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 allotments to financial institutions can be started, stopped or changed in myPay.
Non Electronic Funds Transfer allotments for your mortgage payments, insurance or charitable contributions can be stopped or changed in myPay as well.
To update an allotment using myPay:
- Log into myPay
- Select “Allotments”
- For EFT Allotments, you can START or CHANGE or STOP an allotment amount and STOP an existing allotment.
- For Home Loan and Navy Mutual Aid Service allotments, you can only STOP or CHANGE money amounts. To START Home Loan, Navy Mutual Aid Service, Charity or Insurance allotment, please see the charity or institution where you desire to start an allotment for information.
- You can also STOP OR CHANGE money amounts for certain Charity and certain Insurance allotments..
You can also start or stop an EFT allotment using the DD 2558 Fast Form.
If you use the DD 2558 Form, please mail or fax completed forms to:
Defense Finance and Accounting Service
U.S. Military Retired Pay
8899 E 56th Street
Indianapolis IN 46249-1200
If you have questions or troubles managing your allotment, call 800-321-1080.
Allotments and myPay
Allotments take time to show up in myPay. You will not see your request until you receive your next Retiree Account Statement. Once you have entered an allotment into myPay, please give it time to post. Entering the allotment more than once could cause the system to set up two allotments instead of one, causing pay inconsistencies.
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.
If you received a Retiree Account Statement (RAS) indicating a net pay change, it may be a sign that you need to contact your insurance company and have us adjust your allotment amount.
Find out how to manage insurance allotments.
Page Updated April 26, 2017