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Additional Option for Managing Allotments

In an effort to support DoD’s ongoing reform to reduce costs, we are encouraging retirees to set up their discretionary allotments with their personal financial institutions using the online banking tools now commonly available through most banks.

Discretionary allotments (e.g. home mortgage payments or savings) are specific dollar amounts you designate for deposit into another bank account directly from your retirement pay.

Managing these transactions through your financial institution instead of your myPay account is easy and allows you to take advantage of tools that offer flexibility to establish, cancel, and modify payments. It’s fast, simple and free at most banks.

Examples of discretionary allotments that can easily transfer to your financial institutions include:
•    Commercial Insurance payments
•    Other Financial Organizations / Savings Accounts

Note: there is no change to non-discretionary allotments (e.g. health care and child support) which you do not control.

Many institutions offer tutorials for those who are not familiar with this option or process.  You will typically need the account number for your allotment payment (e.g., insurance number, savings account) and the name, address, and phone number of the payment company/institution. 

For additional information and instructions on how to stop discretionary allotments in your myPay account, visit DFAS.mil at: https://www.dfas.mil/RetiredMilitary/manage/allotments/

You may also call our Customer Care Center at 800-321-1080.

Page Updated Dec 16, 2020