Sec. 642. Statute of limitations on Department of Defense recovery of amounts owed to the United States by members of the uniformed services, including retired and former members
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Section 1007(c)(3) of title 37, United States Code, is amended by adding at the end the following new subparagraphs: In accordance with clause (ii), if the indebtedness of a member of the uniformed services to the United States occurs, through no fault of the member, as a result of the overpayment of pay or allowances to the member or upon the settlement of the member’s accounts, the Secretary concerned may not recover the indebtedness from the member, including a retired or former member, using deductions from the pay of the member, deductions from retired or separation pay, or any other collection method unless recovery of the indebtedness commences before the end of the 10-year period beginning on the date on which the indebtedness was incurred.
Clause
(i)applies with respect to cases of indebtedness that incur on or after October 1, 2027. Not later than January 1 of each of years 2017 through 2027, the Director of the Defense Finance and Accounting Service shall review all cases occurring during the 10-year period prior to the date of the review of indebtedness of a member of the uniformed services, including a retired or former member, to the United States in which— the recovery of the indebtedness commenced after the end of the 10-year period beginning on the date on which the indebtedness was incurred; or the Director did not otherwise notify the member of such indebtedness during such 10-year period. The Director shall submit to the congressional defense committees and the Committees on Veterans’ Affairs of the House of Representatives and the Senate each review conducted under clause (i), including the amounts owed to the United States by the members included in such review. .