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You can have some of your retired pay go to another institution through an allotment (often known as a payroll deduction). This allows you to pay bills, insurance premiums, mortgages, etc. directly out of your retired pay.

Before setting up an allotment, please make sure you have enough disposable pay after taxes and other deductions to cover it. If you don't, you may not receive your pay or your allotment might be underpaid.

How Many Allotments Can You Have?

You can have a maximum of six discretionary allotments. 
The following allotments are considered non-discretionary, and they do not count toward your maximum of six:

  • Delinquent tax payments (federal, state, or local)
  • Repayment of debts owed to the government
  • Charity payments for Army Emergency Relief (AER), Navy-Marine Corps Relief Society (NMCRS), or affiliates of Air Force Assistance Fund
  • Loan Payments for AER, NMCRS, Air Force Aid Society, or American Red Cross

You can have an unlimited number of these non-discretionary allotments.

Starting, Stopping, or Changing Allotments

Electronic Funds Transfer (EFT) allotments to financial institutions can be started, stopped, or changed in myPay.
Non Electronic Funds Transfer allotments for your mortgage payments can be changed or stopped in myPay. Certain insurance and certain charitable contributions can also be stopped or changed in myPay. To start a Home Loan, Navy Mutual Aid Service, Charity, or Insurance allotment please see the charity or institution where you desire to start an allotment for more information on how to complete this action.
To Start, Change, or Stop an allotment using myPay:

  • Log into myPay
  • Select “Allotments”
  • Select the Allotment you wish to change or stop or select “Add Financial Allotment” and follow the prompts to complete your action in myPay.
  • Select Submit and Finish to complete your transaction.
  • View your transaction history to confirm the changes made to your allotments. 

Once you have entered an allotment into myPay, please allow time for the transaction to post. Entering the allotment more than once could cause the system to set up two allotments instead of one, causing overpayments to your allotments.
You can also start, stop or change an EFT allotment using the DD 2558 Form, available on our Forms webpage.
Retired & Annuitant Pay created a new option for submitting requests to start, stop or change allotments using the DD Form 2558. To make an allotment request, please complete and sign the DD Form 2558, Authorization to Start, Stop, or Change an Allotment. You can submit the form via our askDFAS online upload tool on DFAS.mil and you will also receive status notifications as the form moves through the processing cycle. 
Submit the DD Form 2558 via askDFAS using the following link:
AskDFAS Link: https://corpweb1.dfas.mil/askDFAS/custMain.action?mid=12

  1. Click “Submit a Ticket”
  2. Select Category = “Retired Pay Form Submission”
  3. Select Subcategory = “Allotment DD 2558 Form Upload/Submit”
  4. Fill-out all applicable information
  5. Upload the completed DD Form 2558
  6. Select “Submit”

You can also mail or fax completed DD 2558 forms to: 
Defense Finance and Accounting Service
U.S. Military Retired Pay
8899 E 56th Street
Indianapolis IN 46249-1200
Or, Fax:  800-469-6559.

If you have questions about managing your allotment, call 800-321-1080.

Allotments take time to show up in myPay. You may not see your request until you receive your next Retiree Account Statement.

Related Links:

The Department of Defense has an agreement with several agencies that prevents DFAS from starting, stopping or changing any allotments paid to them.
Find out more about these agencies
Some allotments cannot be transferred forward from active duty to retirement pay.
Read more about these allotments

Find out how to manage insurance allotments


Page Updated July 11 2023