Finances and your security clearance

SHAW AIR FORCE BASE, S.C. -- For many of us working on Shaw AFB, maintaining a security clearance is essential for conducting our daily jobs. There are 13 categories the Department of Defense Central Adjudication Facility reviews when granting security clearance eligibility. One of the most common areas we see employees (military and civilian) having difficulty with is their personal finances.

There are several obstacles that could cause a person to experience a financial strain or hardship at some point in their career. Loss or change in financial income by family members, inability to sell house or property for PCS, bankruptcy, or court judgments are just a few examples that can impact financial stability.

Each individual's financial circumstances are unique, so no one course of action will suit everyone's particular needs. In some cases, the conditions that created the situation may be largely beyond the person's control, but you need to take action to demonstrate you're acting responsibly.

If for some reason you experience financial difficulties, here are some actions you should take:

· Work with creditors to maintain debt in a responsible manner;

· Keep documentation of your financial situation and communicate with creditors;

· Keep your local security office (20 FW/IP, SSO, or other personnel security officer) informed if you are experiencing financial problems;

· Seek financial counseling services or use Employee Assistance Program if necessary.

Below are some frequently asked questions you may find helpful.

Q. If experiencing a financial hardship, how will the DOD adjudicators assess my clearance eligibility?

A: The federal adjudicative guidelines for determining eligibility for access to classified information specify that the adjudicative process is the careful weighing of a number of variables known as the whole person concept. Mitigating factors include: the conditions that resulted in the concern were largely beyond your control and if you acted responsibly under the circumstances.

Q. The federal adjudicative guidelines reference an individual acting responsibly when faced with financial problems. If I'm experiencing a financial hardship, what actions should I take to demonstrate I am handling my situation responsibly?

A: You should continue to pay your debts to the best of your ability and should maintain contact with creditors to make arrangements to pay debts, even if this means delaying or reducing payments. Many creditors are willing to work with their customers in such situations. You should also keep clear, written documentation of your financial situation, payments made, and communications with your creditors so that you can provide this information if needed in assessing your clearance. Additionally, you should keep your security office informed if you are experiencing or beginning to experience financial problems.

Q. I understand the need to work with my creditors, document my situation and keep my security office informed, but what else should I be doing to protect my security clearance?

A: What DOD expects from security clearance holders is judgment, reliability, trustworthiness, and being an overall good security risk. If you consistently act in ways that reflect your good judgment your security clearance should not be at risk. In addition to the actions listed above, you should ensure that any financial problems do not adversely impact other areas of your life. Financial hardships can be very stressful and lead to a person making bad decisions in other areas. If you start to encounter financial problems, credit counseling may be a useful tool; the National Foundation for Credit Counseling (http://www.nfcc.org/) is a nonprofit organization offering help for individuals experiencing financial problems. Your local Employee Assistance Program may also offer some assistance regarding financial problems or stress management workshops, among other services.

Q. What kinds of financial hardships should be reported if they occur?

A: You should notify your security officer or supervisor in writing if you: (1) face bankruptcy, (2) are unable to pay federal, state or other taxes required by law or ordinance, (3) require credit counseling, (4) become delinquent on alimony or child support payments, (5) have a judgment entered against you for failure to meet financial obligations, (6) have liens placed against you, (7) become delinquent on a federal debt, (8) have possessions or property repossessed, (9) default on loans, (10) have accounts turned over to a collection agency, (11) have credit accounts suspended, charged off, or cancelled for failure to pay as agreed, (12) are evicted for non-payment, (13) have wages garnished in order to satisfy a financial obligation, or (14) become over 120 days delinquent on a debt. Providing notification demonstrates responsibility which can mitigate any security concerns about the debts themselves.