Since January 2002, the Retired and Annuity Pay (R&A) program has been outsourced by a private contractor. Beginning in early 2010, however, R&A operations will once again be performed by Department of Defense personnel.

Recent Federal legislation has led the Department of Defense to survey all contracted programs and select any that could be returned and operated by the Government, specifically those that have been performed by the Government within the last 10 years. A recently conducted Business Case Analysis by DFAS determined that the R&A program would be suitable for such a purpose. DFAS' intention is that this decision will result in a more securely managed processing environment, that may surpass the current level of quality and efficiency of service to our nation's military retirees, and potentially save the Government $20 million across the next 10 years.

DFAS and its current R&A contractor will provide a seamless transition of functions back to the Government.