Pentagon halts effort to claw back soldiers’ bonuses

Amid a furor of criticism, the Pentagon announced Wednesday that it would suspend efforts to force thousands of California National Guard soldiers to pay back enlistment bonuses and other incentives that were improperly given during the wars in Iraq and Afghanistan.

“There is no more important responsibility for the Department of Defense than keeping faith with our people,” Secretary of Defense Ash Carter said in a statement Wednesday. “That means treating them fairly and equitably, honoring their service and sacrifice, and keeping our word.”

Nearly all of the soldiers took the bonuses in good faith and were unaware of the misspending until notices arrived in the mail years later. Some had to repay more than $20,000 and a few more than $40,000. Many had wages garnished and racked up penalties and other debt trying to pay back the bonuses.

A report on their hardships over the weekend provoked broad criticism from top lawmakers and veterans groups.

“It is unthinkable to me that the Department of Defense’s first reaction is to punish service members who fulfilled their end of the deal,” Brian Duffy, the national commander of the 1.7 million-member Veterans of Foreign Wars, said in a statement.

Carter said Wednesday that he had ordered his department “as soon as practicable” to temporarily cease all efforts to collect on the debts. The Pentagon plans to set up a finance team by January to review cases. The team would offer “a streamlined, centralized process that ensures the fair and equitable treatment of our service members and the rapid resolution of these cases,” Carter said.

“Ultimately, we will provide for a process that puts as little burden as possible on any soldier who received an improper payment through no fault of his or her own,” Carter added. “At the same time, it will respect our important obligation to the taxpayer.”

The National Guard initially said nearly 10,000 soldiers were affected, but the Pentagon said Wednesday that the number was closer to 2,000.

The botched bonuses stem from the 2000s, when the military was under pressure to meet recruiting goals. During that time, the California Guard sent troops through an assembly-line-style re-enlistment process at mass meetings, where bonuses were approved in minutes. The re-enlistments were overseen by Master Sgt. Toni L. Jaffe, who lavished t ro ops wit h bonuse s a nd forgiveness of student loans. She pleaded guilty in 2012 to approving more than $15 million in fraudulent claims.

Audits prompted by the criminal case turned up thousands of soldiers who had improperly received c ash incentives. Guard members began receiving collection notices in 2012. Some refused to pay. Some sued. Still others were pushed into financial distress by payment notices demanding more than $1,000 a month, and racked up late fees and interest.

In 2014, the National Guard asked Congress to pass a law forgiving some of the debt, but Congress balked at the cost.