What occurs when an account closes with overpayment at separation?

When an account closes with an overpayment at separation, the responsibility for managing the overpayment falls to the Defense Finance and Accounting Service (DFAS) Indianapolis. This process ensures that any financial discrepancies related to overpayments are handled systematically and in accordance with military financial regulations.

DFAS has the protocols in place to review the account details, determine the appropriate actions necessary, and communicate with the service member regarding the overpayment. This involves assessing whether a repayment is necessary and establishing a process for recouping any funds owed.

Other options suggest various outcomes such as forgiveness of the overpayment or automatic refunds, which do not align with the military's financial policies that typically require accountability for all payments made to a service member. Such measures ensure that financial integrity is upheld within military accounting frameworks.