Military Pay Allotments

An allotment is a designated amount of money that is automatically distributed for you, from your pay. There are many reasons to have an allotment, including setting aside funds for family, or paying off a loan from the military, or paying for your life insurance premiums. The following summarizes what you need to know about allotments:

There are two types of allotments: discretionary and non-discretionary. You can have up to six discretionary allotments per month, and any number of non-discretionary allotments, as long as the total allotments per month is 15 or less.

Your allotment is evenly divided between your semimonthly paychecks. For example: If you have an allotment of $100 it will reduce your take-home pay on the 1st and 15th by $50.

All active duty servicemembers, midshipmen, cadets, and reservists on EAD are eligible to make allotments from their pay. In addition, to help servicemembers transition from active duty to retired status, retirees are eligible to continue all existing authorized allotments.

In addition retirees are eligible to continue all existing authorized allotments. This is to help servicemembers transition from active duty to retired status.

There are two general categories for allotments: discretionary and non-discretionary. Allotments can either be voluntarily, or involuntarily taken from your paycheck. All allotments require a DD 2558 form.

Discretionary Allotments

A discretionary allotment is a voluntary allotment that is setup by a member and may be stopped, started or adjusted at will. Members are authorized no more than six discretionary allotments.

Examples include, but are not restricted to, the following:

• Payment of premiums for commercial life insurance on the member, the member's spouse or children.
• Voluntary payment to a dependent or other relatives.
• Deposits to a financial institution, mutual fund company, or investment firm.
• Payment of car loans.
• Payment of mortgage or rent.
• Payment of a loan to repay consumer credit, e.g., a loan or finance company.
• Deposits into the Savings Deposit Program.
• Payments to the Air Force Enlisted Members Widow's Home for Air Force members only.

Non-Discretionary Allotments

Non-discretionary allotments may be voluntary or involuntary and they cannot be started or stopped at the member's will. Non-discretionary allotments of military pay and allowances by members in active military service are limited to the following:

Voluntary:

• Purchase of U.S. savings bonds.
• Repayment of loans to the Army Emergency Relief, Navy and Marine Corps Relief Society, Air Force Aid Society, and American Red Cross.
• Voluntary liquidation of indebtedness to the United States that includes the following:
  • Indebtedness incurred due to defaulted notes insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA).
• Payment of amounts due under the Retired Serviceman's Family Protection Plan, in the case of retired Military Service members serving on active duty.
• Allotments to the Department of Veterans Affairs for deposit to the Post-Vietnam Era Veterans Educational Assistance Program.
• Any other indebtedness to any department or agency of the United States Government (except to the Military Department that pays the member).

Involuntary:

• Court ordered payments, such as child support.
• Any repayment of debts owed to an organization for funds administered on behalf of the U.S. Government and any such debts assigned to a collection agency.
• Payment for pledges for charitable contributions to the following:
  • Combined Federal Campaign (CFC), Army Emergency Relief, Navy and Marine Corps Relief Society, affiliates of the Air Force Assistance Fund, or Coast Guard Mutual Assistance.
• Payment of delinquent federal, state, or local income or employment taxes.
• Repayment of Indebtedness due to overpayment of pay or allowances.

Allotment Payment Offices

Questions regarding allotments can be directed to:

Army
The Defense Finance and Accounting Service-Indianapolis Center
Military Pay Operations
Indianapolis, IN 46249
Telephone: 1-888-DFAS411 (888-332-7411)

Navy
The Defense Finance and Accounting Service
Cleveland Center
Anthony J. Celebrezze Federal Building
Cleveland, OH 44199
Telephone: 1-888-DFAS411 (888-332-7411)

Air Force
The Defense Finance and Accounting Service
Denver Center
Denver, CO 80279-8000
Telephone: 1-800-616-3775

Marine Corps
The Defense Finance and Accounting Service-Kansas City Center
Kansas City, MO 64197
Telephone: 1-888-DFAS411 (888-332-7411)

U.S. Coast Guard
Personnel Service Center
444 SE Quincy St
Topeka KS 66683-3591

Important Note: If you have an allotment question or problem, you should visit your local pay office with the question first. If your pay office can't resolve the problem, it should officially refer your question to DFAS.