Treasury Mandate: Electronic Pay

Defense Finance
and Accounting Service
Providing payment services of the U.S. Department of Defense

Paper checks to end

The Department of the Treasury has announced that all payments from the federal government must be made electronically and not by paper check beginning March 1, 2013.  This means most military retirees and annuitants receiving paper checks will be required to sign up for direct deposit. 

With direct deposit, DFAS sends your payment straight to your bank account. Direct deposit gives you immediate access to your money on pay day, and it eliminates the risk of lost or stolen checks, forged signatures and identity theft.

Over 99 percent of military retirees and over 96 percent of annuitants already receive their payments through direct deposit.  If you’re one of the few still receiving a check in the mail, we’ll send you a notice in the coming months.  But you can get ahead of the rush by setting up direct deposit now.

How to enroll

There are three ways to start direct deposit. Before you enroll, you’ll need to gather information including your financial institution’s routing transit number and account number.  Then do one of the following:
  • Send a signed Fast Start Direct Deposit Form to Defense Finance and Accounting Service, U.S. Military Retired Pay, P.O. Box 7130, London, KY 40742-7130;
  • Use your myPay account to set up a direct deposit to your checking or savings account; 
  • Or call the DFAS Retired and Annuitant Pay Customer Care Center at 800-321-1080. 

It can take 30 to 60 days from the day we receive your enrollment for direct deposit to start.  If after enrolling you receive a paper check, please cash or deposit it as you normally would.  We’ll send you a notification when we process your enrollment.

There are many advantages to eliminating paper checks. No more trips to the bank to deposit your check, no risk of lost or stolen mail, no waiting for misrouted or delayed mail, and your money is available to you the day it is due.  It also will save the American taxpayers about $120 million every year.

More Information.

Back to the December Newsletter

Page updated March 23, 2015