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111TH CONGRESS 

1ST SESSION H. R. 2771 

To amend titles 10 and 37, United States Code, to provide a more equitable 

process by which the military departments may recover overpayments 

of military pay and allowances erroneously paid to a member of the 

Armed Forces when the overpayment is due to no fault of the member, 

to expand Department discretion regarding remission or cancellation 

of indebtedness, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 9, 2009 

Ms. SHEA-PORTER (for herself, Ms. MOORE of Wisconsin, Mr. MASSA, and 

Mr. BISHOP of New York) introduced the following bill; which was referred to the Committee on Armed Services 

A BILL 

To amend titles 10 and 37, United States Code, to provide 

a more equitable process by which the military departments may recover overpayments of military pay and 

allowances erroneously paid to a member of the Armed 

Forces when the overpayment is due to no fault of the 

member, to expand Department discretion regarding remission or cancellation of indebtedness, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Military Overpayment 

3 Fairness Act of 2009’’. 

4 SEC. 2. LIMITATIONS ON COLLECTION OF OVERPAYMENTS 

5 OF PAY AND ALLOWANCES ERRONEOUSLY 

6 PAID TO MEMBERS. 

7 (a) MAXIMUM MONTHLY PERCENTAGE OF MEM8 BER’S PAY AUTHORIZED FOR DEDUCTION.—Paragraph 

9 (3) of subsection (c) of section 1007 of title 37, United 

10 States Code, is amended by striking ‘‘20 percent’’ and in11 serting ‘‘10 percent’’. 

12 (b) CONSULTATION REGARDING DEDUCTION OR RE13 PAYMENT TERMS.—Such paragraph is further amended— 

14 (1) by inserting ‘‘(A)’’ after ‘‘(3)’’; and 

15 (2) by adding at the end the following new sub16 paragraph: 

17 ‘‘(B) In all cases described in subparagraph (A), the 

18 Secretary concerned shall consult with the member regard19 ing the repayment rate to be imposed under such subpara20 graph to recover the indebtedness, taking into account the 

21 financial ability of the member to pay and avoiding the 

22 imposition of an undue hardship on the member and the 

23 member’s dependents.’’. 

24 (c) DELAY IN INSTITUTING COLLECTIONS FROM

25 WOUNDED OR INJURED MEMBERS.—Paragraph (4) of 

26 such subsection is amended to read as follows: 

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1 ‘‘(4) Unless a member of the uniformed services re2 quests or consents to initiation of the collection of an over3 payment of pay or allowances made to the member at an 

4 earlier date, if a member is injured or wounded by hostile 

5 fire, explosion of a hostile mine, or any other hostile action 

6 or, while in the line of duty, otherwise incurs a wound, 

7 injury, or illness in a combat operation or combat zone 

8 designated by the Secretary of Defense, any overpayment 

9 of pay or allowances made to the member while the mem10 ber recovers from the wound, injury, or illness may not 

11 be deducted from the member’s pay until the later of— 

12 ‘‘(A) the end of the 180-day period beginning 

13 on the date of the completion of the tour of duty of 

14 the member in the combat operation or combat zone, 

15 if the member is not removed from the theater of 

16 operations for medical treatment; or 

17 ‘‘(B) the end of the 90-day period beginning on 

18 the date of the reassignment of the member from a 

19 military treatment facility or other medical unit, if 

20 the member is removed from the theater of oper21 ations for treatment.’’. 

22 (d) IMPOSITION OF STATUTE OF LIMITATIONS ON

23 SEEKING REPAYMENT.—Such subsection is further 

24 amended by adding at the end the following new para25 graph: 

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1 ‘‘(5) The Secretary concerned may not deduct from 

2 the pay of a member of the uniformed services or other3 wise recover, seek to recover, or assist in the recovery from 

4 a member or former member any overpayment of pay or 

5 allowances made to the member through no fault of the 

6 member unless the Secretary notifies the member of the 

7 indebtedness before the end of the five-year period begin8 ning on the date on which the overpayment was made. 

9 If the notice is not provided before the end of such period, 

10 the Secretary concerned shall cancel the indebtedness of 

11 the member to the United States.’’. 

12 (e) EXPANDED DISCRETION REGARDING REMISSION

13 OR CANCELLATION OF INDEBTEDNESS.— 

14 (1) ARMY.—Section 4837(a) of title 10, United 

15 States Code, is amended by striking ‘‘, but only if 

16 the Secretary considers such action to be in the best 

17 interest of the United States.’’ and inserting ‘‘if the 

18 Secretary determines that the person— 

19 ‘‘(1) relies on social security benefits or dis20 ability compensation under title 38 (or a combina21 tion thereof) for more than half of the person’s an22 nual income; or 

23 ‘‘(2) would suffer an undue hardship in repay24 ing the indebtedness.’’. 

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1 (2) NAVAL SERVICE.—Section 6161(a) of such 

2 title is amended by striking ‘‘, but only if the Sec3 retary considers such action to be in the best inter4 est of the United States.’’ and inserting ‘‘if the Sec5 retary determines that the person— 

6 ‘‘(1) relies on social security benefits or dis7 ability compensation under title 38 (or a combina8 tion thereof) for more than half of the person’s an9 nual income; or 

10 ‘‘(2) would suffer an undue hardship in repay11 ing the indebtedness.’’. 

12 (3) AIR FORCE.—Section 9837(a) of such title 

13 is amended by striking ‘‘, but only if the Secretary 

14 considers such action to be in the best interest of the 

15 United States.’’ and inserting ‘‘if the Secretary de16 termines that the person— 

17 ‘‘(1) relies on social security benefits or dis18 ability compensation under title 38 (or a combina19 tion thereof) for more than half of the person’s an20 nual income; or 

21 ‘‘(2) would suffer an undue hardship in repay22 ing the indebtedness.’’. 

23 (f) EFFECTIVE DATES.— 

24 (1) REDUCED PAYMENT RATE.—The amend25 ment made by subsection (a) shall take effect on the 

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1 first day of the first month beginning on or after the 

2 date of the enactment of this Act and apply to de3 ductions made from the pay of members of the uni4 formed services for that month and subsequent 

5 months. 

6 (2) OTHER AMENDMENTS.—The other amend7 ments made by this section shall apply with respect 

8 to any indebtedness of a member of the uniformed 

9 services for the overpayment of pay or allowances 

10 made to the member through no fault of the mem11 ber, whether incurred before, on, or after the date 

12 of the enactment of this Act. 

Æ 

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