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You can have some of your retired pay go to another institution through an allotment, sometimes referred to as a payroll deduction. This allows you to pay items directly out of your retired pay such as recurring bills, insurance premiums, a car payment, or a mortgage. Please make sure you have enough disposable pay after taxes and other deductions to cover your allotment before setting it up. If you don’t have enough disposable pay after taxes and other deductions, you may not receive your pay, or the allotment might be underpaid.
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. There is no limit on the number of non-discretionary allotments that can be deducted from your pay.
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 the Air Force Assistance Fund
Loan Payments for AER, NMCRS, Air Force Aid Society, or American Red Cross
TRICARE premiums are deducted based on the information TRICARE sends directly to DFAS. Individual retirees cannot make changes to TRICARE allotments through DFAS. They must make changes through TRICARE. Please be aware that TRICARE sends transactions to DFAS between the first and tenth day of each month. This means if you or TRICARE make a change later in the month, that change may not be effective until your pay for the following month.
Generally, Medicare Part B premiums are deducted from your social security. However, if you choose to defer receiving social security and are covered by Medicare Part B, you will need to pay your monthly premiums directly. You can set up a discretionary allotment to pay your monthly premiums in the same way you would set up a discretionary allotment to pay any other bill. Medicare Part B is not billed through DFAS by the Social Security Administration.
If your discretionary allotment is paid via Electronic Funds Transfer (EFT) to a financial institution, it can be started, stopped, or changed using myPay: https://mypay.dfas.mil A limited number of allotments that are NOT paid via EFT can also be changed or stopped in myPay. This includes allotments for mortgage payments as well as some insurance payments and certain charitable contributions. Please contact the specific charity or institution for more information on how to make your request. Entering the allotment more than once may cause the system to set up two allotments instead of one, causing overpayments to your allotments. Once you have entered allotment information into myPay, please allow time for the transaction to post.
You can now submit your allotment start, change, or stop request to DFAS using our askDFAS online upload tool on DFAS.mil. You will first need to complete and sign the DD Form 2558, Authorization to Start, Stop, or Change an Allotment. The DD Form 2558 is available on the DFAS Forms webpage: https://www.dfas.mil/raforms Save your completed and signed DD Form 2558 as a PDF and submit it via our askDFAS online upload tool on DFAS.mil. Find out more: https://www.dfas.mil/askdfas
Once you submit your request, it will take up to three business days to be available to process in the DFAS pay system. DFAS can process a typical request in 30 days if we have all of the required information. Allotments take time to show up in myPay. You may not see your request until you receive your next Retiree Account Statement.
March 27, 2024