U.S. Military (Ret.): MyPay account critical to navigating DFAS maze - Military Retirement - Navy Times

U.S. Military (Ret.): MyPay account critical to navigating DFAS maze

I hear from many retirees who have questions about that mysterious monolith, the Defense Finance and Accounting Service.

DFAS is the processing agency for many types of military pay actions, and it also serves as a liaison to such agencies as the Internal Revenue Service, Veterans Affairs Department and state court systems on issues related to spousal and child support recoupment.

Although dealing with DFAS can be confusing for beginners, any communications with the agency should begin with establishing a myPay account.

New retirees will receive a letter from DFAS explaining how your retirement pay is computed. The letter will encourage you to sign up for myPay access.

Setting up a myPay account is fairly easy and, once done, allows you to make changes to your own pay account in a secure electronic environment.

If you don’t already have an account, you can get started by going online to www.dfas.mil and clicking on the “myPay” icon on the left under “DFAS Services.”

That link will take you to a myPay page, where you can access a detailed list of frequently asked questions and other information.

Recoupment starts

Speaking of DFAS, here’s a reminder that the agency will resume in August recoupment of some retirees’ Voluntary Separation Incentive, Special Separation Benefit and other separation payments.

VSI, SSB and certain other payments, such as severance pay, were offered to active-duty members in an effort to reduce manpower in certain career fields, mainly during the 1990s drawdown.

Some service members took the separation incentives and later joined the reserves or returned to active duty and earned retirement status. But federal law prohibits service members from receiving separation and retirement payments for the same period of service — hence, the recoupments.

DFAS temporarily stopped these deductions in June 2009 so the Defense Department could review the situation.

While recoupments will resume, there is good news: DFAS now has more flexibility to modify repayment plans. The agency has cut the maximum recoupment rate from 90 percent of a retired paycheck to 40 percent. DFAS also will consider more lenient repayment plans for retirees who have financial hardship.

Affected retirees should get notification letters at least 90 days before any recoupments begin, and will have a chance to explain any financial hardships and request a more lenient repayment plan.

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Retired Command Master Chief Alex Keenan served 28 years in the Coast Guard. E-mail him at retired@atpco.com.