1. Erroneous Payment of Living Quarters Allowance
Notification of Debt and Debt Waiver Process (APF)

2. Debt Notification Process
Once an employee is notified of erroneously receiving Living Quarters Allowance by the Department of the Army (via command personnel), the Department of Army will then notify the civilian payroll office.
The Defense Finance and Accounting Services (DFAS) office will issue an official notice of indebtedness (or debt letter) through the mail. To ensure the notice is sent to your current mailing address, follow slide 14 for instructions on verifying/updating your address in myPay.

3. Debt Notification Process
The notice of indebtedness received from DFAS will include the following:
Total amount owed.
Due process rights.
Waiver request procedures.
Repayment option information if you choose to begin repayment even though further debt collection is delayed.
Information on requesting a hearing to contest the validity or amount of the debt.
Click on Your Debt Letter for more information.

4. Options for Resolving the Debt
After receipt of a debt letter, employees may take the following options:
Request a waiver.
Set up a payment plan, if you chose, even though further debt collection will be delayed.
Request a hearing to contest the validity or amount of the debt.
For further information on setting up a payment plan and requesting a hearing, visit Overview of Your Options by clicking on the link.

5. Requesting a Waiver of Erroneous Payment of Allowances
If you request a debt waiver, collection of the debt will be delayed while awaiting a decision on your request.
While there is no authority to approve a blanket waiver, the Office of the Under Secretary of Defense and the SECARMY have determined it is in the best interest of the Department to support the request, so long as the employee was not aware of the fact that he/she was not entitled to LQA and there is no evidence of misrepresentation, fraud or deception to acquire LQA in the first place.

6. The Application Process
To begin the waiver process-access the Waiver/Remission of Indebtedness Application DD Form 2789 HERE.
Only page 1 of the waiver request DD form 2789 needs to be completed.
NOTE: It is important to stress that employees do not dispute the debt while completing the waiver package. Disputing the debt on the DD2789 will result in packages being rejected.

7. The Application Process
Complete the DD Form 2789 as identified on this slide OR by following the Guide to Requesting a Debt Waiver located HERE .
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8. Required Documentation
All waiver requests also require the following:
Copies of SF-50s, Notification of Personnel Action, for the full time you were overpaid.
Copies of SF-50s can be obtained through My Biz or by accessing your eOPF.

9. Required Documentation
Copies of each LES for the three pay periods prior to the overpayment(s) through and including three pay periods after the overpayment(s).
If you do not have all required LESs available in myPay, DFAS can provide the missing pay records for you.
Click HERE to download the “LQA LES Request Letter” template to create a letter, sign it and submit it with your waiver request.
*NOTE-by including this letter, DFAS will add your requested pay records to your request/application package. Also, make sure you check “YES” in block 17a on your DD form 2789.)

10. Required Documentation
Photocopies of all supporting documentation for the indebtedness. (This is in addition to the Leave and Earnings Statements.) Required supporting documentation varies by the type of debt you have.
For Foreign Entitlement Debt: Foreign Allowances Application, Grant and Report, Standard Form 1190 (SF-1190) and Military Orders, if applicable.
*NOTE: Your SF-1190 must be signed by an official.

11. Required Documentation
January 3rd Memo, Subject: Erroneous Payment of Living Quarters Allowance to Certain Employees from Office of the Under Secretary of Defense.
Notification Regarding Eligibility of Living Quarters Allowance (LQA) and One Year Extension of Living Quarters Allowance (LQA) (if applicable).
Command Recommendation for Waiver Approval. Acceptable in Memo format OR completion of section 20-22b on DD form 2789.
(SECARMY Recommendation Memo will go directly to DFAS)

12. Additional Supporting Documentation
The following documentation is highly recommended by DFAS to include in the waiver package, if available:
Copy of tentative or firm Job offer from the Civilian Personnel Advisory Center (CPAC) indicating LQA eligibility.
traffic or correspondence from the CPAC which includes reference to, discussion or mention of, approval or granting of LQA eligibility.
Copies of any documentation you refer to in your waiver application and/or DD form 2789.

13. Additional Information
If you are unable to provide supporting documentation, be sure to include specifics on who, what, where, when, why for any LQA-related verbal conversations.
Be sure to sign each piece of supporting documentation and submit as part of the waiver package.
To Submit Your WAIVER Application Fax your waiver request and the required documentation to or DSN
If your waiver package arrives at the payroll office with missing documentation, it will be returned to you with a letter requesting the needed documents. You must re-submit your ENTIRE waiver package with these documents in order for your waiver application to be considered.
You must file a waiver application within 3 years after the erroneous payment was discovered. DFAS strongly encourages indebted individuals to request a debt waiver as soon as possible. During the next 6 months, DFAS will be making extra efforts to expedite waiver requests.

14. Verifying/Changing your Address
To ensure DFAS can contact indebted employees, verify your correct address is on file with DFAS. To do this, follow the steps below:
Access myPay HERE and enter your Login ID and Password or, click on SmartCard Login.
A new screen will populate, providing a list of options. Click on Correspondence Address.
Verify the address on the screen is correct. Make any necessary changes and click ‘SAVE’.

15. Questions regarding debt waiver packages should be directed to your servicing Civilian Personnel Advisory Center

16. References/Links MyPay DFAS Erroneous LQA Website:
Understanding your Debt Letter:
Overview of your Options:
DD Form 2789:
DFAS Debt Waiver Guide
DFAS LES Request Template
MyPay