The Director’s Corner by Karl H. Bernhardt

“Welcome to the 5^th issue of the DFAS Retired Pay Newsletter. 

This past winter tax season has been busy. In the past several months we’ve provided assistance to thousands of callers explaining the change in income tax withholding that occurred when we merged the Combat Related Disability Payments (CRDP) program from a ‘stand alone’ computer system to the Retired Casualty Pay System (RCPS) mainframe effective October 1, 2005 (checks dated 11/1/05). 

Also, many callers asked about implementation of the first 5% increment of the Social Security Offset Legislation effective October 1, 2005 (checks dated 11/1/05). We have updated the Frequently Asked Questions (FAQ) section in an effort to address the many new questions arising from the SBP Open Season Enrollment. 

In this issue you will find an article titled ‘Important Reminders’ which includes information regarding State Income Tax Withholding, the Social Security Offset phase II implementation, and IRS regulations pertaining to the reporting of income received. For those of you with Delta Dental, premiums will increase effective with your May 1, 2006 check.  In this issue, we have also included some guidelines for submission of checks sent to DFAS. 

Happy Spring! Summer is just around the corner!”