswill include the amounts withheld (para 2-6). Ifa refund of any amount withheld is due themember as the result of partial remission orcancellation of indebtedness, refund the

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amount without any further action by themember.

i. As a substantiating document for renewedcollections or for any repayment made to themember, forward the original of the MILPER-CEN order of approval or disapproval of remis-sion or cancellation of indebtedness to the USArmy Finance and Accounting Center, FortBenjamin Harrison, IN 46249 (as prescribed inchap 7, part nine, AR 37-104-3). A copy of theorder will be filed in the member's PersonalFinancial Record (PFR) as a permanent docu-ment and a copy will be furnished the enlistedmember through his or her immediate com-mander.

j. Collect the outstanding indebtedness (asprovided in part seven, AR 37-104-3) if finalaction on the application for remission or can-cellation of indebtedness has not been receivedby the date of the member's separation fromactive duty, unless the member is being sepa-rated for the purpose of immediate reenlist-ment and the provisions of paragraph 2-rocapply.2-6. Collection pending final action on anapplication, a. When an enlisted member ap-plies for remission or cancellation of indebted-ness, collection will be suspended as of the datethe member's immediate commander indorsesthe application to the CG MILPERCEN forfinal approval or disapproval. Any amountscollected on or after that date, regardless of theperiod involved, will be recredited to the mem-ber's account without waiting for the decisionof the CG MILPERCEN, except as stated in bbelow.

5. Title 5, USC, Section 5614, requires thatcollection of an indebtedness be made over aperiod not greater than the anticipated periodof active duty. Therefore, if it is the judgmentof the immediate commander that liquidation ofindebtedness may not be possible within amember's remaining period of active duty ifrepayment is deferred pending the CG MIL-PERCEN's decision on the application for re-mission or cancellation of the indebtedness, thecommander may, for the protection of the Gov-ernment, direct the FAO to withhold from thatmember's pay the sum (including any recredit(para 2-5e)) which would have been collected

9 February 1976

had that member not applied for remission orcancellation.

(1) If a member's application is approved, thetotal amount withheld for protection of the Gov-ernment will be refunded to the member. Noamount collected or withheld prior to the com-mander's indorsement of a member's applicationwill be refunded under the provisions of thisregulation, even though the application is finallyapproved by the CG MILPERCEN.

(2) If the application is disapproved, collec-tion of the indebtedness will be reinstated, in-cluding the amount withheld for protection ofthe Government.

c. Where the immediate commander has di-rected the FAO to continue withholding of themember's pay, as distinguished from collectionaction, because of the member's scheduled sep-aration date and, if the continued withholdingof pay is creating a financial hardship on themember, the immediate commander will coordi-nate with the FAO to reduce the amount with-held each payday.

d. If agreement cannot be reached betweenthe FAO and the immediate commander on thewithholding of sums to liquidate the indebted-ness when an application is disapproved by theCG MILPERCEN, the application will be re-ferred to the commander exercising generalcourts-martial authority for decision on thewithholding of pay prior to forwarding the ap-plication to HQDA (DAPC-EPA-P).

e. If the provisions of 5 USC 5514 are a factorand the member intends to reenlist immedi-ately upon expiration of his normal term ofservice, that member may agree to partial col-lection during the new enlistment if full collec-tion of the debt before discharge would requiretotal or nearly total stoppage or withholding offinal pay and would create hardship for themember and his dependents. The pay of mem-bers who extend their terms of service or areretained in service beyond the expiration ofterm of service will be subject to stoppage orwithholding as though the normal term of serv-ice had not expired.

2-7. Notification of final action. The CG MIL-PERCEN will notify, in writing, the servicingFAO of the final action taken upon an applica-tion for remission or cancellation of indebted-

AR 600-4

ness and will furnish a copy of the notificationto the service member's immediate commander.Another copy of the MILPERCEN notificationof final action will be forwarded by the FAO tothe member concerned through his unit com-mander with a statement (as appropriate) ofthe status of collection action, the amount ofpay withheld (if any) to be refunded to themember, and when the refund may be ex-pected.2-8. Message application for remission orcancellation of indebtedness, a. The com-mander may submit an application for remis-sion or cancellation of indebtedness by messageonly when the date of forwarding the applica-tion to MILPERCEN is thirty days or lessbefore the expiration date of the member'sterm of service and when the member does notintend to reenlist or extend his enlistment.Since applications under normal circumstancesrequire extensive documentation, the messageapplication should be used only in situationswhere it is felt that the actual circumstancescan be adequately described in the message byfurnishing the information in 6 below.

6. Message applications will be addressed toCDRMILPERCEN ALEX VA//DAPC-EPA-P//and must include but need not be limited to thefollowing information:

(1) The member's name, rank, pay grade,SSN, ETS, and organization.

(2) The cause of indebtedness, inclusivedates of the period involved, initial amount ofthe indebtedness, and the amount of remainingliability.

(3) Whether the request is based on hard-ship or injustice.

(4) Dependents: Relationship, ages of chil-dren, and whether residing with the sponsor.

(5) A detailed explanation of the circum-stances and by whom verified. n.^K ;,

(6) Data regarding financial obligations,normal monthly living expenses, and allot-ments (as explained in para 2-lA(2)).

(7) A statement of the member's pay ac-count from DA Form 3686 (JUMPS—ArmyLeave and Earnings Statement).

(8) Recommendations by all commandersand the FAO.

(9) The AUTOVON number of the mem-ber's unit and FAO.

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c. Based on the merits of the case, the CGMILPERCEN will make the final determina-tion concerning the amount of indebtedness tobe remitted or cancelled and will reply, bymessage, indicating approval or disapproval.After the determination has been made, theFAO will enter the following notations in Item11 of the final DA Form 2139 (Military PayVoucher):

(1) A brief explanation of the member'sindebtedness.

(2) "Member requested remission or cancel-lation of indebtedness by message DTG_______. Approved/Disapproved (as applica-ble) by MILPERCEN Message DTG

d. The CG MILPERCEN will be provided

9 February 1976

with any pertinent information regarding cir-cumstances occurring subsequent to submittingthe message application but prior to the finalaction being taken. Using the most expedi-tious means of communications available, ad-vice will be given as to reassignment; promo-tion or reduction in grade; reenlistment, exten-sion of term of service, or approval of retentionbeyond ETS; the initiation of any administra-tive or punitive action which may result inseparation earlier than the member's scheduleddate; or any other significant factor which maybe considered in making a final determination.The commander will provide the servicing FAOwith the same information furnished to the CGMILPERCEN.

2-6

9 February 1976 AR 600-4

The proponent agency of this regulation is the US Army Military PersonnelCenter. Users are invited to send comments and suggested improvements onDA Form 2028 (Recommended Changes to Publications and Blank Forms)direct to HQDA (DAPE-EPA-P) 200 Stovall Street, Alexandria, VA 22332.

By Order of the Secretary of the Army:

FRED C. WEYANDGeneral, United States Army

Official: Chief of StaffPAUL T. SMITHMajor General, United States ArmyThe Adjutant General

DISTRIBUTION:To be distributed in accordance with DA Form 12-9A requirements for AR, Personnel General.

Active Army: A (Qty rqr block no. 382)ARNG: D (Qty rqr block no. 385)USAR: D (Qty rqr block no. 385)

APPLICATION FOR REMISSION OR CANCELLATION OF INDEBTEDNESSFor use of this form, see AR 600-4; the proponent agency is MILPERCEN.

Use additional blank sheet lor con-tinuation of Hems idantilyin& each itemby number.

DATA REQUIRED BY THE PRIVACY ACT

1. AUTHORITY: 10 USC Section 4837

2. PRINCIPAL PURPOSE: To evaluate an application from an enlisted member for remission and cancellation of a debt tothe United States.

3. ROUTINE USES:

4. DISCLOSURE:

Serves as a substantiating document for remission or cancellation of the indebtedness. Providesdata from member to support request. Provides data from immediate commander, giving recommen-dation for approval or disapproval. Provides data from finance and accounting officer concerningaction taken with regard to collection of indebtedness or suspension of the collection.Voluntary, If not supplied, there is no basis for considering remission of the debt.

.1. TO: 2. FROM: (Name, rank, pay trade and SSN)

3. SERVICE DATA:a. ETS:

b. BASD:

4. PRESENT ORGANIZATION AND STATION (Autovon number)

C. PMOSt

d. DMOS

5. INITIAL AMOUNT AND CAUSE OF INDEBTEDNESS, AND DATE APPLICANT NOTIFIED OF INDEBTEDNESS

AMOUNT: CAUSE: DATE:

6. COLLECTION OF INDEBTEDNESS SUSPENDED

YES NO AMOUNT COLLECTED MONTHLY:

7. AMOUNT UNCOLLECTED THIS DATE 8. APPLICATION BASED ONHARDSHIP INJUSTICE

9. ITEMIZED LIST OF CURRENT FINANCIAL OBLIGATIONS OTHER THAN NORMAL LIVING EXPENSES

CREDITOR OR EXPENSE DATE DEBTINCURRED

INITIAL TOTALAMOUNT

MONTHLYPAYMENT

LIQUIDATIONDATE

PAYMENTSOVERDUE

10. NORMAL MONTHLY LIVING EXPENSES(RENT, CLOTHING, FOOD, UTILITIES, ETC.)

ITEM AVERAGE MONTHLYEXPENSE

11. DEPENDENTS

NAME RELATIONSHIP DATE OF BIRTHRESIDE WITH

SPONSORNO'

12.ALLOTMENTS CURRENTLY IN EFFECT

CLASS AMOUNT PAYEE PURPOSE ESTIMATED EXPIRATION DATE

13. REQUIRED INCLOSURESA. Statement. See paragraph 2-2h.B. Pay adjustment authorization. See paragraph 2-2h.C. Allotment authorizations, if applicable. See paragraph 2-2h.D, Copy of debt liquidation schedule if collection not suspended.£. Leave and earnings statements. See paragraph 2-2h.

SIGNATURE DATE

DA FORM 3508-R, 1 Jan 76 EDITION OF 1 APR 72 IS OBSOLETE

Z669SU-000

AUVUBI1 NOOVlN3d