Integrity - Service - Innovation 2011 ERICSA Annual Conference Neal W. Nelson Assistant General Counsel Director, Garnishment Operations Defense Finance and Accounting Service May, 2011
Dec 24, 2015
Integrity - Service - Innovation
2011 ERICSA Annual Conference
Neal W. NelsonAssistant General Counsel
Director, Garnishment OperationsDefense Finance and Accounting Service
May, 2011
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DFAS – Garnishment Operations
ResponsibilitiesWorkloadSystemsNew InitiativesChild Support Locate and Enforcement IssuesServicemembers’ Civil Relief Act Various Garnishment Issues
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Responsibilities
All Child Support/Alimony Garnishments for All Civilian Employees and Military members Paid by DFAS – DoD, DOE, DHHS, EPA, BBG, DVA
USFSPA Applications for Court-Ordered Divisions of Military Retired Pay
Commercial Garnishments – Civilian Employees
Military Commercial Debt Involuntary Allotments
Chapter 13 and Chapter 7 Personal Bankruptcies
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Staff Composition
Assistant General Counsel, Director– Neal W. Nelson
Deputy Assistant General Counsel, Deputy Director– Scott Lafferty
Four Team Attorneys
Four Multi-disciplined Teams – 52 Employees Four Supervisory Paralegals Eleven/Twelve Paralegals Per Team
Five Support Staff: Executive Assistant Systems Analyst (IGS), State Child Support Liaison Systems Analyst (IGARN), Telework Coordinator Legal Assistant Secretary
Document Control Center – 11 Employees Supervisory Mail Equipment Operator Nine Mail Equipment Operators
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Workload
Court Ordered Actions Processed:
FY 2005: 341,281
FY 2006: 324,281
FY 2007: 342,734
FY 2008: 353,807
FY 2009: 409,133 15.6% Increase
FY 2010 410,940
FY 2011 196,957 - FYTD
Average Monthly Pay Out: $130 -140 Million
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Workload by Case Type
Alimony/Child Support: 67.88%
USFSPA: 12.26%
Commercial Debt: 16.16%
Military: 2.96%
Civilian: 13.20%
Bankruptcy: 3.69%
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Garnishment Systems
• Payroll Locator File System (PLFS)
PLFS contains DoD Civilians, Military Active Duty, Reserves and Retirees – Also contains information for employees of other agencies that DFAS pays: Currently DOE, DHHS, EPA, BBG and DVA Employees
Utilized throughout DFAS
• Electronic Document Management System (IGARN)
Workflow Management & Imaging System All Documents Received by Mail are Imaged Interfaces with PLFS & IGS Fax Gateway – Electronically routes Documents to IGARN
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Garnishment Systems (Continued)
• Integrated Garnishment System (IGS)Facilitates automated processing of garnishments
• Paralegal is solely responsible for implementing the garnishment
• Completely eliminates hand-offs and re-entry of data
• Eliminates errors and re-work Assists paralegals with the validation of legal documents through legal
review functionality Automates the creation of a variety of notification letters The single interface between IGARN, PLFS and Payroll Systems
All DFAS pay systems except DJMS-RC are interfaced Interfaces provide status updates for both the affected employee and
the garnishment transaction – IGS creates notifications based on feedback from the pay system
IGS utilizes Smart Docs to send electronic notification of garnishments Decreases receipt time Reduces costs: postage, paper, man hours
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Electronic Commerce Initiatives – Kids 1st
DFAS Kids 1st Program Child Support Enforcement Agencies Send Orders Directly to
DFAS over secure network - First of its kind in the country! Kids 1st file layout served as the model for the electronic Income
Withholding Order (eIWO) program – Developed in coordination with DFAS, Federal Office of Child Support Enforcement (OCSE) and the states
We currently have 30 states using EC to send child support orders to DFAS
FY 09 - eIWO Production up 40% over FY 08FY 10 Production – Over 100,000 electronic orders
received
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Kids 1st - eIWO
Five states use the Web Based process; Georgia - Hawaii – New Mexico – Utah - Wisconsin
Two states use the Batch Process; South Dakota – Iowa
Twenty-three states in Production with eIWO; Arizona - California – Colorado – Idaho - Illinois - Indiana –
Massachusetts – Michigan – Missouri -Nebraska – New Jersey - New York - North Carolina – North Dakota – Ohio - Oklahoma – Oregon – Pennsylvania – Texas – Virginia – Washington – Washington D.C. - West Virginia
Four states In Development/Testing – Projected Implementation – FY ‘11 Mississippi – Hawaii (Conversion)
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Electronic Bankruptcy Court Interface
eBCI Implemented February 2010
We are now receiving bankruptcy documents electronically by batch file
FY 2011 – 973 documents receivedBenefits –
Decreases time to receive bankruptcy documents Eliminates need to process hard copy documents received by
mail Eliminates manual workload to look up missing SSN’s Decreases the probability of violation of the automatic stay
by giving us the opportunity to stop garnishments & debt collections
Automates the re-routing process of “no-match SSN” documents to Debt and Claims Management
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DoD Policy
Parents
Are To Be
Fiscally Responsible
For Their Children
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Service Regulations
Army - AR 608-99
Air Force - AFI 36-2906
Navy - SECNAVINST 7431.1
Marine Corps - Marine Corps Order P5800.16
(LEGADMIN) Chapter 15
Coast Guard - PERSMAN Chapter 8M
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Service of Process
Jurisdictional Issue
Personal Service
Service Overseashttp://www.travel.state.gov/law/info/judicial/judicial_680.html
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Resources
• ‘A Caseworker’s Guide to Support Enforcement and Military Personnel’
http://www.acf.hhs.gov/programs/cse/fct/militaryguide2000.htm• (Click on virtual library of training materials)
• ‘Working with the Military on Child Support Matters: Trainer Guide’
http://www.acf.hhs.gov/programs/cse/pubs/training/working_with_military
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Locate Issues and VOE’S
• The information is contained in the Quarterly Wage & New Hire Reports ─ these include all pays the member received for the quarter.
• Ask State Child Support Office for DoD External Locate Requests ─ sent from the state to DMDC
Active duty/unit duty address Reserves-unit/duty address Retired-home address Contact your state technical support liaison listed on ACF website under new hire contacts
• Use of subpoena is cumbersome for states & puts heavy burden on DFAS.
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Facilitating Service of Process
Army:Office of the Judge Advocate General
Attn: DAJA-LA
2200 Army Pentagon
Washington, D.C. 20310
(703) 588-6708
Navy:Office of the Judge Advocate General (Code 16)
1322 Patterson Avenue, SE
Suite 3000
Washington Navy Yard, D.C. 20374-5066
(202) 685-4637
Air Force:
AFLSA/JACA1420 Air Force PentagonWashington, D.C. 20330-1420(703) 697-0413
Army Active Duty:Army Worldwide Locator
8899 E. 56th Street
Indianapolis, IN 46249-5301
1-866-771-6357
Permanently disabled!
Army Reserve:Commander
ARPERCEN
9700 Page Blvd
St. Louis, MO 63132
(314) 538-3777
Navy:Navy Personnel Command
(PERS 312)
5720 Integrity Drive
Millington, TN 38055-3120
(901) 874-3388
fax (901) 874-2000
Air Force:HQ/AFPC/DPDXIDL
550 C. St. West, Suite 50
Randolph AFB, TX 78150-4752
(210) 565-2660
(210) 565-1675
Military Locator
Military Locator (Cont’d)
Marine Corps:HQMC – MMSB -17
2008 Elliot Road, Room 203
Quantico, VA 22134-5030
(703) 784-3941
www.mmsb.usmc.mil
Coast Guard:US Coast Guard
Personnel Command
2100 2nd St. SW
Washington, DC 20593
(202) 493-1200
fax (202) 267-4985
Facilitating Service of Process
Army:Office of the Judge Advocate GeneralAttn: DAJA-LA2200 Army PentagonWashington, D.C. 20310(703) 588-6708
Navy:Office of the Judge Advocate General (Code 16)1322 Patterson Avenue, SESuite 3000Washington Navy Yard, D.C. 20374-5066(202) 685-4637
Air Force:AFLSA/JACA1420 Air Force PentagonWashington, D.C. 20330-1420(703) 697-0413
Facilitating Service of Process
Marine Corps:Paralegal SpecialistHeadquarters, US Marine Corps (JAR)2 Navy AnnexQuantico, VA 22134(703) 614-3880
Coast Guard:United States Coast Guard
G-PC (USCG)
Room 4100E, CGHQ
Department of Transportation
Washington, D.C. 20590
(202) 267-2799
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Voluntary Acknowledgement of Paternity
Previous DoD policy - Out of wedlock children were dependents for health care benefits Judicial determination of paternity Dependent upon member for more than 50 percent of his or her
support
January 28, 2008 - New policy expands and creates a third category: a voluntary acknowledgement of paternity Policy is to facilitate entitlements to military benefits provided to
children of Uniformed Service Members
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Servicemembers’ Civil Relief Act (SCRA)
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Time for a Change
“Congress has long recognized that the men
and women of our military services should have civil legal protections so they can "devote their entire energy to the defense needs of the Nation." With hundreds of thousands of servicemembers fighting in the war on terrorism and the war in Iraq, many of them mobilized from the reserve components, the Committee believes the Soldiers' and Sailors' Civil Relief Act (SSCRA) should be restated and strengthened to ensure that its protections meet their needs in the 21st century.”
House Committee on Veterans Affairs Report 108 H. Rpt. 81
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Servicemembers’ Civil Relief Act (SCRA)
Purposes of the SCRA:
(1) to provide for, strengthen, and expedite the national defense through protection extended by this Act to service members of the United States to enable such persons to devote their entire energy to the defense needs of the Nation; and
(2) to provide for the temporary suspension of judicial and administrative proceedings and transactions that may adversely affect the civil rights of service members during their military service.
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ORGANIZATION
Found at 50 USC App. §§ 501-596 (cites herein are to 50 U.S.C. App. § ___)
Title I - General ProvisionsTitle II - General Relief
Default judgments and stays --§§ 521, 522, 524, 525 Fines & Penalties in contracts - § 523 Statutes of Limitation --§ 526 Maximum rate of interest - § 527
Title III (§§ 531-538) Major substantive protections against evictions, termination of
installment contracts, foreclosure on mortgages, and termination of leases by lessees, protection to dependents
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ORGANIZATION (cont.)
Title IV - Life Insurance (§§ 541-549)
Title V - Taxes and Public Lands § 571 - Residence for tax purposes
Title VI - Administrative Remedies
Title VII - Further Relief
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New Improved SCRA
On 19 December 2003, President Bush signed the SCRA, a complete revision of the SSCRA.
The SCRA was written to: Clarify the language of the SSCRA Incorporate and codify many years of judicial interpretation of the
SSCRA Update the SSCRA to reflect developments in American life since
1940
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Scope of the SCRA
Who is Covered: Active Military
Army, Navy, Air Force, Marine Corps, Coast Guard Reservists called to active duty National Guard in Title 10 status or Title 32 status if called to
active duty for more than 30 days for purposes of responding to a national emergency declared by the President and supported by federal funds
Not applicable to: Retirees Civilian Employees DoD Contractors Dependents*
*Certain protections may apply to contractual obligations of dependents (e.g., leases terminations)
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Proceedings/Orders Covered by SCRA
Judicial Proceedings
Administrative proceedings (as of Dec. 2003)
Entry of interim orders (as of Dec. 2004)
Entry of final orders
The SCRA has very limited effect on the enforcement of withholding orders (garnishments)
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Automatic Stays
As a general rule, the court must grant an initial stay of proceeding for no less than 90 days if properly requested by the Service member (plaintiff or defendant).
Rationale:
With delayed mail delivery and diminished opportunities to consult with legal counsel so common to military service, a period of time is needed to allow an adequate opportunity for servicemembers to consult with military or civilian counsel, and to respond to the courts.
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Member Requests for Stay of Proceedings
Two-fold request: Communication from the service member:
Setting forth facts in which current military duty requirements materially affect his/her ability to appear
Stating a date when the Service member will be available to appear
Letter from the Service member’s commanding officer affirming the following: Service member's military duty prevents an appearance Military leave is not authorized for the Service member at the
time of the letter If this letter contains the Service member’s available court dates,
the court may deem the letter sufficient to pass the two-fold test.
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Effect of Request for Stay on Member’s Rights
Application for a stay under §522 does not constitute an appearance for jurisdictional purposes and does not constitute a waiver of any substantive or procedural defense (including a defense relating to lack of personal jurisdiction).
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DOD Instruction 1327.6 - Leave & Liberty
Mandates that service member’s commander grant leave for paternity and support hearings.
Exceptions: Service member is deployed in a war Exigencies of military service require denial of such a request
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Subsequent Requests for Stay
Court has the discretion to grant or deny the stay
If the court denies the stay, it must appoint an attorney to represent the service member
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SCRA and Default Judgments
When a defendant does not appear in court or respond to court summons, the SCRA requires a sworn affidavit by the plaintiff stating either: Whether or not the defendant is in military service and showing necessary
facts to support the affidavit The plaintiff is unable to determine whether or not the defendant is in
military service.
Consequences of failing to file an affidavit A non-service member defendant has no remedy. If the defendant is a service member, then the order can be voided and is
subject to attack upon a showing that the service member: is materially affected by reason of military service in making a
defense to the action has a meritorious or legal defense to all or part of the action.
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SCRA and Default Judgments
If defendant is not in the military, the plaintiff may proceed to final judgment.
If defendant is in the military, the court is required to appoint an attorney for the defendant.
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Appointed Counsel
When defendant is a service member, the court must appoint an attorney prior to granting a default judgment
Duties of appointed attorney protects Service member’s rights determines status and seeks stay
Can’t waive rights or bind service member
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SCRA and Default Judgments
SCRA default guidance applies to all of the following: Final Judgments Interim Orders (New) Court Orders Administrative Support Orders but… not to administrative
enforcement remedies, such as liens, wage withholdings, etc.
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Certificate of Military Status
Defense Manpower Data Center (DMDC)Provide Certificate as to military service on the
Internet – acceptable documentation to show whether he/she is in the military
https://www.dmdc.osd.mil/scra/owa/scra.home
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DMDC Certificate of Military Status
If the Service member is on active duty, this is what you’ll see:
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DMDC Certificate of Non-Military Status
If the Service member is NOT on active duty, this is what you’ll see:
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Reopening a Default Judgment
Service member can request court to re-open judgment any time during Service member’s period of military service
Service member or their attorney can also file an application to re-open within 90 days of the end of military service
6% Rate Cap
SCRA rule on interestNew law clarifies that interest above 6% must be
forgiven (some creditors were deferring interest)Applies to child/spousal support arrearagesApplies to only those arrearages incurred prior to
induction to active dutyMaterial affect analysis appliesUnder SCRA, Service member must request the cap
and produce orders
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FEIN for Military & Civilian Employees
Army (Active Duty) 359990000 Army (Reserve Duty) 351819323 Air Force (Active Duty) 849990000 Air Force (Reserve Duty) 849980000 Navy (Active Duty) 349990000 Navy (Reserve Duty) 349980000 Marine Corp (Active & Reserve) 539990000 Retired Pay 340727612 DoD Civilian Employees 311575142 DoE Civilian Employees 530197006 HHS Civilian Employees 530196960 EPA Civilian Employees 520852695 BBG Civilian Employees 522260085 Department of Veterans Affairs 123456789
•DoD Pay Tableshttp://www.dfas.mil/militarypay/militarypaytables.html
•Basic Allowance for Housing (BAH)http://perdiem.hqda.pentagon.mil/perdiem/(Contains BAH tables & zip code feature to search)
•Leave and Earnings Statement (LES)http://www.dfas.mil/militarypay/newinformation.html
Military Pay
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• States will establish support amount in accordance with their State’s guidelines:
Most States use “all income” to compute the amountIncludes both taxable and non-taxable incomeIncludes pay and allowances
• Military Base Pay by Rank and Time in Service
• Special Pays
• Allowances: BAH (Basic Allowance for Housing) - Amount increases with RankBAS (Basic Allowance for Subsistence)
Figuring Support Obligations
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IT DEPENDS! • The type of garnishment action determines how Disposable Pay is calculated – Generally:
Gross Pay Minus Authorized Deductions
• For Child Support Cases:
Includes All “Pay Items” – Base Pay and Special PaysBonuses Included – However…
Excludes – Allowances like BAH, BAS, Taxes – But… “Normal” retirement deductions – TSP
•See 5 C.F.R. §581
What is Disposable Pay?
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• The quarterly wage report provided to NDNH includes all income received by a military person.
• Special Skills Pays Flight pay Hazardous duty pay Career Sea pay Submarine duty pay Jump pay Many others
• Bonuses Lump-sum (usually for Re-enlisting)
• A detailed list of those pays can be found in the DFAS Quick Guide. (See DFAS web site under child support agencies’ information).
Military Pay
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Pay Office Addresses
• Obtain Service Members’ Payroll Information from the Appropriate Military Finance Center
Air Force Active Duty, Air Force Reserves & National Guard
DFAS IndianapolisAttn: DFAS IN-GA8899 East 56th StreetIndianapolis, IN 46249
Army Active Duty, Army Reserves & Army National Guard
DFAS IndianapolisAttn: DFAS IN-FJEF8899 East 56th StreetIndianapolis, IN 46249-0865
Navy Active Duty, Navy Reserves DFAS Cleveland
Attn: DFAS CL-GAF1240 E. 9th StreetCleveland, OH 44199
Marine Corps Active DutyDFAS ClevelandAttn: DFAS-CL -FCRAF1240 E. 9th StreetCleveland, OH 44199
Marine Corps Reserve DutyDFAS ClevelandAttn: DFAS-CL-FPPR1240 East 9th StreetCleveland, OH 44199
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Legal Authority
The laws and regulations we use:
Child Support/Alimony Statutory Involuntary Allotments - 42 USC 665, 32 CFR 54
Garnishments - 42 USC 659, 5 CFR 581
Commercial Debt - Civilian/Military Civilian - 5 USC 5520a, 5 CFR 582
Military - 5 USC 5520a, 32 CFR 112, 113
Uniformed Services Former Spouses’ Protection Act 10 USC 1408, DoDFMR Vol 7B, Chap 29
Consumer Credit Protection Act - 15 USC 1673
Servicemembers’ Civil Relief Act - 50 USC App. 501 Et seq.
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Child Support
Use Income Withholding Orders (IWO) under 42 U.S.C. §659 or statutory allotment under 42 U.S.C. §665
IWO quicker to Implement
IWO can also be sent electronically through Kids 1st – eIWO
Allocation - When we receive a second or subsequent order and the member’s disposable pay is insufficient to pay all ordered amounts, we must allocate payments between the orders.
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Send garnishment orders to:
DFAS-HGA-CLP O Box 998002
Cleveland, OH 44199-8002
Customer Service: 1-888-332-7411Fax Gateway: 1-877-622-5930Website: http://www.dfas.mil/
(click on the Garnishment link under the Quick Links Section)
Contact Information
Allows Applicant to Apply for Payment of:
Division of Retired Pay as Property Current Child Support Child Support Arrears Current Alimony
Maximum Payment: 50% of Disposable Pay If Combined with Garnishment Order - 65% Maximum
Uniformed Services Former Spouses’ Protection Act (USFSPA)
Helpful Website Links
DFAS
Pay Tables http://www.dfas.mil/militarypay/2006militarypaytables/2007_Web_Pay_Table.pdfExplanation of LES http://www.dfas.mil/militarypay/militaryemploymentverification.htmlBAH Calculator https://secureapp2.hqda.pentagon.mil/perdiem/bah.htmlMy Pay https://mypay.dfas.mil/mypay.aspxCombat Zone - IRS Impact http://www.irs.gov/newsroom/article/0,,id=101262,00.htmlCombat Zones around the world http://www.irs.gov/newsroom/article/0,,id=108331,00.htmlRAPIDS Locator http://www.dmdc.osd.mil/rsl/owa/homeMAILUSPS http://www.usps.comDomestic Manual http://pe.usps.com/text/dmm300dmm300_landing.htmInternational Mail Manual http://pe.usps.com/text/imm/welcome.htmMilitary Mail Address APO/FPO https://tops.ppcigweb.sddc.army.mil/ppcig/home/appendicesPostOffices.jspMilitary Postal Service Agency http://hqdainet.army.mil/mpsa/index.htmLOCATEMilitary Installation Guide http://hqdainet.army.mil/mpsa/index.htmFind a buddy http://community.military.com/buddy-finder/Together we served http://www.togetherweserved.comNavy Ship Addresses http://www.navy.mil/navydata/ships/lists/ship-fpo.aspMarine Unit Locations http://www.usmc.mil/marinelink/websites.nsf/unitslocationArmy Installations http://www.imcom.army.mil/site/imcom/default.aspSCRA https://www.dmdc.osd.mil/scra/owa/homeHague ConventionService of Process Convention http://www.hcch.net/index_en.php?act=text.display&tid=44Evidence Convention http://www.hcch.net/index_en.php?act=conventions.text&cid=82US State Department-service of pro http://travel.state.gov/law/info/judicial/judicial_680.htmlUS State Department-child support http://travel.state.gov/law/info/info_608.html#states
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Organization: Garnishment – Notable Awards
1997 Hammer Award from Vice President Al Gore1999 ASMC Team Achievement Award for Meritorious
Performance in Electronic Data Management2000 Valued Partner Award from the Federal Office of
Child Support Enforcement Commissioner2001 DoD Electronic Commerce Pioneer Finalist Award
from the DoD Joint Electronic Commerce Program
Office2001 Employer of the Year in Recognition of Helping
Children through the Kids 1st Program from the
State of Oklahoma
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Garnishment Notable Awards, (Cont’d)
2004 DoD Applied Innovation Medallion Award for the
Interface of IGS with MyPay2004 Eastern Regional Interstate Child Support
Association Recognition Award to Garnishment
Operations for recognition of its efforts in electronic
child support initiatives2004 Administration for Children & Families Office of
Child Support Enforcement Commissioners Award
for Achievement Beyond the Call of Duty2006 National Child Support Enforcement Association
Award for the Outstanding Employer of the Year
(Letter of Recognition from DoD Comptroller)
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Questions?