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Retired Pay Allotments

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Photo by George Hodan via PublicDomainPictures.net

Retired servicemembers are permitted to continue allotments that they had in effect while on active duty except for Combined Federal Campaign pledges, Delta Dental Insurance, and SGLI.

Military retirees are authorized a maximum of six (6) discretionary allotments. Examples of discretionary allotments included insurance premiums for health, auto, or life insurance; voluntary payments to a family member, former spouse or relative; deposits into a financial institution, mutual fund or investment firm; payment of an auto or personal loan, mortgage, rent, or consumer debts.

Retirees are also authorized an unlimited number of non-discretionary allotments. Examples of non-discretionary allotments are US Government savings bonds; payment of delinquent Federal, state or local taxes; repayment of AER and Red Cross loans; any court ordered garnishment; and charitable contributions to Armed Forces Retirement Homes and AER.

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