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DFAS Retired and Annuitant Pay now has new Tips & Tools for members who are new to retired pay to make understanding and managing your retired pay easier.
The “DFAS Helpful Tips & Tools for Retirees New to Retired Pay” PDF is available at: https://www.dfas.mil/ret
The PDF provides tips and links to information of general interest to all retirees. There is also information for retirees with specific considerations, such as those with VA disability pay and separation pay.
Of special interest to members awaiting pay in the Gray Area is a link to important information and processes for applying to your Service for pay when you are eligible. There is also exciting information about how you can stay connected to DFAS by using a new type of account, especially for you: the Gray Area Retiree “Future Retiree” myPay account.
Here is a sample of the information you will find in this helpful PDF:
Unlike military pay which comes every two weeks, retired pay comes once a month on the first of the month (or sooner if the first is on a weekend or holiday). Similar to the military Leave and Earnings Statement, you’ll get a monthly detailed account statement called a Retiree Account Statement (RAS), which outlines your pay and deductions. Be sure to look for your new retired pay account in myPay https:/mypay.dfas.mil – the quickest and most convenient way to manage your retired pay.
You’ll also find tax documents in your retired pay account on myPay, but as a retiree, you’ll receive a 1099-R as opposed to a W-2.
Military retired pay is paid for many different reasons under many different laws. There are differences in the types of pay a military retiree might receive and the tax laws that apply to them. Whether a portion or all of an individual’s military retired pay is subject to federal income taxes depends on their individual circumstances. Be sure to speak with a tax professional about your specific situation.
In some cases, the pay or reductions in pay you receive in retirement may involve both DFAS and the VA. The Tips & Tools refer to some of the more common examples, but individual cases may vary. For instance, disability pay comes from VA, but this may reduce the amount you will receive from DFAS. Also, if you ever received Separation Pay, it must be recouped in retirement, but usually a portion of that money is recouped by DFAS and a portion by VA if you are receiving VA disability pay. Be sure to check out which laws and programs may impact your pay.
DFAS currently has several Form Wizards available and we are working on more. The Form Wizards “take the form out of the form” by walking you through the information needed to help ensure all necessary fields are completed properly.
The Form Wizards also have a helpful link to submit the form through an askDFAS online upload tool. Plus, some offer the option of signing electronically.
Some forms or requests can be submitted online via the DFAS.mil website using the askDFAS online upload tools. The new askDFAS submission tools were established to improve the way requests are submitted and eliminate the time sending requests through mail or fax.
Upload your form in a PDF directly from your computer or device. Just fill in the information requested on the askDFAS online upload tool page and upload the form you want to submit in a PDF.
As your time awaiting pay in the Gray Area comes to a close, please make sure you are preparing to manage your retired pay successfully. The “DFAS Helpful Tips & Tools for Retirees New to Retired Pay” is a great resource to help with this important transition into the world of retired pay!
If you are a Gray Area Retiree applying for your retired pay, be sure to check our Gray Area Retiree special focus webpages for important information and processes for applying to your Service.
Also, be sure to use the most recent version of any forms you submit to your Service. There are new versions in 2022 for two commonly-used forms: the DD108 - Application for Retired Pay Benefits (11/28/2022) and the DD2656 - Data for Payment of Retired Personnel (3/17/2022).