Navy OKs E-payment of Death Benefit

A little more than two months after a grieving father was mistakenly jailed for trying to deposit his Navy death benefit check, the service has begun offering electronic funds transfer to make it easier for families to receive money after losing a Sailor.

Capt. Jerry Logan of the Navy Personnel Command implemented the new policy Monday by signing a memo between the command, which handles Navy casualties, and the Defense Finance and Accounting Service, which processes military checks and payments.

Effective immediately, families who lose a Navy service member can receive their $100,000 death gratuity benefits electronically, said Lt. Karen Eifert, a Pentagon spokeswoman.

"This is an improved process we've been working to put in place to help families during a time of great grief, and we're glad to be able to implement this positive change," Logan said through Eifert.

Before this policy, the benefits only were issued with a paper check.

The Navy joins the Army, Marine Corps and Air Force in offering death gratuity benefits electronically. Families will have a choice between receiving electronic funds or a paper check within 24 hours of the death notification. The Navy recommends the former "so that we don't have the confusion that we've had in the past," Eifert said.

Problems with the U.S. Treasury checks first came to the Navy's attention on May 30 when John Mayberry was jailed on suspicion of fraud while trying to deposit his death gratuity check in Harlingen, Texas. A bank there was unable to verify the check because of a delay in the Treasury's reporting database. Mayberry's son, Seaman Daniel Mayberry, who was stationed on the Little Creek-based dock landing ship Carter Hall, died May 27 after a car crash in Virginia Beach.

About three weeks later, another grieving family ran into problems.

Steven and Joy Retmier learned on June 18 that their son, Hospitalman Marc Retmier, had been killed during a rocket attack in Afghanistan. Two days later, they took their two $50,000 checks to Downey Savings in their hometown of Hemet, Calif. The bank's manager told them the funds could not be released for more than a week to allow for verification, said their lawyer, celebrity attorney Gloria Allred.

Allred filed a complaint July 30 with the Office of Thrift Supervision on the Retmiers' behalf. It seeks a full investigation into the bank's actions, creation of a hot line for verifying death gratuity checks and a revision of U.S. banking policy to require banks to immediately honor such checks, Allred said.

"I don't think a parent should have to be stressing for money when their main focus is losing their child to a war," Joy Retmier said. "I was stunned. I was in shock just two days prior finding out my son was killed, and now this."

Downey Savings tried to verify the check but was unable to, said spokeswoman Elizabeth Stover. The bank regrets "any misunderstanding this situation may have caused" but was following policies designed to prevent check fraud, according to a statement.

Though implementing electronic payments is a "tremendous victory" for Navy families, Allred said, policies still need to be revised for families who choose paper checks or do not have bank accounts to receive electronic funds.

The Office of Thrift Supervision is investigating the Retmiers' complaint, said spokesman William Ruberry.

Both Mayberry and the Retmiers were able to eventually deposit their checks. Electronic transfers should prevent problems in the future and allow funds to clear within three days.

"I think that's wonderful because a family shouldn't have to be told to wait several weeks," Joy Retmier said. "I don't want any other parents to go through the hassle that we went through when all I should've been focused on was my son."