Retiree arrears of pay (AOP) is any pay due the retiree but unpaid at the time of their death, to which a named beneficiary is entitled. Typically, this is a prorated amount that covers the first day of the month through the retiree's date of death.

Recoupment Process

The retirement pay of a military member stops on the first day of the month in which the retiree dies. Therefore, all pay deposited after the date of death - including pay deposited for that month - is automatically recouped by DFAS from the retiree's checking account. After a complete audit of the retirement account, any arrears of pay is calculated and paid to the retiree's named beneficiary.

Prompt reporting of a retiree's death is necessary to avoid extensive recoupment of unearned payments.

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 retiree's Death Certificate that specifies the cause of death

Please fax (1-800-469-6559) or mail these documents to DFAS at P.O. Box 7130, London, KY 40742-7130. Note that all outstanding funds must be returned to DFAS before an Arrears of Pay can be made.

Entitlement to/Distribution of Arrears of Pay

Arrears of Pay distribution is based exclusively on the retiree's beneficiary election on their retired pay account. If no beneficiary was elected on the retired pay account, payment will be distributed in accordance with the federally-mandated Order of Precedence. Questions about arrears of pay can be directed to our Contact Center at 1-800-321-1080.