LQA debt collections begin May 4

  • Published
  • By Capt. Reba Good
  • USAFE-AFAFRICA Public Affairs
RAMSTEIN AIR BASE, Germany --  The U.S. Air Forces in Europe and Air Force Africa vice commander hosted a town hall here April 11 to update civilian employees affected by the 2013 living quarters allowance audit.

"We will continue to stand by your side to assist you as much as possible," said Lt. Gen. Tom Jones, USAFE-AFAFRICA vice commander. "This is a very sensitive issue, and we are committed to getting to the best possible outcome."
Members from the USAFE-AFAFRICA personnel office and the Defense Finance and Accounting Service met with employees to give updates and provide information on several issues still affecting the employees, including impending debt collection.

"The one-year extension of LQA will end this month, and three USAFE-AFAFRICA employees have still not applied for a debt waiver," said Mr. Aaron Gillison, the director of DFAS Indianapolis. "While it is your choice to not pursue a waiver, we need to stress that if you do not submit a waiver before May 4, debt collections will begin. Additionally, you will no longer have the benefit of the one-year LQA extension."

Seven employees have requested a hearing with DFAS to question the LQA debt, so for these individuals, debt collections will not begin until a formal decision is rendered, said personnel officials.

"If the hearing results affirm the validity of the LQA debts, the employees will have fifteen days to apply for a debt waiver," said Gillison. "If they do not, debt collections will begin for those individuals."

According to DFAS officials, employees have three years from the date they were notified of erroneous LQA payments to file a waiver application.

However, if employees do not submit a waiver request before May 4 of this year, debt collections will immediately begin by extracting fifteen percent of their disposable pay on subsequent paychecks, unless they complete a Voluntary Repayment Agreement for alternate payment through their respective command channels and then DFAS, officials said.

"You can still apply for a waiver after May 3," said Gillison. "If you do, and your debt is waived in full, any payments that have been collected on the debt will be refunded to you."

Of the 71 employees affected by erroneous LQA payments, 68 have submitted waivers or hearing requests to relieve them of responsibility for the erroneous payments made to them.

The Defense Office of Hearing and Appeals, which is the approval authority for LQA debt waivers, has granted full waivers to 57 USAFE-AFAFRICA employees, while 4 are still pending, according to personnel officials.

"While we cannot guarantee that each employee's debt will be approved in full, we are pleased that DOHA has granted full waivers to each USAFE-AFAFRICA employee thus far," said Mr. Jeff Loomis, USAFE-AFAFRICA Civilian Programs branch chief.

Employees were also concerned whether they would be responsible for allowances they received associated to LQA, such as student education travel.

"At the last town hall, many of you questioned how the Office of the Under Secretary of Defense would treat associated allowances," said Loomis. "We are grateful that OUSD released a decision in February indicating there would be no audits and no debt collections of these associated allowances."

Personnel officials also emphasized that employees still have until June 1 to register in the enhanced priority placement program.

"With less than two months remaining for enrollment in the enhanced PPP, we want to make sure each employee wanting to be placed stateside receives maximum assistance," said Loomis.

Currently, 29 employees have been placed in management reassignments through Career Field Team assistance or independent job searches, while 11 employees have expressed interest in stateside employment.

Twenty-nine more employees are either undecided, will remain at their current employment, or have not elected to disclose their decision on placement.

LQA, a tax-free allowance, is intended to substantially cover the costs of rent and utilities for government civilian employees working overseas.

In 2013, the Department of Defense audited LQA payments in overseas locations and determined 71 civilian employees in USAFE-AFAFRICA were erroneously receiving LQA.

Employees area able to apply for a debt waiver in order to alleviate them from incurring debt on these erroneous payments.

The average LQA payment for USAFE-AFAFRICA employees is $35,000 annually.

For more information, please contact your local civilian personnel office.