DFAS Retired Pay Newsletter

Important Reminders

  1. IRS regulations require that income be reported for tax purposes in the year it is received.  The military retired and annuitant payrolls are processed in the month of entitlement and are payable the first business day of the following month.  For example, the retired pay entitlement for December is payable the first business day of January and, therefore, becomes income for the new calendar year.  Effectively, income reported for the 2005 calendar year covers the entitlement period December 2004 through November 2005.

 

  1. Please be aware that if your residence address changes to a different state, retirees must submit a new State Income Tax Withholding request.  The payroll system updates a Change of Address for mailing purposes only but will continue tax withholding based on the prior state of residence on record.

 

  1. The Social Security Offset (SSO) phase II implementation increases the minimum annuity payment from 40 percent to 45 percent of the annuity base amount effective April 1, 2006, payment date May 1, 2006.

 

  1. Delta Dental Program: Currently, there are approximately 400,000 retirees who participate in the Delta Dental program.  The annual increase to the Delta Dental premium became effective April 1, 2006.  Retirees participating in the program will see a decrease in their net retired pay starting May 1, 2006 equal to the increase in the premium amount.

 



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