On Nov. 21, 2014, the DoD issued a statement affecting the policy and processes for military discretionary allotments. Beginning Jan. 1, 2015, discretionary allotments are prohibited to “purchase, lease, or rent personal property.” Those allotments for savings accounts, support of dependents, insurance premiums, mortgages, to pay rents or fund investments will continue to be permitted. (Read the whole story from DoD News)
The policy applies to active duty members only. The changes will not affect military retirees or federal civilian employees.
Current existing discretionary allotments for military members will continue and may be changed in amount, but not the address unless stopped by the member.
The changes will be incorporated into the DoD Financial Management Regulation (DoD Instruction 7000.14-R, Vol. 7A, Chapters 40 and 42) that addresses discretionary allotments.
Members should contact their servicing finance office or Personnel Support Detachment for information on how this change will affect them.
Our Allotment System Change FAQs may answer question you have.
Non-discretionary allotments are not affected by the recent DoD allotment policy change.
Non-Discretionary allotments are made to a specifically designated agency or purpose. There is no limit to the number of non-discretionary allotments a member may have at any given time. Non-discretionary allotments are limited to the following:
- U.S. Savings Bonds
- Relief loan repayments to the Army Emergency Relief, Navy and Marine Corps Relief Society, Air Force Aid Society and the American Red Cross.
- Charitable contributions to the Combined Federal Campaign, Army Emergency Relief, Navy and Marine Corps Relief Society, or affiliates of the Air Force Assistance Fund.
- Privatized Housing Payments: Service members assigned to privatized housing units may be required to make their rent payments via allotment
- Veterans Educational Assistance Program: The Post-Vietnam Era Veteran's Educational Assistance Program provides education assistance on a contributory basis to those eligible members entering the Armed Forces on or after January 1, 1977, and before July 1, 1985, who might otherwise be unable to obtain a higher education.
- Delinquent Travel Charge Card Debt -When a member fails to pay debts due on their charge card, the heads of agencies have authority, upon written request of a federal contractor, to collect the debt.
- Minors – Allotments (except bonds) may not be made payable to children under 16.
- Mentally Incompetent Persons – Allotments may be made payable to the recipient’s appointed guardians or the institution when a mentally incompetent payee is confined.
- Power of Attorney – A general power of attorney is not acceptable to establish, change or stop an allotment. A member must specifically designate a special power of attorney to make changes to allotments.
- Member Awaiting Trial by Court-Martial – Members may not register allotments between the date that a court-martial is ordered and the date of the approval or disapproval of the sentence, except when instructed by the convening authority to establish an allotment for deferred forfeitures. Standing allotments are discontinued when it is necessary to permit the collection of the forfeiture in the monthly amount specified and the time limitation stated by the court-martial, or if the member is sentenced to forfeit all pay and allowances. Prisoners are able to register allotments if the amount of the pay and allowances not forfeited is sufficient to cover the deductions.
- Returned Absentee, Deserter, and Prisoner – Allotments may not be registered for a returned absentee or deserter unless DFAS has verified the member’s pay status.
- Fraudulent Enlistment – Pay and allowances may not be allotted when pay is suspended pending final action on determination of fraudulent enlistment.
- Reduced Pay of Allotter – Allotments are discontinued when a reduction in grade or stoppage of pay does not leave sufficient funds for allotments in force.