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Story 13

How to Set Up Allotments for Your Retired Pay

Courtesy DFAS

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 the American Red Cross.

You can have an unlimited number of these non-discretionary 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 Electornic Funds Transfer (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: 

DFAS - U.S. Military Retired Pay
P.O. Box 7130
London, KY 40742-7130
Fax:  800-469-6559.

If you have questions or troubles managing your allotment, call 800-321-1080.

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.