Arrears of annuity (AOA) is any pay due the annuitant but unpaid at the time of their death, to which a beneficiary is entitled. Arrears of annuity pay may result from checks not having been negotiated before the annuitant's death, suspension of annuity, or failure to establish an annuity account where an entitlement exists.

Recoupment Process

The annuity is not prorated for the month of annuitant's death. Annuitant pay stops on the last day of the month prior to the annuitant's death. Therefore, all pay deposited after the date of death is automatically recouped by DFAS from the annuitant's checking account. After a complete audit of the account, any arrears of annuity is calculated and paid in accordance with order of precedence.

Prompt reporting of an annuitant's death is necessary to avoid extensive recoupment of unearned payments. Read instructions on reporting the death of an annuitant.

Submitting an Arrears of Pay claim

Two documents are needed to process an Arrears of Pay claim:

One SF1174 claim form for each beneficiary (Instructions)
A copy of the annuitant's Death Certificate that specifies the cause of death

Please fax (1-800- 982-8459) or mail these documents to DFAS at P.O. Box 7131, London, KY 40742-7131. Note that all outstanding funds must be returned to DFAS before an Arrears of Annuity can be made.

Entitlement to/Distribution of Arrears of Pay

Arrears of Annuity will be distributed in accordance with the federally-mandated Order of Precedence. Payment of the arrears is made to the person living on the date of the annuitant's death who is highest on the order of precedence. Questions about arrears of annuity can be directed to our Contact Center at 1-800-321-1080.