Full Replacement Value
&
Claims
J.D. REESE
Chief, Air Force Claims Service Center
Air Force Claims and Tort Litigation
Dayton, OH
DoD “Personnel Claims”
What is Our Authority?
• Authority to Pay Claims
– Military Personnel and Civilian Employees’ Claims Act:
31 USC 3721 (aka PCA)
– Each Service’s Claims Directives
– Service Agreements w/ Industry (e.g., ALDG)
• Authority to Recover from TSPs
– Fed’l Claims Collection Act: 31 USC 3711-3720E
– Each Service’s Claims Directive
– Service Agreements w/ Industry (50/50 refund
requests)
Personnel Claims
Claims Service “At a Glance”
• Different Business Models for Payments and
Recovery
– Decentralized: Army payment, semi-centralized
recovery
– Regional: Navy/MC, regionalized payment and
centralized recovery
– Centralized: AF payment and recovery operations
centralized in Dayton, OH
Air Force Personnel Claims Structure
• Air Force Claims and Tort Litigation Division
(AFLOA/JACC)
– Under command of AFLOA/CC
– Six Claims Branches: Aviation/Admiralty, Medical, Foreign
Claims, General Torts, Medical Cost Recovery, Claims
Service Center
• Air Force Claims Service Center (AFLOA/JACC-CSC)
– Dayton, OH
– Opened Mar 07 w/ 108 personnel
• 81 active duty
• 27 civilians
– Reorganized to 31 civilians due to FRV
Air Force Claims
Points of Contact
• Air Force Claims Service Center
– 1050 Forrer Blvd, Dayton OH 45420
– DSN 986-8044 or (937) 656-8044
– 1-877-754-1212 (toll free)
– Email: AFCSC.JA@wpafb.af.mil
AFCSC Operations
• Online claims submittal:
– https://claims.jag.af.mil
• Email to organizational box:
– We’ll manually input into our system
• Fax to AFCSC
– We’ll manually input into our system
• USPS (Uncle Sam’s Postal Service)
– We’ll manually input into our system
AFCSC Stats
Pre & Post FRV
• FY10 YTD, the CSC settled 2,319 claims in avg of 4.19 days with a
96% asserted v. collected (AVC) rate for CRs
• FY09, the CSC settled 3,760 claims in avg of 3.85 days with a 92%
asserted v. collected (AVC) rate for CRs
• FY08, the CSC settled 9,685 claims in avg of 3.75 days, 95% AVC
• FY07, the CSC settled 8,397 claims in avg of 10 days, 95% AVC
• Historical rates (prior to CSC standup):
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FY06 – 16,224 claims, 90% w/in 8.3 days, 86.1% AVC
FY05 – 18,377 claims, 90% w/in 5.1 days, 84.7% AVC
FY04 – 18,846 claims, 90% w/in 5.1 days, 84.5% AVC
FY03 – 20,051 claims, 90% w/in 4.7 days, 85.3% AVC
FY02 – 22,235 claims, 90% w/in 4.7 days, 83.6% AVC
FY01 – 24,912 claims, 90% w/in 5.3 days, 82% AVC
Living in an FRV/DP3-World
• Massive shift in focus as claimants must settle
directly with TSPs under DP3
– 90%-95% of HHG claims will not be settled directly
by DoD claims offices
– Caring for Airmen will continue via indirect
methods (e.g., call center advising on DP3
system—CSC answered avg of 57 calls per day 1
Jan 09-present)
Everything you wanted to know about
FRV (but were afraid to ask!)
• Began Oct/Nov 2007
• Members encouraged to file directly with TSPs w/ in 9
months of delivery
• Can transfer to service if not satisfied w/ TSP’s offer
• Can file directly w/ service, but must sign waiver—
depreciated value only!
• Customer satisfaction? We’re not sure!
– Haven’t heard from anyone who really likes it
– Hear fairly frequently from those who really don’t
– A large majority we don’t hear from at all
• Either they’re satisfied, or
• They’re tired of getting beat into the ground and just give up!
FRV Continued…
• Carrier pays Full Replacement Value
• Carrier liability is $4 per lb times net shipment
wt, but not more than $50K
• Max liability is $5K even if shipment wt less
than 1250 lbs
• Carrier inspects, responsible to set up repairs
• Can replace with like item
FRV Brave New World
• Experience with FRV claims reveals “gap” in
ability of claimants to receive FRV.
• Claimants cannot get FRV when TSP not liable
for loss and damage
• FRV paid to members in limited situations:
– Acts of God
– Losses at sea
– Multiple TSP handlers
• FRV “Gap” legislation enacted 7 Jan 11
FRV Brave New World Cont…
• Numbers down very significantly
• Does this mean “business” is less for DoD Claims
offices and personnel?
• Increasing assistance to claimants in dealing with
TSPs and in working DPS issues
• Mediation
• Offices now documenting effort to reflect
changing personnel utilization – to quantify work
so to reflect different quality of effort
• Always looking at adjusting system
Offsets
• Service claims organizations collect from TSPs not only
by negotiation/check deposits, but also offsets
• HHG loss/damage claims arising out of DPMs also can
lead to offsets
• No offset capability for military claims services now
• $250k backlog; other Claims Services have same issue
•
•
•
•
Powertrack issues with HHG claims offset function
E-bill in Lieu of Offsets proposal
Status of EILO????
Upshot: unsatisfactory for Claims Services
The Future…
•
•
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Direct settlement has changed the landscape
No going back
Offset issue must be solved!
Claims services adjusting to the different work
Clear skies ahead??